Bring it all home……#reshoring

A recent survey in The Engineer reported that 59% of correspondents think that bringing manufacturing elements of the Supply Chain back to the UK (#reshoring) should be a priority following the Covid19 Pandemic outbreak.

There are some really good points made in the comments section & following Britain’s exit from the EEC there is no reason why this should not be Government policy, even stimulated by official Government subsidies – but should it ?

There is no denying that ever since the late 1970’s Britains manufacturing base has shrunk from around 32% to 10% of GDP – but does this matter ?

To anyone who has been involved in Engineering & Manufacturing over the last 30 years & who has seen millions of good quality skilled & relatively secure jobs migrate to China & Asia to be replaced by insecure temporary low paying ‘gig economy’ roles the answer  has to be ‘yes’

However we also need to remember this shocking decline was also due to a certain amount of complacency in British Manufacturing as a result of poor Management, sloppy working practices & shoddy quality.

Rebalancing the Economy by encouraging high quality Manufacturing supported by competent Management & Customer focussed Quality Management sounds like a positive move indeed.

Chris Robinson

www.amberhill.biz

Time for a #Change ?….

BrexitRegardless of one’s political views it is easy to see the current mire of Brexit is a classic example of how not to manage change.
By failing at every level the process has become stuck in the mud regardless of whether you were a remainer or an ardent Brexiteer; confusion reigns supreme & it is difficult to see a way out of the mess without seriously ‘cheesing off’ large portions of the population.
According to John Kotter, a Professor at Harvard Business School there are 8
key steps to change:-
  1. Create Urgency: There needs to be a compelling case for change, and it’s up to the project leader to explain that reason clearly so people understand and are inspired to change.
  2. Form a Powerful Coalition: One person cannot shoulder the change themselves. It requires a team, so it’s important to collect the key people to help enable that change.
  3. Create a Vision for the Change: Make it short, clear, relevant and easy to understand by the people who are going to be affected by the change.
  4. Communicate the Vision: Communicate the change, but don’t just talk the talk. Walk the walk of the change and have it reflected throughout the project.
  5. Remove Obstacles: As you work towards implementing change, you will hit both physical and emotional obstacles, so you and the team need to help people overcome these blocks by listening to their concerns and seeking their feedback.
  6. Create Short-Term Wins: By demonstrating the benefits of the change early in the process you’re more likely to get buy-in and expedite the process overall.
  7. Build on the Change: Don’t think you’re done too early in the process. Instead, repeat the above steps for awhile and let the change settle in.
  8. Anchor the Change: Finally, make sure the change sticks by embedding it in the organizational procedures, operating models and people’s day-to-day work
So applying these key steps to Brexit:-
1) Create Urgency – why did Brexit have to be triggered so soon after the Referendum & without a clear definition of what the destination was. Given the current debate about what Brexit actually means this was never spelt out clearly or defined to a fine enough detail.
2) Form a Powerful coalition – This clearly did not happen. Theresa May is undoubtedly a Politician of fierce determination but lacks the ability to reach out & form alliances even in her own party. She has been thwarted at every turn because she never had the character to reach out to others across the political divide & form a consensus on what Brexit was & how to achieve it.
3) Create a vision for the change – it is still a matter of conjecture whether Brexit involves a customs union, agreed access to the common market, etc etc – ask 10 different people what Brexit is & you get 11 different answers.
4) Communicate the Vision – ‘Nuff said.
5) Remove Obstacles – it seems as if the longer the process staggers on the more obstacles are thrown in its way. This is a direct result of not having a clearly defined end goal & strategy.
6) Create short term wins – difficult to see any evidence of this.
7) Build on Change – yet to see this achieved.
8) Anchor the change  – Ditto.
It is incredulous to believe that a major western Democratic Government has embarked on a Change of this magnitude without adopting the very basis tenets of Change Management.
chris@amberhill.biz

Gnomes predict AI to cause 7 million job losses……….#technology

artificial-intelligenceIn the U.K today salaries have barely risen in real terms in the last decade & despite decreasing unemployment many find themselves in the precarious position of holding short term contracts with minimal security.

It is hardly surprising that the introduction of Artificial Intelligence & automated technology fills many with dread.

