Huwebes, Hunyo 23, 2011

How to make Certification work for you by Jolito Ortizo Padilla

 Conceptualized by GA Consultancy
Know what standard you want, then read it
The vast range of management system standards are available to companies highlights the importance of firm knowing what they want to get out of the certification process. Neil Hannah, global operations director, BSI Group, says: "Companies getting started in certification need to have a clear view of activities they seek certification and when". There maybe a contractual or regulatory requirement, as in automotive industry. Or companies may wish to improve the procedure of work for employees so they are more productive. This aim could be achieved by identifying processes within the organization and considering where improvements could be made.

Roger Bennett, the International Accreditation Forum's director for conformity assessment bodies, says that it is the responsibility of a company's quality or regulatory department to obtain standards appropriate to its sector, and then read them. Phil Shaw, accreditation manager of UKAS, adds: The organization will, in light of the standard, need to review its operating practices and organizational structure to ensure that it has a demonstrable system and arrangements that comply, "This means the company must understand the scope of the standard."

The standard can be implemented in-house, and there are consultants available to help establish the standard, as Roger points out. However, certification bodies are not allowed to consult on the implementation as this would be a conflict of interest if that body were also certificating the standard. Consultants should not impose a standard system in the company -it should be made tailored to fit the company's current system and specific needs. Relevant people in the organization should be involved in the process of documenting what they do.

Evaluate several certification bodies
The next step is for companies to consider what kind of certification they require. Roger says there are several different kinds of clients: badge hunters looking for the cheapest possible solution", "the normal business hoping to improve its processes", and "those end looking for something well beyond what ISO 9001 offers". Roger suggests that small certification in one country are often "best placed to meet the needs of the badge-hunters". Larger clients , who may be international, usually look for a large , global certification provider to conduct audits in many disciplines and countries.

However, Roger says that clients should always look for a certification provider that is accredited by a reputable accreditation body which is part of IAF's Multilateral Recognition Arrangement- the mechanism by which accreditation bodies are evaluated. "This gives a measure of confidence that the accreditation body has been assessed by auditors from other accreditation bodies under the control of the IAF."

Jackie Burton, business and customer relations manager at UKAS, adds: " Certification bodies should be  impartial and competent for the areas in which they offer certification. This is why certification bodies themselves become accredited -to demonstrate that they are capable of offering the kind of robust assessment needed in order for certification to be meaningful and that they will do so in a fair and competent way."

Furthermore, says Neil Hannah, organization should choose a brand which they, and their stakeholders, trust. " All reputable certification bodies with accreditation from IAF member can deliver certification to a similar standard but not all certification bodies are the same., "he says." "When faced with a difficult choice , many of us rely on the recommendation of another purchaser."

Companies should also ensure that they establish whether the certification body has auditors with experience in the organization's sector of activity.

The certification process
Certification bodies usually carry out an initial audit of the system, when it is first certified, which will look at the complete system. This will be followed by surveillance audit, where there is a "cycle of shorter audits in which a snapshot of the system is taken", according to Vince Desmond, executive director of Business Development CQI. "There will be a sampling of activities, for example getting the views of 50 customers, or levels of product recall, " he says, " The certification body is not looking at everything the organization does."

The length of time the auditing process tales depends on the size and type of organization. Catherine Golds notes how, in small organization, it may take just one day, but could take a number of weeks in a larger organization.

Organization should prepare for the assessment because it is the certification body which decides on whether they meet the assessment or not. Certification bodies will report back on the systems and processes which are no working in line with the management system standard.

They may decide that the company is not conforming to the system standard , but this can take a variety of forms-it may be minor, in which case it is described as a "single observed lapse" or it may be major in that an aspect of the system is not being addressed. In this case, the company would need to take action to rectify what is not being addressed within the management systems and processes.

When a standard gets updated
While achieving a certified standard should not be an excuse for companies to rest on their laurels when it comes to the development and success of their management systems, they will need to be aware of what is required when standard get updated. They were reviewed every five years by ISO to ensure that they stay relevant to companies.

