Laurie McGraw is speaking with Inspiring Woman Cheryl Capps, a trail blazing leader and maverick in the world of supply chain.
Supply chain came to be in the late ‘90s, early 2000 time period. Cheryl viewed the discipline of attacking problems from many different angles as simply, interesting. She did not view it as a disadvantage to be one of HARDLY ANY women in the field at the time (less than 11% of senior executives in the discipline of supply chain are women), rather an advantage to provide an important point of view.
Certainly, she led by example, but more important was attacking the problem at hand. The core to supply chain was understanding People, Process, and Technology. Cheryl had a 24/7 vision for supply chain that was based on this three-legged stool and international operations. And this was all PRE-pandemic. You cannot underscore the importance of the innovation approach that Cheryl led in defining a discipline that led to ALL plants and ALL operations open for business across the globe in multibillion $$ conglomerates during a pandemic….WELL BEFORE everyone knew how stressed these systems would become in the pandemic era.
For Cheryl, it was not about being the first woman to break these barriers, it was about methodical planning, thinking, and viewing innovation as a process. Cheryl comments on how this structured thinking should be applied to innovation today (think AI/ML) – break down the process, there are always people in that process, and technology – and all need to work in harmony.
Further, Cheryl suggests and advises that we must not be afraid to innovate. Shots on goal is the name of the game. We must try. Thoughtfully and in earnest. But try and continue to try. And that is where the magic happens.
Guest Bio:
Cheryl Capps is a technology-focused board director who has built, transformed, and run manufacturing, engineering, supply chain and business operations at multiple global businesses at Corning Incorporated, Bristol Myers-Squibb (BMS) and GE. Cheryl is an innovative leader who has consistently delivered fast, flexible, low-cost solutions that increased competitiveness and enabled growth. She is an expert in enterprise risk management and sustainability and is highly qualified to advise CEOs and boards seeking to scale their businesses while growing bottom line profits and increasing free cash flow.
Cheryl currently sits on the Integer Holdings Board of Directors (NYSE: ITGR) and has experience on Audit, Corporate Governance & Nominating, Compensation & Organization and Technology Strategy Board Committees. She also serves on the executive advisory board for Elementum, ketteQ, and o9 Solutions and is serving as a C-Suite advisor for World50.
As Chief Supply Chain Officer at Corning, Cheryl was part of Corning’s Senior Leadership team and was a management representative at general board meetings and for the Corporate Responsibility and Sustainability Committee. Cheryl built, developed and transformed the Global Supply Chain function, delivering more than $1.3B in year-over-year savings to the P&L. She also led the development and implementation of multiple business transformation initiatives including capital excellence, realizing over $800M in capital efficiency. Under Cheryl’s leadership, Corning developed a digitalized global risk detection and mitigation system which was recognized by the National Association of Manufactures as the ‘best of the best’. It kept all 80 factories operating and customers served throughout and after the pandemic. Cheryl was an early adopter of digitalization in supply chain sustainability and social responsibility, and the program she deployed quickly set new standards for the industry.
Previously, Cheryl led the Global Manufacturing, Distribution and Customer Service Network at ConvaTec as it transitioned from a Medical Device division of BMS to a PE stand-alone owned by Nordic Capital and Avista Capital Partners. In this role, she became a limited-partner and participated in all board meetings. She led the integration of the Unimedical acquisition and exceeded all PE financial improvement milestones including gross margin (7 points) and FCF (25%). Previously, Cheryl led a Supply Chain Transformation for the Pharmaceutical Business at BMS, materially reducing operating costs, while simultaneously reducing inventory and improving customer service. Cheryl joined BMS at Zimmer Orthopedics where she delivered fundamental changes in material cost structure, inventory/cash flow and customer service through a business process transformation.
