In Part 1 of this series, we drew inspiration from one of my (formerly) favourite cartoons and cartoonists who, for the time being, shall not be named. This time, we seek wisdom from concentration camp survivor Viktor Frankl, NFL coaching great Bill Walsh, and iconic German philosopher Immanuel Kant. And a bit of Ralph Waldo Emerson.
In our previous post about goals and systems we discussed why goals can be problematic and why systems are superior. You can read about it here, but the key takeaways are that goals are often unpopular because the people or teams that “own” them are often not the ones who made them up, even if it seems that way. The other problem is they foster the illusion of control, where none exists. Systems, on the other hand, provide clarity about what is in your control and what is not. And they actually get you where you need to go, even if they don’t tell you where that is.
The least important questions: “where, when, what”
Of course, there are many good things about goals. Goals do a great job telling a supply chain “where” it needs to go. Goals set direction by focusing on “what” is most important – for example speed, cost, or a specific customer. It also answers the questions “where” a company should focus – by setting priorities around the above-mentioned areas. These are all good things, but as we argued in Part 1 these are top-down decisions cascaded to the rest of the supply chain, and as such they are merely table stakes, and are often not enough to distinguish a company’s supply chain in its day-to-day operations.
Also, as anyone who ever had to produce a SMART goal knows, they always come with a “when” attached. While this is fundamentally a good thing, this can also be problematic as anyone who’s experienced the downside of reporting earnings to Wall Street on a quarterly basis knows all too well.
The more important questions: “why, who, and how”
One of the most influential books of its time is Viktor Frankl’s “Man’s Search for Meaning” where he describes his method for surviving and thriving in a Nazi concentration camp by identifying and visualizing one’s purpose and generating underlying feelings of positivity. Also known as “finding your ‘why’”, having meaning is essential in the business world.
Studies show when employees find their work to be meaningful, their performance improves by 33 percent, they are 75 percent more committed to their organization, and are 49 percent less likely to leave. Moreover, over the past 30 years, employees have identified meaningful work as the most important aspect of a job—ahead of income, job security, and the number of hours worked.
How does this translate to supply chain? Think about Amazon’s supply chain mantra “Everything at Amazon starts with the customer, and we work backward from there.” By injecting customer obsession into the organization, it galvanized into one of the most successful supply chains of all time.
A supply chain system must be Understandable – answering the question “why”. People are the first element of any supply chain and the supply chain’s success rests on people understanding its purpose in the context of the overall organization, such as Amazon’s supply chain fulfilment excellence in the context of customer obsession.
Try riding a bicycle with handlebars that don’t move.
Imagine riding such a bicycle. You wouldn’t be able to go more than two meters without falling. This is because it takes thousands of micro adjustments to create the balance, momentum, and speed to make the bicycle work. It’s the same with people and a supply chain organization.
In this way the question of “who” is doing something, is a more important than “what” is being done, “where” the focus is and “when” it’s due. This is paradoxical because we’re taught that one person needs to be the owner of those things we’re trying to get done in a supply chain organization. Whether it’s a global initiative, a project or a simple task, having “one owner” is a corporate mantra. But it’s never just one person doing anything in a team context like a supply chain organization. Therefore, an approach that’s overly goals-oriented, relying too much on single points of accountability rather than teamwork, can be a recipe for failure as all the pressure, blame or credit goes to one person.
A better solution is having a system of feedback loops that are very short, and iterative, and allow for course correction of events – not week-to-week, but hour-to-hour. It’s not just a about a daily meeting or the best digital tools, but how these things are orchestrated to create communication and feedback to individuals and teams.
A supply chain system must be Iterative – answering the question “who”. A supply chain system with well-structured and short feedback loops allows individuals and teams to course-correct in real time, creating a supply chain that is self-managing.
When an organization has clarity of purpose, i.e. a “why”, and everyone knows “who” is responsible for each task, project or process without being told – the question of “what” needs to be done is answered automatically, obliterating the need for lots of goals, which may or may not make sense, and are likely someone else’s goals anyway.
Wash. Rinse. Repeat.
To achieve anything, anywhere it is imperative that an individual or team knows “how” to do it. One of the worst habits I’ve experienced in supply chain systems is reinventing the wheel. We all cherish creativity but establishing a common “way of working” is essential to creating standards and consistency. People often confuse the idea of standards with “one size fits all” and a sense of rigidity. The opposite is true. With no boundaries, people get lost in an ocean of infinite possibility. However, with guidelines and structured approaches that narrow the range of possibilities things suddenly become manageable, unleashing individual and team creativity.
A supply chain system needs to be Repeatable – answering the question “how”. This requires clear processes at all levels. Starting with a standard definition of the end-to-end process, and down to defining the one way of conducting the detailed steps on the shop floor and in the warehouse. At the same time standards are not rules, they provide guidance but also allow for freedom and creativity.
Sports and philosophy – the ultimate supply chain metaphor
One of my favourite business books is by the iconic NFL Football Coach Bill Walsh, The Score Takes Care of Itself. The message of the book is simple, if not easy. Systems are superior to goals because so many things are outside your control. Rather than focus on things you can’t control – like when a referee makes a bad call, focus on the things you can control, such as a purpose, a way of communication, a process or a standard. This is no different than the theory of German Philosopher Immanuel Kant that says it’s better to focus on and evaluate ‘intent’ rather than ‘consequences’ because consequences of our actions cannot always be controlled by us. In other words, focus on a process (i.e. a system), rather than and outcome (i.e. a goal).
Ralph Waldo Emerson said it first, and it’s been repeated so many times it’s become a cliché. “It’s not the destination, it’s the journey”. And like any good cliché, it becomes one only because it’s so universally true. So, apply this one anywhere and everywhere in your life, especially your supply chain!