"We had the unique privilege of working with NLA to remap storage and flow practices in the distribution center and rethink our logistics processes. NLA moved swiftly to scope the project and provided a concise timeline to meet stated objectives. NLA staff moved in and out as needed without obstructing daily operations. Their consultants were professional, self reliant, experienced and professional. Our experience with NLA was excellent. Objectives were clear, timelines were kept, results delivered."

Van Hopkins
VP Logistics
DeVilbiss Air Power Company

Tolerating Underperformance

INTRODUCTION

As Jack Welch has repeatedly emphasized, great people get great results. The inverse of that is sometimes also true, that is that if the results are not great, then one must question whether or not the individual is truly great.

As the CEO or owner of a business, you know that people are your greatest assets. Thus, we expect the best and are disappointed and surprised when great results do not occur.

 

ADDRESSING PEOPLE NEEDS DURING THE EARLY STAGES

When a business is in its early stages, the CEO or owner is operating it as lean as possible and only adds staff when it is absolutely necessary. Sometimes, the new hire will be well skilled in a given area critical for growth. Other times, the individual will be more of a generalist, in having a number of skills which are necessary to cover all of the bases. Over time, as the business grows and becomes more complex, these needs may change. Different capabilities will be required to take the business to the next level. It may well be that the key individuals who have made major contributions and brought the business this far are capable of learning and acquiring the additional skills needed. Oftentimes, a business will not have leaders that are accomplished at hiring, training, coaching, and developing others. Many times the current and future business needs will exceed the capabilities of the loyal, dedicated team that has brought to the business to its present, successful level. This then poses a very difficult and emotional dilemma to the CEO or owner.

 

HIRING NEW TALENT

As the business grows, there are times when it needs to hire additional resources. An analysis is performed as to what skills are needed and then a search process is conducted to fill that position. Should timing be critical or finding the right set of skills prove to be difficult, compromises are sometimes made and the role is filled. This is understandable as the need to address the urgent often trumps the need to find the best person that meets the requirements. However, over the long term, the business may not have the correct skill set and the contribution from that individual will limit the organization.

 

LIVING WITH UNDERPERFORMERS

Having underperformers due to one of the above scenarios is not unusual. There are also those that start out well, but for whatever reason, are not performing at a high level. Irrespective of the cause, when a business accepts that having someone in the role is better than addressing the performance issue, the “Warm Body Syndrome” is present. The belief that a warm body is better than facing the process of potentially terminating someone or downgrading that person to a position in which they are capable of making a great contribution is dangerous to the long term health of the business and will limit both growth and profitability. Additionally, other teammates see this and their productivity is adversely affected as they see a lack of accountability. Difficult as it may be for the CEO or owner to address, the value of the business will be enhanced by having the right team to build the future. Stars are required to have stellar performance.

 

PIVOT TOWARD THE FUTURE

Business Value Growth is dependent on the shift from primary reliance on past knowledge and aging practices, to a forward-facing perspective with a clear view of evolving business environment and best-practices aligned with conditions in today’s marketplace.

 

CONCLUSION

Almost every organization that we have worked with over the past 30 years has had significant near term opportunities to reduce costs thru transportation leveraging. The path to better leverage is often not very clear at the onset: Opportunities may be parametered by changes in operation, and/or by solutions that take effect when freight departs shipping origins. Shippers are often required to negotiate “win-win” solutions with their customers, and better inventory performance throughout their supply chains can bring about transportation leveraging opportunities as well. The path to Cost Savings thru Transportation Leveraging can be demanding and incremental, but very rewarding, as well.