NBA meets MBA: The Raptors’ 7 business lessons
OK. Full disclosure. I am a huge fan of basketball and an absolutely crazy Toronto Raptors fan. I go to games – both home and away – outfitted in swag, giving the team my full support. So, I am ecstatic that the Raptors are NBA World Champions. But I’m also equally – no, make that more – devoted to Algood and as I watched the Raptors win game after game, I was thinking about what I could learn from their success about the caster and wheel business. Based on that, here are the seven business lessons to be learned from the 2019 NBA Champion Toronto Raptors.
Be laser-focused on your goals.And don’t celebrate until you have achieved them. While it’s important to acknowledge the accomplishments that lead to ultimate success, they can’t become a distraction. But when you do reach your goal, pull all the stops out on the celebration. The Raptors – whether they won or lost – remained completely focused on the championship. There are photos of the Raptors going to the locker room after both wins and losses in the playoffs and from their facial expressions, you can’t tell the difference. No matter what, they were counting the number of games they needed to win for the championship. But when they got there, all hell broke lose and they had a crazy celebration – including a parade attended by two million people.
You achieve success as a team.Businesses can only succeed when everybody has a role to play, everybody does their part and everybody is respected for what they do. More than that, when someone is having a problem and they’re not at their peak, someone else picks up the slack and never throws a fellow employee under the bus. One of the hallmarks of the Raptors season was their overall commitment to the team both on or off the court. They were at their very best when they shared the ball and there was none of the locker room drama that plagued other teams.
Always be innovating.When one initiative doesn’t work, try another and don’t be afraid to take risks. Don’t worry about what others might say about your strategy because its success is based on whether you win or lose – and everything else is commentary. Nick Nurse, the Raptors rookie head coach, tried dozens of different starting line ups and kept changing match ups during the playoffs. Everyone laughed at his box plus one defense until it worked. And then suddenly, the Warriors were imitating it. Nurse was also willing to listen to his players’ suggestions, which is another great lesson for business leaders. Recognize the wisdom of those who are doing their jobs and don’t be too full of yourself to take their advice.
Make big changes when changes are necessary.When results aren’t what they could be, don’t play ostrich with your head in the sand and don’t be afraid to make a big decision. When you don’t have the right people in the right place, you’ve got to go out and get others. Likewise, when you don’t have the right equipment, you’re going to have to face reality and buy more. Last summer, the Raptors made two huge moves. They fired Coach-of-the-Year Dwayne Casey and they traded long time fan-favourite and all-star Demar Derozan. The team’s leadership was prepared to recognize that they didn’t have what it would take to win a championship. The flack they took for making bold moves is forgotten now that they’re the champs. In March, they traded lots of young talent for Mark Gasol and it’s fair to say they wouldn’t have win it all without him.
Recognize that culture is everything. Hire based on character as much, if not more than, talent. The way people fit into your organization will contribute more to success than their raw ability. Treat the people that work for you with care, consideration and compassion. Their problems are your problems because they affect their ability to do their jobs. So it makes sense to invest time and effort into their well-being. There wasn’t a single member of the Raptors playoff roster that was drafted higher than 15thand, in some cases, they were undrafted. The Raptors looked for players with the right character who could fit into a team that had an incredible work ethic. Over the years, there were players who, despite having the right character, didn’t have enough talent. But the were also players like Pascal Siakam and Fred Van Vleet who seemingly came from nowhere and by focusing on constant improvement are destined to be superstars.
Performance trumps marketing.In today’s competitive marketplace you can’t achieve success without great marketing. An amazing product that no one knows about won’t deliver much revenue. Being an industry’s best-kept secret sounds good but it’s a prescription for bankruptcy. However, the converse isn’t true. Outstanding marketing won’t save a company from a mediocre product – particularly with social media at play. The Raptors have some extremely creative marketing. In particular, the “We the North” tagline is brilliant in its diverse appeal and its ability to unite a country. But make no mistake. Without the Raptors on-court success, all the marketing in the world couldn’t create their unbelievable popularity.
