Chain of Command and Open-Door Policy: How they work together in Corporate Culture

Chain of Command is a term I learned long ago from my Air Force days.  They teach this in the military early on and stress the importance of it, especially of it's use during periods of War.  Essentially, the chain of command is the line of authority and responsibility along which orders are passed within military ranks and between different units.  Orders are passed down the chain of command, from higher ranked military personnel to lower ranked military personnel until those orders are received by those who implement them.  Similarly, requests move up the chain of command until they reach the individual who has the authority to make decisions regarding a particular type of request. This being said, even a chain of command is practiced in Corporate Culture.  As an employee, no matter where I'm employed, I respect and expect those with proper authority to take charge and make decisions with confidence based on the position they hold while simultaneously taking directions and orders that are passed down to me.

Now that we have established a chain of command, lets examine open-door policy.  Many companies I've worked for like to say they have one, and lets be honest, in their minds they think it's a great sell and is popular. But is it all just a sham?  Speaking from experience, I think it's simply lip service, I mean lets be real!  This means that I can speak to the company CEO at any time and my voice will be heard? I can literally speak to my boss about my opinions or suggestions and be heard and be taken seriously?  From my experience, open-door policy is a program implemented but is very limited in practice to mean much of anything.  Some of my managers doors HAVE been open, just so long as I'm respectful, and by respectful I mean "respectful" with an opinion or suggestion that fits in with their OWN policies and rules. 

Lets discuss further, what is a true open-door policy?  What does it really mean to me? Does it mean I can go into the office of my boss and tell him or her your company sucks?  Does it mean I can say absolutely anything without the fear of being reprimanded for what I say? And what if i go to my boss's boss and tell him or her that my boss sucks?  Let's examine further, what about the other way around?  What if my boss's boss comes in and tell me that my boss sucks or the company sucks?  Should him or her even be speaking to me like this?  Shouldn't they be going to their boss directly?

I know what an open-door policy means to me, and when our company began instituting it I had an epiphany. It truly does mean different things to different people, although I'm not quite sure why it has to be so complicated.  But for all intense and purposes lets take a look at the definition. Feel free to google it yourself, but I'll give you the short version right here straight from Wikipedia:

1. An open-door policy is a communication policy in which a president or supervisor leaves their door "open" in order to encourage openness and transparency with the employees of that company. 
2. As the term implies, employees are encouraged to stop by whenever they feel the need to meet and ask questions, discuss suggestions, and address problems or concerns with management. 
3. An open door policy is typically intended to foster an environment of collaboration, high performance, and mutual respect between upper management and employees.
4. An open door policy means, literally, that every manager's door is open to every employee.  The purpose of an open-door policy is to encourage open communication, feedback, and discussion about any matter of importance to an employee. 

Although I do like the definition that Wikipedia gives, it fails to mention one thing....does an open-door policy mean that the boss or CEO could come to his/her employees of the company and also openly address problems or concerns or ask about problems or concerns?  This part isn't mentioned at all, should we assume it isn't part of the definition?  Or is it that the definition assumes no permission is needed by the boss/CEO to ask anyone anything?

Wikipedia has it right, that the purpose of a "true" open-door policy is to encourage open communication, feedback and discussion about any matter of importance to any employee no matter what position they hold within a company. All people who work in a company are considered employees.  The definition does therefore include upper management.  If it didn't, the definition would read, "As the term implies, employees, with the exception of management employee,...".  But they never excluded management employees, so, taking the definition at it's literal meaning, the purpose of the open-door policy would extend to the CEO or any manager being free to speak to anyone in the company.  One would also assume, if you go by strictly what the definition reads, that any communication from any employee in an open-door policy should happen without fear of being reprimanded or retaliated against.

I've discovered since the policy went into effect, that some employees would like to say something to the CEO, but they don't dare upset their direct boss who happens to report directly/indirectly to the CEO. They fear retaliation for doing so.  Much worse, if the CEO calls them or ask them to come to his office, they exhibit being visibly uncomfortable.

An open-door policy is only an open door policy if it is intended to meet the standard of having open lines of communication, feedback and discussion of any matter of importance including matters of disagreement.  Management can easily mis-interpret their employees speaking to their boss's boss as a threat to their authority, and if the manager feels it is a threat, then they don't truly have an open-door policy.  A manager who feels threatened and is upset with an employee speaking to the boss's boss, is a form of reprisal no matter how you look at it, even if it isn't explicit.

