Home > NewsRelease > Art Koch's Profit Chain™ Series - Product Life Cycle | Manufacturing | Supply Chain | Volume 2 | Number 5 | May 2019
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Art Koch's Profit Chain™ Series - Product Life Cycle | Manufacturing | Supply Chain | Volume 2 | Number 5 | May 2019
From:
Arthur Koch Arthur Koch
Miami , FL
Sunday, May 19, 2019

 
 

Art Koch's Profit ChainTM Series

Notre-Dame | Boeing 737 MAX | Leadership
Volume 2 | Number 5 | May 2019
"There is no such thing as bad publicity"
 - P.T. Barnum

 
The dust has settled on two defining disasters of 2019 (and possibly the decade): the Notre-Dame fire and Boeing 737 MAX crashes.  What should we learn from these tragedies, and why are we always destined to repeat the mistakes of history?

 

As we watch the news our thoughts are first toward the human tragedy and second towards the cost of rebuilding.  We hope and pray for survivors, embrace heroic story lines and sensationalize costs.  Typical reactions are: "If only we had spent the extra $0.85..." or "We should have protected our priceless artwork..." or "Why didn't we anticipate the billions lost in market capitalization?"

The Notre-Dame fire and the Boeing crashes may appear to be very different tragedies, but there is something they both have in common: leadership failure.  It is now known that Notre-Dame was in complete disrepair and that Boeing missed critical linkages between automation and manual flight modes. 

 

How does this happen?  Complacency and denial?

 
  • Notre-Dame is one of the most visited tourist destinations in France and the world; 13 million people visit per year.  How could there be any problems when everyone wants to visit your location? 
  • Think about the mind set at Boeing before the latest 737 MAX crash: "Wow, what a ride!" "Boy aren't we doing a great job?" "Just look at the record sales, market share and profits!"
simple or complex keep it easy or simplify solve difficult problems with simplicity or complex solution no difficulty 3D_ illustration
Then BAM!!!  The Significant Emotional reset of core values.

 

True leaders own and learn from their mistakes.
  • Now is not the time to deflect blame. 
  • Now is not the time to be in denial about critical cracks in the foundation. 
  • Now is the time to take ownership and complete the job you signed up for.   


Ask yourself if you're following these critical questions;
  • Do you "walk the walk"?  Do you follow all personal protective equipment guidelines?
  • Do you walk the facilities to be certain they are safe, orderly and well maintained? 
    • The simple items make all the difference. Are fire extinguishers in the proper locations, inspections current, and are they all freely accessible.  Are all exits marked and is egress clear?
    • Are your facilities visually managed?  Can you see out of control processes from a distance?
  • Is your organization safe emotionally?  Do all people feel safe and non-threatened?  Are you absolutely sure of your answer?
  • Is there a whistleblower hotline? Is it effective? Again, are you absolutely sure of your answer?
  • Have you visited your sites all hours of the day and night?  If you want to lead, show up at the beginning of an off shift and work alongside the team.  You'll see first-hand what is occurring; listen to what they are saying.  If you do this enough you will learn what is really going on.
  • Is the organization a learning enterprise?  Are people rotated through departments and assignments?  Is knowledge for processes shared and documented?
  • Does your team have both planned and unplanned drills for environment, health and safety guidelines and policies?
  • Do you have an outside advisor test your preventative practices?  Are you receiving the unfiltered truth on the organization's practices?


Do you know the warning signs?  For me this is a simple answer.
  1. Is health and safety discussed first?  Are corrective actions taken more seriously than customer quality complaints?
  2. Is there an open line of communication?  Are team members able to openly and freely disagree and debate without repercussions?  Do whistleblowers have a voice?  Are whistleblowers rewarded or punished?
  3.  When a key person leaves the organization, are you left with a large gap in knowledge?


Most, if not all, major disasters could have been averted with minimal cost and/or timely resolution of deficiencies. 

As leaders we are Guardians!  In the case of Notre-Dame - the history of a great religion.  In the case of Boeing, the millions of literally priceless individuals who place their lives in your hands each time they board an aircraft!

 


Guardians don't fall asleep at the wheel!
 

And as for the P.T. Barnum quote "There is no such thing as bad publicity"...  well, just ask Boeing and the Archdiocese of Paris. 


The evening news should not be a marketing strategy!


 


Inventory Is Evil™!
 
in·?ven·?to·?ry / 'in-v?n-?t?r-e / noun
Inventory is the term for the goods available for sale and raw materials used to produce goods available for sale.


in·?ven·?to·?ry is evil! / 'in-v?n-?t?r-e  is  'e-v?l  / phrase
Left unchecked inventory has many negative unintended consequences to profitability.

It hides problems; therefore, it delays fixing problems!  


 
 
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Thanks in advance for your time. As always, thanks for being a loyal client. Looking forward to helping you and your team again soon.

Carpe diem,

Art Koch

Arthur Koch Management Consulting, LLC

info@arthurkochmgt.com

+1 (336) 260-9441

 
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Arthur Koch
Miami, FL
336-260-9441