ISO 9001 was updated in 2008, and it is now in its fourth edition. The update has been relatively small , so there were no new requirements-just minor editorial changes to the wording of the standard.

Certified organizations have a transition period in which they can ensure they remain compliant with the standard. In the case of ISO 9001:2008, this period runs from 14 November 2008 for one year. They will then be audited in line with the new standard when their next assessment takes place.

It depends on how much  a standard has changed as to what a company needs to do in terms of updates- they should look at the amendments to a standard and consider what changes may need to be made to their management system. The certification body will also need to adapt, as Roger says: If the changes have been significant-with new requirements-the certification body may need to retrain the auditors, re-brief sales staff and redraft product manuals and marketing materials. Roger explains that significant changes are introduced through a transition period agreed with the IAF and clients have an agreed time to change their management systems and processes to meet the revise standard before certification bodies carry out audits.

GA Business and Management Consultancy
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Miyerkules, Hunyo 15, 2011

A Challenge for Buyers by Jolito Ortizo Padilla

The importance of supplier relationship management is nothing new. But the theory is undergoing somewhat of a change.

According to Jurgen  Nelis, head of direct and indirect materials operations at pharmaceutical firm Roche, everybody is already doing it (whether they know it not). "It's something you do everyday with varying degrees of success".

As everybody knows, good SRM can lead to cheaper prices, faster time to market, more flexibility and innovation.

But what is changing is that businesses rationalize their supply base those vendors left standing are becoming more powerful. And, if the relationships with these fewer, stronger suppliers are not managed properly they could present a risk to the business.

Why We Do It
"Most competitors are roughly equal so supplier relationships can give you sustainable advantage, " argues Professor John Henle, Oakland University lecturer and President of management consultancy Planning Perspectives.

He says being the "customer of choice" is increasingly important and the better the relations the more likely they will be that customer of choice.

"This becomes particularly important if it's a seller's market," he adds.

Luc Voltarier, executive in residence, purchasing and operations management, at the Institute for Management Development in Switzerland , agrees. He points out that research shows suppliers are more and more careful to pick the right buyers- "so it's the suppliers choosing you".

This is borne out by Peter Trujen, CFO at consumer marketer Newell Rubbermaid: You have to be attractive otherwise if there's a bigger partner the supplier will go with them.

Furthermore , Henke says, since some suppliers will be providing goods to your rival as well as your company, they can compare how they are treated by each, which can in turn influence their behavior.

The Benefit
So there are some risks if you don't manage your relations with your key suppliers, but what of benefits?

One of the most persuasive arguments comes from Henke, who believes he and his team are on the cusp of directly correlating strong supplier relations with a percentage difference in prices.

He leads an annual review of tier one suppliers of car manufacturer in North America-Chrysler, Ford, General Motors, Honda, Nissan and Toyota.Having studied 15 years' worth of data from Working Relations Index (WRI) -which scores companies' suppliers relations from 0-500, with a rating above 350 considered strong-he said: "We think when the WRI goes up 10 percent the cost of goods comes down 1 percent."

"This is preliminary research , but even if it's half wrong it doesn't matter because we're talking about millions of dollars. The cost of good supplier relations doesn't even come close to the savings you can make."

Such stark terms may be hard to prove, but Henke says even anecdotal evidence supports the theory:" Some suppliers charge different amounts to different companies depending what they have to go through to get business."

He adds that if you go about SRM correctly, you can insist on more from your suppliers. If you can guarantee business and they know you will support them when things go wrong, and work with them to improve things until you can't anymore , then suppliers will stick with you, not just switch allegiances."

Not only you be offered better prices, Henke argues working closely with suppliers can help make money. "As strange as it may seem, greater profits as a buyer also means greater profits as a supplier."

Barbara Kux, CPO at Royall Philips Electronics , says the company has selected 30 strategic suppliers, a move which has reduced the time to market of some goods by 50 percent. " we're twice as fast , " she says.

