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Survey Results – III
February 5, 2008
Fascinating results from the survey responses. When you examine the financial performance of the companies that you work for (both recent, and likely, performance), there are some clear relationships.
For example, for those survey respondents who characterized their company’s recent financial performance as “Our ROE or ROIC exceeded our corporate cost of capital,” more than 60% said their top management really understands and appreciates the enormous potential of modern supply management.
Contrast this to the respondents who characterized their company’s recent financial performance as “Our ROE or ROIC did NOT exceed our corporate cost of capital” – more than 65% of those respondents said their top management did NOT understand and appreciate the enormous potential of modern supply management.
Interestingly, the opportunity to further improve financial performance exists for both groups of companies: only about one third of respondents in each group felt that their top management really knows how to achieve the enormous potential of supply management – the respondents indicated that management generally doesn’t know how to build a comprehensive transformation roadmap.
That’s not entirely surprising, as readers of this column should expect. As we’ve discussed in previous posts, creating a comprehensive transformation roadmap involves both art and science. It’s one of the reasons why “quick win” sourcing programs often see their results peak, and then begin to disappear.
Posted by Robert A. Rudzki on February 5, 2008 | Comments (0)