Jim's Articles

The secret to innovation is to carve out the risk of innovation and allocate it to investors who have the attitude to handle it...

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Time and again, I have seen people conduct themselves in an exemplary manner throughout their careers, only to find themselves departing their places of employment in an untimely fashion. Once I went to work in a paper mill where this had happened en masse just before I arrived. The place was a mess. Whole departments had been eliminated and it looked as if the people had just left for a fire drill...

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In the vein of what we discussed last week, let's continue. An area where I think many fall down, especially if they are not used to being in this particular venue, is customer relations. When in doubt, defer to your customer...

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Quality comes in many shapes and forms. I want to talk about some of them this week...

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Quality must not be an attribute that employees think can be turned on or off, dependent on time, place and resources. Apply the same quality everywhere all the time. Your business will thank you for it.

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Once in my career, a boss told me we were building too much quality into our products. He said we should provide only the quality the customer expects. That might be true if "extra" quality costs extra expense which you cannot recover. There is another way to look at this...

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*All else being equal and if you always behave in a legal, moral and ethical manner and you understand that the invoice printer is the most important machine in any enterprise. These are a given and you should already know them by now, if you have been following me for any length of time. After forty-six and one half years of observing modern business life, I think it does indeed boil down to two things, at least in large corporations...

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A recent study, done by Australian Bond University and the University of San Diego, of US CEOs in the supply chain industry found that 21 percent had "clinically significant levels of psychopathic traits" (psychopath: a person suffering from chronic mental disorder with abnormal or violent social behavior). Based on my 46 years in industry, I think they have nailed it, perhaps even gotten the number a bit low. So, this column is for the other 79% of you...

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Some, not all, young people in the industry often want to know what it takes to get into management. The answer is simple to state, a bit more difficult to execute. It is this: perform beyond expectations and become known for it. However, before we go further into this (likely next week), let's discuss some matters that you can use to test yourself to determine if you have the disposition to be a manager...

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Every facility in our industry has two types of assets--hard and soft. By hard I mean buildings, machinery, process control systems and so forth. By soft I mean people. When a facility produces products for a vibrant market (defined as steady or growing, not declining), which are more important to its success--the hard assets or the soft assets?

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As Corruption Month 2016 comes to a close, Pulp Rats Vel and Hae relate their experiences to Great Grandmother and the rest of the council...

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"I did not relate this story to the council, but I wanted to share it with you readers of Mr. Jim's column. It happened in a place where I lived and it is a bit complicated, for I do not understand all the things the Big Things do. Apparently, from the best I can gather, the Big Things make paper products for something called money. They hand other Big Things products they make and these Big Things give them this money in return. Why, I don't understand, but that is the way things seem to work..." Fos the Pulp Rat continues his tale.

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How many times have you seen a less than honest performer running out the back door as the investigators are coming in the front door? It happens quite often. Fos the Pulp Rat continues his tale...

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When the rats know we have to follow the rules, there is no excuse for us humans, is there?

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What is the impact of your mill on the world as a whole? The truth is we don't know--no one knows because there are simply bits of science yet to be discovered. It is likely, however, that the impact is not as great as environmental NGOs say it is and not as little as your CEO may concede...

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Today the number of regulations with which a business or even a homeowner must comply has reached an incalculable quantity. It is as if one were reading the Book of Leviticus and attempting to understand how one properly prepares for the Jewish Sabbath--times ten million. The regulators, bureaucrats and their contractors see it to be their sacred duty to write just one more regulation. This leaves us with an impossible task--how to comply with all the regulations and the new ones constantly being foisted upon us...

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Last week I gave you my definition of regulations: "Regulations are imposed by those who have artificially gained power on those who own assets." I would like to spend this column discussing those who have artificially gained power. There are three groups that come to mind when I think of those who have artificially gained power. They are environmental NGOs, lawyers and governments. Let's take these one at a time...

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This is environment/regulations month here at Paperitalo Publications. Issues surrounding the environment and regulations necessarily, unless you subscribe to conspiracy theories, involve the mitigation of risks. I'll tell a story on myself to set the stage....

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As we wrap up procurement month, I want to talk to you about performance-based contracts. These are very different from most other contracts. They can be complicated to write, but if awarded to a competent bidder, can bring guaranteed results...

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We talked last week about what is not in a contract and the premise that in the eyes of the law in most places, if money has exchanged hands you have a contract. This week I wanted to take a higher level look at what one might want to include in a contract. And, we'll further simplify it by focusing on a contract that is of the "time and material" variety...

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It is true that if you want something in a contract, you must put it in the contract. It is also true that there are things not in a contract that are implied. A basic principle in the laws in the United States at least is this: if you accept money to do a task, there is a contract. It may be a verbal contract, but it is indeed a contract. Unfortunately, such contracts, if they involve a substantial claim by one party against another, will be sorted out the expensive way--in court. Here's an example...

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It is procurement month at Paperitalo Publications. The mill-related troublesome issues that can be attributed to the purchasing department are myriad and legion. This is not to say that there are not great purchasing agents, but this is a focal point of interaction with outsiders. It can lead to grand levels of loss through misunderstanding, incompetence and fraud. I want to discuss two issues today, two issues that are critical even before one arrives at the content of purchasing documents...

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