Some people use loosely the terms "correlation" and "direct correlation" to imply "causation" between two variables. It is a known fact in statistics, however, that correlation does not imply causation. To avoid such "logical fallacies", one may want to review a basic statistics textbook and / or the work of Browne & Keeley in their excellent book entitled: "Asking the Right Questions: A Guide to Critical Thinking".
We can't solve problems by using the same kind of thinking we used when we created them.
Six Sigma approach, and its methods including 5 whys, has been applied to increase the overall performance of different business sectors. However, integrating the data-driven, structured Six Sigma processes into organizations has room for improvement. While recognizing the need for improvements in Six Sigma, some researchers suggested improving it using different technical philosophies. A main area of improvement, however, is in the integration of the principles of Critical Thinking into the process of Six Sigma.
Winning, by Jack Welch is a book that relates his conclusions and wisdom gained from his years in business at multiple levels of leadership, most particularly as CEO of General Electric. While his book is not of an academic nature, Welch would be considered by most as a successful “expert” in the field of business management. In Winning, Welch addresses a manager’s approach to dealing with internal business issues. These include leadership skills, hiring practices, management of people, terminating employees, addressing change in the organization, and crisis management. Welch believes a leader must inject confidence into everyone in the organization, which calls upon the leader to exude positive energy. Leaders do not have to know everything, sometimes you should feel like the least knowledgeable person in the room. Hiring is a critical process. In fact H. R. Directors should be viewed as being as important as the CEO. When it comes to terminations, being clear and acting promptly is essential, while minimizing humiliation. When it comes to change management, perhaps the most important element is to attach every major change initiative to a clear purpose or goal. In the book, Welch praises Six Sigma and concludes that if Six Sigma is done right it is energizing, incredibly rewarding, and nothing compares to its effectiveness when it comes to improving company’s operational effectiveness, raising its productivity, and lowering its costs. Mr. Welch reminds the reader that “winning” was inspired by questions executives, employees, and others asked him in different settings around the world and dedicates the last chapter to answer questions that previous chapters did not address including Chinese competition to US firms, women in business, European Union, Sarbanes-Oxley Act, Africa and AIDS, and Golf. But perhaps the most interesting question he addresses is personal in nature and futuristic in scope: Do you think you will go to heaven? Interestingly he states an answer as “who knows”? In a CEO style he continues: “if there are any points given out for caring about people with every fiber o your being and giving life all you’ve got every day, then I suppose I have a shot. Given a choice, of course, I’d rather not find out anytime soon. There’s so much more to do” (Welch, 2005: 359).
Source:
Welch, J., Welch, S. (2005). Winning. Harper Business. USA.
The days of the proudly independent manager running a sharply defined unit are over. Collaboration and teamwork are now necessary in the executive suite as on the front lines. Teach your managers how to work together for the good of the enterprise rather than stab each other in the back for narrow gain.
Source: Michael Hammer – The Agenda
Over the years, I noticed that world class retail leaders artfully master the elements of thinking, functional knowledge, and leadership. Whether retail leaders encounter merchandising issues, operational issues, and/or human resources issues; it is about critically thinking to create appropriate actions in retail outlets, and motivating teams to shape the situation into success. Every failure I encountered had to do with the wrong decision, the wrong execution, and/or the wrong attitude towards people.
Reference
Ayad, A. (2008). Optimizing Inventory and Store Results in a Big Box Environment. International Journal of Retail & Distribution Management, 36 (3), 180 – 191.
I believe opportunities are out there for anybody with the courage to reach out. But recognizing these opportunities is the difference between people who are successful and people who are not.
Reference
Bernie Marcus & Arthur Blank – Built from Scratch
Few years ago, I was asked to deliver a scholarship on behalf of the Winnipeg Chapter of the American Society for Quality in Manitoba, Canada alongside experienced career faculty offering scholarships to students. On the back stage, presenters (faculty members and guests) met for orientation prior to the ceremony. Most of the attendees introduced themselves as professors and/or other prestigious business roles. When my turn came, one could see eyebrows raised as I introduced myself as a Civil Engineer who have taught mathematics of finance at college level and working as a big box retail manager. I heard an unasked question: “how would retail fair with mathematics and engineering?” So, I volunteered an answer: as an engineer, in a highly predictable and well-defined physical laws, the most difficult equation I had to deal with involved few variables and few unknowns; but imagine an equation that has to do with 200 people who are influenced by hundreds of unknowns, and unpredictability interacting daily with over 1,000 customers who are influenced by hundreds of variables and unknowns to offer over 35,000 products and services ranging from a simple nut and nail to sophisticated appliances and kitchens manufactured and/or imported from local communities or from across the globe to drive $35 million business or more. Trust me, I emphasized, I tried mathematical modeling but I could not build that equation. Indeed, I propose that mathematical problem for a contest challenge. Yet, proud and inspired retail managers and employees deal with this equation day in and day out; and deliver unparallel products and services.
Reference
Ayad, A. (2008). Optimizing Inventory and Store Results in a Big Box Environment. International Journal of Retail & Distribution Management, 36 (3), 180 – 191.
For retail executives, this appears to be a suitable time to assess strategy and make strategic changes. A strategy that did not take into consideration “recession” may not be comprehensive enough to respond to customers’ reality. Decreasing margins and increasing marketing may be necessary to keep and / or improve market share. Selling unproductive assets to keep enterprise afloat, build customer loyalty and employees’ morale and talent can payoff on the long run. M&A can be an attractive option at this point. For some companies, perhaps it is a survival necessity. But most important of all both on the short term and long term remains value proposition and customer service.
"Every time someone attacks our stores for not being brightly lit as competitor’s stores, or for being too big, we shrug our shoulders and laugh" (Marcus, Blank, & Andelman, 1999:176).
Can retailers today afford not to be “bright, organized, and clean”? I argue: certainly not.
Reference
Marcus, B., Blank, A., & Andelman, B. (1999). Built from Scratch: How a couple of regular guys grew The Home Depot from nothing to $30 Billion. Times Business. USA.