At GE, Cheryl was a part of the Aircraft Engine, Aerospace, Medical Systems and Industrial Motors businesses. In Industrial Motors, Cheryl developed and executed a strategy to restructure the manufacturing network, enabling a gross margin improvement of 4 points, before assuming responsibility for the private label business -doubling sales and increasing operating margin by 16 points in two years. Previously, Cheryl ran the Technology, Test and Deep Space Power Operations for the Astro-space Division, developing the new capabilities and scale needed for a four-fold increase in scheduled launches. In Aircraft Engine, she was a part of a greenfield start up team and built a new product development operation to support the development and flight testing for the first digital engine controls. Cheryl joined GE on the Manufacturing Management Program.
Cheryl has a BS in Electrical Engineering and a BA in Psychology from Rice University and an MS in Engineering from Purdue University.
[00:00:00] What if this could happen? What if this could be tried and that could be a supplier partner. It could be people internal to your company. It could be outside colleagues or groups that you join. This is Inspiring Women and today I'm talking to Cheryl Caps and Cheryl is a many year senior executive in the area of supply change. She's not just a senior executive in the area of supply change.
[00:00:30] She created modern day supply chain. We're going to learn about that today. Cheryl is a board director and she's going to talk about her many years of what she's done in supply chain at large scale global organizations like Corning, like Bristol, my or Squib G e and Cheryl thank you for being on Inspiring Women.
[00:00:52] Thank you Laurie. Such a honor. I'm very excited to be here.
[00:00:56] Okay, well let's we're going to dive right in. I want to talk about what it means to be one of the power players creating modern day supply chain. I mean you know better than anybody that there's only 11% of the senior executives and supply chain who are women. You helped create the modern discipline of it.
[00:01:15] But you also after your many years at most recently Corning, you're now in this new stage of turning it into board director and leading a number of companies in that way. So what does day to day look like for you? What are you doing right now?
[00:01:31] So right now I'm actually enjoying myself. I couldn't be happier. I I noted that I was moving into retirement, probably with 90% excitement and 10% interpretation.
[00:01:46] And I should never have given a moment of worry about that 10% interpretation. I'm finding that what I believed and had invested in early is that there is room for for people who are the excellence of supply chain at in the boardroom, not just public companies but private startup companies, PEs advisory.
[00:02:12] And I'm doing what I really love to do the most, which is I'm able to work with innovators, innovating the next generation of supply chain, spending time with them.
[00:02:24] They're young companies and their technology that they're developing. I'm ever to advise, I'm an advisor for world 50 and advise cheap supply chain officers and also type advice people were coming to the end of their careers and have aspirations to move into the boardroom.
[00:02:46] And so I just think how fortunate I am that I was able to really embark but I would call my last phase of my career probably a decade of board service, a decade of advancing the discipline and a decade of giving back to the next generation.
[00:03:04] Well, maybe you can bring us back Cheryl to the you know it is a story career. I am not kidding when I say that you are one of the people who created modern day supply chain through your work.
[00:03:17] Give us a little bit of the biosketch sort of like what you did over the many years that you were working in supply chain.
[00:03:23] So if you go back to the beginning, you know I'm of that vintage where supply chain wasn't even a word when I went to went to university. It wasn't it wasn't invented yet and it was something that that resided partially maybe in manufacturing, you know people thought of it as maybe purchasing and scheduling trucks.
[00:03:43] And it probably wasn't until the late 1990s early 2000s that it really emerged as a discipline and the people who excelled in that area where the people who had broad careers is supply chain is it is a function of connection you're connecting customers to companies you're connecting companies to their suppliers.
[00:04:04] You're connecting all the parts of the company. And so what what better skill set to the next generation of emerging supply chain leaders were the people who had very broad backgrounds and I was I was really gifted first by GE was on a manufacturing management program and Bristol Meyer scope who developed me to have a very broad background.
[00:04:25] Opportunities from everything from from purchasing and supply chain but manufacturing and finance and R&D I was a general manager of a private label business. I was involved in the in the first four days of lean six Sigma when GE started
[00:04:45] and did business strategy government relations and I had such a very broad background that that put me in the right position as supply chain was being invented.
[00:04:56] Did you know that you were creating a new discipline was that obvious to you? I mean sometimes when you're sort of like in the thick of work, you know when things coming at you you don't see the forest for the trees was that obvious at the time that this was a whole new area.
