Jaguar Land Rover has a taste for Chinese #automotive

Posted on May 30, 2012 by admin

A new sales record of over 314k cars and profits of 1.5 billion GBP illustrate the success of British car maker Jaguar Land Rover and it’s innovative new products including the Range Rover Evoque which is selling like “hot cakes” at the moment particularly in China. In fact Jaguar Land Rover is opening a new dealership in China every week. China sales now represent almost 20% of the companies sales.

There is, however, another less publicised side to this story.

Since 2007 the British Pound has devalued against the Chinese Yuan (or RMB) by a whopping 56% as a direct result of the U.K Governments policy of Quantitative Easing. In March 2009 75 billion pounds was created electronically followed by another 200 billion pounds later that year. Further episodes of Q.E pumped a total of 325 billion pounds into the U.K economy, devaluing the pound & increasing exports.

It also goes a long way to explaining why foreign ownership of London property has increased 20% since 2009 & conversely why imported foodstuffs & other goods now seem outrageously expensive.

chris@projectsguru.co.uk

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Dealing with difficult customers……..

Posted on December 31, 2011 by admin

angry customer

Do you have to deal with some really “difficult customers” ?

The first question you should ask is “why is this customer being difficult ?”

Most customers are “difficult” because they are not getting what they want

in terms of product quality or delivery.

So here are some tips for Managing those customers:-

1) Understand what the customer wants – EXACTLY. Get them to spell it out in detail in a product spec.

2) Ensure that your product matches the customer spec.

3) If you hit problems which affect customer delivery or quality you need to be pro-active by:-

a) Keeping the customer informed – don’t take the ostrich approach & bury your head in the sand – arrange a regular conference call on a regular basis until any issues are resolved.

b) What is the contingency ? – is there any alternative you can offer the

customer until you resolve the issue.

c) Give them a timing plan detailing all activities associated with fixing

the problem – and keep it up to date.

d) Don’t bullshit the customer – maintain integrity by being open & honest,even if it feels painful doing so.

Taking a pro-active approach to managing customer expectations will pay off

in the long run as they realise that everyone has problems & the above approach demonstrates you are going the extra mile to solve their issues.

chris@projectsguru.co.uk

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What recession ??? #pmot #entrepreneur

Posted on November 12, 2011 by admin

This week Jaguar Land Rover announced a multi – billion pound investment program which will generate over one thousand new jobs in the West Midlands – a fantastic example of how a company can thrive in a recession when it focuses on producing a quality product range which exceeds customer expectations.

Here is just a short list of some major companies which not only started in a recession (or even a depression) but went on to grow into some of the biggest and most successful companies in he world today.

growth General Electric – 1873

Disney – 1924

Hewlett Packard – 1939

Burger King – 1957

Microsoft – 1975

So here are some thoughts on growth in the current recession:-

Business Case – if the business case is sound and has been rigorously reviewed – forget the recession. Have the courage to invest in your convictions.
Ignore the herd – just because the majority of companies are acting like rabbits caught in the headlights doesn’t mean that yours has to.
Crush Competitors – that’s right, take the opportunity to mop up your timid competitors markets.
Eliminate waste – apply LEAN principles to maintain the competitive edge.
Ensure Quality – apply 6 Sigma t0 minimize defects & maximise yields.

Employ Interims – If you are cautious about taking on full time employees make use of highly qualified contractors available at short notice to meet your immediate business needs.

Fortune favours the brave !

chris@projectsguru.co.uk

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Casino Capitalism….#pmot…#biz..#innovation

Posted on August 6, 2011 by admin

We have seen trillions wiped off stock markets worldwide, the FTSE 100 has lost over 10% of it’s value in the last week alone & our TV screens have been filled with hysterical traders and concerned politicians.

So does it really matter, in the long term probably not, but if you were planning on retiring soon and have an equities based pension scheme you may well have to think about postponing your retirement.

The markets have become the biggest casino on the planet, where billions are traded on market fluctuations to generate financial gain for wealthy funds. The problem is that massive losses can also be generated especially in times (like now) of great volatility.

It is almost as if Government policies are primarily based on satisfying short term targets of financial speculators.

Over the last 30 years we have seen increasing numbers of large corporations listed on the Stock Market. The benefits of this are increased transparency and greater share ownership but the downside is that company boards are increasingly focused on short term share performance rather than long term strategic growth. They are also more vulnerable to deselection which increases their focus on knee jerk reaction to stock market fluctuations.

So how do we escape from all this madness ?

Here are a few suggestions which may help:-

1) Corporations should seriously consider de-listing from publicly listed stock exchanges & revert to private Limited Company status. Directors will then be able to take a more objective long term view divorced from the daily vagaries of the markets.

