Navigating troubled waters

Living with turmoil is the new status quo, says Anand Sharma. A lean culture is the best way to survive.┬á No one ever said running a business would be easy, but the convergence of unrest in the global social and economic landscape is today creating a tsunami of concern about how to keep an enterprise above water. The prices of commodities are going up; oil is through the roof. There seem to be more hurricanes, floods, drought, tornadoes, and other natural disasters. We have war, energy gouging, and currency acrobatics. And itÔÇÖs all happening at once. The new status quo is living with turmoil. One thing is clear: organizations with lean cultures are in a better position to survive and thrive than those without. ThereÔÇÖs another elephant in the roomÔÇöenergy. While numerous factions call for alternative fuels, there are some who believe that even the alternatives wonÔÇÖt save us from the shortfalls that lie ahead. Why? Because more and more people in developing economies like India and China can afford cars, and their increased consumption will offset any savings gained elsewhere. Recently The New York Times ran an article stating that the number of trucks on the highways is going to double in the next 30 years. Likewise, air travel is going to increase dramatically. The airport in New Delhi, India, that I fly into regularly was usually a ÔÇ£ghost townÔÇØ in the middle of the day, as most flights arrived at night. Today, thereÔÇÖs practically no room to stand in the airport at any hour of the day. Couple the expected increased demand for fuel with increasing population growth, and the concomitant increase in food and water consumption, and turmoil will arise at every level. At a recent meeting in India, it was noted that one thing that will prevent the economy from continuing to grow at ten percent a year is the shortage of water. We donÔÇÖt often think about it, but one-third of the world does not have the same access to water that we are used to. And itÔÇÖs only going to get worse.  In The Post-American World by Fareed Zakaria (W.W. Norton & Company, 2008), which is a must-read for all business leaders, the author presents the notion that itÔÇÖs not that America is declining, but rather that the rest of the world is rising at a faster rate. We must learn to live in a different economic order. The US is no longer in a position to dictate to the rest of the world; instead we must join it. Lean culture has taught us to treat people with dignity and to think of them as appreciating assets. We must extend that belief system to the rest of the globe and treat all people with respect if we want lasting economic order. What we need to ask ourselves is how we can guide survival in an environment where turmoil is all around us. ┬á ToyotaÔÇÖs US retail sales in April were on the increase for the first time in five months, in spite of the issues weÔÇÖre all facing. How do they do that? They have created an environment where everyone seeks to solve problems. TheyÔÇÖve coupled that with innovationÔÇöusing their peopleÔÇÖs creativityÔÇöto create a winning formula.  What organizations need to do in times of crisis is revisit some of the key tools of lean enterprises:┬À┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á Eliminate wasteÔÇöremove what doesnÔÇÖt add value.┬À┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á Implement energy kaizens.┬À┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á Challenge and empower employees to innovate.┬À┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á Tighten connectivity to customers.┬À┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á┬á Create synchronicity between your supply and the rest of your enterprise. Doing these things will ensure that your company is resilient against the unexpected and can safely navigate the continuing turmoil of an imperfect world.  *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬áAnand Sharma is President and CEO of TBM Consulting Group, Inc., and author of The Perfect Engine┬á         *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *