Tag Archives: Skills

Updates from McKinsey

Energizing industrial manufacturing through active performance management
A new approach can help industrials gain greater visibility into performance and capture lasting gains.
By Ryan Fletcher, Kairat Kasymaliev, Abhijit Mahindroo, and Nick Santhanam – Along with its severe human toll, the spread of the coronavirus has exacerbated long-standing challenges in businesses worldwide. For industrial companies—especially those with high-mix, low-volume manufacturing—COVID-19 has increased the already-widespread problems with shop-floor productivity. As supply-chain disruptions affect shipment of critical parts, industrials are struggling to meet their promised customer delivery dates. Within plants, physical-distancing requirements and line closures are disturbing some workflows. These delays often prevent industrials from delivering critical products, including sanitization tools and other equipment to help their customers both fight and recover from the pandemic.

For many years, industrials have deployed lean levers and performance-management initiatives to improve productivity and expand margins. They usually achieved good initial results, but their gains frequently vanished or decreased as managers became distracted and employees returned to their old ways. Some industrials have also offshored production to reduce costs but then encountered substantial challenges and high start-up costs when they tried to replicate their capabilities and skills in new locations. With recent tariffs and travel disruptions creating unprecedented uncertainty, more businesses are considering reshoring production to increase their resilience and flexibility in the “next normal.” That makes manufacturing performance even more important.

A new approach to productivity—active performance management (APM)—may be more likely to deliver lasting gains than previous methods. It focuses on three areas where most current solutions fall short: real-time performance visibility, daily performance planning, and end-to-end accountability. When high-mix, low-volume industrials incorporate APM into their standard workflows, they typically improve productivity by 30 to 50 percent within eight to 12 weeks of deployment while simultaneously increasing on-time deliveries and unlocking additional capacity.

Surprisingly, many high-mix, low-volume manufacturing operations lack real-time visibility into performance. Instead, they review key performance indicators (KPIs) weekly or even monthly. This frequency may be enough to drive performance in high-volume environments, where variability is low and processes are predictable, but it is not well suited to the complexity of a high-mix factory.

Without real-time transparency, supervisors are unlikely to discuss and address issues until their impact has snowballed. more>

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Inequality Causes Economic Collapse

Circulation represents the lifeblood of all flow-systems, be they economies, ecosystems, or living organisms.
By Sally Goerner – Circulation represents the lifeblood of all flow-systems, be they economies, ecosystems, or living organisms. In living organisms, poor circulation of blood causes necrosis that can kill. In the biosphere, poor circulation of carbon, oxygen, nitrogen, etc. strangles life and would cause every living system, from bacteria to the biosphere, to collapse. Similarly, poor circulation of money, goods, resources, and services leads to economic necrosis – the dying off of large swaths of economic tissue that ultimately undermines the health of the economy as a whole.

In flow systems, balance is not simply a nice way to be, but a set of complementary factors – such as big and little; efficiency and resilience; flexibility and constraint – whose optimal balance is critical to maintaining circulation across scales. For example, the familiar branching structure seen in lungs, trees, circulatory systems, river deltas, and banking systems connects a geometrically constant ratio of a few large, a few more medium-sized, and a great many small entities. This arrangement, which mathematicians call a fractal, is extremely common because it’s particular balance of small, medium, and large helps optimize circulation across different levels of the whole. Just as too many large animals and too few small ones creates an unstable ecosystem, so financial systems with too many big banks and too few small ones tend towards poor circulation, poor health, and high instability.

In his documentary film, Inequality for All , Robert Reich uses virtuous cycles to clarify how robust circulation of money serves systemic health. In virtuous cycles, each step of money movement makes things better. For example, when wages go up, workers have more money to buy things, which should increase demand, expand the economy, stimulate hiring, and boost tax revenues. In theory, government will then spend more money on education which will increase worker skills, productivity and hopefully wages. This stimulates even more circulation, which starts the virtuous cycle over again. In flow terms, all of this represents robust constructive flow, the kind that develops human and network capital and enhances well-being for all.

Of course, economies also sometimes exhibit vicious cycles, in which weaker circulation makes everything go downhill – i.e., falling wages, consumption, demand, hiring, tax revenues, government spending, etc. These are destructive flows, ones that erode system health. more>

Updates from Adobe

How to Set Up and Light a Home Studio
By Kendall Plant – I’m a designer, content creator, and associate art director at Adobe who loves to incorporate nature, street photography, and even skulls into my work.

