Make the most of the situation by Jolito Ortizo Padilla.. Included in my book Emotional Intelligence: Putting Things in Proper Perspectives

 

    When times are uncertain for  business it is easy to lose focus in your career: Jolito Ortizo Padilla suggests what you can do to avoid worrying and make the most of the situation.

Whether or not your job is under immediate threat, it's time for a quick review of where you stand from two different, but not mutually exclusive, perspectives.

First, you need to look at the situation from your organizational role. How well do you understand the immediate objectives and concerns of your company? Those firms that have developed ambitious long-term plans may now have immediate concerns about cash.

Does your team understand how the current doom and gloom will affect their employment prospects? As a manager, if you do not open or maintain excellent communication channels with your staff, the rumour-mongers certainly will.

Recognition is even more important in times of uncertainty. How often do you take the time to thank your staff, colleagues and suppliers?

You also need to consider which of your key suppliers are most vulnerable in the current marketplace. How can you help them and what contingency plans need to be developed? And who else should be kept informed of this?

The current economic situation may prevail for some time. While others in the organization may have their heads down, keep yours up so that you can see the opportunities they miss. At the same time as examining  your role in the organization, you should think about your career development.

Draw a circle on a piece of paper and divide it into eight segments:each one should represent an area of skills, knowledge, or your experience you would need to do the job you would love to have. In each of these segments score yourself out of 10, with 10 being excellent. Now you can start planning how to increase your score in each area.

Read and learn from books about your particular business or the business leaders you most admire, or search the internet for inspirational downloads you could listen to on your iPod on the way to work.

Think through what it is you like and dislike about your current position. How can you arrange to do more of the things you enjoy? The chances are that these will be the things that you are good at, and increased focus on them will undoubtedly improve your performance and skills.

It is also important to get broader experience from accepting more responsibility or participating in a current or new project or team.

Don't forget to renew and maintain old contacts. Anecdotal evidence suggests that majority of jobs are not advertised.

This environment will create a career differentiation  between those that "went through it" and those that learnt powerful lessons from it.

But why worry? Worrying can be so debilitating. Take action. Do things that you can do- maybe as suggested above-as I've done it during my trying times in the Middle East -  but worrying will not help and it could adversely affect other parts of your life.

                           

Burden of Proof by Jolito Ortizo Padilla

"How do you identify the best research method for your project? Jolito Ortizo Padilla offers some advice"

Many of us who have studied a course might have been required to complete a project, assignment or dissertation that contained an element of primary research as well as a critique of current thinking in that area(i.e. secondary research).

According to some academics you can never empirically or logically determine the best approach when undertaking a piece of research. Baxter (2006) argues that the adopted approach and selected data collection methods will depend on the situation to be studied, your own opinion and the type of the information required. Each style has its own strengths and weaknesses and is suitable for a particular context.

The primary concern of every researcher is to ensure they follow a robust approach to their research and not overburden themselves with the validity of "research paradigms".

Yet it is interesting to consider what other academics believe are some influences over the decision of an appropriate research methodology. The broad idea is that research paradigms exist as an "overall conceptual frameworks within which some researchers work".

They believe a research paradigms has three main parts- ontology, epistemology and methodology. "Ontology" is described by Jankowicz (2003) as a researcher's in built view of the world driven by their background and experiences; a fundamental belief about the nature of being.

Jankowicz describes the concept of "epistemology" as a personal theory of knowledge, when you can count as knowledge and what you count as proof. I describe this as "what do we know and how do we know it?"

Many academics argue that ontological foundations give rise to certain epistemologies  that determine the attractiveness of certain research methodologies.

You might be wondering: " so what is the implication of any of this?" When starting a piece of research you may wish to consider your own ontological position-are you one for quantitative and statistical evidence or does that richness of opinion generated from a qualitative method, such as a focus group, provide a powerful evidence for research purposes?

The completion of a piece of research is not an easy task; as you start to unpick the methodology you might consider if it is a result of your own views of the world or assumption on validity and proof. Or as long as the research methodology follows a logical approach is this justification enough?

Mathematician and academic Hammond (2008) captures the challenge of research. "Great scientists tolerate ambiguity very well. They believe the theory enough to go ahead; they doubt it enough to notice the errors and faults so they can step forward and create the new replacement theory. If you believe too much you'll never notice the flaws; if you doubt too much you won't get started."