It's also not an open-door policy if the boss's boss undermines the authority of his subordinates in any way.  So, lets examine what it means to undermine the authority of a manager with a subordinate employee.

Does it undermine authority if the boss's boss acknowledges he/she is not a fan of something their boss is doing, or that the boss's boss is not in agreement with a policy or action of their boss? Some would argue that it indeed undermines someone if the big boss has an opinion conflicting with the opinion to whom the employee reports too. Would you agree this creates some sort of a dilemma?  My answer would be no, there should be no dilemma. You can't have any person's decisions, opinions, or thoughts limited by the position they hold within a company, and at the same time, honestly maintain that your company has an open-door policy. The undermining of authority does not occur when the boss's boss has an open and free exchange that expresses his/her thoughts which don't agree with the boss of the subordinate.  Undermining authority, in my opinion, can only begin when he allows his/her authority to be higher or greater than the authority of the person the employee reports to. An opinion is just that, an opinion and not an action!  An opinion is also not a direct order or a command to follow.  It is just an opinion to be shared rightfully in a free and open exchange of ideas. After all, open and free exchange of ideas is what an open-door policy is all about. If everyone who is part of a conversation can't speak freely, then you really have a one sided and disingenuous conversation.  That is in turn, not a true open-door policy.

To have a true open-door policy, the corporate culture has to be healthy enough to foster the healthy environment where people can agreeably disagree.  A company that thrives to have an open-door policy does not seek to quite dissent or disagreement. Doing so would put them at risk for increased intolerance towards others ideas resulting in less productivity and a non conducive work environment. For it to actually work, the corporate culture must be a culture where the company demands employees have respect for opinions that aren't in line with their own. Respect means that anyone is free to have a different opinion, and free to voice that opinion, regardless of the position they have in the company and to whom they share the opinion or opposing views with.  A true open-door policy can also only work if the chain of command is strictly enforced by management.  If an employee does not report directly to the manager, then the views, opinions, agreements or lack of agreement should not be interpreted as a directive. If by chance any employee tries to surpass the chain of command by using the open-door policy, it is incumbent on all parties to immediately call it out and make the correction.

In summary, having an open-door policy is an amazing thing but only if it's a true open-door policy.  Think of the Supreme Court of the United States. The nine justices are made up of people who have totally different opinions and view points, they are constantly agreeing to disagree as part of their everyday activities. However, this healthy environment is essential for them to operate and find common ground to work together towards solutions for the greater good. As a company, having an open-door policy demonstrates your accessibility, encourages open lines of communication and ideas, allows fast access to important or just happening situations and creates an overall closer working relationship with it's employees. My door is always open, how about yours? :)


Written by: Laura Skrobanek

Trump's four-point in China- US Trade War

Below is only my personal viewpoint.  Basically Trump has 4 key points throughout his talks

1. The United States believes that a bilateral trade surplus is a good thing and bilateral trade deficit is a bad thing
2. The long term imbalance between US-China trade is caused by subsidies from the Chinese government or other unfair trade polices.
3. The solution to the trade imbalance is to impose high tariff on products exports from China.
4. China should remain in the low-end of global trade value chain, and the United States should stay in the mid to high level of the global trade value chain

OK, so is it true?

1st, according to the statistics from China Custom Board of Protection, trade deficit with China is 275.8 billion. It is a lot. And it is increasing year after year since China joined WTO!  BUT IT IS A GOOD THING TO US ACTUALLY!  Trade deficit was caused by lots of goods exported from China. As exchange, China receives payment in US dollar for the goods sold to the US and US Dollars will be inevitably invested abroad. China takes most of its foreign exchange reserves to buy US treasure bonds. From this perspective, China is lending money to US and US is using Chinese funds to develop its own economy. Therefore, US has achieved economic growth while enjoying cheap products from China.

