Success is all about Periodic Change
Most of us don’t like change. A few of us run from it, some avoid it like the plague, while others stonewall any new idea that comes their way. Yet, periodic change is the key to success for any and all supply chain organizations who want to thrive and survive over the long-term.
Even successful supply chain organizations have to shake things up from time to time to maintain their competitiveness. I remember a pretty aggressive supply chain manager who told me that he was replacing all of his current buyers (he had six of them) since they didn’t have the skill sets he needed to ramp up his savings in all of his major commodity groups. This was a bold “change for change’s sake” that I had to agree would make his department even more dynamic then it already was.
How do you know when to change? There is a danger of staying the course, playing it safe and not rocking the boat that can become routine, since most change isn’t set in motion until a supply chain organization is deteriorating beyond the point of no return. A much better way to prevent this from happening is to look for the seven telltale signs that your supply chain organization is going off track and/or has become too comfortable with the status quo. They are:
- Is there a breakdown in communications between your supply chain and your customers?
- Are many of your employees uncomfortable with change?
- Do your employees operate according to well-established routines?
- Has the percentage of savings generated from new savings streams decreased over the past five years?
- Do influential groups or individuals impede your savings initiatives?
- Do you have the ability to obtain the resources you need to get your job done?
- Has collaboration between customers groups decreased over the past five years?
If your answer to two or more of these questions is yes than you need to invest the time to make some big, small and lasting incremental changes in what you are doing to bring your supply chain department back to the center line of peak performance.
The core of this “Periodic Change Philosophy” is that if you change before you need to then you won’t need to undergo painful major life threatening surgery, but only minor surgery to set your supply chain organization on the right path again. Just as important, your supply chain organization will continue to remain strong, nimble, and adaptable in this new healthcare economy.
Filed Under: Change Management • savingsblog
