“Are you focused on activities, or accomplishments?”

Sorry, I cannot resist the NFL playoff-related analogies.

“Are you focused more on activities, or on accomplishments?” This theme came up recently in a conversation I had with Robert Trent, as we were discussing the recent Steelers—New York Jets game. (Bob Trent and I are co-authoring a new book for supply management professionals that will be announced in the coming months.)

The conversation revolved around some of the game’s dynamics and statistics. The New York Jets on several occasions drove the ball well into Steelers territory, only to come up short on delivering the final results (points on the scoreboard). It was a classic example of “lots of activities” versus “the final accomplishment, or lack thereof (the score).”

What in the world does that have to do with supply management? I regularly bump into supply managers who seem infatuated with measuring activities, almost to the point of relegating results to a secondary position.

Supply management departments that seem to be on the defensive can often fall into the trap of publishing statistics about how busy they are, or how their headcount compares favorably to other companies. That is a defensive game; it may buy you some time, but it fails to put points on the scoreboard. And, it doesn’t build your organization’s capabilities for the future.

Much better is a strong defense combined with a good offense. That offense should be directed at the continual generation of quantifiable results that senior management cares about - - such things as improving ROIC, EPS and Cash Flow, all while reducing risk.

And if you’d really like to run up the score on your competition, go on the offense by developing and presenting a business case for MORE strategic resources. In our experience, even during the recent recession, it is possible to gain senior management support for an enhanced budget for supply management activities – if you approach this subject properly.

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