One common theme defines
why most most re-engineering efforts fail to deliver their full potential
- tactical work was never minimised or eliminated!
The majority of the new technology of today allows an organisation to
finally withdraw from the majority of its tactical activities.
Once properly skilled people are doing the right "strategic"
things, then the organisation can reap success.
Planning is the key to successfully separating and removing tactical activities
from strategic initiatives.
It must be an ongoing strategic event, which begins with the review of
the processes themselves.
The purchasing executive must understand and share the vision of the organisation
to ensure that the goals are aligned with corporate objectives.
Clearly defined objectives must be developed and understood before implementation
can begin.
Most importantly, the plan should be communicated consistently and frequently
to all those involved in the process.
To identify what is
strategic, a short list of skills
is required that includes analytical / critical thinking; judgement /
decision making; initiative / dependability; leadership / courage;, innovation
/ creativity; project management;
technical skills / job knowledge; behavioural skills; and communication
skills.
Each organization must assess its empolyees' capabilities to function
strategically.
The organization must then provide the necessary resources to develop
the new strategic skills that will be needed.
The new business model
should then use the new processes such as strategic alliances, inter-organizational
relationships, supplier integration, performance
measurement, strategic cost management, life cycle costs, cross-functional
teaming. cross-functional alignment planning, and strategic planning.
However, the most important aspect to separating strategic activities
from tactical activities is the organizations ability to execute.
Once the activitites, skill sets, processes and systems have been identified,
they need to be implemented.
The bottom line is that the mechanism to move purchasing out of the tactical
and into the strategic is available.
A successful strategic organisation is built upon a foundation of people,
processes and systems that are wrapped in strategy and marketed internally
and externally to the organisation.
If you require any additional information about strategic sourcing or wish to find out how our range of purchasing & supply chain solutions might benefit your company, please e-mail Sallie Cole at sallie.cole@supplychainconsultants.co.uk or alternatively telephone Sallie on 44 (0)1827 50341.
