Thursday, April 4, 2019


Interview with Dr. Tom DePaoli Author of Two New Leadership Books
Dr. Tom the titles of your new leadership books intrigue me, how did you pick them?
I wanted two leadership books. One would explore the dark side of leadership and the other the authentic or good side. Unfortunately, I had more stories about the dark side and many were just awful. The authentic side stories are not as numerous. The stories are all authentic for both books. I myself or my colleagues actually experienced them. They are only slightly changed to protect the identity of some of the leaders. The dark side was maybe a little too dramatic. It does have some redundant and repetitious stories. This is not my fault or an editing fault. Dark leaders are not very creative. Many use the same tired and sorry tactics. However, the situations were even more dramatic and uncomfortable for the followers. Boogeyman Leadership: How to Turn Your Employees into Listless Zombies describes all too common leadership tactics that numb employees into becoming animated drones.  The other book Leadership by Storytelling: The Best Way to Learn Good Leadership Principles is peppered with uplifting and inspirational leadership action. Good leaders who care will learn much from the stories.
Why did you author the two books at once?
I have been on the receiving end of much poor leadership in my careers. I worked in organizations in business, non-profit, the military and academia. Unfortunately, I experienced many more poor leaders than good. Much of the leadership training I experienced was ineffective. I learned by doing and observing good leaders. There was no shortage of leadership stories that I experienced. I decided on the storytelling method to give the reader true examples of leadership tactics. Knowing a leadership theory and executing it are two entirely different missions.
Why the storytelling approach?
It is the best way of learning and has many good attributes. Readers can relate to stories much better than prose on leadership theories. From my perspective, stories are also easier for me to write about because I lived them.
Talk to me about Bogeyman Leadership: How to Turn Your Employees into Listless Zombies.
The book showcases poor leaders and their tactics that inevitably failed. I strongly believe you should know what does not work first, so that an aspiring good leader does not waste time on such approaches. I really do not pretend to offer any silver bullet solutions to these poor policies. I define boogeyman leadership as the use of poor and intimidating leadership tactics whose purpose is to terrify employees and instill distrust, apathy and fear. The result is a zombie-like listless state.  The book recounts many bad leadership ideas and illustrative stories to make sure the reader crosses these schemes off their leadership list. It is not a solemn academic book or a guide to great leadership success. Its purpose is to give examples of terrible leadership and management tactics that I and others have experienced in their careers.  I suggest the reader re-visualize their own personal leaders, that they have had, who have used the very same or similar defective devices. Unfortunately, these failed leadership ploys are becoming even more common, destructive and hurtful. He urges the reader to avoid these methods at all costs.
Talk to me about Leadership by Storytelling: The Best Way to Learn Good Leadership Principles.
The book provides some excellent principles of good leadership. The principles are illustrated with compelling leadership stories that reinforce the principles.  I provide twenty-six principles of good leadership. It should be noted that one of the oldest methods of passing down knowledge is oral storytelling. Usually an ancient sage would be the keeper of the stories and passed them down to other tribe members. I highly recommend the storytelling method for leaders. The stories in the book are actually authentic. Each principle has a story to clarify the principle. The book has cogent illustrations for the stories. I urge the reader to gather leadership stories to share with fellow leaders and followers. I believe the growth in leadership abilities will be much stronger via the use of leadership storytelling.

