Home  Clients  How We Work  Services  Case Studies   About Us

Archive for the 'Planning Tips' Category



What should we do now where Iraq is concerned?
Thursday, July 12th, 2007

Many people - including those in the US - had strong misgivings about the wisdom of invading Iraq.  The planning was grossly inadequate.  The US appetite for sustained conflict was questionable.  But, our president made the decision to invade Iraq and our representaties supported that decision.

That is old news.  Fast forward to today.  Regrettably, the technology for uninvading Iraq does not exist.  We have to live with our actions up to this point.  And, we are responsible for the consequences of our decisions.  

In our government by pollster, we have seen a lot of polls about our support for the war in Iraq.  Americans oppose the war and are tired of seeing Americans killed and maimed.  We would rather see the money spent elsewhere.  We are concerned with the lack of progress.

All that said, what options exist for us today?  We could leave Iraq.  We might stay the course.  We might invite dialogue with countries in the region.  We might even engage in dialogue with terrorists.  Maybe, there are options for growing our influence quickly.  Potentially, there are other options that I don’t see. 

What other options exist?

Which options are best for Iraq, the US, other countries, and the world?

Once these options are identified, let’s come up with a plan that is based on factors within our control, rather than expecting Iraq or other countries to act in a certain manner.

Food for thought:

What is going to happen if we withdraw from Iraq today, as many are asking the government to do? 

Do you see it as realistic to expect the fledgling government of Iraq to solve the problem? 

 What strategy is going to leave us better off tomorrow than we are today as it relates to Iraq and international politics? 

Think about what can be learned from this situation for future decisions to intervene in or invade other countries.  What does this mean for our business decisions? 

Technorati Tags:                
 
Posted in Achieving Goals, Negotiations, Planning Tips | No Comments »



Building strong business relationships
Friday, July 6th, 2007

The other day, I wrote about the IRS’s decision on its e-filing suppliers.  Remember, the IRS is not monitoring quality of its e-filing suppliers.  Stated differently, the firms that are listed on the IRS website as being able to help you with e-filing of tax returns, may be letting you use software that calculates the refund/amount owed incorrectly.  The IRS identified this risk, and decided to accept it.

What would the IRS say if taxpayers decided that they would scribble whatever they wanted in each box and turn it in?  Think about how the negotiation of that audit might look…

IRS:  Ms. Smith, how did you calculate the information for line 23 of your return?

Ms. Smith:  I didn’t.  Y’all made the rules too complicated for me to understand them so I decided to fill in whatever I want.  Isn’t that what your e-filing software suppliers did?  And, you are encouraging people to use those suppliers. 

IRS:  Ms. Smith, what happened with the e-filing software is beside the point.  We are here about your audit.  Do you realize that this is a very serious matter?  You are obligated to file an accurate return.

Ms. Smith:  Of course it is a serious matter.  You are taxing people, encouraging them to use firms that are delivering defective information, and citing administrative burden as justification.  Yet, when I cite administrative burden associated with calculating my taxes, you say that it isn’t relevant.  Is that fair?  Is it right? 

IRS:  It is the law.

Ms. Smith:  It may be the law, but might does not make right. 

A discussion like that could end up going no where fast…  No matter how that negotiation progresses, the IRS looks bad.  It seems to me that the relationship that the IRS has with taxpayers is harmed any time it holds itself to a lower standard than it establishes for taxpayers.  And, citing the law as an excuse may not play very well.   

Suppose that Sam Supplier is reading this article, what takeaways might he gain for dealing with Connie Customer?

Technorati Tags:                    
 
Posted in Current Events, Negotiations, Planning Tips | No Comments »



Learning Activity: What should the World Bank do?
Sunday, July 1st, 2007

Earlier this evening, I was reading a guest column from Jeffrey Sachs, director of Earth Institute, in Fortune’s June 9th issue.  Current events like these make great assignments for high school and college students.  They bring home the lessons that are discussed in many classes.

The column is entitled “How I’d Fix the World Bank.”  Mr. Sachs’ suggests that World Bank set goals and hold people accountable for achieving the goals.  He suggests the substantive issue is the lack of infrastructure and services in Africa.  Remember, the article was written about a month after Paul Wolfowitz’s resignation.

What I would do is to ask the students to evaluate the article and, based on their evaluation, to develop a plan that they would use if they were head of World Bank.  It is easy to criticize someone else, but walking in that person’s shoes forces people to see the world a little differently.  Also, people are free to criticize, but they often suggest “solutions” that can’t be implemented.  Students need help creating solutions that can be implemented.  (Perhaps, too, World Bank employees need the same thing.  If so, that is a leadership issue.)