Getting Better Value From Your Marketing Expenditure by Jolito Ortizo Padilla

Controlling marketing expenditure still remains something of a holy grail for procurement. The recent barrage of advice and events focused on improving the perception of purchasing may have engendered a warm feel-good factor- but it has masked a lack of progress to match good intentions.

With the wintry economic conditions it is a good time for procurement to revisit the troublesome task of bringing marketing expenses under better control. Done well it is possible to transform this notorious category of complex and often inefficient spend into an area of best practice.

And with the current downturn the ability to effectively manage marketing costs will start to separate the winners form the losers.

FISH WHERE THE FISH ARE
Even the brightest and best-intentioned procurement managers "round up the usual suspects" when trying to reduce marketing expenditure efficiencies. Foremost among these are creative agency's annual fee, the media company's percentage commission and various hourly rates related top agency provision of production and promotional development services. These are important spend areas that should not be ignored, but in most cases have already been extensively investigated and are only likely to account for around 15 percent of total marketing period.

The good news is there's no shortage of unproductive spend in areas offering both scope for measurable results and sustained cost improvement. For example, most procurement teams have no reliable understanding of the current costs and processes in the often opaque area of advertising production and fulfillment (the process after the creative side is complete), whether for the traditional media of TV, press and outdoor, or the growing category of digital/online.

It is now relatively straightforward to access reliable external cost benchmarks for all these activities against which a persuasive business case for change can be built. The typical outcome of such an approach shows potential savings averaging 25-40 percent. Savings can also be found in the consolidation of marketing print, although this is a more widely trodden path reflecting the emergence of able and reliable suppliers in this area. There is still plenty of scope, however, for further centralization not only of marketing print (point-of-sale materials including display stands near tills, etc) but also by integrating across broader categories of print-related activity including adaptation or artwork, proofing and even storage and distribution. Other areas of marketing spend, including marketing premiums  (giveaways and promotional items) and merchandising equipment (whether for in-store display or to support events and exhibitions), could also be consolidated to create savings.

Procurement will often find considerable upsides by exploring bonuses and performance related remuneration. Achieving a well balanced relationship can result in these elements accounting for upwards of 25 percent of the agency remuneration and procurement is ideally placed to act as impartial negotiator and gatekeeper. Both the marketing team and agencies are fatally hampered in such negotiations. Each has their own compelling vested interests compounded by a lack of skill in creating a transparent, fact based incentives model.

In other words, it is hard when the agency stands to make considerable additional revenue and marketers face paying out extra cash from their budgets, which are invariably under pressure. A greater level of purchasing involvement in this area will drive better efficiency and help to refute the widespread marketing perception that procurement cannot differentiate between "cost" and "value".

THE DEVIL IS IN DETAIL

For marketers and their agencies finding the next "big idea" is a constant preoccupation and in many ways their reason for being. This single minded pursuit of the big picture may explain why inefficiency , opacity and casual third party relationships often exist within the marketing supply chain.

For purchases the ability to segregate types of marketing expenditure and identify " non-productive" elements is crucial to achieving sustainable savings. They must develop a detailed understanding of marketing processes within each major expenditure category. This understanding needs to be supported by analysis showing how money flows through the supply chain.

It is only after this has all been mapped and understood that it is possible to benchmark key cost components-most usefully against current market rates. When his benchmarking is complete it will be possible to understand the issues and opportunities and to assess a variety of strategic options.

Mastery of the detail is also critical to implementing new plans-it will be used to support the business case for change with marketing stakeholders and overcome any objections from agencies when they perceive their revenues may be under threat.

ALL FOR ONE AND ONE FOR ALL

The Three Musketeers could serve as useful role models for the modern truimvirate of marketing, procurement and agencies.

A lack of understanding about a purpose and objectives of procurement means it is often kept at arm's-length by marketers and their agencies. Yet a cry heard at many open forums is for procurement to become more "engaged" and to "empathize" more with their marketing more with their marketing colleagues by attending meetings, visiting agencies and understanding the creative process.

Helpful as this is in the most general of ways, it is hard to see than token improvements in team cooperation.

