Boeing in Hot Water

The United States recently became the last country to ground the Boeing 737 Max aircraft. This decision comes after days of mounting pressure by the public and the government to investigate and evaluate the processes behind the aircraft, and why the two most recent crashes have been eerily similar in their causation.

This incident alone has resulting in Boeing going on the defensive with the public and the media. Their stock has dropped 11% and they have lost nearly $29 billion in market value. Such an economic hit is indicative of a need for sweeping process change within the company, both in terms of plane assembly and testing before they are used by companies. The issue is, many plane orders and contracts are usually old, and often take years to complete. However, many airlines, including Norwegian Airlines, are demanding compensation from Boeing for revenues lost due to the sudden grounding of those planes. The issue is becoming increasingly costly for Boeing, but its own mistakes are farther reaching than that.

Boeing is also a government contractor for the Air force, being that they are a top competitor in the airline industry. They, for example are the only company capable of constructing the 737 Max, but when it comes to military tankers, the story gets a bit more complicated. Following the two aforementioned crashes, the USAF had its confidence in Boeing shaken as their KC-46 tanker (plane used to refuel other jets) was found to be malfunctioning, and inspectors were finding Foreign Object Debris (FOD).

The USAF described the issue as part of an assembly line culture that that left assembly tools to be left in the tanker, after the order was delayed almost two years. Such a simple problem left officials worried as it pointed to a problem with the very mechanical processes the company uses. They knew of development issues that hampered the company over the past two years and correcting these issues could cost Boeing an additional $3 billion.

Customers and clients of the company seems to be angry at their losses due to grounded flights, the government has become wary of the company’s processes and may discontinue working with them, and the public’s perception of flying a Boeing aircraft is tainted by this incident. These perceptions (that this debacle has created) may not go away anytime soon, and the losses companies are taking as a result may not ever be repaid.

Sources:

https://www.govexec.com/contracting/2019/03/boeing-has-severe-situation-after-parts-left-tankers-says-top-usaf-buyer/155547/?oref=channeltopstory

https://www.boston25news.com/news/boeing-takes-hit-to-its-reputation-after-2-plane-crashes/930655921

https://taskandpurpose.com/boeing-grounds-kc-46-tanker-jets

The Power of Emotional Intelligence in Business

Any business, much less any entrepreneur, needs emotional intelligence to survive today’s incredibly competitive and complex business environment. Emotional Intelligence defines itself as the ability to manage one’s own emotions, while at the same time managing the emotions of other people.

Reality reveals that everyone is prone to feeling complex and often confusing emotions, and how we deal with those is critical to the success of our business. Emotional Intelligence, referred to as “EQ”, is a crucial skill that many industry leaders look for today. Someone with high emotional intelligence is able to control their emotions while maintaining their own problem solving and critical thinking skills.

A more in-depth look at this phenomenon brings us to the ideas of Self-Awareness and Self-Management. Self-Awareness involves being aware of your own feelings and being able to identify how your emotions can (and often are) affecting coworkers and the people in your charge.  Often strong emotions can cloud our decision-making process, and the decisions we make in this state can affect everything that happens next, and sometimes can set a bad precedent. Emotionally Intelligent people identify these problems, and use Self-Management to be able to control them and react in ways that do not set the business back. For example, a high EQ individual, when faced with a serious setback, will look for ways to bounce back, even though they may be emotionally distraught and frustrated, rather than act get flustered in their anger and make a poor decision.

An important not to make about this is that Emotional Intelligence does not involve suppressing emotions, in fact it mostly means the opposite. For any high EQ individual, it is crucial to have a variety of emotions, and to be able to identify those emotions but not let them cloud your judgment. However, do not be afraid to show emotion and to allow your most human qualities to be put on display. Emotionally intelligent leaders always show and express their feelings, and this is most important when interacting with coworkers.