Once you set up your home studio, your own photos are good candidates for these editing techniques. I also provided one of my unedited photos if you’d like to try fixing it up in Lightroom.

Find a space with enough natural light to brighten your scene. Sometimes it’s the room with the largest window. In my case, opening the door to the garage let in plenty of afternoon sunlight. Next, create a backdrop for the photo’s subject. If you want to get a little fancy, grab some paper, secure it, and gently slope it to make it seem like the background goes on forever. Props help me see how the lighting affects my setup. For the scene below, I like how the light comes in from the side and creates a shadow that extends from the figurine.

In the photography world, bounce cards and reflectors help light a subject by reflecting a primary light source into the scene. You can use pretty much anything rigid and reflective: a board with tin foil taped to it, a collapsible car window shade, or white poster paper. For this shot, I held a piece of white foam board on the left side of my subject to reflect the light coming in from the right. more>

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Evidence for Tribalism in Economics

While economists like to pretend otherwise, humans are social animals.
By Blair Fix – The ideal of science is beautifully summarized by the motto of the Royal Society: nullius in verba. It means ‘take nobody’s word for it’. In science, there is no authority. There are no gods, no kings, and no masters. Only evidence.

In this post, I reflect on how ‘taking nobody’s word for it’ cuts against some of our deepest instincts as humans. As social animals, we have evolved to trust members of our group. Among these group members, our instinct is to ‘take their word for it’. I call this the ‘tribal instinct’.

When we do science, we have to fight against this tribal instinct. Not surprisingly, we often fail. Rational skepticism gets overpowered by the instinct to trust members of our group. If the group happens to be powerful — say it dominates academia in a particular discipline — then false ideas get entrenched as ‘facts’.

This is a problem in all areas of science. But it’s a rampant problem in economics. The teaching of economics is dominated by the neoclassical sect, which has managed to entrench itself in academia. Among this sect, I believe, tribal instincts trump the rational appeal to evidence. more>

Updates from McKinsey

A transformative moment for philanthropy
Here’s how the positive changes in individual and institutional philanthropy sparked by the COVID-19 pandemic can take root and grow.
By Tracy Nowski, Maisie O’Flanagan, and Lynn Taliento – The philanthropic response to the COVID-19 pandemic has shown the sector at its best. From the launch of community-based rapid-response funds to the development of diagnostics and vaccines, philanthropy is showing up both to help flatten the curve in the short term and to address the inequities the crisis will exacerbate over the long term.

What’s striking is not only the scale of capital being committed by major philanthropists (at least $10.3 billion globally in May 2020, according to Candid, which is tracking major grants) but also how it is being given: at record speed, with fewer conditions, and in greater collaboration with others. According to the Council on Foundations, almost 750 foundations have signed a public pledge to streamline grant-making processes, and individual donors are partnering with their peers to make sizable grants with less paperwork.

Confronted with the global pandemic, individual and institutional philanthropy has been responsive, engaged, and nimble. The challenge—and opportunity—for the sector will be to make those features stick. The gravitational pull toward old ways of working will be strong, especially as philanthropies grapple with the impact of an economic downturn on their own endowments. But many of the practices that have emerged during this pandemic, including the five that we highlight in this article, should be expanded and formalized as the world heads into the long process of recovery.

Over the past 20 years, the philanthropic sector has adopted a more data-driven and rigorous approach. While those developments have strengthened the field in many ways, they have made the process of seeking and managing grants more cumbersome, especially for small, community-based organizations. The COVID-19 pandemic has accelerated moves to reduce those hurdles, prompting many foundations to relax grant requirements, speed up decision making, and give recipients additional flexibility in how they use funds.

What would it take to simplify further the processes for grant approval and reporting? Looking to college admissions for inspiration, imagine a common application for grant seekers, similar to the Common App platform that enables students to apply to many colleges using a single application. more>

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Why Society’s Biggest Freeloaders are at the Top

No, wealth isn’t created at the top. It is merely devoured there.
By Rutger Bregman – This piece is about one of the biggest taboos of our times. About a truth that is seldom acknowledged, and yet – on reflection – cannot be denied. The truth that we are living in an inverse welfare state.

These days, politicians from the left to the right assume that most wealth is created at the top. By the visionaries, by the job creators, and by the people who have “made it”. By the go-getters oozing talent and entrepreneurialism that are helping to advance the whole world.

Now, we may disagree about the extent to which success deserves to be rewarded – the philosophy of the left is that the strongest shoulders should bear the heaviest burden, while the right fears high taxes will blunt enterprise – but across the spectrum virtually all agree that wealth is created primarily at the top.