Nelis says good SRM led to a similar experience in Roche. " We had two suppliers of a particular product, we were running out of capacity so needed a third but we didn't really want one because of intellectual property. So we sat down with our two suppliers and they agreed to work together to improve productivity, even though they were from very different backgrounds."

Trust and Respect
All good motivations, but how do you go about SRM?

Henke says it is up to buyers to determine the nature of the relationship. "Suppliers cannot decide what sort of relationship they will have with you, suppliers can only react to the way a buyer behaves."

Volatier believes this leaves buyers with two choices: "The power game , or the trust game, it's  up to  you.

"For the past 20 years the game has been easy. You whistle, you get a supplier, hit them on the head, get a good price and call them back in 12 months.

"But people are reducing the number of suppliers, which means suppliers are becoming more powerful, they have a greater stake in your business."

Barbara Lavernos, head of purchasing at L'Oreal , says procurement has been building long -term relationships with suppliers for past few years to support growth. Their approach is based on mutual respect, transparency and sharing information.

"The CEO wants to make L'Oriel a top performer and one of the world's most respected companies. Being respected also means being respected by our suppliers."

Volatier said the challenge for buyers was to apply just the right amount of pressure: "For years we've trained,  selected and incentivised people to squeeze suppliers and treat them as beasts. Suppliers don't stand a chance. The more pressure you put on the better you feel, but the more value you destroy. Of course you value need to be competitive but you also need to develop relationships."

Time, Effort and Measurement
Once buyers have identified who to partner with, Henke suggests measuring the health of the existing relationship.

"Look at where your supplier relations are and where you want them to be. You need to know the status of your supplier relations in absolute terms across different sectors, sizes, countries and find out how your perception compares to that of your suppliers."

He says in a manufacturing environment the key components that drive relationships are: communication (is it adequate and fast enough?, whether you help the supplier (to improve cost and quality, for example); or hinder them (by making late and excessive changes).

He adds the final driver for a supplier is what opportunity they have to make a profit. "There's nothing about cost savings," says Henke.

And don't expect strong supplier relations to happen overnight, warns Nelis.

"You have to invest time in this, it's not a set job or something you just do in the evening. You need the supplier to invest time in it, too. If someone in the team doesn't see the value of the relationship you will not be successful."

He says the following factors are critical to successful SRM:
- A management mandate:make sure your company wants to do SRM".
- Global supplier relationship managers with adequate skills and passion."You need someone who can bring the companies together, which traditional negotiators won't be able to do." He adds that separating your SRM and category managers is key because one person cannot do both jobs when it comes to negotiation.
- Establish behavioral norms. "Ensure internal alignment and manage stakeholders."
- Realize quick wins to motivate and create long-term value.
- Establish mutual interest and relationship targets.
- Don't wait for the right time to star- it will never happen, just start.
- Lastly, performance needs to be measured, "because only what's measured gets done. So have join targets for the relationship to increase productivity, for example, or to mitigate risk."

So how does this work in reality? "At least once a year we want to see major stakeholders of two companies at the table." At these sessions they seek to understand each other intentions and priorities, exploit common ground goals and setting an action plan.

In conclusion, according to Nelis, SRM is like a sheepdog; " you need to lead from the back , realize its bark is worse than its bite and that you don't want to lose anyone along the way."

Miyerkules, Hunyo 8, 2011

People Wastes by Jolito Ortizo Padilla

In my book Emotional Intelligence: Putting Things in Proper Perspectives I have addressed three  groups of people wastes. The final of the three groups of people wastes is concerned with what goes on inside us. Delving further into the realms of psychology, they focus on three particularly ineffective aspects of how we think.

Misunderstanding
A common cause of many behavioral wastes is when we simply do not fully  understand the situation,one another or the impact of our actions. If we could improve our ability to understand all of these then we would have the capability to make great leaps in reducing our personal contributions to wastes, as well as helping others.

