2. Creating Supply Chain Excellence Through Leadership Joe Walden, CFPIM APICS October 11, 2005

3. Leaders must never make the mistake of believing that they lead a company, department, or unit. What they lead are the individuals that make up the enterprise.

4. Bottom Line Up Front You can achieve operational excellence through the effective use of leadership! The difference between good and great is leadership! It is all about the people! And getting them to do their best!!! You can create your own supply chain excellence!!

5. Agenda What is Leadership? Management vs. Leadership Qualities/Attributes of Leaders Historical perspective Operational/Supply Chain Leadership Thoughts and Applications Questions/Conclusions

6. Questions on Leadership Are leaders born or made? Can you learn leadership from a book? How do you get experience as a leader?

7. What Leadership is Not Arrogance Ego It is not about your Career It is not about telling people what to do – it is about inspiring them to do their best!

8. “Leadership must be demonstrated, not announced.” - Fran Tarkenton

9. Is this Leadership? “Two standing orders in this platoon: 1. Take care of your feet; 2. Try not to do anything stupid like getting yourself killed.” LT Dan Taylor Forrest Gump

10. Definitions Lead: To guide or direct in a course Leader: One that leads or guides; one who is in command of others Leadership: capacity or ability to lead

11. General George S. Patton, Jr. “Leadership is the thing that wins battles. I have it but I’ll be damned if I can define it. It probably consists of what you want to do, and then doing it ….”

12. The Army’s Definition Leadership is influencing people – by providing purpose, direction, and motivation – while operating to accomplish the mission and improving the organization. Field Manual 22-100, Leadership

13. Vince Lombardi Leadership is the ability to influence people and the ability to inspire others.

14. Is there a difference between management and leadership? YES!!!!!

15. Management “the act, manner, or practice of managing; handling, supervision, or control.”

16. Manager “One who controls resources and expenditures.”

17. You lead people and you manage resources.

18. Attributes of a World Class Leader - LEADERSHIP ® Loyalty/Respect Ethics/Integrity/Honesty Attitude D4 - devotion, dedication, determination, discipline Equality Responsibility Self Development H2 - Humor and Humility Interest in Employees P2 - professional pride, passion

19. Loyalty Up and down the chain Cannot be bought as it was in the days of Sun Tzu and in the Napoleonic Wars Genuine and sincere

20. Respect Personally Professionally Top Down Bottom Up “You have to give Respect in order to get Respect! - Joe Torre

21. Ethics/Integrity There is no right way to do a wrong thing What is ethical behavior? If you have to ask it probably is not ethical If it does not feel right – it probably isn’t

22. Ethics/Integrity The Man in the Glass – by Dale Winbrow “You may fool the whole world down the pathway of life And get pats on the back as you pass, But your final reward will be heartaches and tears, If you cheated the man in the glass.”

23. Ethics/Integrity Integrity cannot be compromised Mary Kay Cosmetics – “Always do what is right, honorable, and ethical.”

24. Ethics/Integrity “Always tell the truth, and if that is not possible, tell the truth anyway.” Buck O’Neil

25. Attitude Your attitude sets the standard for the organization Sam Walton Enthusiasm

26. Attitude “Your attitude, not your aptitude, will determine your altitude!” - Zig Ziglar

27. Devotion “there are no office hours for champions” To corporate family, to workers, to personal family, and to doing the right thing.

28. Dedication Dedication to doing what is right Dedication to taking care of your employees Dedication to accomplishing the mission

29. Determination Persistency Are you easily discouraged Achieving goals

30. Discipline Standards lead to habits, habits lead to discipline, and with discipline - All things are possible Handling the problem employee

31. Equality

32. Do you have a favorite employee? Do you have a favorite division/section? Is there a perception that you play favorites?