So entrenched is this assumption that it’s even embedded in our language. When economists talk about “productivity”, what they really mean is the size of your paycheck. And when we use terms like “welfare state”, “redistribution” and “solidarity”, we’re implicitly subscribing to the view that there are two strata: the makers and the takers, the producers and the couch potatoes, the hardworking citizens – and everybody else.

In reality, it is precisely the other way around. In reality, it is the waste collectors, the nurses, and the cleaners whose shoulders are supporting the apex of the pyramid. They are the true mechanism of social solidarity. Meanwhile, a growing share of those we hail as “successful” and “innovative” are earning their wealth at the expense of others. The people getting the biggest handouts are not down around the bottom, but at the very top. Yet their perilous dependence on others goes unseen. Almost no one talks about it. Even for politicians on the left, it’s a non-issue.

To understand why, we need to recognize that there are two ways of making money. The first is what most of us do: work. That means tapping into our knowledge and know-how (our “human capital” in economic terms) to create something new, whether that’s a takeout app, a wedding cake, a stylish updo, or a perfectly poured pint. To work is to create. Ergo, to work is to create new wealth.

But there is also a second way to make money. That’s the rentier way: by leveraging control over something that already exists, such as land, knowledge, or money, to increase your wealth. You produce nothing, yet profit nonetheless. By definition, the rentier makes his living at others’ expense, using his power to claim economic benefit. more>

Updates from McKinsey

Personalizing change management in the smartphone era
By Alexander DiLeonardo, David Mendelsohn, Nikil Selvam, and Alexandra Wood – CEOs know that making organizational change stick requires convincing big groups of geographically dispersed people to think, act, and approach their work differently. And this is devilishly hard, as human beings are motivated by many things, have different fears and aspirations, feel varying levels of empowerment and commitment, and tend to be reluctant to change in the first place. Undifferentiated approaches that don’t carefully consider employees’ mindsets will fall flat and may even breed cynicism that saps morale and undermines progress.

The good news is that when it comes to personalization, senior executives have plenty of inspiration, courtesy of analytical pioneers such as Instagram, Netflix, and Spotify, all adept at tailoring products to meet individualized preferences via apps and other easy-to-use digital platforms. A large global manufacturer’s ongoing experiment in tech-infused mass personalization shows how this thinking can be applied to organizational change. The company’s experience suggests how smart combinations of digital technology, analytics, and behavioral science can make change more inclusive and persuasive—and help employees unleash their enthusiasm in ways not possible otherwise. The key is to use the available tools to better understand people and meet them where they are—a guiding principle that’s equally relevant for implementing long-term change and for leading a remote workforce through the current disruptions caused by the COVID-19 pandemic.

For a few years, the manufacturer had tried with limited success to implement cultural changes across a key region’s 7,000-strong workforce—for example, by promoting behaviors it hoped would break down silos, empower and motivate frontline workers, and bolster performance. Now the CEO wanted a fresh start. An assessment highlighted places where the company’s organizational health was poor or needed strengthening. From these areas, senior leaders focused on three management practices: operational discipline, inspirational forms of leadership, and the use of rewards and recognition to better motivate employees.

The company then formed a team to translate these broad cultural goals into specific mindsets and behaviors that would both generate the desired organizational outcomes and also help employees better understand how they personally contributed to the improvement. For example, the manufacturer wanted employees to think of operational discipline as everyone’s job. One tangible way to promote this would be to encourage shop-floor operators and supervisors to consciously review the company’s “golden rules of safety” before every shift. Likewise, the company sought to instill a mindset of valuing continuous improvement and celebrating small victories. One way of doing this would be to encourage people to speak up immediately when they saw a colleague do something positive (a motivational take on the mantra “if you see something, say something”).

The team now had a discrete set of behaviors they wanted to encourage. But they knew that to do so effectively, they needed to meet people where they were—they couldn’t simply tell people to change. The team needed to address any mindsets or beliefs that could act as barriers. more>

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Updates from Ciena

Next-generation networks help DOT’s deliver quality motorist experience
Converged packet-optical technology enhances Department of Transportation’s intelligent transportation systems while paving the way for future automated highways.
By Daniele Loffreda – On statewide highway systems, road conditions can change without warning. Snowstorms, rockslides, vehicle collisions, traffic congestion and wildlife activity are just a few examples of sudden changes that can disrupt road travel. For Department of Transportation (DOT) traffic managers in central operations centers, accessing real-time data from remote roadside “smart” devices is critical. Trying to resolve roadside problems from afar without real-time data is like trying to steer a car that has a mud-splattered windshield. Although there may be a few clear patches, it is nearly impossible to see the whole picture.