The subject was recently discussed in Davos at the annual WEF meeting & the World Economics Forum predict a total loss of 7.1 million jobs, offset by a gain of 2 million new positions. (in 15 leading countries)

Like all new technologies there will be gainers & losers, most of the job losses will be in customer service industries & healthcare whereas the 2 million jobs will be mainly highly paid engineering & scientific roles to deliver these new technologies.

Of course none of this is inevitable. ‘The Future’ is not a destination which already exists & to which we travel inexorably. We all create the future & it is largely a result of the political & ideological choices we make on the journey.

Happy 2017.

chris@amberhill.biz

www.amberhill-associates.com

 

10 things we can learn from the #chinacrisis

 

 

 

 

 

 

CHINA07

1) What goes up MUST come down – I know it’s obvious but some people really believed it was possible for an economy to grow at 7% per year indefinitely – just ask the punters on the Shanghai Index.

2) Gordon Brown didn’t abolish boom & bust – but then we all learned that 7 years ago. Capitalism, for all its pros & cons, is inherently cyclical.

3) Every Market is interconnected – more so now than ever before, any crisis in China will be replicated to one extent or another around the globe.

4) No Government controls the market – whether its the State Capitalist Chinese or the Western Democracies – intervention is limited in its affect.

5) Transparency is a concern – Is the Chinese economy still growing at 6%, 5% or much less – no one knows & there is a distinct lack of trust in the data supplied by the Chinese government.

6) It will impact us all :- The Chinese economy is the second biggest market in the world & although exports vastly exceed imports the purchasing power of the Chinese middle classes will be severely curbed.

7) Social upheaval will follow – The political tensions in China will erupt (to one degree or another); The Chinese Government will struggle to keep a lid on the educated middle classes who have got used to continuous growth & increased wealth.

8) Capitalism is in crisis – as boom follows bust & vice versa Capital flows to the point of highest growth – leaving chaos in its wake.

9) What comes next ? – no one knows – but maybe we should be looking to develop a sustainable society based on full-filling human needs rather than continuously expanding Gross Domestic product ?

10) The sun still rises in the East, sets in the West & the world keeps on turning.

chris@amberhill.biz

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Be wary of ‘Big Data’…….

Big-Data
We’re living in a world of ‘Big Data’.

I’m not sure how it crept up on us but it’s everywhere. From our School League Tables to our NHS Trust performance, from our Jobs & the demand for the umbiquitous score sheet to Police Crime Statistics which tell us that crime is pretty much falling everywhere.(!)

Big Data is everywhere & it rules. Try to get anything done without justifying it with the data to back it up & your in for a losing battle. Listen to conversations in Management meetings & count the number of times ‘data’ is mentioned.

And of course if its in the data then it must be true – right ?

Well, there is an interesting thing about data. It’s open to interpretation. And when someone’s bonus or even livelihood is dependent on it there is always a tendency (subconciously or otherwise) to manipulate that data to portray the favoured outcome.

The only way to provide some degree of protection is to totally separate the ones producing & measuring the data from those most likely to benefit if it goes one way or the other.

We’re going to get even more data, as the Internet of Things unfolds and more and more devices are created to measure, in particular, Biometric data –  so we can all measure our heartbeats, chollestrol levels, blood, pressure, heartbeat etc etc & display them on our wearable devices.

What we need to bear in mind is – what is all this data being used for ? Whom does it benefit ? and crucially, who owns it ?

chris@amberhill.biz

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Dis-United Kingdom……………#Scotland

Scot-indpThursday 18th September 2014 will go down in history as a momentous one for The United Kingdom & Scotland regardless of the result.

The fact that so many Scots have been completely dissillusioned with Westminster politics that they are willing to smash the Union & embark on a new journey as an Independent nation without even knowing what currency will be used is a terrible vindictment of how people have been alienated by successive Tory & Labour governments.

Perhaps the Palace of Westminster has been insulated from the real world for far too long.

No matter whether the Scots win or lose they will gain more power either by gaining full independence or from the consolation prize of ‘Devo Max’ – this will cause inevitable resentment in England where there are already calls for Regional Devolution, particularly in the long neglected North.