33. Responsibility A leader accepts responsibility for his/her actions A leader accepts responsibility for the decisions of the boss A leader accepts responsibility for the actions of his/her employees but …… passes on the credit to them for the success of the mission

34. Self and Employee Development Individual – coaching, teaching, counseling and mentoring Group Self – this is one that is often overlooked

35. Humor “Take your job seriously, but do not take yourself so seriously that You cannot laugh at yourself.” - Harvey MacKay

36. Interest in Employees Mary Kay Cosmetics Leadership Rules: #4 – Before doing something, ask yourself, “Will it impact Employee trust?” Tell the employees what to do and turn them loose – let them prove their value. Try to understand the other point of view Covey – Seek first to understand and then be understood.

37. Professional Pride It is a leader’s responsibility to develop personal pride in himself/herself as well as in subordinates Are you willing to put your name on the product?

38. Professional Pride “I have personally examined every detail of this garment to make sure it meets our high quality standards. Thank you for buying our product. Inspector: 29”

39. Passion For taking care of people For improving the company For your job

40. Can you teach leadership? Experiential Learning Situational Learning Pooh on Management - YES !!!! “Remember, Good judgement comes from experience and experience comes from poor judgement.”

41. How do you Develop World Class Leadership? General Patton – “No effective decision was ever made from the seat of a swivel chair.” You have to get out of the office and walk the process. Talk to the workers – what are their concerns? Talk to the customers – what are their concerns? What are your suppliers’ concerns?

42. Historical Views on Getting Out of the Office Sun Tzu: get on the ground and see what the workers are doing; the destiny of the organization depends on the leadership “No effective decision was ever made from the seat of a swivel chair.” GSP, Jr. “A desk is a dangerous place from which to view the world.” John Le Carre

43. How do you Develop World Class Leadership? Leaders have to provide: -- vision -- strategy -- direction -- clearly understood missions -- set goals – realistic and achievable

44. The Importance of Clearly Stated Missions/Visions ‘The Grand Duke said “one who is confused in purpose cannot respond to his enemy” Sun Tzu, The Art of War (III.23) To know the purpose – there must be a clearly stated mission and vision.

45. Clearly Stated Mission??? “When you come to a fork in the road, take it.”

46. Example of A Clearly Understood Mission COL Rusling on General Grant: “He made certain his subordinates knew exactly what he wanted, and why and when he wanted it.”

47. Examples of Good Leadership Wal*Mart Marcus and Blanks in developing and leading Home Depot Lieutenant General Matthew B. Ridgeway in the Korean War – upon assuming command of the Eighth US Army, walked the ground personally to see what the morale of the soldiers was

48. Examples of Poor Leadership Is there such a thing as poor/bad leadership? Or Is it just a manager that does not have true Leadership skills and therefore tries to apply management to an area where leadership is required?

49. What can happen when a manager takes over from a leader March 8, 2003 March 16, 2003 September 2003 Manager to leader Leader to manager

50. Examples of Poor Leadership Brigadier General in Operation Iraqi Freedom – “we will take a picture every morning, that way we will know who died the previous day because they will not be in the picture.” Enron – focus on greed not people Home Depot – initially new CEO tried a one- size fits all approach to leadership causing loss of market share and stock value

51. Achieving World Class Through Leadership Lead by Example Get out of the Office! Talk to the workers – and LISTEN Spend time doing the work to understand the conditions Understand Your Supply Chain’s Processes Ask questions – 5 whys Solve problems Walk the process often! Provide guidance and get out of the way Never ask your employees to do something you are not willing to do yourself!

52. Leadership! Leadership makes the difference between good supply chains and great supply chains! Questions?

53. conclusions

54. Conclusion You can lead your supply chain to world class levels or you can simply be like the dead fish – Remember – even a dead fish can swim down stream and give the illusion of progress The choice is yours!

55. “I would rather attempt to do something great and fail, than attempt to do nothing at all.” Robert Schuller

56. If you would like a copy of the Presentation – leave your card or contact me at: joewalden@supplychainresearch.com 5565 NW Barry Road, #110 Kansas City, MO 64154 (760) 447 3651 Thank you