Why are there more poor or dark leaders?
Much of leadership training is poorly organized and not very practical. Knowing all the theories of leadership is commendable but not useful in real life. Leadership training must be real life based, use role playing and scenarios to prepare a leader for leadership decisions. One of the biggest areas overlooked is integrity and honesty. Many would be leaders ignore it or downplay it. People will not respect or follow a leader with no integrity. Most dark leaders rationalize their dishonest behavior. Trust me, their followers will always remember even the slightest dishonest action.
It is hard to teach an authentic caring for your followers. Many bad leaders put themselves on a pedestal and do not even make an effort to really know and respect their followers. My experiences in the military in leadership roles taught me to always take care of your followers first and never lie to them. Followers can quickly tell if you are a phony.
What distinguishes good or authentic leaders
They get followers to trust them and keep building that trust.  There is no one methodology to get a follower to trust you. Each person has a different lock to get them to trust you, and you have to find the right key. Honesty and integrity help the most. Selflessness cements their trust. Many followers can forgive a leader who is not totally competent, but they rarely forgive a lack of integrity. I wrote another book Broken Windows Management (available on Amazon). The whole one message or premise of the book was this: Prevention of disorder and actually fixing things that employees say are wrong; goes a very long way in establishing trust and credibility with management (also leader). Management (leaders) must be vigilant and constantly try to control disorder and fix the things and issues that employees’ value.  These actions reduce employee fear of management and actually help gain trust. Trust is enhanced by quickly fixing things that employees want fixed. Unfortunately, many organizations have not figured out this simple axiom yet. Many companies, because their employees do not trust them, will never get enough credibility to execute broken windows management actions.
What is Your Favorite Boogeyman Leadership Story?
Remember the book is organized in a manner that gives you a Boogeyman Leadership tactic or tip first that should be avoided if you want to be a good leader. Then the story shows the futility of the tactic.
Make Sure You Destroy Trust
Do not keep your word. When you break your word make the lamest excuse you can think of and insist that you were misunderstood. Berate employees who do not keep their word and tell them it is not acceptable. Constantly praise your honesty and integrity as beyond reproach even though it is the exact opposite. Openly lie to your superiors whenever you can and blame your employees for any shortfalls or the missing of goals. Take credit for all of your employee’s good ideas and claim them as the result of your own brilliancy. Brag about how good you are with employees and customers to everyone and never be completely honest ever, in fact be evasive. Lie and exaggerate often.
Story
The department that I worked in did not receive a raise for three years. In the beginning of the fourth year, our leader promised that management has informed him that the average raise for this year would be five percent. The caveat was that instead of working ten Saturdays we would have to work twenty. Near the end of the year he announced at a meeting that “management” had decided that once again there would not be any raises this year after we worked the twenty Saturdays. I and most of the other people in the company left within the next six months. I then discovered from an upper level manager, who had also left the company, that management decided to use dishonesty, the five percent raise ploy, to help lower turnover and all the department managers knew about this ploy in the beginning of the year.
What is Your Favorite Leadership by Storytelling Story?
The book is organized to first state the good leadership principle. Then the story shows the result of using the good principle.
Listen to Your Followers’ Problems and Help Them.
I once had an employee who was initially very upset that I took over as leader of the department. She thought that she deserved to be promoted and become the leader. She had more experience than me. She was very cold to me and resisted any initiatives that I proposed. Shortly thereafter, her mother became very sick and it got to the point that she needed caregivers. I gave her as much time of as I could and was very flexible with her work duties and responsibilities. She finally requested family leave for eight weeks and it was granted. While she was gone, I attempted to do as much of her work as possible and got a very good understanding of her duties, systems and techniques. I stayed late many nights and weekends working at both my job and hers. When she came back from family leave, she expected piles of work awaiting her and very hectic weeks. She was surprised that I had kept up and completed almost all of the work. She came into my office and started to cry and I thought that something had happened to her mother. Instead she was grateful for what I had done and thanked me, informing me that no boss had ever done anything so kind. I then suggested that we make a request to our information technology department to upgrade some for the systems that she used, and I was now familiar with by doing her job. We jointly filled out the request that day and it was installed in three weeks.
Her attitude towards me completely turned around. Whenever there was a tough project, she volunteered for it. She became the most loyal employee to me in the department and a friend. As a leader, if someone has a problem and needs help, especially when it is personal or family related, go out of your way to help them. Listen to your followers’ problems and help them.

Friday, March 22, 2019

Author’s Interview With Dr. Tom DePaoli

Author’s Interview With Dr. Tom DePaoli of Common Sense Supply Management
Why did you write the book Common Sense Supply Management?
I wrote it as a follow-up to my original book Common Sense Purchasing.  Many purchasing departments were in the process of or transforming to the supply management or the supply chain concept. I wanted to build on and refine my ideas originally expressed in Common Sense Purchasing. In addition the supply chain is the most dynamic and changing area in corporate culture. When change occurs ideas and strategy are critical.

 You used a different approach why?
 In this book, I decided to share my supply management knowledge with readers. I believe people learn more from stories and real life events than from a text­book. The stories were meant to get the reader to think about improving their supply management strategy. Some of the stories are good management lessons. In some of these tales, I was very fortuitous (lucky); others were the result of having talented people work for me and teamwork, and still others were the result of just hard work and massive amounts of homework. I wanted to enliven the discussion about the supply chain.

