BPI in Supply ChainA view from the field

Amit Kapoor

Write down the first three words that come to you mind

when you hear the word Strategy

SystemStoryDesignSubtletySceneGimmick

LearningAdaptQuickRespondCulture

ActionSetupProcedurePolicyTacticsProcess

ExcellenceExecutionOperationalQualityPeople

FocusProgramPresentCoreHarvest

CompetenceCapabilitiesCentralManeuvering

ApproachBlueprintMethodPlanPlanningStrategic

CompetitiveIndustryExploitHigh GroundProfitCost

Identity | Advantage

Advantage is Transient“Now, here, you see, it takes all the

running you can do, to keep in the same place” said the Red Queen

- Lewis Caroll, Alice in Wonderland

Identity is Slow to Change

"There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in

its success, than to take the lead in the introduction of a new order of things."

— Niccolo Machiavelli, The Prince

Identity is your Strength

The innate qualities of an organization that distinguish it from all others — its

operational processes, culture, relationships, and distinctive capabilities

— are built up gradually, decision by decision, and continually reinforced

through organizational practices and conversations.

- Art Kleiner, The Right to Win

Identity - Advantage

Supply Chain

"A supply chain is a goal-oriented network of processes and stockpoints used to deliver

goods and services to customers."

“Cost, Quality, Speed, Service and Flexibility are the dimensions on which manufacturing and

service enterprise compete”

— Wallace Hopp, Supply Chain Science

SC CharacteristicsPurpose -- there is an ambition to the organisation, beyond

traditional business objectives, that motivates the pursuit of excellence

Direction -- explicit choices are made about the offerings and

markets served, the way value will be created through operations, and the approach that will be differentiated and break traditional constraints

Responsiveness -- the organisation maintains awareness in

the operating environment -- including customer needs, competitive threats, supply conditions -- and resets its direction accordingly at pace

Coherence -- the various elements of the company’s business

model -- such as the commercial, operations, and people strategies -- are complementary and mutually supporting

SC Characteristics

Empowerment & Trust -- the full extent of a business’s

human assets are aimed and engaged in driving performance and trusting each other to deliver

Learning -- the key components necessary for a learning

organisation are in place: curiosity, humility, experimentation, and communication

Execution -- once a decision is made, the organisation can

execute effectively, quickly. Decision rights, information flows, incentives, and responsibilities are clear, consistent, and understood

Exemplar

BPI in SC: Conceptual

Thinking about BPI

Four Key Questions

What we do? | InherentHow do we do it? | Structural

How well do we do it? | SystemicHow well do we apply it? | Realized

Value Drivers in SC

How many Trucks?

Careful on an Oil Rig

Don’t mess with the Falcon

Sweet Success of

Process

Build Capabilities

Towards a Learning Org

Culture eats Strategy for Breakfast

Amit KapoorPartner, narrativeVIZ Consulting

Website: amitkaps.comEmail: amit@narrativeviz.comTwitter: @amitkaps