WHEN IT IS TIME,
LOOK AT YOUR COMPANY’S BUSINESS NETWORK AND SUPPLY CHAIN
WITH A NEW EYE, TO TAKE IT
FROM A FUNCTION TO AN ENABLER,
FROM GOOD TO GREAT,
FROM ORDINARY TO EXTRA-ORDINARY.
- Focused on value towards the strategic goals of your company.
- Flexible and supple.
- Sustainable in the long term – for your company, and other key stakeholders.
- Outcomes oriented.
- No conflicts of interest.
- Equal partner in the corporate results.
- Balanced teams of best talent – internal and external talent deployed in the most effective manner.
- Challenging most constraints – inherent, structural, systemic and executional – to create the best outcomes and implement them
- Focused on minimum cost with scant attention to the value towards the strategic goals.
- Rigid and formulaic.
- Short term focused – particularly in procurement practices.
- Process or systems oriented.
- Frequent conflicts of interest, especially for logistics service providers acting as lead logistics providers.
- Emphasis on internal personnel deployment, irrespective of the results.
- Respectful of the most constraints – inherent, structural, systemic and executional – to accept sub-optimal outcomes.
Five critical problems in Strategy ExecutionGLOBAL RESEARCH FINDS FIVE CRITICAL PROBLEMS IN EXECUTION OF STRATEGIES
Following are the abridged findings from a recent global research:
- Not focusing on core competence
Most companies are good at one or two things. Whether it is mass production of chemicals or pharmaceutical research, or running airlines operations, companies know where they are really better than any other entity on earth. However, for several reasons most companies feel compelled to do far too many other activities that do not form their core competence. They do this despite the availability of third party service providers to take care of these noncore services. As a result, they dilute their effectiveness, profitability and competitive position in the market.
- Confusion from too many measures
Most companies rightly measure what they want to manage. However, in this quest to manage by numbers, companies have gone overboard by having far too many measurements that are not knitted tightly into a hierarchy of a measurement system. The resulting complexity leads to far too many managers focusing on the wrong measures or using far too many measurements for decision making.
- Not engaging the right ‘experts’ at the right time
Companies frequently wait till too late before engaging outside ‘experts’. As a result, they suboptimise the results of their strategies and do not reap the full rewards of their strengths, capabilities and efforts. It is now commonly accepted wisdom that those executives that form teams of internal and external experts at the right time win the corporate game.
- Strategic obstinacy and corporate hubris
Often companies take shortcuts in their quest for meeting quarterly profitability targets. Some of these shortcuts go against the strategic imperatives. The creative tension between short term profitability and the long term sustainability is frequently skewed towards short term results, thus sub-optimising long term results.
- Not fully appreciating the power of supply chains
Supply Chain Management is still seen as a functional expertise played out at a tactical level outside the board-rooms. Only those executives who fully understand the strategic powers of supply chains deploy it effectively using all the internal and external resources in a collaborative manner – reaping immense rewards in terms of profitability and sustainable competitive advantage.