Measuring Supply Chain “Fitness”

In a recent column for Gartner's “Beyond Supply Chain” newsletter, Michael Uskert posits that supply chain's success may be its own undoing due to disruptions in multiple global arenas.

“Already we've seen the escalation of tensions between the United States and Iran, which has subsequently placed further strain on the relationship between western countries,” observes, Gartner's chief of research. “Wildfires in Australia are bringing even more focus on the environmental impact of industrial society. Still to come is the United Kingdom's formal exit from the European Union, along with a U.S. presidential election.”

Uskert further notes that In periods of stability, “alignment” means that everyone in the organization pulls in the same direction, but this doesn't necessarily translate, and can actually hinder progress due to the inertia of the organization on this singular path.

A recent Gartner research study maintains that organizations built for stability fall behind when attempting a change because the old way has been engrained into employees and executives lack the ability to articulate the urgency of the needed change.

Indeed, the same research study introduced the concept of “fit” organizations and “fragile” organizations. Fit organizations get stronger when tested by turns while the fragile ones get weaker. Only about one-quarter of respondents proved to be fit. Over a third of organizations in the study got worse at attracting talent as well as funding, launching and completing new business initiatives when challenged by a turn.

Concludes Uskert:

“Adaptability means having a culture of innovation that embraces appropriate risk taking and learning from failure. In a turn, our organizations must possess the ability to change established habits and think in creative ways to meet a new set of challenges.”

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