Perhaps the most crucial aspect of emotional intelligence involves social awareness and relationship building. Any business conversation, no matter how casual, is important to business development, and as such each should be approached with emotional intelligence. Being honest with people and displaying your own emotions while understanding and empathizing with the emotions of others is a powerful tool in creating and maintaining relationships. This kind of communication can come in handy in even the most basic of conversations, for example, admitting you do not know the answer to something is, in itself, a display of emotional intelligence. Rather than speculating, gossiping, or guessing, just admitting you were either wrong or that you do not know is a step in the correct direction.

In terms of saving or making money, emotional intelligence has demonstrable effects on business. For example, a study by Initiative One Leadership confirmed that employees are 400% less likely to leave a job if they have a manager with high EQ. Moreover, EQ has been shown to help retain more than employees but also clients and customers. Obtaining new clients and hiring new employees can be costly, so emotional intelligence is also incredibly helpful in saving money.

In the competitive small business world, companies with high EQ stand out among the rest as they are pinnacles of achievement. This is no accident as emotional intelligence is useful in advancing your own business practices. Moreover, the more companies and businesses that adapt to this model, the more revenue each makes, thus increasing profits for everyone.

Sources:

https://www.entrepreneur.com/article/327167

https://www.entrepreneur.com/article/318187

International Women’s Day 2019 – Balance for Better

International women’s day is celebrated on March 8th every year. The earliest Women’s Day observance, called “National Woman’s Day,” was held on February 28, 1909, in New York, organized by the Socialist Party of America at the suggestion of Theresa Malkiel. The 1910 International Socialist Woman’s Conference suggested a Women’s Day be held annually. After women gained suffrage in Soviet Russia in 1917, March 8 became a national holiday there. The day was then predominantly celebrated by the socialist movement and communist countries until it was adopted in 1975 by the United Nations. Nowadays, International Women’s Day is a public holiday. In some countries, it is a day of protest; in others, it is a day to celebrate womanhood.

Women have made strides in gaining equalizing rights throughout history, from the right to vote to the current push for equal pay for equal work. Notably, Representative Jeannette Rankin was the first woman to serve in federal office, sworn into the 65th U.S. Congress in 1917. The 19th Amendment, stating “The right of citizens of the United States to vote shall not be denied or abridged by the United States or by any State on account of sex,” was passed in Congress in 1919 and ratified in 1920; this amendment ensured female suffrage.

Fast forward to the year 2018, when 131 women were elected to serve in the U.S. Congress. The 116th Congress is the most diverse in history, and women are represented now more than ever before. Current Speaker of the House, Representative Nancy Pelosi from California’s 12th Congressional District, expressed, “It gives me pride to be the woman Speaker of the House of this Congress, which marks 100 years since women won the right to vote, and as we serve with more than 100 women.” With a total of 535 seats in the U.S. Congress (435 representatives and 100 senators), the number of 131 women in these seats is about 24%. From 1 seat to 131, our nation saw an immense increase in representation for women at the federal level.

Today, we celebrate the accolades of women throughout history along with the women who are making history in the present. This year, the theme for International Women’s Day is: “Think equal, build smart, innovate for change”. The focus of the theme is on innovative ways in which to advance gender equality and the empowerment of women, particularly in the areas of social protection systems, access to public services and sustainable infrastructure.

Happy International Women’s Day!

Sources:

https://blog.untappd.com/post/183299448636/international-womens-day-2019

https://www.history.com/topics/womens-history/the-fight-for-womens-suffrage

https://www.nytimes.com/interactive/2019/01/14/us/politics/women-of-the-116th-congress.html

Advanced Business Practice in Procurement

Procurement management is critical to businesses as it can take up a large percentage of a company’s spend. A long and procrastinated procurement process could cause potential loss to companies. Ways to improve the procurement process can be different to businesses in different areas, however, there are some common practices that are proved to be beneficial for companies that aim to lean their procurement procedures.

To begin with, automation would definitely help to improve procurement efficiency. An automated process can reduce repetitive operational work and eliminate human errors. Barriers that impede companies from automating their procurement include the lack of data integration, poor data quality, and endorsement from the management. In order to atomize procurement processes, technology plays an important role. A digital enterprise resource planning platform is necessary for managers to integrate company data and prioritize tasks. An automated platform can take care of spotting demands and supplies accurately as well as matching invoice spend.

