DC Velocity - August 2011

▪ Serious cultivation of value-adding diversity in the management and associate components of the work force—and in the supplier base

▪ Adoption of aggressive and advanced quality and performance programs

▪ Development of long-term business relationships with customers and suppliers

▪ Profit-sharing with community enterprises: schools, food banks, etc.

▪ Employee ownership opportunities
Others might not be quite so overt, such as intentions to
remain or become union-free. But it’s important that many
of the sub-strategies eventually link to elevating supply
chain performance, e.g., in cost, in perfect order perform-
ance, in quality, in cycle time.

And don’t forget the development of 21st century sourcing and procurement practices to build a stronger and more compact supply foundation.

AND MEASURING SUCCESS?

Most every strategic initiative can be evaluated with metrics—consistent and continuing measurement—in, for example:

▪ Growth, in whatever dimension: volume, revenue, profits, new patents, and so on

▪ Quality, in selected and relevant activities or outcomes: order fill rate, fulfillment cycle time, inventory accuracy, etc.

▪ Cost, expressed in various comparatives, e.g., as a percentage of revenue, compared with budget, per unit shipped, versus competitors

▪ Value-adding services offered, with associated revenue ▪ Market penetration in targeted verticals

▪ Revenue (and/or profit) distribution among customers or industries

REITERATING THE OBVIOUS

In summary, the strategy is not a notebook on the shelf or
a plaque on the wall. The strategic management process(es)
answer the question, “Where’s the beef?”
When you’ve got a clear vision, difference-making tar-
gets, and logical strategic initiatives under way, you’re on
the path to making the company become what it wants to
be when it grows up.

Harrumph. ;

Art van Bodegraven, practice leader at S4 Consulting, may be reached at (614) 336-0346 or avan@columbus.rr.com. You can read his blog at http://blogs.dcve-locity.com/the_art_of_art/. Kenneth B. Ackerman, president of The Ackerman Company, can be reached at (614) 488-3165 or ken@warehousing-forum.com.

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