The guide to change management for supply chain operations
June 10, 2024
By Bill Reichenbacher | 35 years of supply chain experience
By Bill Reichenbacher | 35 years of supply chain experience
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As decades go, this one is off to a heck of a start. We’re only a few years in and have seen a pandemic, a slew of environmental disasters, and an armed conflict on a scale unrivaled for almost a century.
What's this mean for supply chain leaders?The rate at which the world is changing is forcing us to adapt or risk being left behind. A recent Hackett study listed “ensuring supply chain continuity” as a top priority for supply chain leaders (1). Supply chain continuity comes with being willing to continually transform and refine your supply chain. However, change is not always easy. According to the Harvard Business Review, 70% of change management efforts eventually fail (2).
So, what can this guide help you with? Simple. We’ll give you best practices to implement successful change management in your organization. Whatever your objectives, we are here to help you succeed. When to start
Yesterday. Or (if you don’t have a flux capacitor) as soon as possible. Prep work is your friend in avoiding supply chain stressors. When a moment of extreme demand occurs, it’s too late to do anything about it. (Think masks and toilet paper during the pandemic.) Contingency planning and having a vision of where you want to take your supply chain are critical.
Think about this: Our military can put a missile into a small window hundreds of miles from its launch point. During flight the missile will be adjusted thousands of times to hit its target. However, it will never reach its target if not fired. The same goes for your supply chain changes. You need to fire the missile knowing the target. The change management process will allow you to adjust along the way. The takeaway By creating a plan now, you can be ready for the inevitable curveballs that supply chains toss out. Step 1: Know the goalLet's start with a common question. "Why does my supply chain need a change management strategy?" The answer is both obvious and complex. The obvious part was put into stark relief by the pandemic. Lead times are unpredictable, material availability isn't what it used to be, and freight has gone from a near-certainty to a sporadic headache.
Now, for the complexity. It comes from how you handle the constant changes needed to stay ahead of potential disruptions. We all know positive change needs to happen. Yet how do you ensure that when change is needed, you can execute?
So, the question morphs into: "What does my supply chain need in order to stay ahead of all these changes?" And there's your goal. Whatever your answer is to that question, now you know what you're shooting for. The takeaway Keep your goal in mind and work backwards from it. Step 2: Find your champions
The biggest reason for failure is likely people. Employees are human. Humans don't like change. Change is hard ... You can see where this is going. No matter how you look at it, employee resistance is a hurdle you'll have to cross.
To help combat this, you need champions advocating for your plan. If your changes involve multiple site locations, you’ll need champions at each of the sites. They need to sell your clear and concise strategy for change management. There are plenty of ways to go about this, but not all are equal. What you'll hear
The last two are reasonable options. However, if you can, bring in an expert who can help with previous examples and resources you can use. Remember that stat about how 70% of change programs fail? Many reasons can play into those failures. Didn't start with a plan. Lacked communication. Never had an employee "championing" the project. The takeaway You need people who can build and sustain momentum toward your desired change. Step 3: Make it happen
Good news: Your supply chain is unique. Bad news: Your supply chain is unique. The challenges you face are similar to others in your industry, but they are not so similar that a cookie-cutter solution will save you. This means you’ll have to build a roadmap that suits your needs.
In other words, before you implement a change, you should already know the key steps that lead to success. Here are SIX areas to think about
Keys to success
Final takeaway"Perfect is the enemy of good." Don't lose sight of the goal. Don't strive for perfection during the go live. Instead, embrace the lessons you learn along the way. The end results are worth the bumps in the road.
Get a head start on planning and you’ll be in a better place long term. Understand the changes needed and set goals. Then, find your champions and make it happen. Continually refining your supply chain requires organizational fortitude. The key is to fire the missile. Sources:
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