Moreover, supplier engagement cannot be neglected. A good relationship with suppliers can bring businesses to a win-win situation. With more solid connections with suppliers, companies will be able to access to the latest innovation in their products, to improve their forecast and scheduling accuracy, and to lower their transaction costs. Beyond than building up relationships with suppliers to save the budget, it is also important to control companies spend internally. Optimizing inventory is the best practice since the ‘real cost’ of holding inventory is much higher than the cost of ordering items. The rule of thumb for holding costs is between 20 and 30 percent. Thus, organizations would be able to save more if they constantly regulate their inventories.

Lastly, contract management is the main component of procurement. The lack of consistency is contracts, cumbersome processing, and supply chain discontinuity can all bring negative impacts to companies. To better manage contacting processes, companies need to find their own ways. One possible solution is to bring contract management to cloud.  When contracts are created, stored, and maintained in a centralized data repository, organizations can leverage their spend optimally, reduce costs, and mitigate risk.

Source:

https://kissflow.com/procurement-process/best-practices-in-procurement/

5G is Becoming a Reality

5G, the fifth generation of wireless networking technology, is the latest generation of cellular mobile communications. 5G will be able to surpass 4G LTE by targeting on high data rate, reducing latency, reducing cost, and increasing system capacity. As 4G can maximally reach its speed to 16.9 megabits per second (Mbps), 5G is able to deliver in Gigabit speeds (>1Gbps). Latency is the time interval between the stimulation and response. 5G targets on lowering latency from 9 milliseconds to 1 millisecond. The reduced latency will improve users experience to a large extent when they explore the virtual world. Moreover, since 5G has relatively low latency, it makes remote control of heavy machinery possible. 5G isn’t all about speed. It’s also about standard. Today’s networks rely on 200-foot towers to blanket large areas with signal. 5G will add more cell sites to cover more smaller areas, which enables multiple networks and devices to be connected at once. That’s the best part of 5G because it will not only connect people but also everything around. In the future, our cars will communicate with other vehicles about road conditions and helpful information on the road. If a car brakes up quickly in front of you, your car can detect that immediately and then brake as well.  5G will make billions of new connections possible within various industries such as autos, healthcare, manufacturing and distribution. The security of 5G might be a major concern of the public. A lot of emerging technologies are following the fast development of 5G to secure it. For example, Smart homes will require stronger methods of authentication, such as bio-metric identification. Other security installations such as firewall are necessary as well to protect our experience under the high-speed network.

When it comes to when can the 5G network officially meet the public, “it has been nearly a decade in the making, but 5G is finally becoming a reality. Carriers started rolling out fixed 5G to select cities in 2018, and mobile 5G will start making appearances in cities around the U.S. in 2019, with much more comprehensive roll-outs expected in 2020” (Fortune). The incoming 5G era will definitely be a big hype to the world.

Sources:

https://www.sdxcentral.com/5g/definitions/top-5g-security-challenges/

http://fortune.com/2018/10/08/what-is-5g/

Business Automation within the Business World

Business Process Management is a discipline in operation management where people use different methods and tools to measure, improve, optimize and automate complex business processes. It can help companies simplify their business processes, achieve digital transformation, and improve their service delivery. Business process automation (BPA), the most practical technology to optimize working process, can be implemented within various field including accounting, marketing, and supply chain management. BPA benefits one’s organizations from several aspects. Firstly, it frees up companies’ workforce from many repetitive actions that do not need much human intervention. After reducing human workforce, companies would have a chance to reduce the overall operation cost. Secondly, BPA also helps to improve collaboration. By tracking project process, updating different teams, and setting project deliverables, BPA can collaborate employees efficiently. In addition, BPA improves organizations’ working efficiency to a large extent. A well-designed automation process can finish all inputting and updating work by a sitting, which will reduce the time used in discovering and correcting human mistakes. Without the distraction of redundant working processes, employees would have more time to focus on things that matter the most.