[00:05:12] I'm sure you couldn't print for debt did not predict supply chain know what I did I did feel strongly about was the value of of interdisciplinary capability idea and it was very fiercely debated in the late 80s into the 90s do you develop your leaders with the steep bench expertise right is your CFO career finance guy right.
[00:05:38] Or is there value in people with very broad backgrounds who have command of really the end to end our workings of corporations and I really believe deeply in the in the latter.
[00:05:52] I believe that it made me effective in no matter what job I was in. So if I was for example it's a high chain but I could speak the language of our research and development right then I could work with my colleagues in that in that area help them see help help them see help connect help to help understand what their needs were help translate that into products that are useful for them.
[00:06:19] And so I that was where I placed my career bet I am the bet that speaking other people's languages was was was really important.
[00:06:30] Yeah well sure you're also really good at it I mean you know there's like this long list of alcalades and awards most powerful modern day mother you know all of these incredible things that support not just the good work that you did but the important voice that you had in shaping.
[00:06:48] That part of the industry I want to hone in on you know the fact that it is 11% of senior executives in the area of supply chain that are women so that means by definition that you were one of not just few but very, very, very few.
[00:07:05] Women leaders in that area did you notice that did you was that obvious to you would do that begin make it even more challenging you excelled and your career was just on an absolute fast track.
[00:07:21] You know despite that so how did that how did that work for you.
[00:07:26] You know I think when you're living it and and I made a conscious decision early early on that there may be disadvantages that that I would I would incur but there were probably also going to be advantages and so I never felt badly taking care taking it you know taking the advantages
[00:07:49] because I felt like I didn't have a I didn't have a say I didn't have a way to not you know to do anything about those disadvantages and I felt you know my mind things tend to net out over time.
[00:08:01] And so I never I never really bothered myself I certainly engaged I was you know the executive sponsor for the corner professional women's forum certainly engaged in programs and helping women succeed but if I think about myself personally it was not something that I
[00:08:18] really contributed a lot of thought to and sure I noticed it when I was a plant manager at GE I think at the time there were 600 plant managers and two or women so you go a meeting and you can kind of see it right.
[00:08:34] I remember going to executive meetings were less than 2% of the population were female and rebarking how nice it was during the breaks to get in and out of the bathroom right.
[00:08:46] It's only two you all the best rates.
[00:08:50] And so yes you see it but I just I didn't I didn't make it an issue for me but then but more less internalized that all right how do I help how do I change things for this generation after me.
[00:09:04] Yep and then and so you know the corning women's professional group and what else like how were you able to you know bring the awareness and helpfully you know change some of those demographic numbers.
[00:09:17] So first first and foremost you have to lead by example I have a very strong opinion about there's a phrase that I usually take great umberage to this is higher to availability right it says oh well only 2% of the people are
[00:09:33] pick your number right 10% of the lives of the supply chain are women then um if we if we get 10% that's our goal right to be and if go through the simple math if everybody targets what you're currently at you actually don't improve the world's all states flat the maps.
[00:09:53] Yeah and so you have to you have to think to yourself wait a second I want to and oh by the way people usually fall short of their goals so yeah you are not making the world a better place.
[00:10:06] So I always push those markers to the side um and um you know whether whether it was women people of color um you know people from different countries.
[00:10:19] Um you know uh my goal is to get the best seats at the table and I wanted diversity I thought and so um you know when I left my role my function was was uh 50% for 50% women right at 50% and that's not just in the junior levels that was all the way all the way through the organization.
[00:10:41] And two thirds of my leaders were either women or people of color and so I think it just starts with with just leading by example yeah and you can lead up a broader you know and and people saw the success of the organization right and so having these amazing talented professionals within the organization delivered results.
[00:11:05] And so you know that's a microcosm because that's you know certainly maybe you could see that throughout a company.
[00:11:11] But then when you share those stories right you can inspire others others who feel like maybe they don't you know they're they're constrained on how or how they're thinking about hiring.