2) They should follow the example of German organizations and involve workers representatives at board level, increasing participation and integration.

3) The only way to pay down debt is to generate growth; Governments need to think beyond printing money and subsidizing banks. Innovation in manufacturing and services should be strongly encouraged.

4) Failing corporations, whether banks or otherwise, must be allowed to fall. The risks of failing institutions should not be born by the taxpayer.

5) A state bank should be established to act in direct competition with the private sector so that essential Capital flows can be maintained.

6) Government (NOT essential public services) must be streamlined and taxes reduced. For too long those in business & manufacturing have subsidised those working for the state who provide no added value whatsoever.

We need a radical rethink if we want to escape the madness of Casino Capitalism.

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Return of The Apprentice….#pmot…#in…#entrepreneur

Posted on May 11, 2011 by admin

There are always plenty of laughs to be had in BBC’s “The Apprentice” – that’s what its all about after all, rather than a serious look at innovation or
entrepreneurship, it revolves around getting a bunch of young (naive) wannabes together who are generally arrogant, self opinionated and full of it; falling over themselves to look even dafter than they are in reality (all helped by clever editing of course)

Sir Alan hams it up, pontificating in cockney barrow boy English whilst trying not to fall off the box he has to place on his chair in order not to look too short.

Each task has a “project manager” – which has probably done more to damage the profession than anything else, most of the prats on the show probably think a Gantt is a term of abuse.

The funniest bit last night was when Sir Alan referred to himself as an “electronics expert….who sees things other people cannot see..”

Hmmmmm….perhaps he was referring to Amstrad’s “emailer” phone.
Oh Yes the famous emailer phone, widely used by Sir Alan’s receptionist to
usher in the hapless competitors.

Doesn’t every home have one ?

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The importance of bin on message #pmot #in

Posted on May 7, 2011 by admin

Whatever the rights or wrongs of the killing of Osama Bin Laden the message delivered surrounding his dispatch was certainly confusing to say the least.

First he died in a vicious firefight, next he was unarmed.

He used his wife as a human shield, then it was her who leaped in front of him!

The Whitehouse staff watched every moment of the assault live, then…… oh no they didn’t, they only watched the first couple of minutes before transmission was lost ! etc etc etc etc

“Jeeeezzzzzz! can’t these guys get anything right? ” millions around the world screamed at their TV’s.

And this is just the kind of mixed messages we deliver to our exasperated customers every day of the week. First we promise delivery on a certain date, then we go back and revise it, then someone else tells them a different story, its hardly any wonder that customers get fed up and go elsewhere.

So here are some simple tips to make sure your organization is on message for your customers:-

1) Where possible have one direct contact per customer, if this is not feasible have one contact for engineering issues, another for commercial etc.

2) Before giving a customer a key milestone make sure the project plan is fully developed and includes some contingency to allow for risk.

3) If events transpire to affect a key customer milestone make sure every option is explored to pull back on track before going back to the customer with the bad news.

4) If a major milestone is affected this should be communicated face to face.

5) Always give the customer a series of alternative options, so they can choose the best for them.

Keeping the customer on message is an essential part of managing customer relations and ensuring steady, repeat business.

chris@projectsguru.co.uk

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What makes an Organization “Excellent”.. Part II…#pmot…#in

Posted on January 12, 2011 by admin

excellent+organization2 How does your Organization treat the people it employs ?

In the last recession it was noticeable how some organizations were quick to fire whilst others made extraordinary efforts to keep their staff. Many of the latter were Automotive companies who valued the skills and capabilities of their workforce. Of course there was self serving interest at work here as skilled workers cost a lot to train, however it is recognised that LEAN Organizations put a lot of emphasis on recognizing and rewarding their staff who, in turn, accept more responsibility as a consequence.

How is your salary calculated ? Does your Organization have a structured pay scale and take into account National & Regional variations for your pay grade or do you just get minimum wage ?

What about training ? does your Organization provide regular opportunities for upgrading your skills; does it pay for courses you wish to attend ? or do you struggle to further yourself via education at your own cost.

How about the Culture ? A “blame culture” is a sure sign of an Organization in trouble. Laying the blame means you don’t take responsibility for your own actions.

Excellent Organizations treat their staff like their customers.

Is your Organization Excellent ?

chris@projectsguru.co.uk

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What makes an organization excellent ?….#pmot..#in

Posted on January 9, 2011 by admin

excellent+organization

As Bill or Ted would ask:-

“What makes an organization excellent” ?

Recently I had an accident in my car. (aaahhh! I hear you say 😉

Don’t worry I was OK but my car wasn’t !!!

