Supply Chain Logistics Management Chapter 17: Organization and Relationship Management

NOT ALL GROUPS ARE TEAMS: HOW TO TELL THE DIFFERENCE Groups vs. Teams NOT ALL GROUPS ARE TEAMS: HOW TO TELL THE DIFFERENCE ______________________________________________________________________________ Working group Team   Strong, clearly focused. Shared leadership roles. Individual accountability. Individual and mutual accountability. The group's purpose is the same as Specific team purpose that the team the broader organizational mission. itself delivers. Individual work products. Collective work products. Runs efficient meetings. Encourages open-ended discussion and active problem-solving meetings. Measures its effectiveness indirectly Measures performance directly by its influence on others (e.g., financial assessing collective work products. performance of the business). Discusses, decides, and delegates. Discusses, decides, and does real work together. Source: Jon R. Katzenbach and Douglas K. Smith, "The Discipline of Teams," Harvard Business Review, 71:2, March-April 1993, p. 113. Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

A SNAPSHOT COMPARISON   Communities of practice, formal work groups, teams, and informal networks are useful in complementary ways. Below is a summary of their characteristics.   What’s the purpose? Who belongs? What holds it together? How long does it last? Community of Practice To develop members’ capabilities; to build and exchange knowledge Members who select themselves Passion, commitment, and identification with the groups’ expertise As long as there is interest in maintaining the group Formal work group To deliver a product or service Everyone who reports to the group’s manager Job requirements and common goals Until the next reorganization Project team To accomplish a specified task Employees assigned by senior management The project’s milestones and goals Until the project has been completed Informal network To collect and pass on business information Friends and business acquaintances Mutual needs As long as people have a reason to connect   Source: Reprinted with permission from Etienne C. Wenger and William M. Snyder, “Communities of Practice: The Organizational Frontier,” Harvard Business Review, January-February 2000, p. 142. Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Logistical Organizational Development Cycle Fragmented Functional Structures Stage 1 Functional Groupings Stage 2 Functional Groupings Stage 3 Functional Groupings Stage 4 Process Functional Integration Stage 5 Process Information Integration Fragmented Functional Aggregation Process Integration Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Traditional Organization of Logistics Related Functions Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Stage 1 Logistics Organization Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Stage 2 Logistics Organization Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Stage 3 Logistics Organization Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Supply Chain Processes KEY PERFORMANCE OBJECTIVES Order Generation and Fulfillment Process Reduce Cycle Time Integrated Logistics Process Reduce Costs Commercialization of Technology Process Reduce Throughput Time Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Horizontal Management Chief Executive Officer Analysis Pricing Research Sales VP of Support Services Chief Operating Officer Strategy Advertizing Strategy Production Shipping Service VP of Strategy & Planning Design & Engineering NEW PRODUCT DEVELOPMENT SALES AND FULFILLMENT CUSTOMER SUPPORT Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.