To help purchasers to build up relationships with these partners it's worth them bearing in mind that marketers- and even more acutely agency teams-are, at heart, problem solvers. It is a dominant and even subconscious part of their modus operandi.

Experience has shown that when involved in addressing an interesting challenge, both marketers and agency partners usually engage enthusiastically.

Sharing a common problem among procurement , marketing and agencies , such as "how to reduce expenditure by 4 percent without impacting activity, quality or response speeds", is far more likely to result in positive engagement than tentative role reversal.

Even the Three Musketeers found the occasional use for extra help and the same is true for procurement, which is perhaps less versed in working with external resources. In many cases, without external support the ability of procurement to bring marketing expenses under influence will be compromised.

The potential savings from optimizing marketing expenses are more likely to be in the millions than the thousands. So it makes solid economic sense for procurement to engage with external resources to bring the economies to bear as soon as possible.

There can be little doubt that the economic downturn will have a galvanizing effect on marketers who previously have proved a significant obstacle to procurement's goal of "spend under influence".

Procurement teams will however have only a limited period to take advantage of this before the economic cycle turns and old habits return.

GA Business and Management Consultancy

                                                 

                                                         

To learn is to live by Jolito Ortizo Padilla



One Bahrain.....One People......One Goal
Together We Are United



During the last decade Brazil's economy has boomed. One of the last countries to enter the recession, it was also one of the first out and has now brought itself so far out of debt that it has sent US$14bn to the International Monetary Fund. There are predictions that the country will overtake Germany as the world's fourth largest car market by the end of the year and while many types of production are being halted all over the world, Brazil's car factories are operating around the clock and the country is receiving huge investment from all over the world.

However, there is another side of the story. According to the World Bank, the distribution of income in Brazil is among the most unequal in the world and vast areas of the country remain in extreme poverty. While Brazil's economy is extremely stable and has indeed grown in recent years, without an increase in the speed of growth it could fall far behind the rest of the BRIC family. At the heart of these challenges and one of the main barriers to enabling the strong growth that it still desperately needs, is the quality of the Brazilian education system.

The System
Phil Hawkins is deputy headteacher at a school in Croydon and the founder of charity Aprender that works to improve the quality of education in Brazil. In his words , Brazilian education "has improved but is still pretty bad". The Brazilian government has invested a huge amount of time and money into education system in recent years, including establishing the aim to get all children enrolled at school, but there is still scope for much more to be done.

The government initial drive has been largely successful. According to UNICEF, the United Nations Children's Fund, attendance at primary school level was up to 96.4% in 2000 and secondary school attendance has also been significantly expanded. This has partly  been achieved through the introduction of financial incentives for poorer families to send their children to school rather than to work, as well as a huge investment in school buildings and resources.

But the facts still remain that 25% of Brazilians attend school for less than two years, 20% drop out each year and 25% of people over the age of ten are illiterate. According to scores from SAEB, the Brazilian education evaluation system, in 2007 only 9.8% of students reached the minimum accepted level in mathematics and only 24.5% reached the minimum in Portuguese.

The background to these poor statistics is that, despite the drive to increase the number of children being educated , very little has been done to improve the quality of that education. Sending a child to school is one thing, but helping a child to learn is a different challenge.

Coupled with this problem is the huge inequality present in the current education system. About 25% of children go to private schools in Brazil, and these institutions house the best teachers and the best facilities. Ironically , once a child reaches university, the best vast majority of students reaching this level are those who previously attended private schools. State school educated pupils stand very little chance of gaining the adequate grades to attend university. This is the vast challenge that Aprender is eager to take on.

Aprender , named after the Portuguese verb "to learn", was set up by Phil five years ago and has recently achieved charitable status. The charity's aim is to "see young people move out of poverty through receiving a higher quality education". It is Phil's firm  belief that by improving the quality  of education, the country as a whole can be improved. He says:" The link between educational outcomes and poverty indicators such as health, crime, gang involvement and child prostitution is very clear and education is one of the biggest keys to having movements on those fronts.

Aprender currently consists of three experienced teachers in the UK, including Phil, and a team of volunteers out in Brazil. The long term plan is to get enough funding to employ full time workers, but the charity is still very much in its infancy.

With the realization that the charity needs someone full time in Brazil to get the charity moving, Phil has decided to take a bold step of taking a two year sabbatical from teaching and will move to Brazil with his wife and children this summer.