Don’t be afraid of a superstar.Most businesses have one employee that works harder, works smarter, gets more results, makes more sales or just simply outshines fellow employees. That’s not a bad thing and it’s not wrong for that person to get some special treatment. If it’s based on ability, it’s also appropriate for other employees – and good for the company – to
recognize that person’s superiority and the contributions they make. Kawhi Leonard is a superstar and he was treated like one – by the organization and by his teammates. They freely acknowledged his outstanding talent and recognized that they were collectively better off with him than without. In the end, no one was jealous of his MVP status because they all got to be champions.
Now, I’m basking in the warm glow of my team being the NBA champions and looking forward to next season and the lessons I can learn from that.
The Boeing disasters: 4 lessons to be learned
The recent tragic crashes of two Boeing airliners captured the world’s attention but for those of us in the manufacturing sector, these catastrophes are cause for deeper consideration. In light of these events, every manufacturer is likely re-examining their own systems, processes and policies. The reality is that quality assurance is ultimately an exercise in risk management. Manufacturers have to think hard about the repercussions of lapses in quality on one hand and the cost of perfection on the other. It would appear that Boeing didn’t do a good job with that trade-off and there is much that we can learn from that.
Before anything, it’s important to establish that, despite my very practical approach, for us at Algood, quality is paramount. I always say, “Quality is free. Our customers don’t have to pay extra for quality.” If we compromise on quality, we compromise the whole company.
In addition, I am not advocating any position in terms of the extent of Boeing’s responsibility. That will be determined in due course through a variety of processes.
A unique aspect of the Boeing situation is that there were two catastrophic incidents and you have to wonder whether the second crash could have been avoided if there was more scrutiny after the first.
The first lesson to be learned then is that in the face of a lapse in quality assurance, every facet of the process and environment must be examined. One of the first things that I thought about when the Boeing news broke is an approach we use at Algood. It’s a modification of the 5Y system that is part of the Lean manufacturing methodology. Instead of five, we look for ten potential why’s or underlying causes whenever we encounter a production or quality snafu. That allows us to get to the heart of the problem and more importantly prevent it from re-occurring.
The second thing to be learned is that the greatest guarantors of quality assurance are culture and communication. A commitment to quality must pervade an organization, with all employees recognizing that their performance evaluation will be impacted by their contribution to quality. In addition, employees must feel safe in reporting a problem. If someone feels that they will be fired or reprimanded because they report a quality issue for which they were responsible, they will remain silent. It’s only when commitment to quality is a shared value, that companies can proactively and effectively eliminate production flaws.
The next lesson is that errors of omission are symptomatic of poor systems or culture but errors of commission are absolutely indefensible. It’s not a good thing for a caster to go through the manufacturing process and be delivered with anyone noticing a defect. But if someone was advised of the problem and made a conscious decision to proceed anyway that is, in my view, grounds for dismissal. If it turns out that someone at Boeing decided to forge ahead despite being made aware of the software glitch along with its potential ramifications, the legal cost will be astronomical – as it was for Volkswagen.
Finally, we get to the most challenging consideration. The fact is that perfection is not a cost effective pursuit and is not necessarily in the best interest of customers. If we can produce a product that is 95% reliable, it’s unlikely that customers will happily pay the extra cost or wait the additional production time to get something that is 100% reliable. Granted we are producing casters and no lives will be lost as a result of a defective product. But the cost of additional attention to detail is always balanced against the measures of time and money. Sometimes, the determination is that it’s worth it and sometimes not. For us at Algood, finding that balance allows us to be both customer-centred and totally focused on quality.
Over time, the truth will emerge about what went wrong at Boeing. While those findings will deeply impact many companies and individuals, the vast majority of us will be observers. However, we can all benefit from the important lessons that can be gleaned from these tragedies and use those to improve the way we do business.
What do you think?
Leave me a comment and let me know what lessons you take from the Boeing situation? What will you do differently or what are you now even more committed to?
