Page 33 - MetalForming January 2010

competitive food chain. Its experience as a Tier One supplier better prepared the company in terms of equipment, capabilities and processes. Its overall capability surpassed that of the other Tier Two suppliers it was now com- peting against. It also changed the nature of how it conducted business.
The company was able to shutter unnecessary and consistently unprofitable engineering centers, and to thin bloated middle management by creating self- directed teams—all told, a reduction in headcount by 20 percent. By concen- trating on the elimination of all non- value-added elements, improving work flow and methods and refocusing their business into a Tier Two operation, the company quickly ended its losing streak. Within 18 months it recognized profits
of $4 million on sales of $60 million. Encouraging entrepreneurial think- ing and sparking some bureaucratic controversy can be productive. Con-
sider the following;
• In business there are no sacred
cows; challenge everything. Assume nothing and ask “Why?” “Why not?” “What if?” etc., then listen. Questioning enables you to break the status quo and consider new possibilities.
• Look outside, benchmark, learn from others and find fresh perspectives. • Keep your people on their toes, drive out complacency and reward
innovation.
• Understand the origins of your
business processes and challenge their current validity. What worked in the past may hold no value today; again,
challenge everything.
• Kindly pass along to unwitting
competitors your customers who cost more than the value they bring. Let your competitors become the charitable organizations of your industry.
• It’s easy to grasp expressed needs, try to recognize the market’s latent needs.
• Take a page from Maday’s play- book and flip the playing field.
As you embark on the post reces- sionary economy of 2010 recognize that you’re in the position, possibly the best of your career, to recast your business into something stellar. Don’t let this moment pass. Identify and take advan- tage of this opportunity, invent, redefine and break free from the things that con- strain you. MF
The NEW Design Guidelines, Fourth Edition
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The completely updated and revised Design Guidelines, Fourth Edition is now available from PMA.
Design Guidelines is the must- have reference for those speci- fying and buying precision sheetmetal components.
Nearly 200 pages, including, photos, illustrations, charts, tables and schematics, inform your customers in a straight- forward and easy-to-under- stand manner how to ease the part-ordering process.
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To order, visit PMA’s Online Store or contact Marianne Sichi at 216/901-8800 or msichi@pma.org.
6363 Oak Tree Blvd. Independence, OH 44131-2500 216/901-8800 • Fax: 216/901-9190 www.pma.org