Misrecognition
When we see something our first question is : "What is that?" Our minds solve this problem by pattern-fitting our current perception to our previous experiences. This is remarkable and we are very good at recognizing even distorted and obscured shapes, such as a friend who is yawning but half obscured.

A woman was driving a car and brushed her hair behind an ear. A policeman saw her hand by her ear and recognized that as holding a mobile phone and stopped her. We see what we are looking for and miss what we are not.

We also miss many things as our minds helpfully correct what we see. A written article may be read by several professional proofreaders and still contain glaring errors.

The Solution
- When you think you have recognized something significant, pause and think again
- When you write something, get someone else to review it

Misinterpretation
When we believe we have recognized something, the next question is: "What does it mean? " The inference of meaning is a complex process including against our internal mental models. These models are simplifications we build to help cope with the messiness of the real world. For example, we build models of different types of people that let us classify others and decide how to interact with them.

Misunderstanding happens when we forget that our models are not totally accurate. We assume people are identical to our simplified models of them. We act as if the whole business obeys the simple rules we have assumed for it. We forget that the map is not the territory and ignore realities that upset our nice, clean models.

The Solution
-Be careful with the meaning you infer from limited information
-Remember that there is often more than one valid meaning

Misjudgement
After interpreting what we have seen, we then sit in judgment asking: Is it good or bad, right or wrong? " In particular , we sit as judge and jury on each other, evaluating actions and finding our colleagues wanting.

A common error is that while we forgive ourselves for mistakes by blaming a situation, we often assume that others err for dispositional reasons. To compound this further, having classified them as bad, we then assume this to be irreversible, in-built trait. Although this helps us feel superior and better ourselves, it taints our relationship with those we have condemned.

A major culprit is our values system, which we use to evaluate our experiences. Values act as social behavioral rules that help us live in some semblance of harmony with one another. They are generally useful in that they curb our more antisocial excesses, but we still tend to apply them more strictly to others than ourselves.

The Solution
- Understand how you derive the criteria by which you judge
- When judging other people and yourself, use the same criteria
- Seek to forgive and learn rather than blame

Misdecision
Once we have created our own meaning from our experiences, we must then decide what to do about it. If we have misunderstood an event then our decisions, no matter how rational, are doomed and we can then only compound the waste. Yet, even if we assume reasonable understanding , there are many decisions trip-wires that snag our thinking and lead us to wasteful decisions.

Thinking too little
We live in a a real-time flow of experience in which we must make thousands of decisions each day, from what to eat for breakfast to how we respond to a customer complaint. The way we handle the vast majority of this torrent of demand on our cognitive processing is through a set of short-cuts that we acquire over time, including habits, rules of thumb and programmed responses.

Organizational cultures often encourages this lack of thought , as they laud a "bias for action" and the heroes are those who are out there fighting fires (which they may have unwittingly lit themselves). It seems that there is never time to get it right first time, but there is always time to put it right later.

One definition of an expert is someone who has a large set of short-cuts so can rapidly respond to a range of situations. Through study, experience and reflection they build up their store of knowledge. However, when that knowledge is wrong or incomplete, then they will unwittingly err in their decisions. Having acquired knowledge about the topic , they then close the doors to new understanding and make increasingly dated decisions. This is often the reason for the young out -thinking the old. Where our decisions are based on old data, when we cease to be curious and focus on defending the crumbling castle, we fall into a spiral of waste.

The Solution
- Do not make important decisions hastily. Give time to reflect
- Listen to inexperienced people and the naive question they ask

Mistakes of reason
Ever since Aristotle, we have had still clearly defined logic available, yet we still both use and abuse logic in our decision-making and blunder daily through host of fallacies. Our need to appear rational leads us to regularly assert the reason and completeness of arguments that are, in fact, full of logical holes through which you could drive a fleet of busses.

When faced with risky situations, our decisions become more complex because we now have to consider both gains and losses. The way these situations are presented to us and how we process them have a significant effect on our decisions. A gambler sees a large potential gain and ignores the high probability of a smaller loss. A drug addict focuses on the short term highs and ignore the long term consequences.