Phil has been visiting Brazil every summer for the last five years in order to collect facts about the quality of education. One of the key barriers he has observed is the system by which children must repeat a year if they don't achieve the  right grades. About 25% of children fail each year , which means they must repeat.As a result, children become extremely demotivated  and student age can be considerably higher than it should be.

Standards are also poor in other areas. "The quality in state school is just shocking," Phil says. "The teachers lack knowledge, they lack resources, they lack motivation. Learning is extremely passive and there's a lot of filling in the blanks in generic ' student jotters'.

" A key problem is that teaching jobs are very badly paid and a lot of teachers take on extra jobs in the evening.They get home at 11:00pm at night and start work at 7:00am in the morning., so they're not going to be motivated.

" If you're a high quality teacher you're  to try to get a job in the private school because it's better paid and the condition are better. So the teachers in state schools feel that they are at the bottom of the pile, the kids think there's no way they'll make it to university and so the poverty cycle continues."

The Projects on the Ground
It is striking that very few organizations are working towards the same aims as Aprender-Phil founded the charity because there wasn't an existing body he could join. UNICEF carries out some similar work under a project titled EducAmazonia where it focuses on the quality of basic education in Brazil's Amazonia region. Similarly , the World Bank is carrying out work to improve tertiary education in Brazil. Many charities work with street children , including education initiatives, but Aprender's work is, by and large, unique.

The first challenge for Phil and his team was the mindset of the teachers and school themselves. Brazil is still a relatively young democracy, having been a dictatorship until 1985. And in Phil's words:"the legacy of the military dictatorship is still there today."

While the Aprender team is buzzing with enthusiasm to innovate,change methods of teaching and reorganize schools, Brazilian teachers are still in the mindset that they need permission of the area supervisor to act. But one factor clearly to the advantage of Aprender is that the Brazilian government is keen to work towards the same goal. In 2009 at an annual education congress at which Aprender presents, Phil met the Brazilian secretary of state for basic education.

"The meeting was extremely fortunate,"says Phil. " When I spoke to him about our projects he knew exactly what we're aiming fro. He said, "We want our teachers to innovate, to experiment and to be creative but the legacy of the dictatorship is still there, particularly in the older generation of our teachers".

"He was thrilled that we're going to be working in partnership with the government and build on its aim to have a place in school for every child. He even said in his presentation that the government's next major issue is the quality of teaching and schools."

So with the Brazilian  government on their side, Phil and his colleagues have started a number of projects in school around Brazil. One example is a project to increase a student motivation. Phil explains:"At secondary school, when kids arrive for the day they go to their classroom and stay in that room for all of their lessons. Because it's the teachers that move around, the room becomes the kids' space which doesn't help a culture of learning or behavior management.

" Kids are the same the world over-they need movement and to be active to be engaged. Brazilian teachers can't believe that over 1, 000 pupils in school in US and UK move around every hour, but we're now piloting this idea in three schools, measuring he impact and reporting this to government."

Aprender also runs workshops to help children to learn how to review. In Brazil children have to take exams and if they don't pass they are held back a year. Without exam skills they stand absolutely no chance of gaining a place at university.

Another of the charity's focuses is teacher training- without these crucial skills, the quality of education will never improve. "At the moment, the government provide once -a -year training and teachers often have to pay for anything else out of their own pockets," says Phil. We've begun to run good quality workshops in schools with skills that actually work in practice explained by real teachers. Other projects include headship mentoring where I pass on skills I've been taught.

"We're sharing best practice and adapting he fantastic  methods of teachers in UK who have worked with disaffected youths and behavior issues. This work very well because they understand where we're coming from, rather than being thought theories from the books.

"We're also addressing ICT training with teachers and connecting them with local businesses who can train them to use technology. Very little ICT training in state schools at the moment, but we want children  to have the ICT diet they need given the way the world is changing."

"One school I visited had a lovely IT suite with 12 or so computers, covered in  dust sheets. When I asked why there weren't being used, the answer was they had run of ink for the printers and rung the government to ask how to change it. The children were champing at the bit to get in there, but they couldn't."

All Aprender's project are clearly measured and results are then fed back into the projects. On of the first important appointments Phil will make when he gets to Brazil is to ask an undergraduate in the education sector to undertake independent monitoring and evaluation of Aprender's work as part of tits quality assurance process.