Trump, Trudeau and Truth
Following current events these days in both the U.S. and Canada, it’s hard not to think about the nature of truth. It seems that every day there’s a new allegation leveled against Donald Trump that is met with denial and claims of fake news. And here in Canada, our Prime Minister Justin Trudeau has been grappling with a scandal that is focused on competing versions of reality. In all of these cases politicians and bureaucrats walk a very fine line between truth and lies.
That’s why I would make a terrible politician. For me, there is no fine line. You either tell the truth or you don’t. And that’s the way we do business at Algood.
The first two years of Donald Trump’s presidency have been turbulent to say the least. They are all sorts of accusations and allegations – from collusion with the Russia to paying off porn stars. On top of that, reactions are completely the opposite of each other. For some, the President is a scoundrel, skirting or even breaking the law while tarnishing the reputation of his office and the country. For others he is a hero, standing up for the common man, victimized by the media, combatting the political establishment and protecting the nation. In all of this, truth is elusive. It’s almost impossible to determine who is right and who is wrong.
In Canada, there has been a scandal involving possible political meddling in a legal process to determine whether to criminally charge a large and influential corporation. The controversy has reached into heart of the Prime Minister’s Office resulting in the resignations of Justin Trudeau’s most trusted advisor and the country’s highest ranking civil servant. With all kinds of drama liked secretly recorded phone conversations and lots of he said, she said, this uproar has tested the real meaning of truth. Just like in the U.S. opinions about who is right and who is wrong are determined by political allegiances.
The common thread in both countries is that there’s nothing black and white about the truth. Rather it comes in varying shades of grey.
That’s the total opposite of the way I lead my life and run a company and it’s not the way we do business at Algood. For me – and us – the distinction between truth and lie is crystal clear.
It would be easy to get an order by promising a delivery date that is impossible or unlikely and then just stringing a customer along. I remember one, now defunct, caster company that armed its salespeople with a list of twenty excuses for not delivering on time. Each time an excuse was used with a particular customer, it was ticked off to ensure someone didn’t say, “That’s what you told me last time.” It’s brilliant in a pathetic kind of way.
Likewise, we could take an order for a caster that we’re not sure will be ready on time and then substitute something similar when its time to deliver, hoping the customer won’t complain. I can’t tell you how many times I have heard about companies opening a carton only to discover something other than what was ordered.
We could also provide price estimates that we know will get us an order but we’ll never be able to honor and then tell the customer about some unforeseen cost increase that made it impossible to deliver on budget. That’s a good one.
Inflating performance or testing results is an even better way to get an order. Tell the customer that capacity is 20% higher than it really is or better yet, don’t bother testing and just tell customers what they want to hear.
For me, all of the above are totally intolerable. You tell a customer the truth, not what he or she wants to hear. We provide realistic delivery dates, accurate pricing and the exact product that was ordered. And we test like crazy, making damn sure that our products meet our specs.
This truthful approach really gets tested when a problem arises. This week, we had an order delayed because the production process on a custom designed caster didn’t work as expected. We could have planned on telling our customer that everything was ok and then blaming some delivery glitch for the late delivery. But what happens when the production delay is longer than expected? Now, you’re caught in a web of lies and you lose the trust of the customer.
If we have to decide on how forthcoming to be with a customer, I will always err on the side of being too honest. My honesty barometer is the golden rule. I am as truthful with customers as I expect to be treated by our suppliers –and I hate being lied to.
For Trump and Trudeau it may be hard to pin down the truth but for me, and for Algood, it’s actually quite easy. There’s no wiggle room. It’s either true or it’s not. More than that, our obsession about honesty allows me, our employees, and our customers to sleep well at night.
Still doing trade shows? Seriously??!!