I knew my insurance policy mentioned a courtesy car so I felt reassured that at least I would have transport for getting to work. You can imagine my disappointment when I contacted the Insurance company to be told I wouldn’t get a courtesy car because of clause xyz in the small print !

How many times has this happened to you, you query some service only to be told you are exempt and should have read the small print ! It is infuriating, you feel let down, dissapointed and angry.

COME OFF IT YOU GUYS, surely you realize when this happens we just take our business elsewhere.

So, one key aspect of an excellent organization is TRANSPARENCY.

Your customers should get exactly what they expect when they expect it.

We will cover other attributes of Excellent organizations in future posts.

chris@projectsguru.co.uk

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10 tips to ensure project delivery….#pmot #in

Posted on November 20, 2010 by admin

On target delivery

As Project Managers our business is project delivery. However some external suppliers are more reliable than others so here are 10 tips to ensure success:-

1) At the first sign of trouble arrange to have a face to face meeting with your supplier. It doesn’t matter if they are on the other side of the world, clear a space in the diary, book the flights and get in front of them. It will be worth every penny.

2) Raise your concerns in an open, honest none aggressive manner. By all means express your irritation but don’t blow your top – you will make yourself look foolish and unprofessional.

3) Identify the key stakeholders within your own organization who share an interest in the project.

4) Identify the key stakeholders in the supplier organization who share an interest in delivering the project.

5) Break the task down into manageable chunks and identify responsibility for each sub-task.

6) Insist the supplier provide a daily report of activity to be delivered at a specific time. This report should include a simple graphical representation (such as a bullseye chart) to indicate days ahead or days behind schedule. It should also stipulate actions required and responsibility. This report should be circulated to all key stakeholders. Accept no excuses for late or none delivery of this key report.

7) Following the face-to-face have a daily conference call. Do this whether there are any issues or not. 2 minutes passing the time of day reminds the supplier they are uppermost in your mind.

8) Identify Carrots and Sticks. What penalty clauses can you invoke ? What are the opportunities of new business ? Identifying them gives you additional leverage.

9) Make it easy for them – have they got a spec, is it up to date, is it comprehensive enough, do they understand exactly what is required ?

10) Don’t assume everything is the fault of the supplier, have you communicated clearly and concisely what your expectations are ? Have you paid each milestone on time ? Is the SOW & Contract clear ?

Some suppliers are always easier to deal with than others but employing the above tips should help. Have you got any more you could share ?

chris@projectsguru.co.uk

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Insource or Outsource ? #pmot #in

Posted on November 5, 2010 by admin

Far East manufacture should not be the default option

Over the last 14 years Manufacturing in the U.K has shrunk from a respectable 28% of GDP to today’s all time low of 10%.

So maybe it is time to rethink our outsourcing strategy ?

Over the years we have become very complacent in the U.K about manufacturing, and in many respects have given up the ghost. We have blithely subcontracted all of our manufacturing operations with no long term view of the consequesnces. We have given away millions of jobs for a short term monetary gain and are now reaping the rewards of an economy built on sand.

Outsourcing to the Far East should NOT be the default option. We need to look at the alternatives and take the following into consideration:-

1) Compare Apples with Apples – just because the Direct labour Cost may be cheaper in the Far East what about the support costs. It is inevitable that a subcontracted operation will need more indirect suppport, sometimes more than you could possibly imagine, and this cost needs to be accounted for somewhere.

2) Is the Quality of the product really going to be the same ?- how will you ensure this ?

3) Cost of shipping – with rising fuel costs have you taken this into consideration ? you need to understand the cost per unit shipped.

4) Environmental Policy – How does the transport and distribution of products across the world fit in with your Environmental Policy – if you want customers to “buy in” to your Environmental Policy it needs to be credible and any offshore manufacture and transport should be accounted for in your overall Carbon Footprint.

5) Time of shipping – can you afford to delay initial deliveries while they are on the Sea for 5 weeks or do you want to pay extra for air freight to ensure fast delivery ?

6) Have you considered the cost of Import Duties ?

Consider the success of some of our best industries in the U.K – auto manufacture, Aerospace, telecommunications, mobile phones etc etc

Outsourcing should remain a key component of our manufacturing strategy but should note be the default option. We need to challenge the assumption that manufacturing will be subcontracted by asking the right questions.

chris@projectsguru.co.uk

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Category Archives: business

Jaguar Land Rover has a taste for Chinese #automotive

Dealing with difficult customers……..

angry customer

Do you have to deal with some really “difficult customers” ?

The first question you should ask is “why is this customer being difficult ?”