At the moment the focus is on short- term measurement to see changes. Phil explains: Kids vote with their feet and their is a lot of truancy , but if their classroom experience is better this should impact their attendance rate. We also measure teachers' attendance rate as their absenteeism is also very high. If they feel cared for and enjoy their experience this should drop.

"Other measures include the number of children repeating years and surveys carried out during the year to see how pupils and teachers feel about the changes and about their personal experiences in the classroom. Ultimately, our long term target is to increase grades to give children the chance to lift themselves out of poverty."

The Bigger Picture
Starting a charity and implementing projects has not been an easy process. Phil says:" Sometimes the enormity of the challenge makes us wonder what we are trying to do here." As well as the teacher's mindset and the lack of resources, another hurdle was to understand the approach that Phil and his colleagues should adopt in order to work well with the Brazilian culture. "An unavoidable early mistake was not spending enough time really sussing out the culture,"says Phil. "For example, five years ago I spent time in Brazil talking to government representative. When I returned to the UK I started firing off emails expecting replies within a week, but months on I had heard nothing.

"When I returned the next year, they laughed and pointed out that Brazilians just aren't event-oriented people; they are more people oriented-something that I think that I can learn a lot from. They don't do diaries. Meetings start when everyone has turned up."

"In the UK everything is planned to the nth degree, but we had to learn to just roll with it and not fight the culture."

Aprender has also built a strong network of Brazilian non-governmental organizations and churches who are partnering with the charity, and this has been key to adapting to the local culture. Next the team had to start looking at how to use their cultural insights to adapt UK best practice for introduction in Brazil.

For example, concepts such as Learn to Learn-a UK campaign to help pupils understand how best they individually learn -had to be "translated" into the Brazilian culture in order to work. And winning teacher's trust was vital in order for Phil to develop what he terms his "sustainable model".

"Teachers in Brazil are blown away by the idea hat someone from overseas is taking an interest in them, " says Phil. "This has been a big motivator for us. Teachers need steering, mentoring and encouraging a huge amount to begin with,which is why I'm now going out for two years.

"We're hoping to create a sustainable model in that teachers begin to see improvements and the impact of these new methods and can then help to train other Brazilian teachers."

And as well as spreading best practice throughout Brazil, Phil already has his sights set on adapting his system for other developing economies. He explains:"My school in the UK already has links with schools in Thailand and South Africa -countries with similar problems with poverty as Brazil.

"Our much longer -term goal is to refine a model of intervention that takes into account local culture and can be adapted for other countries. Contacts in those countries are already waiting to receive  any help we can give , although right now we're concentrating on Brazil.

"Hopefully UNESCO will take notice of what we're doing.It's all about sharing our approach , helping others to learn from what went well and what went badly."

So already tasked with huge task of improving education in such a vast and varied country as Brazil. Aprender is not willing to stop there. It seems Phil and his team are already setting their sights on a much larger goal. And when asked what motivates him and why he's prepared to take on the challenge, Phils has doubts.

" The real silver lining in the cloud- because there are still times when we wonder what the point of starting  is the amazing Brazilian spirit."

"Despite all of their hardships and their poverty they are so friendly , embracing and hospitable that we know it's worth carrying on."

Which animal best mirrors your own leadership style and why? by Jolito Ortizo Padilla

"Brilliant leaders need to be very decisive ... encouraging the independence of your staff based on effective coaching is also positive leadership behavior."

Not surprisingly one of the most popular choices is the lion, the king of the jungle. The lion rules his territory by dominating those around him . Nobody messes with a lion. Male lions are also great delegators; they eat , they sleep and they mate; the lioness takes care of everything else. Interestingly, very few female managers choose the lion as the animal that best reflects their leadership style. On reflection, many of those who choose a lion change their minds. Specifically, a lion tends to represent an autocratic management style, leading through fear rather than cooperation.

More surprisingly are the number of managers who choose a horse as the best reflection of their leadership style. The reasons normally focus on the fact that horses are strong, quick and graceful. They can be both independent , operate in a herd and work hard when they need to, while preferring a relaxed and carefree existence most of the time. Probably what this says about the leadership style of those people who elects for the horse is perhaps that they are leaders who seek an easy life , but can work hard and as part of a team when the pressure is on.