It’s 2019. We are deep in the world of digital business. High-speed communication enables unbelievable amounts of data, images, and documents to be transmitted in the blink of an eye. Electronic funds transfers allow hundreds of thousands of dollars to change hands in a nanosecond. You can visually communicate with someone half way around the world without leaving your office. In the face of all that, is it possible that we are about to spend a ton of money to mount a display and fly a bunch of people to be part of a trade show – one of the most analogue possible marketing initiatives you can think of? You bet we are and I’ll tell you why trade shows still make sense in 2019.
We are proudly planning to be at the Promat trade show in Chicago next month. It focuses on material handling, packaging, shipping, warehousing and supply chain management, which are all areas from which we draw customers. But still, it does beg the question of why it’s worth it to spend all the time and money to be at a trade show. Here are 7 reasons.
It’s analogue. People get to touch, feel and hold casters. When I travel to see customers, I can’t possibly lug around samples of all the different products we make. And yet, there is no substitute for the 3D experience of having something in your hand.
The people economy of scale. In just four days, we get to meet so many more people than there is time to go see in any given year. And, speaking with someone in person cannot be replicated by any video conferencing platform. It’s personal. It’s real. It’s a way to build relationships. As well, there’s also great benefit to customers who get to see a myriad of suppliers and vendors in one place.
It’s neutral territory. Everyone is so busy and so insulated these days. It’s really difficult for customers to give up time for you to come see them. The same dynamic makes it almost impossible for them to come see us. The trade show creates a safe space for us to interact with customers in a way that isn’t cumbersome or imposing. In effect, it allows us to bring our manufacturing facility to them.
It levels the playing field. There may be suppliers, perhaps big corporate players, that are top of mind for some customers. Given the demands of time, it’s easier to call the supplier that you have always called. But at a trade show, there’s an opportunity for customers to look beyond the habitual and see what other companies have to offer. I can’t tell you how many times I have heard customers at a trade show, say something like, “I didn’t know that you do that!”
Market research. The trade show is a great chance to see how people react to new product releases and ideas and then learn from what they have to say. It’s also an opportunity for us to find out what’s on customers’ minds in one of our largest target markets. We are frequently asked if we have solutions for a number of challenges – and those inquiries have lead to some of our most successful and innovative product developments.
We get to be customers as well. At previous trade shows, we have been introduced to technology that has had major impact on our operation. When I walk the show, I’m not only looking at what our competitors are doing, I’m looking for innovations that are going to make us more efficient and more competitive.
Sales. I would be remiss if I didn’t talk about the most obvious dividend to the trade show investment. For many of the reasons above, being at trade shows leads to additional sales – whether from new customers or existing customers who discovered some of our additional capabilities.
There’s very little that’s digital or high-tech about a trade show. Yes, there’s technology and robotics and AI on display. But at it’s core, it’s the very traditional, analogue and low-tech dynamic of interacting with people that makes trade shows worthwhile. That’s why, even in 2019, we are still investing in trade shows.
Come say hello!
If you’re planning to be at Promat on April 8-11 in Chicago, be sure to come say hello and shake hands with us in booth # S4879.
Boring Isn’t Bad
Last Sunday’s football game was probably the most boring in Super Bowl history. The score was 3-0 at the half and it wasn’t until the seven minute mark of the fourth quarter that either team scored a touchdown. In the end it was the lowest scoring Super Bowl ever. At the same time, the experts declared that this was a gem of a game for the Patriots. I had two thoughts as I watched the game. One is that boring isn’t bad and the second was there’s a business lesson to be learned from all that dullness.
With very little fanfare, the Patriots defense was incredibly efficient holding the Rams to just one third down conversion and constantly being in the face of the their quarterback. By the time the game was in the fourth quarter, the Rams were feeling the effects of the never-ending Patriots pressure and a resulting interception was just the opportunity that Tom Brady needed to win the game
The business lesson mirrors the work of the Patriots defense. To be successful, you have to grind it out – every day of every month of every year. There are no fireworks when an Algood sales or customer service rep suggests the right solution to meet a customer’s needs. There’s nothing spectacular about consistently manufacturing casters and wheels to the right specs. There’s no cheering section when our product regularly meet quality standards. And there are no horns blaring when our orders are delivered on schedule 98% of the time.