Perspective

It seems to me like this situation might be a good basis for discussion in disciplines like business, economics, history, philosophy, religion, political science, anthropology, sociology, communication, and science.  Here are a few ways that I can see it used, as a starting point… 

In team building classes, students might talk about fear, change, goals, team contracts, building trust, teaming skills, inclusion, communication, brainstorming, techniques for thinking otuside the box, project management, planning, and continuous improvement. 

In economics classes, students might emphasize models, exchange rates, infrastructure, market factors, options for building economies, international trade, and the impact of geopolitical issues.

In history classes, students might talk about how the issues have been addressed in other countries, including our own, and what lessons might be applied in Africa.

In political science, ethics, and religion classes, students might talk about the cultural impact of religion and politics on the decision making and what constitutes correct behavior, or how that is decided.  Golden Rule, Kant’s Categorical Imperative, utilitarian, and rights theories might be discussed in religion and philosophy.  In political science, the answer might be based on different political philosophers and writings.

In law, students might talk about the legal issues that would arise in World Bank’s efforts to help African countries develop or suggest options for dealing with a particular legal issue.

Breaking Issues Down

Regardless of the discipline, people will need to break the project down so they can create a meaningful solution.  When the forest is overwhelming, pick a tree.  Any tree will do.  If the tree is too big, pick a branch.  if the branch is too big, pick a twig.  If the twig is too big, pick a leaf.  And so on…  

The key to starting a solution, is to see possibilities and potential, rather than to see obstacles that have to be overcome.  Mr. Sachs suggested four targets which he believed could be dealt with quickly, too bad he didn’t provide a game plan for doing so with any of the areas.  The areas he identified were:

Raise African food production by 50% by 2010.

Defeat malaria by providing long-lasting bed-netting and medicines by 2010.

Electrify Africa by 2015.

Help Africa finance roads and rail upgrading.

It is hard to say that any of these outcomes are wrong, although it is easy to disagree with the timeline, how the results will be measured, whether they go far enough, and whether they have an obligation to get involved.   

Priorities 

In evaluating options or someone else’s comments, it is important to define priorities, expectations, and assumptions.  They are unique to each of us.  Too often, people make assumptions about others in these areas.  It causes a lot of problems. 

A three-fold approach might be appropriate here.  The three-steps could be:  stop the bleeding, do no harm, and solve the problems.  Let’s touch on these priorities. 

The Bleeding

There are going to be emergencies like famine, malaria outbreaks, economic pressures, and conflict.  How can we deal with them?  Often, the best approach is to have a plan and, when the emergencies arise, implement the plan.   

Stopping the bleeding has been the focus of many efforts over the years.  Seemingly, it has been the sole focus.  It gets a lot of media attention because it sells ads.  The pictures are often graphic and they attract attention.  Many stories suggest ways that we can help.  In the US, we are conditioned to help each other.  

Do No Harm

As with most projects, there is a risk of harm.  It is important to recognize the risk, and to have a plan for dealing with the risks that are reasonably foreseeable. 

Issues will arise that have not been anticipated.  When those issues arise, these contingency plans can suggest options for dealing with the other issues. 

It seems to me that the reasonably foreseeable risks would include such issues as:

World economic conditions

Environmental impacts 

Political instability

Spread of disease

Social unrest

Terrorism

Pollution

There are undoubtedly other risks that need to be considered, as well. 

It seems reasonable to expect students to identify issues that are outside the scope of the class.  The touchpoints often cause problems so people need to realize that their solutions have to work for other groups and to become accustomed to asking other groups for input.  Too often, this doesn’t happen in business and it wastes a lot of money when business units forget that one is the left foot and another the right hand, but they are all part of one body. 

Think too about how the issues will be manifested and how they can be detected and dealt with quickly.  The earlier in the life cycle of the issue that it is identified, the easier it is to solve the real problem, rather than to treat the symptoms. 

Solve the Problem

The solution to many problems is purely logistical.  Much of the problem can be addressed by improvements in infrastructure and logistics.  Infrastructure and logistics are the key to efficient use of resources and sustainability in many situations.  

Solving the problem will require people to address the logistics issues.  Transportation, economic infrastructure, education, culture, laws, and terrain will pose challenges.  At a minimum, students might be asked to address questions like:  

What will be required to get seeds, fertilizer, medicine, mosquito netting, and other things get to the people who need them? 

What will the solution mean for the countries involved, other countries, and for the students?

What infrastructure issues will need to be addressed in order to solve the problem?

What will be required for the countries and economies to be successful?

How will issues arise, be detected, and be dealt with?  

Final Thoughts

The audience would determine whether more (or less) instruction is necessary.  If I were using this in a team building class, I would have people work in teams and use the techniques that are taught in team building to create their solution. 