 What is your opinion or definition of the supply management?
Supply management covers more breadth and depth than any other discipline in an organization. It’s the art of building multiple relationships. Although it covers negotiations, transactions, indus­try knowledge, market knowledge, and technology, it’s primarily about building strong relationships and gaining the trust of suppli­ers, customers, and colleagues. I said it in my first book and I’ll say it again: relationship building must be the foundation of any supply management strategy. Many cultures in the world spend what seems to us Americans as an inordinate amount of time building relationships before they get to problem solving or execution. Americans are often impatient with this approach, but it’s necessary, especially when dealing with other cultures, it is a lesson we must learn when using supply management techniques.
What do you think a supply management professional must master?
A supply management professional must be able to build rela­tionships. Supply management departments often spend excessive amounts of money on technical training. This is fruitless unless a strong foundation of relationships is well underway. Relationships can’t be faked, legislated, or forced. Supply management profes­sionals must live relationships and commit to them. Integrity in relationships will always carry the day, impress suppliers, scare the competition, and let the supply management professional sleep well at night. Educational credentials certainly look good,
and certifications are impressive, but nothing makes a purchasing professional more effective than developing strong relationships and being true to his word. Spending more time on relationships pays off for all participants. Once a trust is broken, it’s nearly impossible to repair it, so don’t neglect your relationships or underestimate how critical they are. You won’t be able to climb out of the deep pits that you dishonestly dug. Schmoozing with a supplier is easier than digging. On the other hand, honest dealings, over time, build the solid foundation of respect and admiration upon which a supply manager’s success depends.

What do you think is most important for a supply management professional?
The very best way to build relationships is to always do what you say you’re going to do, and to always hold yourself account­able for your actions.
Is there an ideal way to organize around supply management?
Nothing provokes as much discussion and disagreement as what is the so-called “best” supply management organization. Relax. There is no single optimal organization. What is essen­tial is that the head of supply management must be at the vice president level. At minimum, purchasing and logistics must be within the confines of the organization chart. The skill sets for folks within the organization include: great people skills, an incli­nation for strategic thinking, process-improvement skills, and relationship-building skills. Individuals who lack this skill set should not be given high positions in the organization.

What do you think is most critical for supply management?
You must have a disciplined collaborative approach to sourcing. Cross functional teams are paramount to get wide buy in to supplier selection. Business units are internal customers and should participate in the selection; however, never lose sight of the needs of what I call the final or paying customer for your end product. Many of the aspects that internal customers feel are

Once you select a supplier then what?
Always go with fewer meaningful supplier alliances. Trying to manage many so-called alliance relationships is nearly impossible. Pick your alliances carefully. One criterion that I used to select alliance was if the supplier could give us a competitive edge. Another criterion could be a material or service that was a major cost fac­tor for us. It does not make sense of waste time with an alliance with suppliers that provide readily available consumables or other nonessential items. The hard part about alliances is the demand for constant communication and relationship building. Relation­ships take time and energy. Make sure you agreed to metrics and define clearly your success factors. Always try to select a supplier who has experience with alliances.

Anything else critical?
Prior to attempting a transformation you need to know where you are spending your money. If you don’t, the process is doomed to failure. Here are some questions (checklist) to ask. They work for almost any size company.
Establishing a strong communication plan for your supply management initiatives is critical for its success. Seeking help from trained marketing professionals and communication experts is essential. A continuous communication plan using various media will help overcome the resistance to change.  You need to spend at least 30–40 percent of your time get­ting the word out to folks, by many communication channels, on your strategy, messages, and plans. You cannot over communi­cate, especially about something as radical as transforming the supply chain.
What about continuous improvement?
No other department in an organization has more dynamic issues to deal with than supply management does. Supply man­agement is continuously challenged by changing global events and demands from both internal and external customers. My advice to supply management professionals is to lead the change and not be a victim of change. They need to lead not follow these efforts!
Lean, Six Sigma, and Lean Six Sigma are just disciplined approaches to problem solving. They are a combination of solu­tion tools used in a systematic manner. Decisions are supposed to be data based. Lean Six Sigma is very disciplined and plodding. All these approaches can be highly successful, but patience and discipline is required. A kaizen is a more structured approach, but flexible and quick enough to produce quick results. Kaizen is a term meaning “continuous improvement.” In Lean Six Sigma terms, it refers to a project performed at the work-group level that will remove waste from a process. These types of projects can be performed quickly (usually in less than two months). I prefer to perform them in two weeks or even less.

What is your philosophy on negotiations?
Information-based negotiations are an approach to nego­tiations that emphasizes deep knowledge of the supplier and its industry. It varies greatly from some traditional approaches to negotiations. It’s not the adversarial Win-Lose negotiation style with the emphasis on game playing, exposing untruths, and taking full advantage of the supplier’s weaknesses. This old approach is a competitive winner-takes-all system that rarely builds longstand­ing, deep relationships with suppliers. Information-based negotia­tions are not based upon the Win-Win model, either. Information or knowledge is definitely power, but in information-based nego­tiations, the supply chain professional gains a deep knowledge of the supplier’s industry, their margins, and their culture. In essence, this is a deep immersion or empathy with the supplier and their competitive landscape.