And just like the Patriots, it’s that unceremonious, almost dull, commitment to getting it right that creates the opportunity for the big moment – the one that does get a lot of attention. Whether that’s manufacturing 60,000 non-standard casters from design to delivery in less than 60 days, or creating the casters to be used in Canada’s first fully computerized hospital or being chosen as the supplier of the year by a global industrial powerhouse.
In the end, I’m ok with us being boringly good at what we do. It’s ok that many, if not most, of our customers can’t point to the one “Hail Mary” moment where we defied all odds to get their order right. (Although there have been some of those). Because there’s something really satisfying and rewarding about being boring in business.
Our 50th year and we’re in overdrive
2019 will be 50 years since my father founded Algood and we’re marking this special year in a way that would make him most proud. Yes, of course we have our 50th anniversary logo ready to unveil and we‘ll have a special cover to our catalogue as well as other promotions and events. But what will be most impressive about 2019 is that we’re going into it with all engines firing. We are aggressively moving our business forward with four key areas in mind.
New product development. In the past few years we have introduced more new casters and product updates than we did in the decade before that. That pace will continue. We’ll address both sides of the size spectrum with more low profile offerings and the further expansion of our “Think Big” initiative that we started two years ago. You can also look out for more stainless options as well as some interesting innovations in polyurethanes.
Manufacturing and environmental efficiency. By reducing our carbon footprint we can make our whole operation more efficient, increase productivity and get orders out the door faster. A recent electricity-use audit allowed us to identify areas in our plant that were wasting energy and we are now monitoring our electricity use on an ongoing basis. That allows us to see when equipment isn’t operating at peak efficiency and make modifications to maintain or improve production schedules. In fact, we’re thinking about how we can reduce our overall energy consumption by 10% and would like others in the manufacturing sector to join us. In addition, all our injection moulding material is fully recyclable.
New capital investment. Last year we added to our capability with a new CNC lathe and an additional robotic welding station. Our capital investment strategy will continue into 2019 with some major equipment acquisitions.
Enhanced customer service. Our customers have always been at the centre of everything we do and in turn, when I’m out on the road, the comments I hear most often are about our wonderful customer service team. Keeping our CSRs well informed, knowledgeable and up to date on manufacturing as well as ordering systems takes hard work. In 2019 we will redouble our customer service efforts and take even better care of our customers, ensuring that they get there orders accurately and on time.
50 years is a major milestone for our company and we’re going into 2019 with our foot to the floor. We invite you to come along for the ride.
Forget AI. Give me a person!
I love technology. I am an Apple junkie with my iPad, iMac, iPhone and Apple Watch. I only read magazines using a device. My iPhone wakes me up in the morning and my watch tells me how well I slept. But despite my infatuation with the world of tech, I’m the first person to acknowledge that there are skills and knowledge that cannot be replaced by the microchip. No matter what advances are made in artificial intelligence, there are things that only I or another human being can do.
In my personal life, the limits of technology are also pretty clear. I haven’t found a computer yet that can figure out which way the wind is blowing and then hit a tee shot so that it lands in the centre of the fairway a hundred yards from the pin. Hell, I can barely do that. No technology will replace the thrill of attending a Raptors game or any other live sporting event. Even with my tech swag, I’m still taking out the garbage and walking the dog.
In the business of caster manufacturing we have automated huge parts of our production. As I have written about before, those advances didn’t eliminate jobs in our company. Rather, they changed what we need people to do. For example, while the new CNC lathe we purchased will expedite production, we had to hire someone to program it in the first place.
Personally I get involved in a guess-timating element of production planning and that cannot possibly be replaced by AI. We proactively anticipate customer requirements based on a combination of market trends, buying patterns, and personal interactions. And, we usually get it right so that we are almost always able to meet our customers’ needs.