2nd, Trump think government subsidies is unfair. Question, if you let one healthy man compete with a disabled man in marathon running, is that fair? In terms of trade policy, China imposes 25% tariff on cars originating from US while US imposes 2.5% tariff on Chinese cars. In fact, this tariff policy is announced before China joined WTO in 2001 and it is approved by US. Not like what Trump is claiming, this tariff policy is executed after China joined WTO and manipulated WTO. According to the regulations, developing countries can set higher tar tariffs in a reasonable act to protect themselves. Just like what I emphasize on fair or unfair justice, how can you set up exactly the same rules to two different levels of individuals? If you ask another third world country to impose free duty to US goods, maybe it will very soon become US colony in an economy aspect. In addition, car is just a particular extreme example that all media is taking advantages of. On average, the difference in tariff between two country is about 6% . Gradually, when China transforms itself from export- orientated country to import- orientated country, it will lower the duty rate little by little but it indeed takes some time.

3rd, Trump think it is necessary to increase the high tariff on Chinese goods. This is very stupid idea. No one will win eventually as long as the war continues. We as consumers, the bottom of the bottom, will eat up all the cost of this stupid trade war. And nobody will come to increase our salary.

4th, and this is most controversial point of view. It reflects not only Trump , but many western economists viewpoint. 100 years ago, US was at the low -end of value chain compared to European country and then slowly climbed to the high-end trough technology revolution and political structural change. Today, history is repeating itself. China is trying to do same thing, of course, survival of the fittest.  If China becomes second largest market in the world with huge importing needs, why would everyone worry about it but instead feel happy? The expansion of market will reduce the fixed cost of each export product, so the manufactures have the incentive to produce more, thus achieving the economic scales, namely 1+1> 2. It is going to benefit everyone. China and US can both benefit from economies of scale brought by market expansion. Let's hope trade war ends soon and two countries develop together peacefully.

Written by: Coco Yang, LCH, CCS

HS Code – What is a harmonized code and the importance of classifying

HS Code for short, is a common standard worldwide for describing the type of commodity that is shipped and stands for The Harmonized Commodity Description and Coding System. Every item or commodity that enters or crosses most international borders has to be declared to customs using this code. In essence, the HS code helps to standardize and identify cargo in the same manner whether it is in Puerto Rico, Canada or Switzerland. 

The Kyoto Convention, The International Convention on the Simplification and Harmonization of Customs procedures, came into effect in 1974 and has revised and updated the code to ensure that it meets the current demands of governments and international trade.For example, it details the application of simple yet efficient procedures and contains new and obligatory rules for its application which all Contracting Parties must accept.

Background & Definition:

• Description of the commodity type used as a standard Worldwide
• Almost 100% of the merchandise in international trade is classified in terms of the HS code
• Made up of over 5,000 commodity groups covered in 99 Chapters containing 21 Sections
• Identifiable by a six-digit code
• is arranged in a legal and logical structure
• is supported by well-defined rules that allows for uniform classification all over the world
  

How is the HS Code Used?

The HS Code System is used by many economies around the world as a basis for their customs tariffs and collects data for international trade statistics.

Through its contribution to the harmonization of customs and trade procedures, the HS code reduces the costs related to international trade. Essentially there is no “translator” required for people to read and understand this code.

Comprised of 99 Chapters covering 21 Sections, and for a better understanding of what the HS code means, we can take 8207.19.6030 as an example:

• 8 relates to Chapter 8 of Section VII– Interchangeable tools for hand tools, whether or not power operated, or for machine-tools (for example, for pressing, stamping, punching, tapping, threading, drilling, boring, broaching, milling, turning or screw driving), including dies for drawing or extruding metal, and rock drilling or earth boring tools; base metal parts thereof:
• 07 relates to Rock drilling or earth boring tools, and parts thereof
• 19 relates to other or, including parts of
• 60.30 relates to percussion rock drill bits

Thus 8207.19.6030 = percussion rock drill bits

This code is used by various international organizations, governments for the purposes of taxes, trade policies, monitoring, the setting of freight and transport tariffs, gathering of transport and trade statistics and economic research and analysis among other uses.

Challenges in Classification for Companies

The HS Code is incorporated into many of the customs clearance systems in every country.  The wide acceptance and versatility of its use has become a universal and economic language and code for goods which deems it indispensable for international trade.

Interpretation of the HS Codes can be very tricky as it varies between countries and customs authorities.  Improper usage could also result in an item being improperly classified and an improper tariff being applied to your imports.

