This past two weeks I attended two different events which dealt with supply chain change. The Chicago Roundtable CSCMP (Council of Supply Chain Management Professionals) had a one-day conference “Strategy Meets Execution”. I attended meet the presenters in an event for Ted Talk Wilmette (IL) where the subject discussed was pivoting for change. Both presentations talked about bumps in the road in major changes in the organization. This essay will focus on those bumps.
Let’s say the obvious. Supply Chain is in a period where there is significant pressure to make changes. Tariff changes happening continuously creates a lot of uncertainty. How often did you hear the word AI (Artificial Intelligence) and words to the effect, your organization must do these software programs to be effective. For some businesses they must change to stay in business. For other businesses, they must be more efficient to maintain profitability.
There are statistics that say only roughly 25% of these big changes are successfully concluded in top managements opinion. So let me discuss, about managing these changes, once a decision is made to go forward. The best chance of any positive change is a clear understanding on what the organization is trying to accomplish and find ways to measure it. Establish KPI’s, data, to record the project’s success.
No major change process goes smoothly. There is no way upfront an organization can know all the variables which affect the change project. One way to migrate this issue is to listen closely to your employees and team members who are on the ground floor dealing with production, customers and deadlines. If these ground floor people are listened too, your organization will have a much higher chance in dealing with the bumps in the road to change.
Let’s repeat a sentence. No major change process goes smoothly. Processes and procedures are needed to be in place for these issues to be communicated to people who can respond to these bumps. Plans need to be created for the project to be sustainable. Top management will be distracted with another project or an emergency issue, but project progress needs to be maintained. Sustainability is key issue in change management.
At the Ted Talk event I attended, one of the leaders in discussion compared change also to athletics. Most sports when a player changes direction must have one pivot down. In organization change, one foot planted in the ground means recognizing past success and make that be a steady part when other changes are necessary.
To summarize handling supply chain change:
- Have a clear idea of what needs to be accomplished in change with clear KPI’s to focus on whether it is working.
- Listen to the day to day workers on the ground level. They will know variables you will not know. They will be instrumental in the actual change procsss.
- Keep one foot planted on the ground, so basic organizational values are not comprised.
- Just expect many bumps in the road and develop ways these can be communicated and handled.
- Be sure to plan sustainability into the project so it keeps on going what the search light is off it.
There are intense demands for supply chain change. Be wise how you do it.