It is hard to imagine that a goose would spring to mind as reflecting key leadership behavior. Geese of course , are great team players but a flock of geese doesn't have an obvious leader. Perhaps that is the point. Allow the team to manage themselves and they will find a way of working together synergistically, just like geese do.

Another popular choice is the dolphin. People who choose the dolphin are quick to point out that they are very intelligent animals with great communication skills. They are by and large friendly creatures but become hostile when under threat. Brilliant leaders are also great communicators but are there many geniuses amongst them? The genius of brilliant leadership probably has more to do with surrounding yourself with experts who help you do a great job.

An animal that is sometimes considered by leaders in  certain environments is the sheepdog. This reflects the need to micro manage their people at every twist and turn to ensure they will all stay on track and get to where they are supposed to be going. This is probably indicative of the type of staff they are managing and the type of work in which they are engaged-often low skilled, manual environments.

A favorite is the eagle, particularly to reflect the behavior and traits of strategic  leaders. Eagle spend much of their time at a great height surveying the big picture. Eagles are also very protective of their young while encouraging independence from an early age. Much of this behavior sums up brilliant leadership. You need to have a view of the picture while being able to look selectively at the detail. Brilliant leaders certainly need to be very decisive and often, swift to act. The idea of encouraging the independence of your staff based on effective coaching is also very positive leadership behavior.

ADAPTING TO A CHANGING ENVIRONMENT
If one had to choose just a single animal, the chameleon does just a little better than the eagle. Chameleon  of course, adapt and change according to their situation and environment. And this is precisely what brilliant leaders need to do. There are times when people need an autocratic leader;other times when they need an arm around their shoulder , or perhaps just to be left alone to get on and do a great job. The intutive ability to adapt and change according to each specific situation is often the trademark of brilliant leaders.

Perhaps you thought of one animals above , or maybe you had another idea, like the lady who put up a brave defense of why she had selected a mouse. The herding instincts of elephants , the communal nature of gorillas, and the wisdom of owls also feature regularly among people's choices of animal identity.

Of course , there aren't any right or wrong answers; leadership is not an exact science. There are common behaviors shown by many brilliant leaders. One can point out behaviors or actions and the effect they are having , or might have, in certain situations. But whether you choose to look or not and how you apply what you see is your own choice. People often change their opinion as to which animal's behavior  and traits they wish to mirror in terms of their own leadership style.

The reality is that there is that there is no single leadership style or management approach that will work. Brilliant leaders develop a toolbox that they can dip into depending on two people they are leading. Situations need to be managed while people need to be led. Both of these factors have an influence on the leadership style that is right at any given time. On the people side of the equation the main considerations will be the person's ability and motivation levels. While there are many situations that might come into play, the main considerations will be urgency and impact versus creativity and cooperation.

There will be times and places when a leader needs to roar like a lion to get things done, adopting an autocratic style. Other times the leader will need to act like a sheepdog, micro managing staff in particular  situation. When coaching or in performance review meetings , the leader will more likely exhibit the attributed characteristics of a dolphin, conducting intelligent leadership conversations with their staff.

Occasionally the leader will need to sit back and allow staff to perform , while monitoring what is going on from a distance. Based on their observations, when they spot that something needs their intervention, they should swoop in and deal with the detail before stepping back again. This is like the behaviou of an eagle. At times the leader needs to operate within the team; perhaps this is like the characteristics of a horse. There are times when the leader needs to allow the team to be self-managed; when creativity is required, or when they are all experts in their field. This is when the geese analogy would be best applied.

These examples emphasize the central point; in order to be a brilliant leader one needs to be extremely adaptable. There is no single style that will work all of the time because the ability of staff, the situations they face and the outcomes that need to be achieved will constantly vary.

Brilliant leadership is not about referring to a guide that tells you which style to adopt for a particular set of variables . Rather, it is about having an intuition for the right style at any given time based on the person, or people, and the situation. The challenge is to do this while remaining true to yourself and your own character. Leadership styles should  not be faked-they must remain genuine in order to be convincing. But nonetheless, you must still be able to adopt a variety of styles. These are the instincts which needs to be developed to become a brilliant leader.

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
"The Real Best in Asia and the Middle East"

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."