Improperly classifying with an incorrect HS code as an importer may be considered as non-compliance, misleading or misdeclaration by customs and ultimately could result in fines/penalties.  Using the correct HS code to classify goods is of utmost importance

If ever in doubt, it would always be prudent to consult with your customs broker at American Lamprecht Transport directly for advice on the correct HS codes to use.

Due Diligence in Mergers and Acquisitions

     Up until about three years ago, I had no idea what Mergers and Acquisitions was. My only reference to M&A was a movie scene in which Richard Gere in "Pretty Woman" told Julia Roberts he bought companies that were in financial difficulty and sold the pieces of them. Thinking about it now, I laugh at what very little I knew back then compared to my knowledge today. Don't get me wrong, I still have so much more to learn, but I'm for sure a lot more confident in speaking about the subject.     
    So why do business owners/companies sell or entertain the "idea" of selling? Honestly there are so many reasons from retirement, to wanting an increased growth in market share, to owners looking to start a different business venture. Very often, Mergers and Acquisitions come about because companies are in the mature phase of their life cycle. Even with being experts in their field, there’s no way for them to grow substantially once the business has reached that mature phase.   
     What does this all mean to me and how am I involved in the purchases? The main part of my job in the M&A aspect is what is called "due diligence". Due diligence is a process that begins at the time a business is offered for sale or a buyer decides to acquire a new business. In the simplest of terms, my job is to go in and verify that all information given is true. Due diligence is the most rewarding part of the job for me.


    Now here's where I get to all the fun stuff about why I LOVE Mergers and Acquisitions during the Due Diligence process and what it means to me:

1. For every company that we've purchased, I've had the pleasure of getting to know the business owner and their wonderful employees by spending several weeks at a time on site. I sit with every employee and the owners and study what they do and their processes of what has made them successful. I also get to hear how they've persevered during periods of little growth or during big changes that have happened in our Industry. Most importantly I'm building relationships and creating memories that will last me a lifetime.



2. I'm sure you've heard that saying "You never get a second chance to make a first impression". I never EVER lose sight of the fact that I am the first person that employees/owners interact with from our company. I have seen first-hand the anxieties and fear of employees and the owners when a company is in the process of changing hands. I can also easily place myself in their shoes because I myself have been involved in one during previous employment. Life alone can be hectic, which is why putting the sellers and their employees minds at ease is so important to me. By letting them know that we aren't here to make any big changes, I can only hope I'm leaving a good impression or at the very least providing some comfort during a time of transition.




3. Lastly, the "Due Diligence" process is most likely the first time employees are finding out about a possible change in hands of the business. This is where I get to outline to them who we are and what we do and the following is what I like them to know:

"If I could pick only two words that best describes American Lamprecht Transport and who we are, I would say Family-Owned. At American Lamprecht Transport we are steadfastly committed to providing great services to our clients because, to us, our business is about more than just business. It's about family and you, the employees! We hope that if all goes as planned we get to welcome you as well to the Lamprecht Family." 

Written By: Laura Skrobanek

The Alaskan Captain: The Last Frontier

  There aren't too many times in my life that I have felt compelled to write about an experience. To be quite honest, I'm not the best storyteller, and putting my memories to paper is not easy.  However I have found that as I have become older, the more open I am to trying new things. I'd like to think that  being vulnerable and open in a world that is so closed off is a good quality to possess. It feels good for my soul anyway. In any event, here's to hoping you will read and enjoy this story of the "Alaskan Captain" with whom I recently had the pleasure to meet, as much as I enjoyed being apart of it......

     It all started on June 15th when one of my very dear clients called me up to chat before I go to work like we normally do.  This phone call was little bit different though. Before hanging up he happened to mention a special shipment he needed my help with. My client, James, asked me if we would have any interest in arranging the shipping of a 40' Catamaran vessel by air from Anchorage, and providing for escorting of the vessel to make sure that it was handled with care. Before even knowing all the details, I immediately agreed and sent him our pricing to which he approved.  As we got closer to the shipment and were able to speak more about it, James informed me that the 40' Catamaran was very time sensitive.  Apparently the captain of this vessel was prepping to sail it around the world for the second time with a start date of July 4th.  That date specifically was set in stone as the water was just right and the ice was newly melted, so that he could start his journey.  I was nervous we wouldn't make it on time, but nevertheless I kept the faith. James sent Capt. Yvan my contact details and informed me he would be in touch.

