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“If you change the way you look at things, the things you look at change.” – Wayne Dyer

I was recently asked if I was satisfied with the project and I was… to a point. The systems and processes of stock management, sales tracking and payment tracking were strong enough to give the business owners confidence to expand, and plans to do so were already in the works. However, the real potential for this small-enterprise was the yet untapped full potential of their staff. Yes, during the project there was a component of computer training and all of our process improvements were co-created with staff who gained experience in analyzing the organization.

Looking at the warehouse stock management process

To tap into the immense wealth of their staff, they had to truly invest in their people. I was lucky. The owners also felt that staff development was the next step and we scheduled a meeting to address this opportunity.

I framed the discussion with the four headings:

  1. Vision – what do they see when the look into the future of the company
  2. Structure – how will they set up their staff to grow and develop (roles, responsibilities and incentives)
  3. Daily interactions – how they work with staff and create an environment that promotes development
  4. Underlying values – what are their deep personal beliefs and how does that affect the way they work

The first two were easy.

Vision: We quickly solidified their vision for the company. It was to be able to focus on the big picture strategy to grow the business while staff ran the company.

Structure: Ideas on what roles the business needed were drafted. Staff were also asked to track all their daily tasks for the week since there was no cohesive understanding of the details surrounding everyone’s current role. All were also asked to identify what three things about their job excited them the most to help tailor responsibilities to fit what people would like to do.

However, the last two worried me. I knew from being embedded with staff that incentives and performance metrics didn’t actually motivate them. Many were actually demotivated by their working environment and the last two headings aimed to tackle that.

“Your incentives, aren’t working”, I said, “there’s a disconnect between what they’re measured on and what they feel they can achieve. What really matters is how you interact with your staff”. I saw nods of agreement.

This is where I began to talk about underlying values. How they interacted with staff depends a lot on how they view them. “You should be sure to focus on the positive characteristics and development of your staff. Much like the other technical advisor recommended to focus on the good shops since it’s a tendency for business owners to focus on shops that aren’t doing well, the same tendencies can creep into how you view your people.” They agreed and gave anecdotes reinforcing this fact. The structure and vision are very easy to set up. But being genuinely focused on people’s growth and trying to re-examine deeply held beliefs is more than difficult.

By the end of my placement roles were drafted based on staff input and another EWB staffer who came to assess the project saw indications that management was beginning to focus on the progress and wins that their staff have been making.

Mapping the tasks each staff is responsible for

If they continue to grow and genuinely invest in their people, I believe this small enterprise will go a long way.

The Anchor Leg

It was a quiet day. The roads were deserted and everyone had the day off to vote at the election polls. Only a handful of people were in the office to get some work done. Sitting in the big office in the virtually empty warehouse, I plugged away at the profit and loss numbers trying to make sense of all… and I found out that I wasn’t alone. “Anthony, can you come to our office for a second, we need to talk.” One of the owners asked me.

They had invited a technical advisor who joined us over the last two weeks. He ultimately advised to close down shops and approach established independent shops to be dealers. Just before the conclusion of his time, we were in mildly heated debates trying to sift out the way forward. There were a lot of numbers that were thrown around. Spreadsheets, reports and ideas were overflowing my head. I had to play mental catch up as I split my attention between trying to think about each idea critically while trying to come up with some innovative idea to contribute to the discussion. In the end, we were advised that the way forward was to shut down the shops with the highest losses. We walked away from the discussion with a list.

Now, it was just the two business owners and I sitting in the small office, dazed, confused and exhausted from the last few days. “So, Anthony, we were just going over the numbers again and wanted to see what you thought of them.” I was glad to see that I wasn’t the only one who had growing doubts on the strategy we were convinced to pursue just a few days earlier. “If we shut down those shops, and redistribute the overhead, it just makes other shops go into loss.” “That’s what I was seeing too” I replied.

Detailed analysis revealed that each shop was still independently profitable as long as we removed the overhead costs of operations at headquarters, confirming what we assumed at the beginning of the placement. “I was looking at the analysis this morning, and the main problem is overhead costs. Primarily: wages, transportation, and rent.” After seeing agreement in their eyes, I continued to share my thoughts. “As of now, those costs are fixed and in my opinion underutilized. Do you think we can stand to cut wages, or transportation?” I threw the question out there. Fuel costs are on the way up and vehicles only get older. When thinking about everyone at headquarters, the sales manager, the warehouse manager, the accountant, the administrative staff, and the stock controllers, I couldn’t think of anyone that isn’t vital to the business. In times of trouble, with skyrocketing costs, stiff competition, and political uncertainty, these are the people to invest in, not cut. Feeling the tension that the question put to the room, I eventually got the answer I was looking for. “No, we need everyone. They’re all essential.”

I began to probe what they thought of the second recommendation given: to strike deals with other agricultural shops so they could stock our product while we close our own outlets. “For dealers… they make up about 20% of your business. Is there enough potential dealers to overcome the void created by closing our own outlets?” With little thought and a shared confirming glance, they both said “No. No we can’t. It’s just not possible. Not even with our most ambitious projections.”

