Recommendations Each function within the organization perceives organizational alignment very differently. The gaps cannot be generalized, but they can be closed. It does not happen overnight. It is a journey not a sprint. Improved alignment will only happen through focused leadership over a period of three to five years. The largest gaps are executive leadership understanding to guide the process, and the lack of technology to model organizational capabilities and drive alignment. To move forward, leaders need to focus on: • Defining End-to-end Processes. Progress is faster when there is a vision for the end-to-end process and metrics are clearly aligned cross-functionally. Corporate performance accelerates when it is clear that the management of these complex systems trading off growth, profitability, cycles and complexity requires the organization as a whole to manage a finite set of trade-offs. To understand these trade-offs and the impact, companies need modeling capabilities. This cannot be effectively modeled in a spreadsheet. The ability to model trade-offs reduces finger-pointing. For most companies, as shown in figure 13, there is a serious gap between current technology deployments.
Figure 13. Technology Gaps in S&OP Performance (Supply Chain Team)
• Designing to Absorb Demand and Supply Volatility. Value networks need to be designed to absorb demand and supply volatility. Technology matters. The use of what-if analysis, role-based visualization, and the use of discrete event simulation help companies to understand the potential impact of demand and supply volatility and allows them to plan for critical events. Let’s use an
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Supply Chain Insights LLC
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