The Solution
-Recognize where you are making emotional decisions
- Understand and check the logic of your decision

Thinking too much
Robert Louise Stephenson once commented that :" It's better to travel hopefully than to arrive." When thinking becomes more attractive than acting, we avoid coming to any final conclusions, preferring to dally in our safe and fantastic dreams.

This is the world of the visionaries and planners who live at the opposite end of the spectrum to their mortal enemies, the reactive of firefighters. Although businesses have fewer  such purists, they tend to be found in positions of influence where they can potentially do more damage. It is not that dreamers are necessarily bad, but their dreams can often go beyond the capability of the company or the needs of the market. Exploration is sometimes useful and necessary, but explorers who make no maps will wander around in circles.

The Solution
-Beware of the analysis paralysis of excessive thinking
- Connect thinking to decisions and actions

Misbelief
The deepest level of inner waste happens in the beliefs and assumptions we adopt in order to support our understanding and decision-making. Many of our mistakes of reason and other dysfunctions are therefore based less on faulty logic than faulty assumptions.

Beliefs about the world around us
In living our lives, we have limited time in which to explore and build a deep understanding of the complex world around us so we build simplified models to help us interpret and decide. The biggest problem with this is that we then treat the world as if it is made up solely of our models and miss much of the rich detail around us.

As well as simple, our models are also often grossly distorted or just plain wrong , further corrupting our view of the world.

The Solution
-Continuously develop and extend your understanding of the world, challenging your own models
- Questions the references you assume are true and listen to new ideas

Belief about others
Some of our most important beliefs focus on people both generally and individually. What we believe about people directly affects how we treat them. A belief that people are self-centered and lazy leads to a system of strict controls, as opposed to the more friendly and trusting system that assumes people  are honest and well- meaning.

Our models of other people are often as simplified and distorted as other models and we keep a limited set of stereotypes. This is useful when we meet people , as with very little information we can stuff them into a classification box and henceforth know how to interact. Of course, it also means that we will largely ignore what they say and do and will actively push them back into the box. What is even worse is that they will go along  with this. If you repeatedly tell a person they have a limited capability , they will soon believe you and no longer try to extend themselves.

The Solution
-Beware of stereotypes and bias corrupting your view of other people
- Adopt beliefs that help you work effectively with others


Belief about ourselves
Finally we have beliefs and models about ourselves , much as we have beliefs and models about other people. These , however, are modified by our need to feel good about ourselves. Self image and self-esteem are powerful influences on what we think and do.

Much of our self-image is built by comparing ourselves to other people. This can be a dilemma if we want to look better than them, so we cheat by having different rules for each other. When I make a mistake, I excuse myself by blaming the situation, but when you succeed , I assume you were lucky. Thus, by tipping the balance, I can feel superior and so good about myself.

We also build our self-image from how others treat us or, more accurately and confusingly , what we think they think. But when they are also tipping the balance to build their own self-esteem, it is easy to end up with a much lower opinion of ourselves than we should.

Much of  our self image was formed when we were young, had little understanding of the human psyche and our parents and teachers were clumsily trying to shape us into conforming members of society. So we end up with limiting beliefs that hold us back and waste our potential Once we see through this sham, the possibilities are endless for reducing waste in our lives, our relationships and our organizations.

The Solution
-Beware of arrogance or timidity born of an ineffective self image
- Know yourself to be equal and worthy.


               My thanks to Mr. Sundaram Sagaran  and  Aurelio Macaraeg Jr.

Lunes, Hunyo 6, 2011

Your Career Questions Answered: A letter from Michael, my former student of De La Salle University-Dasmarinas.




 Michael is working at General Motors-Melbourne, Australia

Thank you Michael for subscribing Strategic Management:Building Competitive Advantage  at IPad

We have experienced significant fluctuations in price of commodities over the past six months and I have been asked to develop a strategy to deal with this. What approach should I take?

