It has taken our industry quite a few years, but once again it is common for wood component companies for a 15%+ EBITDA in normal markets, in which the sales exceed a two-week lead time. Many are exceeding 20% EBITDA. Do you know how well your company did in comparison to the average? Perhaps you are not privy to such information, but maybe you know that things need further improvement. If improvement is a real goal instead of just talking about it, maybe you should consider doing something different instead of repeating the same processes and expecting different results. Everyone should ask, “What are some of the things that prevent serious improvement from happening within my group?”
Time and money are excuses many offer as the main reasons for not trying something different. Others say, “I need to find the right individual(s) to move us in the right direction.” If you feel these are your main obstacles, your company is more than likely going to continue repeating the same patterns and garner the same results it has always achieved. So what is preventing any company, department, or individual from making real, positive changes to garner better results? There are two main obstacles that must be overcome: pride and not admitting that you don’t have all the answers.
According to psychology studies, “Modern cognitive theory states that people tend to perceive reality in light of pre-existing expectations and will ignore large amounts of contrary data before finally changing their minds.” In other words, we perceive the world the way we want regardless of the evidence showing it differently. Why is this so often the case? The answer is simple but hard to overcome. In one word it is pride. We cannot see that change is needed, or if we do indeed recognize the changes needed, our pride blinds us and prevents us from admitting it. We allow our pride to perceive everything as being right or wrong, as if by admitting that change is wanted or needed, we are saying, “We were wrong, and they were right.” What worked in the past was a good thing, but evolving to meet the challenges of today does, in fact, require us to make changes and see things from a new perspective. To embrace better ideas, one needs to set aside pride and listen to others with a different perspective and experience. I can tell you from experience that I have seen the results, time after time, and that making positive changes garners significant net-profit gains that many are simply blind to what is so plain to see by others.
What are some good resources to start educating yourself with new ideas? Reading or listening to audio books is always a good starting point. Examples: The Goal by Goldratt covers the theory of constraints, any of the Dale Carnegie publications cover better management practices, and any books covering lean manufacturing will assist process improvement. Also, seminars at your local colleges and online training for the same type of information as described for book reading can help. In other words, start by looking outside our industry for better practices!
An all too common, repeated mistake everyone seems to make is to only listen to the equipment and plate vendors. Yes, many of you feel that you have developed a close and trusting relationship with them and they have witnessed many different operations. But the vendor’s goal is to make a sale, just as you do with your customers. The last thing they want to do is possibly threaten a future sale by directly challenging your practices and possibly upsetting you. They also tend to go with the latest popular practice that many consider industry leaders are embracing without truly understanding the pros and cons.
A great idea that may seem odd, but what about learning from someone who makes a living by giving advice and challenging your current practices: someone who’s actual, full-time occupation is to constantly read, review, and test the best practices within our industry and can teach your people better methods? A person, who, when offering advice, must back up the advice with proven methods that follow all the lean-manufacturing and time-study practices. Of course, I am speaking of myself. I am a lean-manufacturing consultant who has spent many weeks in each client’s operations, sometimes months, for over 100+ different companies. Just imagine the knowledge anyone could garner if they spent that kind of time in 100+ different companies, challenging their practices and offering solutions. One tends to learn from each consult and take that new information to the next. The most common statement I have heard from clients is, “You sure are not the typical B.S. consultant we have tried before. It is obvious to everyone you are a truss guy and know what you are talking about.”
Long story short, pride can blind us all from seeing and learning things for better bottom line results. Do not expect different results from doing the same thing, which is foolish. The truly smart thing to do is be smart enough to know that we do not know everything and that we should look to others to find that missing knowledge
Website: www.todd-drummond.com – Phone (USA): 603-763-8857
E-mail: todd@todd-drummond.com Copyrights © September 2017