Management multiprocessing: stellar leaders embrace change

Electronic News, August 8, 1994 by John Adler

In any market, but particularly in our fast-paced electronics industry, managing just one or two things well isn't enough. Superior product design won't guarantee corporate success. Looking at everything that can be changed to make you more competitive will. Today's game requires managing everything, including rapid change within and outside the business. You must be able, as Lyndon Johnson said, to walk and chew gum at the same time, i.e., excellent management multiprocesses--juggling many balls and doing it faster all the time.

This is actually simple. Sometimes it's common sense. The key is a management team and corporate culture that rewards and recognizes the value of discovering opportunities for improvement. Without sounding overly Demming-like, adjusting to change should be part of running a business just as it's a part of life. Cross-training, or at least familiarizing people with others' job functions, helps build changing skills. It's teamwork.

Some people like to chant, "if it ain't broke, don't fix it." I disagree. If it hasn't been changed in a long time, maybe it should be broken so it can be made better! Business is about change. You need bright people who are aware and able to challenge the status quo. And management needs to be willing to listen and change fast.

One example of looking at everything and changing it to your advantage is how we've recently benefited by investing in sales force automation. We've gained 20 percent more face-time with customers per day! If we can call on one extra customer per day, there's a huge payback.

Look at everything--even energy savings. Our overhead office lighting was recently changed. Light and motion sensors helped substantially cut our electricity bill and the investment paid for itself in five months. Somebody spoke up and the change was made. Don't be upset by change. I can't stress how great the people are who are willing to go with the flow like that.

Another change was in printing manuals. Most electronics companies are also publishers. But everytime we changed our products, which is done continuously, we'd have to throw away the out-of-date manuals. That cost us $8,000 per month because we bought 20,000 manuals at a time. A bright, perceptive and vocal person suggested we use new technology allowing us to publish manuals on demand.

We used to buy pre-programmed PALs and hold them in stock. We installed a new PROM programmer on the production line. Now we buy blank PALs eliminating inventory that we used to throw away. None of this is brain surgery. But speed of implementing the change is essential in business.

Change is normal. Don't be upset by it. So get used to changing everything. Adaptec's business has changed four or five time since I've been here. I get chided about not having vision. We did a strategic plan last year and we changed it two weeks after the board approved it! My answer to the visionaries is "I don't know what business we're going to be in five years, but we'll be in business and making money." Vision is OUT, execution is IN. A sign in my office reads "Bad Numbers Will Get You Every Time."

A frugal corporate culture starts with engineering. Via the engineering/purchasing team, cost targets are established and met. They look at everything. In our market, success comes with being the lowest cost producer. Quality is a given.

Focus on all factors. That's our vision. Recognize opportunity in any of its forms. Managing in this climate also means making sure the right people are in the right job and continually upgrading their skills. People make the company. Technology helps, but people are what makes the business go. Retain good people. Compensate and recognize them for their contributions. Some of their greatest value is in recognizing and implementing the next change.