What about your thoughts on planning and metrics?
The Institute for Supply Management notes that 95 percent of supply chain departments do not have a procurement strategy or long-term supply management plan. Of the 5 percent that do in fact have a strategy, only half have successfully aligned the strategy with overall business strategy. Don’t be afraid to put non-traditional metrics in your plan. Remember, people behave according to the way that they are rewarded. After you have a strategy, you must educate other employees on its tenets and the reason behind it.

Any more thoughts on supplier management?
Radically reducing the number of suppliers is one of the first efforts that must be tackled. You can’t have “relationships” with thousands of suppliers. It’s difficult enough to have strong rela­tionships with just a few key suppliers. Ruthlessness is necessary. This is not the time for compassion or backing off your supplier-reduction goals. Set the new supplier standards high. You will be surprised. Many will not want to participate under your new, higher expectations. Does the supplier add value, or is the sup­plier a product of misplaced loyalty? We once cut a base of five thousand suppliers to 252 in three months. It can be done, but ruthlessness was required. Any supplier can lowball on the price of any item. I have seen it done hundreds of times. Retail stores are great at having a lead-in low-price item in one aisle with the marked up high margin items very near. Always benchmark your prices whenever possible with other companies. Keep a handle on the price pulse. When a supplier offers a lowball price on a particular part or service, see if they can extend the percent price decrease to all the other items you buy from them. Usually, dead silence results, or the quick backped­aling begins. Calling their bluff almost always works. Call it.
The best companies have the best suppliers!
Any more supplier lessons learned?
Never incorporate a new supplier without a test run of buy­ing an item from them, period. No exceptions. Have a purchas­ing professional pretend that he is an end-user. Have him play dumb and actually order an item from the new supplier. Review the entire transaction process to include acknowledgement and invoice payment. Carefully process-map it out, and use Lean and Six Sigma principles. Check on status often. This one road test tip will save you mountains of headaches and resistance to change. Folks do not really want new suppliers. Bad new suppliers infuriate internal customers. Remember most folks do not like change. They will latch on to any minor or frivolous mistake to justify their resistance and to castigate the new supplier.
Progressive supply management is highly team-oriented—especially cross-functional teams. The examination of the supply chain and total cost of ownership drives the decision-making process. There is a systematic process for supplier selection. Relationship building and management is the key skill for the purchasing pro­fessional. When senior management not only supports but also understands the process, purchasing becomes a true business partner and leader.
Show folks how you are doing versus your metrics. Use pictures and graphics. People can relate to them much better. Spreadsheets are not very publicity friendly. Don’t be shy with graphs, and always display them professionally. Keep the radar gun on the process and suppliers. Let other folks see the results, good and bad.
One of the fundamental tenets of Lean is visibility. Use it in supply management.
Purchasing, supply management, and transaction discipline are critical. Most folks do not like it, but most of the routine pur­chases and process must be disciplined. Discipline—especially around using preferred suppliers—must be strictly enforced. Make folks e-savvy and adept at using catalogues. Teach them how to search catalogues, or they will soon quit searching.
 
Any concerns about global sourcing?
If you decide to deal directly with the source or supplier in another country, you need to realize that reaching a strong cul­tural understanding will make or break the process. The task of understanding the culture of the sourcing country is the most dif­ficult of the entire process. Culture includes social organization, political beliefs, the legal system, religious beliefs, language, and the educational system, to name just a few. Any one of these areas requires extensive study and understanding in order to be suc­cessful. It is no small task.

Finally, any advice to someone new in supply management?
Yes get out from your desk! Check the supply chain links, visit suppliers, learn about industries and do not be afraid to get hands on experience.

Tom DePaoli

Dr. Tom DePaoli is the Principal (CEO) of Apollo Solutions (www.apollosolutions.us) which does general business consulting in the supply chain, Lean Six Sigma and human resources areas. Recently he retired from the Navy Reserve after over 30 years of service. In other civilian careers, he was a supply chain and human resources executive with corporate purchasing turnaround experience and Lean Six Sigma deployments. He is the author of: Kaizen Kreativity (Oops!)Common Sense Purchasing,  Common Sense Supply Management and Growing up Italian in the 50s.  His Amazon author’s page is   https://www.amazon.com/author/tomdepaoli