Would approaches like the one outlined above provide a good way for students to actually think about what the materials in their textbooks mean to them. 

One question that helps me when reading a new item is to ask what the article means for me.  Do you use this technique?

Your suggestions for other ways of using current events to help people learn are welcome. 

Technorati Tags:                      
 
Posted in Achieving Goals, Negotiations, New Ideas, Planning Tips, Solving Problems, Training | No Comments »



Question is answered on the car from Oklahoma City…
Sunday, June 24th, 2007

The winner of the 1957 Plymouth that was given to the person who came the closest to guessing the 2007 population of Oklahoma City has been located.

According to this article, the car would have been worth about $50,000, if it had been in good condition.  As it was though, the car was rusted and is of little value.  The winner did receive a $100 savings bond.

Risk can come in a variety of forms.  Here, there was a risk that the car would rust.  What, if any, steps might have been taken to better manage this risk?

Based on the risk and the steps that were taken to manage the risk, would you have participated in the contest?

What does this situation mean for your business?

Technorati Tags:      
 
Posted in Business Acumen, Planning Tips, Solving Problems | No Comments »



Negotiation Scenarios: Managing Risk when Quantities are Unknown
Friday, June 22nd, 2007

Those of you who have been reading this blog for a while know that Connie Customer and Sam Supplier walk through the steps to build successful business relationships.  Many of the items that have featured Connie and Sam are listed below.  Today, Connie and Sam address risk.

As Connie and Sam are negotiating a contract, they identify a variety of risks.  To finalize the deal, both Connie and Sam want to manage those risks.  One of the risks that Connie and Sam have identified is the risk that they will be incorrect in their estimates on quantity of products or services.   

Underestimating quantity

Suppose that Connie and Sam underestimates quantity. 

What would this mean for Connie’s business? 

The initial unit price may be higher than what Connie could have negotiated.

An expectation for the unit price is established and changes may be difficult.

If different internal budgets are involved, it could be painful for different groups in the company to pay different prices.

The prices for additional quantities may increase because many suppliers offer significant discounts when they are trying to win the business.  Once the initial business is won, the suppliers may feel less incentive to continue offering these discounts.

What would this mean for Sam’s business?

Sam may have to deal with a situation in which Connie is unhappy because of the price, or Connie feels that she has been taken advantage of.  This is especially likely if Sam has experience with the area and, in Connie’s opinion, should have realized that the quantity was incorrect.

Sam may be unprepared for the additional volume that Connie needs.  This can make it difficult for him to meet her timeline.  Here too, Sam may end up with a frustrated customer.

Depending on the capacity that Sam is producting, producing more of the product or service may require a substantial investment of capital.  Without a long-term commitment, it can be difficult to invest in new infrastructure.

Sam may be in the position of having to decide whether to focus on meeting Connie’s needs, or those of Sam’s other customers. 

Overestimating quantity

 It is equally possible that Connie will overestimate the quantity of a product or service that she needs. 

What would this mean for Connie’s business? 

The initial unit price that Connie receives may be lower than she should have paid.

Connie may be obligated to buy products and services that she does not need, or to pay a cancellation fee/penalty under the contract. 

Going forward, Sam may be unwilling to offer Connie the same level of discounts that he did in this situation.

What would this mean for Sam?

Sam may incur costs for materials, personnel, and administration that either he or Connie has to bear, regardless of whether Connie needs the products or services. 

Sam may have products and services for which there are no other customers. 

Depending on his handling of this situation, it may be difficult for Sam to retain Connie as a customer.

Observation

This issue often arises in enterprise-wide acquisitions.  When it arise, millions of dollars can be at risk.

Options

How can Connie and Sam manage this risk?  That is a critical question.  The exact approach needs to be specific to the situation.

As a starting point, Connie and Sam should recognize that this risk exists.  If they realize this risk exists, they are in a position to talk about the situation, assess the risk, and develop plans for dealing with the risk. 

In some cases, the risk may be acceptable to both parties.  If the cost of an inaccurate estimate is perceived as being small, Connie and Sam may both be willing to accept that risk.

Suppose that the risk is sufficiently large that Connie and Sam have to address the situation.  There are a variety of ways that they may be able to manage the risk.  A few possibilities for dealing with this situation are for Connie and Sam to:

Wait until the quantities are known.  If Connie had immediate needs for the products and services, she might satisfy those needs with one-off purchases or agreements.

Negotiate a master agreement on the legal terms, and address the prices in schedules or work orders issued pursuant to the agreement. 

Negotiate a master agreement that contains prices based on the quantities of products and services that Connie purchased during a specific time period, perhaps the prior fiscal year. 