[00:11:21] Yeah so let me let's dive into some of those results because I mean some of them include you know pulling billions of dollars of you know financial resources and higher levels.
[00:11:34] And higher levels of efficiency and quality you know into the supply chain with dollars and out of the supply chain that's one of the things that you led.
[00:11:42] You also during the course of the pandemic you can as you know at least as I understand how the story goes you kept 80 different manufacturing plants up and running and available when most organizations I mean like we all know what supply chain is now from from the pandemic nobody knew about it before but any language.
[00:12:03] And so that's the only way to get the right type of for but any late person is acutely aware because we've experienced the issues of supply chain but that not that is not what you led you kept things open was that I mean obviously that's a testament to your leadership how did your team and the diversity that you brought your brought to your team playing into that.
[00:12:26] So I think that's a question you know I didn't think about things in terms of people process and technology like a three leg is still unique and all three have to be strong to be successful.
[00:12:36] Oftentimes people really focus on they go for the silver boat they go for the technology but the process isn't robust and they or they may not have the right talent or the people.
[00:12:48] And I was fortunate in having just a fantastic team we you know prior prior to the pandemic many years we worked on the talent pipeline 60% of the roles were outside of outside of the US they had a constellation of of professionals all over the world.
[00:13:05] And then I had this vision that you could operate the supply chain 24 seven by having the right people in the right places having the processes that link them right the escalation of process and the technologies so giving that specific example about the pandemic we invested in AI and machine learning so we could get early signals from the supply chains about.
[00:13:31] Disturbances that were likely to happen not for sure that was going to happen you're predicting it right.
[00:13:38] That was tied to a group of people that they would get the alert you know the software from from from from learning right would come at the right.
[00:13:47] You know this is one is is high likelihood you should look at it a person would own it they would set up a a incident until we was with a company called element which is a tool for.
[00:14:04] For it meshing a world together right look flow and the person would immediately tag people bring on global team and they're people all the way around the team.
[00:14:15] So if somebody was saying there's a potential shortage in let's say Texas they work on it so that they can go to sleep and guess what China's waking up single parts waking up.
[00:14:26] They have the incident they have material that had the technology they start working on a problem and soon after India wakes up right income income speed of past and came to Switzerland back onto the East Coast very often that professional that had a problem on their hands you know when they went to bed in Texas we have solution solutions by the time they by the time they woke up.
[00:14:52] So it's so encouraging I mean I think that you know there are well-stored studies about how diversity in teams in both thought you know demographics age all of those things lead to better results and just that plan full way that you set forth a vision well ahead.
[00:15:13] So you know that the crisis pandemic time when it was needed the most it's just a heartening to hear.
[00:15:20] You know an example of a very big example of you know they talked about that still if anyone part of that still failed we would have failed yeah it has this team this diverse team for all over the world who worked wonderfully and seamlessly together right towards common objectives not.
[00:15:39] Yeah, listen it would have failed if I hadn't had the technology that gave me the alert gave me the mechanism of of collaborating you know globally collaborating simultaneously we would have failed.
[00:15:53] If I didn't have the fundamental business process in place on how do you do this how do you raise an incident how do you you know where do you put the information how do people find out what authority do they have to act on this information.
[00:16:05] Yeah, you have that it would fail yeah perfect when you talk about you know eventing the world this current world of supply chain and this firm believer that the good leaders have to attack the problem.
[00:16:18] Have to attack the problem with those three premises well now many people are designing their systems and their supply chains based on the groundwork that you did not just leading by example but literally setting the standards by which people measure the success of their supply.
[00:16:34] You know, Michelle I want to sort of like just pivot the conversation a little bit you're now in this like phase next.
[00:16:41] Of sort of you know this story career as the senior executive of supply chain now moving to board service and more on real focus like you just said on impact how are you thinking about that and you in a conversation you and I had before this you know live discussion here we have talked about how you are really using.
[00:17:03] Friends and supporters and almost carrying them with you to help you think about this next phase I wonder if you could comment on that yeah you know i'll go back a few years you know a great friend and mentor of mine made a comment and said look think about your career in three parts there's the year.