In addition, there are functions that only a person can fulfill. When someone calls our customer service department, they want to speak to a person – someone who can provide solutions based on a unique set of requirements. In fact one of our distributors advised us not to include too much automation in the new website we will launch next year because, beyond a certain point, it will take a person to find the best caster or wheel to meet his needs.
That’s also the reason we have resisted having an automated attendant answer our phones. Despite the efficiency, we know that our customers enjoy talking to real, live, human beings.
The best quality assurance systems can’t replace what happens when someone looks at and touches a caster to make sure it’s what the customer ordered and has been manufactured to standards. And here’s one for you. Find me a computer that is going to load a truck so that it’s organized to match a delivery route.
It seems to me that the key to technological success is a combination of embracing what computers can do and, at the same time, recognizing their limitations. At the end of the day, there are some things I will never want an AI driven matrix of microchips to do for me. Sometimes, you just need a person.
Two takes on tariffs
It seems like every business conversation I have these days is somehow connected to tariffs. Whether it’s our customers, colleagues or our competitors, the current tariffs, and the looming 25% surcharge at the end of the year, are having a huge impact on the caster business. Many of the people I speak to are frustrated and see the tariffs as a kind of destructive doomsday. While I hear them and sympathize, there are clearly two sides to the tariff situation.
Let’s back up a step. Earlier this year, President Trump imposed a 10% tariff on imported goods from China including steel, casters and caster components. Subsequently he announced plans to increase those tariffs to 25% on January 1- and that’s what’s really got the industry in an uproar.
Importers are scrambling to get product landed by the end of the year. That means they are behind on completing orders. With transit time from the China of at least four weeks, we are about a month away from last day to produce goods that can be sold at the pre-tariff cost. That’s causing chaos. Beyond that, they must re-conceive post 2018 business models that will see a huge portion of their bottom line stripped away.
Suppliers that both import from overseas and manufacture in the U.S. are working furiously to re-align their operations and quickly increase their on-shore production capacity. That’s kind of like turning a cruise liner. It doesn’t happen fast and they are not able to respond to the demand. In addition, I hear that some manufacturers are having trouble finding qualified staff to support the intended production increases.
Distributors may no longer have stable supply chains. Their vendors are raising prices and restricting delivery. That’s not a good combination. Fabricators who use casters as part of a finished product are in an even more tenuous position. They have quoted and provided delivery dates on goods but with the chaos in the caster market, are at risk of being late and above budget. That’s also not a good combination.
While all of this is playing havoc with the industry and there will certainly be companies that become casualties, there is a clear upside to the situation. For years, the reshoring movement struggled to convince companies to bring manufacturing back to North America. But the unbelievably low prices on imported goods were irresistible to a competitive marketplace where small differences in price accounted for huge differences in sales and profit. The tariffs will do what moral and patriotic arguments could not. When the storm subsides, there will be more casters being manufactured in North America, which means more jobs, more investment and more growth. There will be lots of short term pain but it’s very possible – maybe even likely – that it will be overshadowed by the long term gain.
For us at Algood, there is a bit of a boon in all this. Our products are not subject to tariffs and we have a fully integrated manufacturing facility in Toronto. We can deliver product that meets very specific requirements at competitive prices and in very favourable timelines. That is making us an attractive option for distributors and fabricators. We’re getting new business and we’re not complaining.
It’s distressing to me when I talk to our distributors and other customers who feel trapped by the current state of affairs. As a business owner, I empathize with their frustration and deep concern for their businesses. Unquestionably this is a situation that sucks for many companies and many employees. I feel their pain.
And then there’s the other side. That’s the real possibility that all this will lead to a renewed, healthy and vibrant North American manufacturing sector and increased demand for casters and wheels produced on-shore.
I guess there really are two sides to the tariff tale.
Walking the Talk, Literally
I take a walk every morning that is absolutely critical but has nothing to do with exercise. My morning walkthrough of our manufacturing facility is the most important 20-25 minutes of my day. This is the walk that makes sure we’re walking the talk and fulfilling the commitments we make to our customers every day.
