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Dear Ken,
Welcome to
the June 2006 edition of the CLI newsletter. In this issue we've got a
feature article from Stephen Shapiro, founder of 24-7 Innovation, and keynote
speaker at this fall's annual Leadership Summit. The article will give you
just a sampling of what to expect at the September program.
Speaking of
the CLI Leadership Summit, please read the article on the program which will
bring you up to date on all of the latest developments including the recent
addition of Jack Pickard, CEO of FedEx Custom Critical, as a featured
speaker. Registrations for the program are coming in at an unprecedented
rate, so we urge you to reserve your spot today.
We also
welcome Bilkays Express as the latest CLI client, have included our
always-useful Tip of the Month, and finally, for our Canadian clients there
are details on what you need to know about the changes in the tax laws
effective July 1.
Enjoy the
issue.
5
Strategies for Using Innovation to Beat Your Competition 
By
Stephen Shapiro
Businesses are in the most volatile situation in history. Leading companies
are falling from grace at an alarming rate. Technology is advancing at an
ever-increasing pace. Start-ups and entrants from other industries are the
new breed of competition.
What is a
company to do to survive and thrive in this age of change?
One
solution is to inject innovation into all levels of the organization. This
requires broad cultural change based on values, guidelines, and outcome-based
measurement systems that give flexibility to all employees while mitigating
risk for the business as a whole.
Here are
some proven strategies for creating a culture of innovation.
Make
everyone accountable: Because a few individuals at the top cannot possibly
plan all of a company's activities, give employees a set of rights,
responsibilities and rewards that make them accountable for their own
actions. Koch Industries, an oil and gas company based in Wichita, Kansas, wanted to achieve
world-class safety. Rather than have a few safety engineers scour the
company, Koch (pronounced "coke") gave this responsibility to all
employees, with rewards both for uncovering unsafe conditions and for
discovering new ways to conduct business more safely. This initiative
resulted in as much as a 50 percent improvement each year in the number and
severity of accidents across Koch Industries. Within one year the company had
moved from middle of the pack to one of the best safety records in its
industries.
Replace
rigid processes with clear business objectives: Too often
innovation is stifled because companies define business processes in great
detail, then hand those designs to the line that is expected to execute them.
Mölnlycke Health Care, one of Europe's leading
manufacturers and suppliers of single-use medical products, allowed
production teams to decide how to meet their goals. With the responsibility
for quality products moved to individuals on those teams, nearly 70 percent
of the company's new products launch on time, compared with just 15 percent previously.
As a result, the company will have quadrupled its shareholder value in only
five years.
Challenge
employees to compete: When challenged by external (or sometimes internal)
organizations, groups are kept on their toes. For example, prior to being
acquired by RWE AG in 2000, VEW Energie AG, a German-based utility, created a
new business entity responsible for service, maintenance and construction.
But other VEW managers were allowed to do business with competitors offering
the same services if the price was right. As a result, the new unit worked
hard to remain competitive, and in return was able to offer services to
outside companies as well.
Link
strategy, customers and capabilities: To be competitive and sustain
market leadership in a changing Brazilian marketplace, Multibras (appliances)
embarked on an ambitious change program. This was achieved by focusing the
business imperatives at three levels: industry, customers, and competencies.
Multibras first looked at future discontinuities in the industry by mapping
potential future transformations and expected changes. They did this through
the creation of scenarios and business imperatives. The changes were then fed
into a view on what customers would want in the future. What are customer
expectations (current, and potential future), needs
and wants? This was done using current customer knowledge, direct involvement
from customers (e.g., Whirlpool), and leveraging marketing expertise. The
outcome helped drive the definition of the distinctive capabilities required
in the future. This effort ultimately generated $50 million in cost reduction
benefits for the company, reduced time to market by 35 percent, and cut
development cost by 15 percent.
Make
the innovation process fun: Quill Corporation, a $1 billion subsidiary
of Staples, used the reality TV show concept (a la "The
Apprentice") to inject life into the organization. The competition was
called "The Quillionaire." Each month, three teams competed against
each other to solve real-life business challenges. The first challenge was to
find the next "big idea" for Quill. The three teams went off with
video cameras and worked on their solutions. After a month, they presented to
a panel of judges comprised of four vice presidents. The winning solution,
predicted to generate millions of dollars in new revenue each year, is now
being implemented with great success.
These, and
other strategies, can help your organization stay ahead of the change curve.
About the
Author:
During a 15 year tenure with the international
consulting firm Accenture, Stephen Shapiro established and led their Global
Process Excellence Practice and developed innovation training that was
delivered to 20,000 consultants. In 2001, Stephen changed direction and left
the management- consulting world to write his first book, 24/7 Innovation
(McGraw-Hill), which has been featured in Investor's Business Daily
and the New York Times.
His latest
book, Goal-Free Living (Wiley), became the #1 Amazon.com
"Business Motivation" best seller, was
featured in Entrepreneur Magazine, on TomPeters.com, and was the cover
story in O, The Oprah Magazine. During his career, Stephen has advised
many leading organizations including Staples, GE, Fidelity Investments,
Pearson Education, BMW WilliamsF1, Frito Lay, UPS, and Bristol-Myers Squibb.