[00:17:21] The first part of your career you're climbing the ladder right here mostly an individual contributor but maybe low and mid level a leader.
[00:17:29] And you're working very, very hard but you're working very hard to prepare yourself for the next level so you're achieving things you're growing your learning but your positions of yourself so hopefully you're running something right because that's the second part of the career.
[00:17:42] And if you're successful you're running you know something very big or a pack full important and you spend that part of your career running that.
[00:17:50] And your third part of your career is after your you know your official retirement when you can come back and advise people who are running things.
[00:17:59] And the comment that they made is why would you not spend time you spent all this time in the first part of your career preparing yourself for the second yet people a bit is mully don't spend time in the second part of the career helping you know preparing them for the third part and it was so right.
[00:18:19] And so you know there's always this so I don't have time or so focus on my work but but but you're making assumption that those two things are mutually exclusive they're not.
[00:18:32] You can do you can contribute to your work so if you're making it advances in supply chain and you can contribute to the greater world in that case using that example right you can document it you can share it right you can become known for that it gives you a step into the into the future.
[00:18:49] So it's really a natural progression I was fortunate enough to do in a public board three years before I officially retired and just really learned in that experience a lot of lessons I could bring back to my company but you know learn the different aspects of being on a public board.
[00:19:11] And then as I read myself for a retirement itself it was it was a natural and that's a progression to start working with some of these thought leaders that I've been working within the industry for a decade.
[00:19:23] Yeah, I had startup companies or they were you know or we're advancing their companies and they had a need for board members board members of broad business background again the first time I career very very broad business background.
[00:19:39] A really deep bench strength in the area of supply chain and associated systems and tools.
[00:19:47] And then and then again the relationship and understanding what it is they they do and what the need is in the market so this repeat just come together so nicely.
[00:19:58] I also just love the I mean you know sort of the compartmentalization that you have on so these different important stages of a career journey and being thoughtful I mean the obvious one like you just said of like the beginning trying to get to the senior levels.
[00:20:13] Like many people most people think about that who are aspiring to leadership but then thinking about the like senior levels and then moving to you know a different impactful advisory thing that's really that's just wonderful.
[00:20:25] Let's just close out sure I mean I could talk about a lot of things with you but the thing I wanted I usually ask on women you know powerful women like you about what advice would you give in the earliest days I wanted to hone it a little bit.
[00:20:38] What you did what you have accomplished in creating the field of supply chain so many people are in this new area of technology and we don't knew where AI is going but we know it's moving very very fast
[00:20:53] and it just seems like there are new areas being formed so for the women who are in those early stages today in areas that are changing rapidly what advice do you give to them as they too are in the places of forming new disciplines etc.
[00:21:11] Yeah I think the advice I give is just don't be afraid to try things you know innovation isn't about you know it's not about your batting average rate like oh I tried one thing and I got one thing right it's more on you can use in sports and all of these that I will but it is around like the shots on goal if you're not taking a lot of shots on goal nothing's going to go in.
[00:21:34] And so I think about it that don't be afraid to make those mistakes because that's how you learn the greatest innovators the greatest leaders probably made more mistakes than everybody else in their companies combined.
[00:21:49] I certainly did that with my team and I would say that pretty frequently I probably make more mistakes one day than you but all of you together right but if you don't keep trying things you don't keep imagining we'll what if if you don't if you don't surround yourself with people that think like that you certainly need to start the runner yourself a lot of people who can execute but nothing you know nothing replaces good execution and good strategy execution.
[00:22:15] But you also have to have a cadre of people around here who can think about the what if what if this could happen or what if this could be tried and that could be a supplier partner it could be people internal to your company it could be outside colleagues or groups that you join.
[00:22:31] If you don't wake up every day and think about like how something could be better and how you could change it you simply aren't going to get there.
[00:22:41] Yeah well that is sort of like the definition of the innovators mindset and such fantastic advice I've been speaking with Cheryl Capson this inspiring women episode and Cheryl thank you so much.
[00:22:54] Thank you.
[00:23:11] I'm McGraw and thank you for listening.