A lot of tools in automation have been developed in recent years. PandaDoc is a Google Docs add-on program that helps busy entrepreneurs create, deliver, and sign sales documents. One can easily put their electronic signatures on all types of contracts and proposals and organize all of your documents in one easy-to-manage platform; Tracking expenses is perhaps one of the most time-consuming parts of running a business. The Expensify app enables entrepreneurs to track their expenses and create automatic expense reports. Managers can even scan receipts for expenses and the program will extract information, such as where the purchase was made and put it into the database for you. This means less time calculating and organizing receipts and expenses and more time growing business. Due is an accounting tool designed to help business owners keep track of their finances, especially when tax season rolls around. This program is meant to be a complete accounting solution and is filled with features that take care of automating virtually every part of the business’s financial record.

Business process automation is definitely a forward-thinking strategy that should be applied to our business world. With the help of business automation tools, business owners would be able to save time and cost within every single aspect of their businesses.

Sources:

https://www.inc.com/drew-hendricks/10-tools-that-entrepreneurs-can-use-to-automate-their-business.html

http://www.bitmascot.com/business-process-automation-benefits/

Businesses Brace for Brexit

In two months, Great Britain is scheduled to depart from the European Union, and no deal has been solidified to ensure a soft exit where trade deals can remain intact, and British businesses do not get harmed in the process. Some consider this exit better than remaining in the European Union at all, but businesses are acting more skeptical of the procedure.

On the surface, employment in Britain is higher than it has ever been, and so far, it has been hard to tell the outcome of Brexit. However, the way businesses are behaving suggests they may be more worried than initially presumed.  Banks such as Morgan Stanley are creating jobs in other European countries as a possible contingency, we still are unsure if these jobs come at the expense of British jobs. while this movement is smaller than initially predicted, the concept is still worrisome.

In terms of jobs on real terms, job growth has continued throughout the Brexit negotiation process, and it has been a boon to public sector jobs and the like. The British government has awarded £95 million in contracts and hired 20,000 new civil servants. Private sector jobs have also increased.

However, business investment has remained stagnant, and the uncertainty of the deal is only contributing to this stagnation. Businesses are holding onto existing workers and some have begun stockpiling resources in the event that a hard Brexit occurs in which tariffs could dramatically increase. In addition, companies such as Sony are moving their HQ to the Netherlands to avoid possible customs problems, and to avert future trade problems that could arise because of a poor trade deal.

A “no deal” Brexit could have huge implications for the country in an even more macroeconomic scale. This hard exit from a multinational trade agreement that could affect current trade deals with 70 different countries including South Korea, Mexico, and Canada to name a few. The key point here is that this kind of abrupt exit from the EU could affect trade deals with more than just EU member states, because some countries give the EU preferential treatment.

The impact of Brexit could ripple throughout the world in terms of trade. Increasing trade prices in Britain can cause businesses to relocate, and a poor relationship with the European Union can cause strenuous future politics between the two entities.

Sources:

https://www.bbc.com/news/business-47130189?

intlink_from_url=https://www.bbc.com/news/topics/cv0kerlpjwvt/economic-effects-of-brexit&link_location=live-reporting-story

https://www.bbc.com/news/business-47063405

Trade Talks with China Set to Resume

On March 1st of this year, United States’ tariffs on Chinese goods are set to increase from 10% to 25%, marking an important escalation in the current Trade War between the two countries. This week Mr. Trump and Chinese officials are set to meet to discuss ways of possibly avoiding this escalation. Last year, the United States slapped an estimated total of $250 billion of tariffs on Chinese imports, while the Chinese responded with $110 of tariffs on United States goods. These tariffs have primarily provided the agricultural sector of the Midwest with the heaviest economic burden, and China has displayed a slower economy since the tariffs took effect.

However, critics of the Trade War claim that an increase in tariffs can escalate the trade war and put farmers out of business. Perhaps reaching a deal with China could help Trump’s political standing, after emerging from a 35-day shutdown with a low approval rating. His advisors seem to be divided on the issue, therefore it is almost entirely up to Trump himself which way he wants to go.