Traffic managers need real-time access to data flowing from intelligent transportation systems (ITS) technologies, smart traffic control devices and connected vehicle applications. Combining this data with analytics software provides traffic managers a clearer view of what is happening throughout the highway system. Armed with these insights they can quickly resolve problems, dispatch emergency crews, alert motorists to pending hazards, and recommend alternative routes to their destinations.

The challenge? The enormous data volume generated by video cameras, sensors, monitoring devices, vehicle to infrastructure (V2I) and other technologies can quickly clog a network increasing congestion and outages. more>

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Updates from Chicago Booth

How leaders can rise to the challenge of COVID-19
By Daniel Diermeier – As cases of COVID-19 continue to grow across the world, leaders in business, government, and other spheres face unprecedented challenges. The disease has encroached not only on public health but on global economic well-being and on some of the most fundamental practices of modern society. It has generated great anxiety and exacted an enormous and growing human toll. And it has required virtually every organization to reinvent its processes to cope with a world in which many people simply don’t feel safe being in the same room together.

Crisis situations can overwhelm even the most experienced leaders, presenting unexpected, complex scenarios that evolve at a fast pace and in several directions. Even in cases in which contingency plans have been prepared, those plans need to be adjusted to respond to rapidly changing circumstances. Fortunately, there are tools and perspectives leaders can use to help their organizations weather difficult times. By building trust, managing fear, and encouraging a sense of duty and community orientation, any leader—whether in business, government, or the nonprofit sector, and in organizations big and small—can better navigate the difficult path of crisis management.

Crises frequently happen without warning and require a response under extreme time pressure. Decision makers often find themselves drowning in data, yet truly vital information is not available. During these situations, leaders must continue to build trust, both internally and externally. Doing so generates much-needed room to maneuver and the goodwill that leaders will need to rely on when tough decisions have to be made.

Even though the desirability of trust is obvious, leaders often struggle with building and maintaining it, especially during high-stakes crises. Research has identified four major factors that influence the level of trust among stakeholders involved in a crisis, summarized in what I’ve called the Trust Radar:

Full transparency is reached when, in the mind of your audience, all relevant questions have been addressed. Your audience—not you—will determine what information is considered relevant. What is relevant will also vary for different audiences. more>

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Updates from McKinsey

Beyond contactless operations: Human-centered customer experience
As we look forward to the next normal, consumers are already demonstrating a preference for companies that deliver great service while reducing risks all along the customer journey.
By Melissa Dalrymple and Kevin Dolan – As the global fight against COVID-19 continues and much of normal daily life remains on hold, organizations are trying to navigate a rapidly evolving landscape. Many have moved beyond initial actions to protect the lives and livelihoods of their people and are working to tackle the concerns of the estimated millions of consumers who expect the effects of COVID-19 to be long lasting—customers who are making decisions about whether or not to engage with a company based on its actions to address safety concerns and the way it communicates changes. Beyond addressing safety concerns, organizations that find ways to rebuild the human experiences that existed before COVID-19—among everyone from suppliers to employees and customers—within a contactless world will differentiate themselves and gain customer loyalty.

Companies are moving quickly to institute new policies and processes that will allow them to reopen—or in some cases, remain open. Many are investigating opportunities to shift toward contactless service and operations, allowing the cores of their businesses to continue operating while assuring both employees and customers of their safety. Companies that develop a long-term strategy now to mitigate risks while delivering distinctive and human-centric experiences will emerge from the pandemic with stronger operational resilience, more agile organizations, and sustainable competitive advantage that can better respond to a changing economic context and any future shocks.

It will be important that companies work across silos to provide solutions that deliver effective, end-to-end employee and customer experiences, maintaining the value of their brands through the operational adjustments they make. A new, data-driven perspective, summarized as IDEA (identify interactions, diagnose and prioritize risks, develop and execute solutions, and adapt and sustain), can provide crucial structure and rigor in helping an organization see risks, assess their intensity, and create solutions to address them iteratively as the external environment evolves.

Leaders can then develop interventions and redesign critical customer and employee journeys, enabling their organizations to reopen or sustain operations while also building trust with both customers and employees, such as redesigning the way hotel guests check in by developing a completely digital experience without a check-in counter. Over time, IDEA can flex to include more human elements while keeping safety and security at its core. more>

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