He will be the Keynote Speaker at this year's Annual CLI Summit being held
September 27-29 in Tarrytown, NY.
Click Here for Stephen's Website
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What You Need to
Know about the New Canadian Tax Rates
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 For all of our Canadian clients, please note that
effective July 1, 2006, the rates of the
GST and the HST will be reduced. The rate of the GST will be reduced from
7% to 6%. The rate of the HST will be reduced from 15% to 14%. You need to
adjust your FACTS® system in the following way:
In
bs.maint #5, update the GST keyword so that it reflects the proper
percentage as of July 1st.
To adjust
the HST, please contact CLI Programming for the available updates.
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FedEx CEO to
Speak at Leadership Forum
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 The preliminary
agenda for the Annual CLI Leadership Summit being held September 27 through
29, 2006 in Tarrytown, NY is now available.
The newest addition to the program, Jack Pickard, President and CEO of
FedEx Custom Critical, has confirmed his participation as a Featured
Speaker. FedEx, and in particular their Custom Critical division, are the
very model of an innovative transportation company. Jack's session promises
to be a conference highlight at this by- invitation-only FREE event. Please
click the link below to access the complete schedule.
The theme
for this year's program is "Innovation Drives Change," and the
program is packed with highly qualified innovation experts covering a wide
range of topics including: Innovation through shared services; How the
latest telephony advances can save your business money; Programs to help
lower safety costs; An RFID update and much more.
This
unique event brings together top executives from LTL and courier companies
from around the world. Once again in addition to a keynote by Innovation
Expert and Author, Stephen Shapiro, and the featured presentation by Jack
Pickard, there will be interactive workshops and lively roundtable
discussions on critical industry topics. It will be three days of learning,
idea exchanging, and networking.
Space is
limited and we fully expect this program to be oversubscribed. If you would
like to receive an invitation to this event, email Craig Lis at clis@carrierlogistics.com
Click Here for the Latest Agenda »
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New Client:
Bilkays
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 CLI is pleased to announce that Bilkays Express has
chosen the FACTS® system. Bilkays was founded as a family business in 1932
to satisfy the needs of businesses in the Northeast looking for
transportation and warehousing at a lower cost. For nearly 70 years,
they've earned a solid reputation for delivering top quality service to
their customers that only comes with hard work and years of experience.
Headquartered
in Elizabeth, NJ, and owned and
operated by the Kortenhaus family, Bilkays is committed to making a
company's transportation dollar go further. They achieve this by mapping
out a client's individual transportation needs and then following the most
cost-effective route in satisfying them. Bilkays takes the high road to a
better bottom line price...delivering top quality service with maximum
efficiency.
A warm
welcome to the Kortenhaus family and Bilkays Express.
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Tip of the
Month: Dispatch From Adjacent Routes
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 From the Route Dispatch screen, when viewing a
particular route, use the option "Dispatch from Adjacent Route" (cursor
down) to quickly move pick-ups and dispatch them without having to switch
to an entirely different route or "(M)ove"
and "(D)ispatch" the pickup to another route. This is especially
helpful when a driver reports that he is available but has no pickups
currently assigned and is ready on his route. The dispatcher can quickly
scan surrounding areas to find the closest available pickups.
Setting
Up Adjacent Routes:
In order to setup adjacent routes, go to "SET PU Adjacent Scan
Order" at ob.disp menu #90. Enter the first route that you would like
to select for adjacent routes. F5 will give a list of the routes in your
system. Next, enter the routes that are geographically adjacent to this
route or hold routes that you would move pickups from. This should be done
for each route that you currently dispatch with a driver. For example, all
P & D routes could have the VOL (Volume pickups) route set up as one of
the adjacent routes, so when necessary it can be easily accessed from any
other route.
Using
Adjacent Routes in Dispatch
While in a route's dispatch screen, hit the cursor down button to see the
routes that are adjacent to the route you are working with. The primary
adjacent route will display and be highlighted and the additional adjacent
routes that you have assigned will display at the top of the screen. Select
this primary adjacent route or enter one of the other routes and you will
be prompted with all of the undispatched pickups on that route. By typing
in the call number for one of those adjacent pickups, you will move and
dispatch the pickup to the route that you were originally working with.
Another suggestion for a strategy is to make the route that is closest to
the terminal adjacent to all routes so the drivers make these pickups on
the way back to the terminal.
If you
would like to respond to the Tip of the Week or you require additional
information, please send an e-mail to Training@carrierlogistics.com.
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Personnel News
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 The CLI family just keeps growing! Sanjeev Thapliyal,
a senior programmer, and his wife Rajni, welcomed baby boy, Sukrit into the
world on May 3.
Sukrit
joins big brother, Tripuresh, in the Thapliyal household.
Congratulations
to all.
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Calendar of
Events
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Quick Links
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