The Answer:
When significant commodity price shifts take place, organizations can make savings by moving away from the usual supplier renegotiation tactics of electronic requests for quotations and long -term deals. Instead, they should re-examine their functional product specifications-or even packaging specifications.

Although specification changes require a lot of support from engineering departments to understand the requirements of the source materials, and often require coordination with sales and regulatory groups to approve changes , they will yield significant savings. Common tactics include altering base product materials (adjusting plastics , alloys or chemicals), re-engineering packaging , or changing product shapes and sizes to consume less material.

Once you understand specifications, you might also want to develop a total costing model to allow you to adjust your mix of commodities based on the latest prices of alternative materials. These types of models are commonplace at food, metal alloy and plastic goods manufacturers.


How Time Flies!

Your Career Questions Answered: Letter sent by Joyce -my former student at Bernardo College-Las Pinas

Managing People is available at Sharp Galapagos tablet reader

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>>>>> Our procurement department is experiencing problems with staff including a lack of motivation, communication and clarity about roles, high staff turnover and non-compliance. I have been asked to look into empowering staff and achieving a higher level of professionalism. What should I look at besides coaching and mentoring.

The Answer:
The central issue to tackle is low morale. Empathy is key- get to know what is important to the team and let them know what is important to you.

Discuss why motivation is low and focus on creating a culture of open dialogue ,support and challenge. Team-based training could help spark debate and interaction.

Your team is uncertain  and needs  a vision for change they can get behind. As a leader, you must be a role model. Create a shared vision for the future and a line of sight between each individual's role and the company mission. Ensure you involve the team in any major changes. Give people ownership for key tasks, and keep everyone informed of progress and success along the way.

Manage under performance, reward positive behaviors and create a learning organization where people are not scared to make mistakes.

Structural change may also be required depending on the intended strategy (for example, you could restructure to promote teamwork, specialist category knowledge or customer focus). However, this will offer limited success if the underpinning culture is not right.

Joyce is working with Alshaya, one of the largest  retailers in the Middle East Countries. 

Biyernes, Hunyo 3, 2011

Your Career Questions Answered by Jolito Ortizo Padilla Sr.

The letter was sent to me by Noel ,a former student at University of Perpetual Help -Rizal and works  at Mumtalakat Holdings -Bahrain

>>> I've heard there are lots of opportunities to gain qualifications over the internet. How can I found the right course for me.

The answer:
Millions of people now choose to study via internet each year. For individuals that do not live near an education center that offers the course they want to study or are restricted in when they can study, e-learning offers the flexibility to study in a way that suits them.

The initial considerations are the same as with any other qualification- think about what you want to gain from studying and what you're interested in learning about. If you want to gain a qualification for professional development investigate whether you are best to apply for a course accredited by a professional body.

The next step to consider is how you like to study. Many e-learning opportunities are self-directed but there are options where you can have more structured interactions with a tutor. Alongside contact with your tutor, e-learning courses can incorporate a variety of learning methods including online information, webinars, video conferencing and discussions groups.

Consider what you have found most beneficial in the past. If you have enjoyed sharing ideas and debating concepts then a course that sets up an online community for its students might be your best option. If you find listening to lectures easier than reading textbooks a course with a high proportion of videos and webinars might work best for you.

While universities and colleges are subject to government inspection, many distance -learning course providers are private organizations. The Open and Distance Learning Quality Council is an independent organization that inspects course providers and assesses whether their quality standards are being met. The ODLQC website lists all the colleges it accredits and the courses that are available from them. The site also includes helpful general information and advice on distance-learning and what you should consider.

If the course provider you are considering is unaccredited you should consider whether:
- The course leads to a recognized qualification
- There is a guaranteed level of tutor support
- The provider has a customer satisfaction or refund policy
- The provider will send you an example of the course materials
- The provider will put you in touch with past students.
Before you commit to any course, make sure you have investigated other providers, considered all of the possible costs and checked whether the course has a time limit.