Edition 10 - April 2004

Getting It…

While touring Cape Canaveral, John F. Kennedy asked a man he met in the hall what his job was. He answered, “Mr. President, I am helping put a man on the moon”. The man was a janitor.

Thirty years of leading change has taught a fundamental lesson: If everyone doesn’t get it, the effort is doomed. In a variety of cultures, labor unions, and ethnic diversities, resistance to change melts away when everyone understands 1) what’s in it for them, 2) what’s expected of them, and 3) clearly how to meet those expectations.

Supply Chain integration operating strategies based on Build-to-Order are challenging organizations as greatly as J.I.T. did 30 years ago. And like the Toyota Production System, the foundation for JIT, Lean, and continuous improvement efforts, supply chain integration at its core is a people centered organizational philosophy based on collaboration.

In a previous newsletter, collaboration was defined as the sharing of resources, tasks, responsibilities, and goals throughout the supply chain. We group supply chain collaboration into three categories: Consequential, Parallel, and Strategic. Consequential relates directly to maintaining the flow of work and parallel to improving the performance. Strategic collaboration provides the monitor that ensures outcome matches intent. Collaboration is actually very straightforward to describe and exceedingly difficult to achieve. Why is that?

Certainly trust is an issue. Getting suppliers to work hand-in-hand with the customer in an open and transparent relationship provides opportunities for all kinds of negative backlash, ranging from pricing pressures to demands inconsistent with strategic direction. No successful collaborative effort will ever exist without a clear “win-win” for all parties involved.

But there’s more. For collaboration to work in a supply chain, it must first be an integral part of YOUR organization’s culture. Instilling it in an organization where it hasn’t existed is problematic. It can be done but it requires compelling focus.

To understand this point about collaboration, let’s look at Lean. As much positive press as we’ve heard about Lean, the fact remains that the majority of Lean and continuous improvement iniatives don’t produce sustainable bottom line improvements. Those initiatives that do produce positive effects have something in common: everyone understands the processes and their roles in the processes; and can transfer that knowledge in a clear and focused way throughout the organization.

Clear communication about roles and responsibilities is one indication of a collaborative, open organization. For a collaborative supply chain to exist, everyone in every organization of the supply chain needs to understand what’s expected of them, how to meet those expectations, and what the value will be if they’re successful.

If you want a collaborative supply chain, make sure the janitor gets it.