Tag: KSA

  • Strategic Sourcing?

    Strategic Sourcing?

    Is outsourcing software development strategic or simply a cost saving method?

    It Depends

    The most infamous words in software development.  Yes, it depends on the task at hand, but this cop out has long been a way to forego the development of a robust economic value and risk assessment.

    According to one vendor, “Engineering started becoming a commodity.”  But is this true if your product and organizational reputation are based on the long-earned perception that your organization provides the very best in safe and cost-effective solutions?

    What is your solution must work all the time, every time, e.g. medical equipment?  The list goes on, but readers get the point.

    Strategic Sourcing

    According to CIPS, the Chartered Institute of Procurement & Supply, “Strategic sourcing is about having a targeted approach to your procurement activity.  A sourcing strategy will help you to formalise the way you gather information, so you can find the best possible value that aligns with your organisation’s goals, long term.  Strategic sourcing is a long-term process and requires continuous re-evaluation of sourcing activities, analysis of the market and recognising your organisations goals.

    Strategic sourcing is important because it can help you save costs through the monitoring of the market and sourcing the right suppliers.  It also acts as a way to maintain long-term relationships with suppliers and they are selected on their compatibility with your organisation’s goals.”

    While strategic sourcing has its value, it cannot replace organization core competency.  These are two very different business requirements.

    Core Competency

    From One definition, “core competencies refer to the capabilities, knowledge, skills and resources that constitute its defining strengths.  Core competencies distinguish a company from other organizations and are, therefore, not easily replicated by those organizations, whether they’re existing competitors or new entrants into its market.”

    Not all engineering meets the test of core competency, but management must perform proper ‘due diligence’ before outsourcing technology and processes that either do or might meet this test.  In other words, effective Risk Profiling.

    Max 8 Headlines, Again

    The once storied aerospace firm, Boeing just can’t seem to catch a break.  A self-made purgatory: the gift that keeps on giving.  Offshoring engineering software development as a cost saving method appears to have backfired.

    Damningly, Multiple investigations – including a Justice Department criminal probe – are trying to unravel how and when critical decisions were made about the Max’s software.  During the crashes of Lion Air and Ethiopian Airlines planes that killed 346 people, investigators suspect, the MCAS system pushed the planes into uncontrollable dives because of bad data from a single sensor.

    That design violated basic principles of redundancy for generations of Boeing engineers, and the company apparently never tested to see how the software would respond, Lemme said.  “It was a stunning fail,” he said.  “A lot of people should have thought of this problem – not one person – and asked about it.”

    To this observer, it appears that this software met the test for core competency.  If this is the case, why would this be outsourced to save a few bucks?  It certainly appears to be outside the organization’s culture of redundancy that has served the organization well for decade.  A third-party vendor most likely would not share this cultural trait.

    How does your organization handle Bet Your Company procurement decisions?

    Pre order our new book

    Navigating the Data Minefields:

    Management’s Guide to Better Decision-Making

    We are living in an era of data and software exponential growth.  A substantive flood hitting us every day.  Geek heaven!  But what if information technology is not your cup of tea and you may even have your kids help with your smart devices?  This may not be a problem at home; however, what if you job depends on Big Data and Artificial Intelligence (AI)?

    Available April 2025

    For More Information

    Please note, RRI does not endorse or advocate the links to any third-party materials herein.  They are provided for education and entertainment only.

    See our Economic Value Proposition Matrix® (EVPM) for additional information and a free version to build your own EVPM.

    The author’s credentials in this field are available on his LinkedIn page.  Moreover, Dr. Shemwell is a coauthor of the recently published book, “Smart Manufacturing: Integrating Transformational Technologies for Competitiveness and Sustainability.”  His focus is on Operational Technologies.

    We are also pleased to announce our forthcoming book to be published by CRC Press in 2025, Navigating the Data Minefields: Management’s Guide to Better Decision-Making.  This is a book for the non-IT executive who is faced with making major technology decisions as firms acquire advanced technologies such as Artificial Intelligence (AI).

    “People fail to get along because they fear each other; they fear each other because they don’t know each other; they don’t know each other because they have not communicated with each other.” (Martin Luther King speech at Cornell College, 1962).  For more information on Cross Cultural Engagement, check out our Cross-Cultural Serious Game.  You can contact this author as well.

    For more details regarding climate change models, check out Bjorn Lomborg and his book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet.

    Regarding the economics of Climate Change, check out our blog, Crippling Green.

