Monday, January 16, 2017

The Missing Bridge to your Successful Strategy? Logistics!

Company websites and literature loudly toot their Corporate Objectives, their Mission Statements, and offer nice 'sound bite' forward-looking comments.
What's not so clear is the means that they employ to get to the ends that they seek, or that they will employ to meet the customer's needs.


Each company or agency or institution has strategic objectives.  These objectives drive the organization towards a commonly accepted set of outcomes - i.e. over a long period of time.

They also inform the actions that team members take to help move to the goal.  These actions are tactical, usually short term actions, that, taken in aggregate help to deliver on the strategic objectives.

Organizations have turned to 'strategic solutions' (like ERPs) as a vehicle to manage strategic data. These systems promise to help assimilate all of your corporate data into a centrally-accessible database, that is usable by team members.
After 25 - some years of ERPs in the market, we have a good idea of their successes and failures. Qualified successes center around back-office tasks like Accounting and Payroll and possibly Procurement and Supply Chain. These process are now organized more cleanly than in the pre-ERP era.

ERP failures are related to tactical day-to-day tasks in Project Management, Cost Control, Maintenance Management, etc.  


What are the determinants of a Fail?

  • Actions being taken outside of the ERP - which leads to the inability to know when mission-critical decisions are taken, by whom, and the reasons for these changes in direction;
  • Exporting of data from ERP to tactical tools for manual processing and decision-making - again, outside the ERP;
  • Lack of Audit trail for decision making;
  • Lack of a consistent, business process-based flow, including sign-off on significant data and costs.
  • Lack of a feed-back loop for improvement of functional processes

What's the solution - what can overcome these fails?

A Logistics-sensitive system.  It is cost-prohibitive to involve ERP vendor or Consulting resources to help you manage constantly changing and evolving business processes. This leads to what we now see is the continuing failure of ERPs to deliver on their promise.

How would a logistics-sensitive system be different?

  • Build your Business Stages and Deliverables or Procedures required for each Stage in the system as an integral definition of the Strategy;
  • Build the Process steps and sign-offs required for each Deliverable or Procedure - i.e. Tactical steps;
  • Create timely, notifications to each team player and track sign-offs and data management actions silently and efficiently as part of the Logistical support for the organization.

Spreadsheets do not have Logistics - you do not know who made a data change.
ERPs have little control on Logistics - as much work is done externally to the ERP.
An integrated, logistics-enabled system, like TeamWork Integrated Solutions Technology (TWIST), empowers teams to,seamlessly, follow defined tactical steps - in the knowledge that each step leads to the strategic objective and contributes to an improvement in business processes when gaps or bottlenecks are discovered.

Not a bad result for an economic alternative to expensive, traditional ERP-type solutions!
Let's help you get started. We'll even integrate with your expensive ERP!

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