Monthly Archives: October 2009

Outsourcing is not an easy answer…

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SPA032

There is little doubt that outsourcing, when done correctly, can save money and inprove service but there are a number of things you need to be aware of when considering outsourcing:-

1) Product Quality – there are many in-house practices which are not documented which contribute to product quality. If  Product manufacture is outsourced these checks and balances will no longer be present and product quality will be adversely affected. It simply isn’t possible to document everything.

2) Hidden Cost – whereas unit cost will be cheaper (otherwise why do it) the overhead cost of managing and monitoring the Outsource supplier may be greater than anticipated, this needs to be closely monitored and managed.

3) Loss of I.P.R – It doesn’t matter what legal documents you sign some of your Intellectual property will be lost to the Outsource supplier and even end up in the hands of your competitors. You need to be aware of this.

4) Project Timescales –  Early Projects will suffer unplanned delays, this is an inevitable part of the learning curve.

5) Cultural Differences – these should not be underestimated and, if not clearly understood, will lead to confusion and misunderstanding.

Managing Ousource Projects requires experience and skill. You should seriously consider engaging an Outsourcing expert particularly in the early stages of the Project.

chris@amberhill.biz

A light at the end of the tunnel….

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…but it turns out to be a trains headlight !!!

projectsTodays U.K  GDP figures for July to September turned out to be grim news, with growth of 0.2% widely expected the actual figure was MINUS 0.4% !!! and now we are officially in the longest recession since records began.

So what can your company do to ensure survival:-

1) Review your costs on a regular basis – regular monitoring keeps everyone on their toes.

2) Introduce a regime whereby ALL purchase requisitions have to be approved by a Director. –  Its amazing how this can reduce unnecessary expenditure.

3) Get your costs scrutinized by an extenal body, its surprising what a fresh pair of eyes can see and the savings can far outweigh any consultancy fee.

4) If you are not already doing so consider outsourcing some of your key activities – but make sure you get professional outsourcing advice. The savings can be tremendous and preserve jobs in the long term.

5) If you need extra resource consider hiring interims or contractors, their contribution can have a massive impact for relatively litle cost.

Hopefully the Q4 data will be positive and we can all look forward to several years growth and prosperity.

Cost cutting is not enough…….

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AMBERHILL-LOGO-THUMBThe response of most companies to the current recession has been a round of savage cost cutting in the form of job loses, wage freezes, caps on pay etc etc

Of course this is understandable given the size of the slump following the global financial crisis but any company which believes that cost cutting alone will enable them to survive in the long term is sadly misguided.

The only way to grow is by introducing innovative products and services with real customer demand that beat the competition.

Companies that rely on cost cutting alone and who hope to deliver the same old same old will whither and die. The insolvency graveyard is full of companies which lacked the vision to change and, like a dinosaur which could not adapt to changing times, ultimately ceased to exist.

Some of the best examples of innovation can be seen in the Great Depression of the 1930’s. DuPont invested heavily in Research & Development. By the late 1930’s 40% of its sales were from products that were less than a decade old, including Nylon & synthetic rubber.

Procter & Gamble invested so heavily in Radio advertising it invented a new art form – The Soap Opera.

In the current resession Asda is building 14 new stores & hiring 7000 new workers. PepsiCo has taken direct control of two of its bottling plants at a cost of $6 billion.

Despite seeing it’s revenues fall by 23% in Q4 2008 compared to Q4 2007 p4Intel is continuing to invest heavily in innovation.

Cisco is buying up start-ups left right and centre.

P&G is undergoing its biggest expansion is 170 years opening 19 new factories world wide.

Innovation is the only answer for long term growth.

chris@amberhill.biz

Good project managers are invisible…..

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AMBERHILL-LOGO-THUMBA few years ago I was working for a medium size semiconductor company. One of the projects I was managing had a number of unique challenges.

The project involved the development of a new semiconductor I.C from initial concept through to volume manufacture, the customer was a major Far East mobile phone manufacturer.

It was the first time we had used an external subcontract wafer fab. It was the first time that a particular package was used to encapsulate the I.C and the product itself was a new cutting edge design.

The project went very well and was brought in within 2 weeks of plan over a 9 month period and within budget.

A couple of weeks after the end of the project I was at a working lunch when a Senior Manager made the following comment:-

“That project went really well, any idea why ?”

“Perhaps it had a good Project Manager”  was my response.

I had felt a degree of pique that my efforts did not seem to have been recognised but after mulling it over I began to understand.

The Project Managers role is one of facilitaion, it is ensuring that the Team understands the goals and objectives of the project.

It is in planning the project so that everyone knows what is to be done andOffice5 when.

It is in providing the appropriate tools so the tasks can be completed seamlessly.

It is in negotiation between parties to minimize disruption and conflict.

If the project is a complex machine the project manager is the oil which keeps it running smoothly towards its ultimate objective.

The machine is clear to see but unless you look closely the oil is invisible.

That’s why a good Project Manager is invisible.

chris@amberhill.biz

Are you ready for the upturn ?……..

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amberhill-logoMost pundits now agree the recession is over, the debate is all about the shape of the upturn.

Will it be V shaped, W shaped, L shaped or something else entirely, who knows but you better be prepared when it comes or your in danger of being left behind.

One of the things which will hold many organizations back is a reluctance to recruit. This is understandable given the severity of the recession as many companies are still in cost cutting mode – but there is one possible solution.

Many organizations are now recruiting freelance engineers and project Office1managers on fixed term contracts. This allows them to tailor their costs very carefully without having to worry about a long term commitment to the individual.  It also removes any concerns about severance pay or pension commitments.

Of course there are also benefits to the freelancer. A significantly higher day rate is the norm as well as the flexibility to sell their services to more than one organization.

This model may become more and more common in the post recession world.

chris@amberhill.biz

#pmot On behalf of the committee……

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amberhill-logoIf your organization has a number of projects on the go at any one time to form a Programme you will need a ‘Project Steering Committee’ or ‘Programme Board’.

This body reviews, approves and prioritizes project proposals as well as authorizing resource allocation.

It monitors project exceptions and instigates corrective actions. The Steering Committee aligns projects within the programme and may mandate standard methodologies.

It is customary for the Project Manager to appear before the committee on a regular basis to report progress on the project.

This may be seen as an opportunity to lobby for additional resources or support.

For more info regarding Project Management please visit www.amberhill.biz

Chris Robinson.

You can email me at chris@amberhill.biz

#pmot – You need to be a team player…..

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project-management-teamProject Team members carry out tasks specified by the Project Manager with agreed deliverables and timescales.

Team members take responsibility for their own tasks, keep the project manager informed of progress and exercise initiative when they become aware of issues outside their immediate responsibiities.

PMI says – ‘Project Team Members – the persons who report either directly or indirectly to the project manager and who are responsible for performing project work as a regular part of their assigned duties’  – PMBOK guide.

Ideal team members have the following attributes:-

1) They are willing and enthusiastic members.

2) They are Technical experts in their field.

3) They are honest and open.

4) They feel able to express their opinion.

5) Their contribution is valued.

A successful team has members who contribute value and take responsibility for their tasks. This scenario is enabled by a project manager who listens to his team and creates an enabling atmosphere.

ref: The Definitive Guide to Project Management – S.Nokes, S.Kelly FT