Is the current industrial strife at British Airways indicative of a poorly managed change process ?
Change which is imposed rather than negotiated is rarely successful. In fact any change process needs to go through fundamental stages to succeed and the unrest at B.A would suggest that these key stages have been ignored.
Change is inevitable but its successful implementation requires real management skills.
There has been lots of recent talk from politicians, particularly The Conservative Party, about rejuvinating British Industry. Indeed James Dyson, the renowned inventor of the bagless vacuum cleaner which bears his name, recently issued his Ingenious Britain report on the subject.
Such debate is welcome and well overdue. With manufacturing in the U.K shrinking to around 10% of GDP we urgently need a strategy which focuses on what we do best – Innovation.
There is no way we can compete with Far East manufacturers on cost (labor or Capital) but we can and do compete strongly when it comes to Innovative design and technology. This is partly due to our strong engineering history and professional project management skills. It is also down to our open and democratic culture which leads to a rigorous debate of ideas.
We have a wealth of scientific and engineering talent in the U.K which we can exploit to deliver new and innovative products to the worlds markets.
We need to rev up the Brain Machine.
chris@projectsguru.co.uk
In July 2009 Sun Danyong comitted suicide by throwing himself from his 12th flloor apartment. Sun’s apartment had been ransacked and he claimed in a text, immediately before his death, that he had been badly beaten.
Sun worked for the massive Taiwanese CEM Foxconn (Turnover |$10 billion) which manufactures Apples iconic iphone. He was rumoured to have been suspected in the theft of an iphone prototype. The incident sparked an Audit by Apple but to date no visible action has been taken.
This incident highlights the ethical dilemmas posed in Subcontracting. How do we deal with massive corporations which often dwarf our own ? How do we balance the need to reduce manufacturing cost with the need to deal with undemocratic regimes with questionable human rights records ?
Do we do business at any price ?
Like most dilemmas the answer lies with the consumer. Western consumers are increasingly conscious of the ethical and environmental impact of their actions, where does that food come from, what is involved in it’s manufacture ? Who benefits and who gets hurt ?
This conciousness will extend to all areas of consumption including electronic products and it is those companies which pursue an active, ethical and evironmental policy which will ultimately benefit.
chris@projectsguru.co.uk
The outsourcing market is a large, diversified and complex model but it is still possible to discern some notable trends:-
1) The manufacturing industry in the West looks likely to continue to shrink, according to Electronics Times the U.S semiconductor industry lost 107,000 jobs between 2001 to 2009 and some predictions estimate a further loss of 146,000 jobs from 2008 – 2018 – Scary stuff.
2) The latest Labour Market Outllook report from CIPD suggests that 10% of all UK companies intend to outsource some work in 2010 with 41% of I.T companies planning to outsource key activities.
3) According to the Bangkok Post the Outsourcing market was worth $24.9 billion at the end of Q4 2009 up 8% on the previous year.
4) An interesting observation is that Chinese & Indian companies are looking at Outsourcing within their own National boundaries. This is perfectly understandable given both countries vast size and untapped resource. We may see a gradual migration of economic activity from coastal areas inwards.
All of the above highlights the need for Western companies to accellerate Innovation to stay ahead of the value curve.
It also suggests that Western governments need to look very carefully at their strategy for Manufacturing and Innovation if they want to preserve what remains of the High Technology sector to provide skilled employment in the future.
As per usual Cash is King.
chris@projectsguru.co.uk
February 14th sees the start of the Chinese New Year festivities and the biggest mass movement of people on the planet.
From the factories of Shenzen, Shuzhou and Chengdu millions of people will travel to their traditional family homes to be with friends and family and to join the celebrations.
From the glittering glass and metal towers of Shanghai, from the ancient palaces of Beijing a vast tide of humanity is on the move, many travelling not only across land and sea but across time itself, back through centuries to villages which have never seen an electric light.
All across the globe, at key times and dates, we repeat the rituals which have bound us together for centuries.
We travel to celebrate with family and friends.