All three of us in the room were circling around a strategy that I felt was returning to the forefront. “I feel that with the latest improvements at headquarters, you have the capacity to manage more shops. What happens to the profit margins if we relocate the lower performing shops and open more outlets in underserved areas?” They nodded and waited for another my next question. “You mentioned potentially opening an additional shop in the same city north of here. How long would it take before we see it perform? What’s the potential there?” “It, usually it takes 3 months for a shop to reach its potential and at that location, we should see volumes anywhere up to 50% of the shop already there.” “Can you sustain the initial losses?” After a few keystrokes and clicks by the mouse, the picture was shown to me. “We can do it.”

The air in the room was much lighter than it has been the last few weeks. Slight smiles could be seen on their faces.  “So we’re clear, we’re going to open more outlets, and relocate shops that are underperforming… Good. Thanks Anthony.”

It was now clear that the original strategy to open more shops made more sense than closing them down. It grows the potential to reach more farmers, is in line with of all the work we’ve done so far to build the business’ capacity and, most importantly, takes advantage of the potential in the market.

Now that I’m entering the anchor leg of this placement, I’m again re-energized, excited and pushing forward to see this project through to the finish.

Commit

“Rise, rise again, until lambs become lions.”

It was one of those mornings. I was curled up in my undersized bed, head and feet stretching the mosquito net, eyes closed, freezing. The temperature dropped over night and all I had was my tropical sleeping bag. “Why did they have to run the trains so early?” I asked myself, after being woken up by the horns from the train yard one street over.

Right then, my alarm goes off… 5:15am. Patting all over the bed beside me I find it and quickly switch it off. “Man, I really don’t want to get up” are the first words I utter to begin the day. I switch on my headlamp and look up at the net above me brightly illuminated against the faint shine of the metal roof.

The last few weeks can be summed up with one word: “challenging”. After a real, detailed profit and loss analysis was done and the picture at my partner organization looked very grim.

Coming in at the beginning of the project, I knew margins were very tight, and that costs for transportation and the cost to store 50 kg bags of poultry feed were high. There are many brands of poultry feed to choose from and pricing is extremely competitive. The price of raw materials for poultry feed also seemed to be on the increase.

To increase growth of the business my initial assumption was to grow the capacity of the business by implementing systems, improving processes and training their staff how to use tools readily available to them on computers. Even if profit margins were small, increasing management capacity could allow opening more outlets, improve profit, increase employment, and better support poultry farmers. It seemed to be working. The accounting wasn’t yet clamped down but it seemed that increasing volume of sales would be effective and new locations were being sited for future expansion.

Then we crunched the numbers and it was clear that the underlying assumption of my strategy did not survive the latest price increases and drop in sales.

I began to question, could I have prevented this? What was in my circle of influence, my circle of control? Now, many of these people I’ve worked with are at risk of losing their jobs unless we find a way to bring things out of loss.

To know that the job is to make it all work against all these forces can make staying in and sleeping for the week seem really attractive. Then I think of my colleagues who face the same challenges day-to-day. What’s that we all believe in? “Courageously commit”… right…time to get out of bed.

Expansion and Growth

It was early morning and I’ve just gotten into work. The air was still cool from the night, and the sun’s light had yet to break through the office window. That was the setting when I heard some of the most exciting news yet in my project. “Anthony, we’re confident enough now in our internal systems to expand.”

Just two months ago, I first arrived on location and eager to get going and see this project to its completion. “Expand the business, increase services for farmers, increase job opportunities” was part of the list of objectives on loop in my mind. They were held there by the strong understanding that I already had my return flight booked. That trip home was only five months away.

Even though the project was in the same country, this project was in a new location, a new culture and new language. All of which, I had to learn. I haven’t even started and the trip home was already fast approaching.

During the first month I embedded myself in their business and learned as much as I could about their business model, the market, their customers and their operations. I felt that the biggest challenges to expansion were:

  1. The difficulty for headquarters to track sales, inventory levels, cash transactions, discounts etc, in all the shops.
  2. The large amounts of management’s time required to investigate and sort out the details surrounding transactions at the shop level
  3. Inconsistency of shop managers who may fail to report shortages, market changes & trends to headquarters.

These challenges needed to be eliminated as fast as possible to save enough of my placement to observe and assist in the actual expansions. To do so, I opted to place myself with stock control staff and headquarters instead of dividing my efforts amongst the many shops.

Nowadays, everything is indicating that I’m at the halfway point. Half of my anti-malarial pills are gone, the weather is no longer cold but I know it still isn’t the hot season, Junior Fellow volunteers are already preparing to head back to university and Professional Fellows are arriving to take their place.

The last few meetings put my worries about time at ease. The questions were no longer about the processes, nor were they about what’s working and what’s not. In these last meetings there has been a strong trust in stock controllers and their reporting. They’ve been sharing what’s happening out at the shops, backed by detailed reports.

What got me excited were these two points on the agenda:

  1. Opening new shops
  2. Shop manager promotion & award system

The details of which, I can’t really share here. But, there is an opportunity to move into new locations where we aren’t currently serving farmers and high-performing assistants from other shops will be promoted to manage those new locations. Also, current shop managers have more of a path to follow if they perform. Additional perks, for effective management are now in place for them. The perks and how to get them are a little rough at the moment, but the framework is now in place to shape and refine and support high-performing managers.

Soon the weather will turn hot, and the winds will be coming. EWB staff in Zambia will soon be halved. I’m at the half-way point and excited to see the next phase of the project, the expansion, the promotions and to meet the new hires and the farmers who are served.

Heading home to Kitwe after a long day working at various shops around the Copperbelt

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