Our ability to deliver high quality casters & wheels on time is the lifeline of our business and the morning walk-through is my opportunity to get an unfiltered, first-hand look at how we’re doing. And because I take my walk with our VP of manufacturing, our plant manager and our quality control manager, key production decisions get made on the spot. No one can say, “I’ll get back to you on that” and there’s no room for procrastination.
The walk-through keeps me in touch with the heart of our business. It’s my summary of the day and it keeps me in touch with our production activity. The route I take through the plant is always the same.
The first stop is Injection Moulding where I check to see which moulds are running, spot check some of the wheels that are waiting for assembly and check cycle times.
The next stop is Welding – our two robotic stations and our hand-welding centre. There, I’m looking at changeovers, cycle times and taking a close look to make sure the quality of the hand welding is up to our standards.
After that comes Assembly where it’s just a matter of seeing what’s being finished and doing the occasional quality spot-check.
Testing is last. What’s on the machines? How are they measuring up? Are we using testing procedures that will provide the data to match up with customer requirements?
The walk-through has other benefits. We take a close look at equipment and machinery, making sure it’s operating properly and being maintained well. We make sure that employees are using safe practices with the right protection. Likewise, it’s a chance to make sure that there’s a safe working environment with clear aisles and clean floors. Although it sounds trivial, it’s an opportunity to say Good Morning to our staff and let them see that we take a personal interest in what they are doing and their well-being.
The point of the walk-through isn’t to micro-manage. It’s the way I fulfill my responsibility as an owner and the president of the company. An important part of what differentiates Algood in the marketplace is that we’re not owned by a corporate conglomerate and that our management is hands-on. Walking the talk every day is the way we maintain our commitment to our customers and has been a huge part of our success for almost 50 years.
Competition in the rear view mirror
At Algood our competition keeps us on our toes but over the years we have learned that the best way to compete is to do what we do best and the best way to view our competitors is in the rear view mirror. Here are six ways in which we think about competition.
- Competition can be a motivating factor.There are actually two ways in which competition can be a positive influence. On one hand, we will often combine competitive influences with our own capacity for innovation to create new products or improve existing ones. On the other hand, the practices of our competitors sometimes provide a guide in how not to do business. I am frequently shocked by the quality and deliverability standards of many of our competitors.
- I take no comfort in negative comments about our competitors.Increasingly I am hearing more negative comments about our competitors from both distributors and OEMs. In fact, there have been times when I have witnessed a caster company being totally trashed by a customer or prospective customer. Believe it or not, I take no satisfaction in hearing those comments. If anything I am saddened by them because, to some degree, a negative comment about one company is a statement about the whole industry.
- We have no desire to mimic our competition.We can learn from our competition. We are humble enough to understand that everyone is this business has the potential to teach us something. But we have to be true to our values and the high standards to which we are committed. For example, I would never ask our sales team to be like the salespeople of our competitors. We breed our representatives to be true castersmiths that combine rich knowledge with impeccable principles.
- Imitation is the greatest form of flattery.My father taught me that when another producer knocks off one of our products, to take it as a compliment. Frankly, it doesn’t bother me at all when we are copied. If anything it is validation that we are providing the right products to the marketplace.
- We understand the pressures of pricing.We understand that project budgets are critical and that cost-savings are a huge contributor to business success. We work closely with our customers to deliver the right product at the right price. However there are times when we are asked to match a competitor’s quote and our most responsible response is to pass. If matching a competitor’s price means putting our quality standards at risk or, in any way, not being able to deliver a product of which we are proud, it’s not worth it – no matter how much we want to help or how big the project.
- Achieving excellence is the most effective approach to competition.We can never stand still and never be complacent. If we focus on using our integrated manufacturing facility to always be innovating to truly meet the needs of our customers; if we dedicate ourselves to producing the highest quality product and delivering it on time; and if we bend over backwards to service our customers to death, we will always be in the driver’s seat – viewing our competition in the rear view mirror.