Lessons from the Mennonites



By Jim Thompson

For over half a decade, I have had the priviledge of visiting a Mennonite community in a northern state. I try to visit them in the spring and fall; this year I missed the spring.

One thing that fascinates me is their approach to capital allocation.

In the fall, after the harvest is done, they have a series of meetings. All in the community present their capital needs for the coming year--a new barn, an addition to their house, a new well and so forth.

Just like in business, there are always more requests than there is funding available. The elders weigh the requests and appropriate as they can. They turn down those who are not quite up to snuff in their operations, that is farming or whatever they do. They give to those who received no funding guidance as to what they might do differently in the next year to be considered favorably a year hence.

What fascinates me, though, is the thinking that goes into these plans all year. There are careful arguments, not written, just thought out, months or years in advance. People plan ahead.

If you are in an engineering department in a mill, perhaps you can help your operationing departments plan ahead in the same way. No doubt your company has high level capital allocation plans, maybe even several years out.

What you can do is help your operating departments scoop up the crumbs that fall off the table. And you can do this early and often. I recommend you have a minor capital allocation discussion with your operating departments every month. This can be an informal discussion, but one that helps you and your operations folks formulate ideas and ruminate over them way in advance--one year or two.

You are competing with others in your company, just like the Mennonites compete with each other. In both cases, the prepared win.

What is your opinion? Drop me a line at jim.thompson@ipulpmedia.com. I would like to hear from you.

And further by the way, I come to mills and talk to various departments about many subjects. To arrange my custom visit to your mill, just email me at jim.thompson@ipulpmedia.com or call me at 678-206-6010.