    For those start-up firms addressing energy (including renewables) challenges, the author can put you in touch with Global Energy Mentors which provide no-cost mentoring services from energy experts.  If interested, check it out and give me a shout.

  • Getting to Diverse and Inclusive Teams

    Getting to Diverse and Inclusive Teams

    Diversity, Equity, and Inclusion (DEI) Team Models

    There is a tendency to see DEI through the lens of initiatives or often a process semi-outside the daily ‘organizational’ grind.  Does this represent reality?

    Organizations spend countless sums training employees and others they depend on for Operational Excellence performance.  They often trust global Teams to add stakeholder value.

    No less than Microsoft names a software product, Teams.  A tool designed to foster collaboration.

    The Way We Do Business

    Culture is often defined as ‘who we are.’  The approach an organization takes towards its ecosystem.  If this model is an accurate representation, it suggests that when organizations launch initiatives meant to address current social mores, they likely fail or at least do not live up to full potentials.

    Change management, often referred to as transformation often takes on the mantel of ‘you will be changed.’  Contemporarily, take the Covid-19 vaccine or you will be fired!  Not surprisingly, this mandate is resisted and seemingly increasingly with each new warning.

    As of this writing, the all out war (on decrees) has been declared by the likes of the Navy Seals, Health Care Workers, Law Enforcement and others with the demands from the Feds.  Likely, the result will be a draw at best, with the administration quietly acquiescing.  Too many critical, non-replaceable positions are at risk.  Not to mention votes.

    Governance

    In October 2011, we published our first draft of, Asset/Equipment Integrity Governance: Operations–Enterprise Alignment.  We recognized that traditional organizational Governance models were strictly focused on finance and maleficence therein.  The reality is that revenue is generate by operations and as such governance is critical as well.  Safety Culture, is intangible but now required by most organizations in Critical Infrastructure sectors.

    Flash forward to today and Environmental, Social, and Governance (ESG) is the model most organizations use.  Effectively, this expands governance to include a broad range of non-financial commitments.  From this blogger’s perspective, likely DEI will fall under this governance model.  Therefore, moving it from the ‘initiative status’ to the ‘way we do business.’

    Team Building

    This dynamic environment requires workforce upskilling.  The need to constantly assure that individuals have current Knowledge, Skills and Abilities (KSAs) necessary to meet current challenges.  KSAs now include the ability/necessity to work across cultural/diverse lines.

    When one thinks of a ‘team’ it is not a homogenous collection of like minded and ‘like’ individuals.  Teams are a collection of hopefully, ‘fit for purpose’ individuals who comprise the KSAs needs to accomplish the task(s) at hand.  Teams can mirror the discrete views of its members.

    For example, our early research on the subject assessed the different approaches Japanese nationals took when negotiating with white American males.  In each case, the individual players were deemed to be homogenous.

    Nothing could be further from the truth.  Each individual, in this case all males were of different ages, different education, from different regions of their respective countries, married or not and so forth and so on.

    The reality is that individuals do not negotiate deals.  Teams do.   Members of teams, like juries need to arrive at the same place prior to engaging with other collaborative counterparts.

    Juries need to be arrive at consensus.  Likewise, organizational team members must arrive at a similar place internally prior to going forward.  This not to say that individuals must cave to the will of the majority or the Tyranny of the Minority.  It is to say, a common position that all must accept as part of collaboration or consensus.

    Inclusive?

    There is no doubt that token individuals and in some case high profile figureheads have been put forth to ‘prove’ inclusivity.  Thankfully, those days are fading.

    Teams need to have the input of all members, even contrarians.  Often it is the outlier that has the most insight into a difficult problem.  Differences of opinion need to be resolved and a go forward plan agreed upon.

    Often, individuals do not speak up.  Perhaps they are new to the environment, shy or unsure of themselves.  Whatever the reason their input must be sought and at least given a fair hearing.

    Training can help elicit input from the reticent.  Moreover, they help dominate individuals acknowledge and accept said input.

    How Does Your Organization Assure Real Inclusion?

    For More Information

    Please note, RRI does not endorse or advocate the links to any third-party materials.  They are provided for education and entertainment only.

    For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game

    We presented, Should Cross Cultural Serious Games Be Included in Your Diversity Program: Best Practices and Lessons Learned at the Online Conference, New Diversity Summit 2020 the week of September 14, 2020.  Check Out this timely event and contact the organizer for access to the presentations!!

    For more on DEI Standards, see the newly released ISO-30415.

    You can contact this author as well.