The 18th September will herald a new dawn in Scottish & UK politics.
chris@amberhill.biz

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Grim up North……………………………..#oneNorth

M625 Northern cities have put forward a joint proposal to improve transport infrastructure in the North. Dignatries from Newcastle, Sheffield, Leeds, Manchester & Liverpool met the chancellor George Osborne who gave a very favourable response to the plan.

The plan which some are dubbing ‘HS3’ involves increasing road capacity, building a 125mph cross pennine rail link & improving local rail networks.

Extending the current Metro-link in Greater Manchester & including Liverpool Airport & City Centre will reduce road traffic on the dreaded M62 & reinforce links between these 2 great cities.

This is what ‘The North’ has been crying out for for the last 30 years.!

If it is done correctly by focusing on rail & metro links & by reducing road traffic rather than simply encouraging more cars onto already congested roads it will transform the North into a place where companies want to move & invest.

As someone who lives in Manchester but travels all over the country the gulf between North & South is gobsmacking. With  the South vastly overpopulated & house buying out of the question for the young it is absolutely vital to invest in the North & build a prosperous & diversified economy.

It is essential to maintain the pressure on George Osborne to put his money where his mouth is.

chris@amberhill.biz

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Why #innovation will fail in China

chinese-workersThe Chinese Government is pouring millions of yen into R&D in an effort to stimulate innovation in industry to stimulate growth in it’s internal markets.

This effort is aimed at increasing added value and moving China away from being the assembly shop of the world – and it’s doomed to fail miserably unless it is accompanied by sweeping political reform which, in itself, is extremely unlikely.

In order for innovation to thrive it is necessary to have a culture which allows open debate, which allows the challenge of pre-existing dogma & beliefs. It encourages the active participation of workers at all levels of the organization from the cleaner to the CEO. Innovation requires an open culture which values individualism.

All of this is impossible in a system which is strictly hierarchical, which jails political dissidents & artists & where the Party has the ultimate say in everything. Innovation is impossible in a culture of fear.

Unless the Chinese State Communist Party embraces democracy & undergoes serious reform any efforts to stimulate Innovation will fail miserably.
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The true origin of the Internet…………..#innovation

nixonIn July 1969 President Richard Nixon &  CIA director Richard Helms paid a secret visit to UCLA for a meeting with Head of Computational Studies Walther Fuchs.

It was after dark and Nixon & Helms were smuggled in a rear fire exit. Both were disguised and wore false beards and glasses in case they were spotted by some inquisitive student working late on her dissertation.

In the study of Fuchs  the 3 relaxed with Havana cigars and Hennessy Cognac. The study was lit by moonlight filtering through the thick drape curtains & a single green reading lamp on the worn teak desk.

The walls were lined with antique leather bound books and a few more modern tomes with titles like “packet mode switching” and “The fundamentals of Electricity”

Nixon exhaled slowly, blowing a couple of smoke rings before taking a large sip on his Cognac.

Helms eyes moved around the room constantly as if searching for something elusive.

Nixon – “Walter, we need your help & what you do must remain absolutely secret, you can’t even tell your Mother”

Fuchs – “Of course, anything for my Country Sir”

Helms – “we want you to develop a system which we can use to capture peoples communications”

Nixon – “….it should appear entirely voluntary, so that they divulge their innermost secrets at will”

Helms – “It will develop over time with more & more people becoming increasingly interconnected…..”

Nixon – “if you help us we will invest billions of dollars here at UCLA & develop a whole new industry to support it’s growth….”

Helms – “we will use it to fight International Crime & to defeat the Commies…”

Fuchs – ” there……there is something I’m working on it’s called ARPANET”

Helms – “sounds good but why don’t we call it the International Net……..or INTERNET..”

Nixon exhaled and blew smoke rings across the room.

Kingdom for a horse………………………………..#business

As the horse-burger scandal sweeps the country people are turning away from mass produced convenience foods & the supermarket giants who sell them in droves.

Like the banks before them the manufacturers & distributors of this garbage will learn they neglect their ethics at their peril.

Trust is a fundamental part of business. Most people only allow themselves to be “ripped off” once and it is in the interest of all parties in a business arrangement to ensure that all participants get a piece of the cake.

In our daily business transactions we need to maintain an open & honest communication with all parts of our supply chain to ensure future business success.

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