These tariffs have had, and will further have, major implications for American Businesses. At the most basic level, all of the tariffed goods will become more expensive to compensate for the newly imposed duties. As these goods become more expensive to Chinese consumers, supporters of the tariffs argue, the producers of these goods will become more profitable in the end. Indeed, American consumers will also be faced with the predicament of more expensive goods on the market, hitting their wallets pretty hard. When a product becomes more expensive, consumers have to pay more in literal terms, but also some forgo purchasing the product they otherwise would have (without an increase in price), therefore both parties are affected. Clearly, these tariffs are not just affecting the agricultural sector, but the retail sector as well. The broader economic impact of these tariffs remains to be seen, but certainly the business environment will not be the same.

Sources:

https://www.bbc.com/news/business-47047289

https://www.businessinsider.com/trump-trade-war-tariffs-china-effect-2018-10

All About The DAWIA

The Defense Acquisition Workforce Improvement Act (DAWIA) was enacted in 1990, following an internal review of the Department of Defense, commissioned by President Reagan, after the review indicated a great deal of mismanagement in the Department of Defense. Thus, the purpose of the bill was to ensure that future employees of the DoD were well equipped with the knowledge and the management skills to tackle future problems effectively. The requirements and details within the certification requirements are tedious and time consuming, yet they provide an important purpose. The Department of Defense is constantly under the microscope of the public and the press, and therefore mismanagement can soon become a public relations nightmare. Therefore, the difficulty of obtaining this certification is imperative to prevent these kinds of situations.

The benefits of getting DAWIA certified essentially are the fact that people with the certification are able to work in new fields and do more work in higher acquisition positions within the DoD. An additional benefit for people is that by taking the courses required for the certification, it is also possible to receive college credit for those courses and the time spent working on them. Essentially, obtaining this certification opens the door to new opportunities in the career field, and provides people with further knowledge and skills needed in public management.

Sources:

https://www.dau.mil/faq/Pages/Certifications-Programs.aspx

https://www.dau.mil/training/career-development/logistics/blog/DAWIA-Certification-Requirements

The Legacy of Dr. Martin Luther King Jr.

On January 21st, America will be celebrating perhaps its greatest social hero, Dr. Martin Luther King Jr. In that interim since his untimely death, we as a nation have achieved many of his goals, yet his work remains unfinished. On the holiday commemorating the achievements of this great leader, we should also remember all of his timeless teachings, and consider how we can apply these lessons to modern society.

Dr. King’s most profound position regarding social change was nonviolence. He asserted that we must remain peaceful in our protest. Peaceful protest was King’s demonstration that he shall not bow to the ways of his oppressors, that he would display love and respect for those around him, and if his protests meant getting into trouble, it was worth it. Following the protests of Charlottesville, Virginia in 2017, it seems that nowadays protests are becoming less and less nonviolent. We must be mindful that violence can hurt our cause, and we must raise ourselves above those who act unjustly towards us.

However, aside from these social stances, Dr. King’s other opinions seem to be often overlooked by society. The environmental movement we see today used Dr. Kings lines of argument when their campaign to address climate change took off shortly after his death. Dr. King often spoke of how all life is interconnected, and we therefore should be taking care of all of it. In addition, he also discussed economic transformation. He distrusted the American economic system, and, towards the end of his life, began discussing ways to address economic disparity. He argued for universal healthcare and education, and more public spaces and the nationalization of certain industries. He witnessed the segregation of his fellow protesters in the economy, and saw these as ways to address it.

Whether you agree with all of his points, or only a select few, Martin Luther King Jr. was perhaps the most influential figure of the twentieth century, and his speeches touched the hearts of millions. His presence the American story is so pivotal that we have a national holiday to remember his lessons. So, staying true to his famous “I Have a Dream” speech, we should all be asking ourselves if his dream came true. Furthermore, we should be thinking about how each of us plays a part in making that dream a reality, and what we can do to play that part more effectively.

Sources:

https://www.cnn.com/2018/01/12/us/mlk-relevance-today

https://www.nytimes.com/2017/01/12/learning/lesson-plans/teaching-martin-luther-king-jr-day-new-york-times