Thats what makes us human.
chris@projectsguru.co.uk
Anyone old enough will remember the day, twenty years ago today, that Nelson Mandela walked to freedom, blinking in the sunshine, after 27 years in jail, much of that time on Robben Island.
Following his release Mandela exhibited exemplary leadership leading his people to a relatively peaceful future in a democratic South Africa.
It was an incredible achievement given the depth of hostility which existed between black and white.
We should also acknowledge the role played by F.W de Klerk who paved the way for democracy and mitigated the hostility and understandable fears of the Afrikaans resistance.
Both Leaders demonstrated that when we sit down to negotiate a peace we do so with our enemies not our friends but that it is possible to achieve peace against seemingly impossible odds.
chris@projectsguru.co.uk
That was the chant that went up around the U.K following the decision by the Cadbury board to recommend the latest offer from the American company Kraft for the U.K confectionary manufacturer.
Surely, however, the Cadbury board was only acting in its shareholders best interests – and what’s wrong with that ?
Perhaps objectors could answer the following simple questions:-
If you sold your house would you a) get the maximum price you could or b) sell it to the nicest person for a much lower figure ?
If your boss offered you a 20% pay rise would you decline in the better interests of the Company which employs you ?
Thought so.
Why are people who consistently act in their own material interests find objection when others do the same ?
There are genuine concerns that the Kraft takeover will have a negative impact on Cadbury workers jobs, but those workers do not own Cadbury’s they are employed by them and as a result receive generous financial reward; if they are not happy with the results of the takeover they are free to sell their skills and abilities elsewhere.
It may also be the case that Kraft should not be too surprised if their workforce seek and pursue a substantial pay claim, if neccessary employing industrial action to force their claim.
Maybe if we all acknowledged our own material instincts we could be more understanding of the actions of others.
chris@projectsguru.co.uk
www.projectsguru.co.uk
In 1999 I was lucky enough to visit New Orleans for a business conference. Of course I had a tremendous time, visiting all the tourist sites and lapping up the nightlife in the French Quarter. The drink was flowing, the music eminated from every bar blending together in a heady mixture of jazz and blues, the mood was exuberant, the colours vibrant, the women beautiful and the food was great too:- Creole Crayfish, Jumbalaya, fresh lobster and spicy chicken.
In the cold light of day more disturbing things were apparent. There was a great deal of poverty outside the tourist areas and the realization that all, and I mean all, of the serving staff were black. The Hotel maids, the shop assistants, the cleaning staff, the refuse workers, all of them were black. In contrast the majority of the hotel guests including myself were white. This was the most racially divided society I had ever been in.
The next moring I was reflecting on this over breakfast when my thoughts were interrupted by 3 loud cracks. Startled I turned to see a large white man banging his ashtray on the table and demading “S-U-G-A-R” as his coffee was served by the timid black waitress. I have never tasted so much bile in such a sweet word.
On my way home I passed through the huge hub of Atlanta and amid the 
hustle and bustle I came across a memorial to Dr Martin Luther King Jr and read about that great man and the sacrifices he made for freedom and equality.
Several years later in 2005 I watched in horror as Katrina devastated New Orleans. What seemed worse was that it took the Federal Government 3 days to respond while the poverty stricken people of Loiusiana, the vast majority being black, fought for survival amid the rising tide and chaos. The area was like a Third World country, not The United States of America.
When the state troopers eventually arrived they seemed more intent in shooting looters than helping people.
In 2009 I watched President Obamas inaugration intently. One particular passage resonated strongly:-
“This is the meaning of our liberty and our creed – why men and women and children of every race and every faith can join in celebration across this magnificent mall, and why a man whose father less than 60 years ago might not have been served at a local restaurant can now stand before you to take a most sacred oath.”
The tears which rolled down my cheek were warm and salty. I was reminded of Crayfish and Lobster and Jazz.
Happy Dr Martin Luther King Jr Day America !
Home of the brave, Land of the Free, and the Not So Free.
chris@projectsguru.co.uk