   I arrived into Anchorage on June 20th and previous arrangements had been made for me to meet the customer at his hotel by 6:00 pm that evening. Sure enough an email came in close to 6:00 from the Captain Yvan and off I went by Lyft services (on a crazy side note I also found out that Uber/Lyft were just approved to operate in Anchorage only just 2 days prior to my arrival!!!).  The driver pulled up outside of what appeared to be a hostel and said "are you sure this is the place? I can wait here if you like but this isn't a hotel ma'am". I was nervous of course, a Hostel?  This captain was spending a pretty penny to ship a vessel he planned to sail around the world but was staying in a Hostel?  No way is this the place I said to myself.....I checked my email again to look at the address and confirmed that I was indeed at the correct address.

 
 okay so where was I?  oh yes, the Hostel.... I cautiously went up to the door and was greeted by the owner and I informed him "I'm here to see Capt. Yvan, we have a meeting scheduled"?  The caretaker looked puzzled and said "Nobody is here by that name, let me check the log".  He cordially invited me in and as he was checking I looked around to soak in my surroundings. The home was quite large with several community areas including the kitchen and a sitting area close by the front desk where a large table was placed.  I quietly sat down to wait for his findings and to my surprise the caretaker said "This is very strange, nobody is here by that name, are you sure you are in the right place?" I checked my email again and confirmed that this was the address, he went on to explain to me that his hostel had been opened for over 20 years housing people from all around the world and maybe there was a mix up somehow in his log.  About that same time, two gentlemen were walking up the stairs to come in.  Surely these two HAD to be Capt. Yvan and his traveling companion?  Indeed it was them, I was able to finally breathe a sigh of relief!

     Both gentleman checked in and proceeded to sit down at the same large table while I simultaneously introduced myself, "Hi, I'm Laura and it's so very nice to meet you both.  Tomorrow we start the big day of unloading your Catamaran and securing it for the plane ride, do you have any questions"?  They both looked at each other and spoke French and then Capt. Yvan looked at me and asked "We would like to have a camera crew filming the operation if that is okay"?  Thankfully I was prepared for this question as my customer already mentioned their request and had previously denied to them the same that: absolutely NO CAMERAS allowed in the warehouse due to safety concerns.  I looked at them both and just said, "Lets see what the air carrier says in the morning, maybe I can speak with them but typically this is not allowed.  However seeing how this is a special circumstance maybe they can make an exception but no promises."  This seemed to appease the Capt. tremendously, he smiled and thanked me for coming to help him and that he would meet me in the morning.  We shook hands and out the door I went to catch another Lyft back to my hotel, day one was a success!!

      As I was waiting for my ride, I contemplated again the Hostel and how I really was foreign to these kind of accommodations.  Having never taking the opportunity to travel abroad, Hostels are more common in places that I've never been too and this one really seemed quaint and kind of neat.  I glanced back at the place to relish the setting and it's beauty and captured the photo below:



I woke up bright and early the 2nd day and arrived at the air carriers facility around 7:00 am to meet Capt. Yvan and his partners.  We were welcomed at the door by Bob who had in his hand reflective vests and names tags for each of us; he then led us to the conference room for a safety briefing. Before entering the conference room I managed to pull Bob aside outside the door and whispered "my customer is really wanting to video the unloading/loading of the Catamaran, is this possible?  If not I totally understand".  Bob advised he would speak to the manager and see what he could do but he wasn't going to hold his breath on this approval.  I could only shake me head with understanding and in agreement but on the inside I was hoping they would cave and make an exception. (fingers crossed)
     We all sat down and made the introductions and to my surprise the Captain asked if he could use the TV in the conference to show us a video of his previous "around the world" sailing.  Of course everyone agreed and we sat eagerly for him to start (here is the link of the YouTube video):  https://www.youtube.com/watch?v=3AYNv2IR_5A  The whole time I sat in wonder of the accomplishments of this amazing human being sitting in front of me, never in a million years had I met anyone so passionate about sailing solo through rough waters. Coincidentally while this thought crossed my mind, The Capt. then mentions to all of us that his father taught him the ways of the sea when he was a little boy and how he loves to navigate by the stars.  When the video was finished playing he began to talk about this journey being videoed as well and that the documentation would be submitted to the "National Discovery" channel. At this point how can anyone say "no" to videoing on the tarmac? The air carriers reluctantly approved that his camera crew could be in the warehouse for filming only and to please be careful.  The Capt. and his crew were ecstatic to say the very least and off we went inside the warehouse to begin the unloading.
     There were seven of us total , Capt Yvan and his crew along with myself counted for 4 and the rest were the air carrier staff.  No time was wasted and immediately everyone started unloading the vessel to stage for the aircraft loading.  I stood back in awe as I watched these men work as a team.