Commit to a price based on an expected quantity, range, or dollar value of expenditures that Connie is expected to meet.  There are a variety of options for dealing with missing these expectations.  At the low end, Sam might have the right to adjust the price going forward.  At the opposite end, Sam might have the right to bill Connie for the difference between the commitment and the actual results or to terminate the contract.

Commit to a price based on an expected quantity and make adjustments to the quantity and price under specific conditions.

Lessons to be Learned

There is no one “best” solution for dealing with this issue. 

The totality of the circumstances and parties’ preferences determine which option is best for them.

In many cases, the parties can find solutions that address their respective needs, if they take the time to understand each other’s goals and are committed to finding solutions that meet everyone’s needs.

Technorati Tags:            
 
Posted in Business Acumen, Negotiations, Planning Tips, Solving Problems | No Comments »



Is it a problem if the milk is forgotten?
Thursday, June 21st, 2007

Often, people look at a situation from their perspective in deciding if it is a problem.  In reality, the situation needs to be assessed in context.  Let’s look at a simple example. 

Suppose that you forget to buy milk at a store.  Is this a problem?  Some may say “yes.”  Others may say “no.”  Realistically, it depends on a variety of factors.  Think about some factors that might be important if you were facing this situation, and how they might impact the answer to this question.

How much milk is on hand?  If a fresh gallon of milk has just been opened, forgetting the milk is less likely to pose a problem.  In contrast, if the last of the milk has been used, forgetting the milk may be a significant issue.

Is the milk required for something?  If a person has plans to make something that requires milk, forgetting the milk may pose a problem.  Perhaps, it will require a change in a menu.  If there is no plan to make something that requires milk, forgetting the milk is less of a concern.

How much time is required to get the milk?  If a person lives in town, going a few blocks or a couple miles to get the milk that was forgotten may be a little inconvenient.  Imagine that the person lives in the country and has to drive for a couple hours to get milk.  In this situation, forgetting the milk is more than a little inconvenient.

When will the milk be available next?  If the milk can be obtained any day during specific hours, it is much easier to replace the milk than if the person has to make special arrangements or the milk is only sold one day per week.

A person’s answers to these and similar questions are likely to impact a person’s answer to the question, “is it a problem if the milk is forgotten.”  Instead of this being a “yes/no” question, the answer may be a matter of degrees.  At least in theory, the answers to the questions determine how carefully the person needs to plan his or her list. 

If a person lives in a rural area, the person is likely to ”make a list and checking it twice” before going to town for groceries.  In town, if in doubt, the person may buy an item, rather than risk having to make a second trip to town or do without the item.

What does this mean for businesses?  If your business is remote from your suppliers, how important would planning be?  What steps could be taken to manage risks?

Technorati Tags:              
 
Posted in Business Acumen, Negotiations, Planning Tips, Solving Problems | No Comments »



A place to get away: Rogue River
Thursday, June 21st, 2007

Technology has crashed timelines in ways that even 10 years ago would have been unthinkable. 

Often, instead of working 12 to 14 hour days, people are working 16 or 18 hour days.  At what price to health, family, and business are these hours worked?

Some brag about getting over 500 email messages per day.  Is this something to brag about?

In such an environment, it is important to take the time to slow down, to breathe, and to think.  Otherwise, people end up trying to be the fastest rat in the race.  As a friend said a couple years ago, even when one is the fastest rat in the race, one is still just a rat.  This emphasis on doing more, better, and faster causes a lot of stress for people.  In some cases, it contributes to health problems.  For others, it can lead to isolation or poor performance in business and in school.

With so much technology though, this can be difficult to take the time to slow down and to breathe.  As a result, many have to physically remove themselves from the environment in order to actually remove the telephone from their ear and the Blackberry from their hand.

Rogue RiverWhen people are trying to remove themselves from the environment, one of the most beautiful places to go is the Rogue River in Oregon.  Sure, this is my opinion. 

As it happens, a lot of people agree with me.  Every year, people sign up to win the chance to go down the Rogue River via boat.  Others hike on trails along its banks.   

Think about it.  When you are trying to decompress, is it more relaxing to listen to a cellphone and fax machine, or the lapping of water and the rustling of trees? 

The Rogue River is a National Wild and Scenic River in Oregon.  Much of the area is part of a National Forest as well. 

From time to time, it is important to take the time to “just be.”  When I feel like taking the time to just be, the Rogue River is the perfect place for me. 

Trom time to time, I will share a bit more about one of my favorite places, the Rogue River in Oregon.

For those who can’t wait, perhaps you will find the following items interesting…

Rogue River/Siskiyou National Forest

Wikipedia Rogue River

Wikipedia Crater Lake 

Technorati Tags:          
 
Posted in About Coleen Davis, Planning Tips, Resources, Solving Problems | No Comments »