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The Organization Chart Diversion – Part 2
In a prior column, “The Leadership Imperative,” I described the six categories of transformation initiatives needed to ensure successful, sustainable transformation to world-class supply management. Those categories are Procurement’s Role, Objectives, Leadership, Best Practices, enabling Technology, and Optimized Organization. The latter category includes the subject of selecting an organization structure that works well in your corporate culture, but also involves several other key organization-related initiatives such as cross-functional teams, and having the internal discipline in your company to “speak with one voice” in all dealings with suppliers.
I’ve seen more than a few horror stories where a company focuses most of its attention on the organization design question, without properly laying the groundwork with the rest of the transformation framework. Inevitably, the “org design fix” fails to fix anything, and it can actually exacerbate the situation by drawing attention away from those critical factors that need to be discussed and agreed upon.
It is much more productive to first address the Role, the Objectives, Leadership and Best Practices, and have your transformation gameplan set for each of these critical topics. Following closely would be ensuring cross-functional involvement and “speaking with one voice” (elements of the Optimized Organization theme). Once that foundation is understood and established, you can properly address enabling Technology (something we’ll cover in a future column), and also consider which organization design would be best for your corporate culture.
Approached in this fashion, there is a strategic context for the organization design discussion. With the right role, objectives, leadership and best practices in place (or, at least, planned), you can have a productive discussion about the organization design that would be supportive of what you’re trying to achieve in strategic supply management, a design that would also be compatible with your corporate culture.
We’ll continue this topic in the next edition of Transformation Leadership.
The Organization Chart Diversion – Part 2
November 5, 2007
In a prior column, “The Leadership Imperative,” I described the six categories of transformation initiatives needed to ensure successful, sustainable transformation to world-class supply management. Those categories are Procurement’s Role, Objectives, Leadership, Best Practices, enabling Technology, and Optimized Organization. The latter category includes the subject of selecting an organization structure that works well in your corporate culture, but also involves several other key organization-related initiatives such as cross-functional teams, and having the internal discipline in your company to “speak with one voice” in all dealings with suppliers. I’ve seen more than a few horror stories where a company focuses most of its attention on the organization design question, without properly laying the groundwork with the rest of the transformation framework. Inevitably, the “org design fix” fails to fix anything, and it can actually exacerbate the situation by drawing attention away from those critical factors that need to be discussed and agreed upon.
It is much more productive to first address the Role, the Objectives, Leadership and Best Practices, and have your transformation gameplan set for each of these critical topics. Following closely would be ensuring cross-functional involvement and “speaking with one voice” (elements of the Optimized Organization theme). Once that foundation is understood and established, you can properly address enabling Technology (something we’ll cover in a future column), and also consider which organization design would be best for your corporate culture.
Approached in this fashion, there is a strategic context for the organization design discussion. With the right role, objectives, leadership and best practices in place (or, at least, planned), you can have a productive discussion about the organization design that would be supportive of what you’re trying to achieve in strategic supply management, a design that would also be compatible with your corporate culture.
We’ll continue this topic in the next edition of Transformation Leadership.
Posted by Robert A. Rudzki on November 5, 2007 | Comments (0)
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