I almost forgot to finish the story, one year later and I'm back at it.  See, told you I wasn't good at putting my memories to paper. Sometimes it takes a bright light or a spark from someone to push me forward, now let's hope I can remember the rest of the details.😊

    After the crew unload the vessel and positioned it for loading aboard the aircraft, I noticed a box of what looked to be oil, propane and some other hazardous items.  To say that the goods were loose and not packaged properly for transport was an understatement.  Unfortunately this was not caught at origin and the Captain never mentioned the shipping of hazardous items. Luckily nothing happened while the goods were being shipped by sea in the container, but the magnitude of large quantities blew my mind. In my disbelief I spoke with the warehouse staff and they mentioned an offsite facility that could manage it.  Only one small problem, time was not on our side.

    I rushed quickly to load all the hazardous cargo into my rental and drove it down to TGI Freight where I met with the owner Todd Clark.  He let me know it would be a huge task to identify/label and package all the goods properly so that they can be loaded on the aircraft. Since he was also aware of the time constraints he mentioned would have some of his workers stay late. One a side note, sometimes in the transportation and logistics industry it's common for things like this to pop up unexpectedly. Finding a good company to handle hazardous items is a rarity and I was so very thankful for Todd and his teams willingness to work with us.

     As day two was coming to an end, I remained hopeful and in good spirits that we could get the Captain's beautiful vessel loaded along with all his hazardous necessities needed for a safe journey around the globe. I assured the Captain by phone not to worry.......he would have his propane to cook his fresh catch during his sail along with his lithium camera batteries he needed to record his journey.

 When the last day came to get the Captain on his way, I couldn't wait to finish up so I could explore Alaska. I mean what are the chances I will ever be able to experience the beauty of the "Last Frontier" in my life ever again? And WOW, would you just look at that weather in the middle of June?  Being born and raised in the South I couldn't help but bask in the chilly air before I set off to get this Catamaran loaded up.


I arrived at the warehouse terminal by 6:30 am to find as promised all the hazardous items packed up and ready to go on the dock. We were finally ready to load up!!  Since the Captain insisted again his camera crew be allowed on the tarmac and being it was my responsibility to ensure their safety; I escorted them to watch the final loading of the vessel. Nothing can describe this process better than pictures and video.

     After the vessel and supplies were finished being loaded, I asked Capt. Yvan Bourgnon for a picture of just him and I. I also wished him safe travels and will never forget our last conversation and what he said to me.  One last side note, I didn't know where the words came from at the time but I still remember the quote to this day very clearly: "Twenty years from now, you will be more disappointed by the things you didn't do than those you did. So throw off the bowlines. Sail away from safe harbor. Catch the wind in your sails. Explore. Dream. Discover."~Mark Twain.

Save travels Capt. Yvan from the American Lamprecht Transport Family!!

   

Travel in Style with American Lamprecht Transport

RVs fundamentally change the experience of going on a road trip across America. You can enjoy the sights and sounds of nature as you stay overnight in your RV, and with all the creature comforts of your home on-the-go. Being in the comfort of your own RV will bring you close to nature while letting you enjoy your surroundings without giving up all the amenities you love and enjoy. So skip the hotel lodging which isolates you from the beauties of mother nature and let us help you plan your next vacation.

So, you’ve decided you want to travel to the USA and bring your RV for your next cross-country road trip – what next?

American Lamprecht Transport has been helping RV owners make their vacation dreams come true for over 50 years! With contract rates in place, we can arrange the transport of your RV to and from the USA at a low cost and even help to make some suggestions on the most popular places to go. Let us help you plan your next dream vacation! Contact us today @ 410-705-0667, send us an email @ solutions@lamprechtusa.com OR visit us online www.lamprechtusa.com/rv-auto to get your free shipping quote.