| Gilmore: You’ve led the
supply chain efforts at two very large corporations
in very different industries. What are some of the
real constants about supply chain leadership that
transcend industry specifics?
LaHowchic: Well, I think part
of it is making sure you really want to be a more
a general business manager or leader in an organization
and not just a supply chain expert. That doesn’t
mean that sometime in your life you shouldn’t
have great functional expertise, but you can’t
know everything about everything. Hopefully your
skills at bringing leadership along allows you
to have great people who really have the same
desires as you have, and who have the ability
to produce similar results.
So, part of it is making sure from a company
perspective, no matter what you’re doing
in that role, that you are thinking about the
supply chain from a total company perspective.
Only in that way can you really start to connect,
because a key part of leadership is connecting
with the rest of the senior team of the company.
If you cannot relate with what is important to
them and show how your value helps them with their
individual imperatives, then you are really not
going to be able to do things for the organization
that you should be able to do.
Gilmore: In industry overall
today, there are a lot fewer COOs - Chief Operating
Officers - than there were 10-15 years ago. Is
the Chief Supply Chain Officer becoming in many
respects the new COO?
LaHowchic: That’s an interesting
question. I’d say that what has a bigger
impact is when the senior leadership team of a
company becomes a quasi-executive office. So,
supply chain and/or operations, or supply chain
and/or technology, whatever way it lays out, become
part of the two or three senior people that are
moving the organization forward.
Unfortunately, what I’ve also seen is the
politics of one organization slighting another,
saying, “We’re the new “sheriff
in town.” Versus, “This is the new
integrated way we are going to operate the company.”
So, it’s difficult to say. I’ve seen
a lot of different models work. There was a time
when technology was taking that quasi-COO role.
You saw many companies putting CIOs and supply
chains together. Others combined IT and finance
- a terrible mistake. They built systems that
were financially sound but operationally delinquent.
Gilmore: You have worked with
several CEOs. What is your advice on how to work
most effectively with a chief executive?
LaHowchic: It’s critical
to stay up on the imperatives of the company and
how you are helping them move the company forward,
not what you are doing in supply chain. You have
to understand what the agenda items are for the
CEO to be successful, and how you can link into
those things as directly as possible. That’s
the key.
In some cases, that may mean not doing the things
in supply chain that you as a technician believe
are the things to do, because you are just going
to alienate yourself rather than connect the organization
together to achieve a better level of performance.
Gilmore: Too often, supply chain
executives talk in terms of the technical aspects
of the supply chain rather from an overall business
perspective, don’t they?
LaHowchic: Exactly. You really
shouldn’t have to translate to people at
that level about how what you are doing affects
your company’s business needs. You should
be able to more generally talk about your company
and industry business. There may actually be more
need for the reverse, translating to your own
team at times and hopefully educate them on what
the connective tissue is. But it should never
have to be that way within the senior teams.
Gilmore: That is a very interesting
point. If you are at the “translation”
level, you are still not where you need to be
in terms of leadership, are you?
LaHowchic: No. It has to be
wherever the CEO is coming from. Whatever the
imperatives of the company are, you have to relate
it to that context. And in some cases - and this
happens in every function, so it is not just supply
chain – if you are looking for results from
someone, you don’t care about the 10 steps
it takes to get there. There is an understanding
from the CEO that “Look, you need to know
the 10 steps, I don’t.” So part of
leadership is understanding that.
Gilmore: Over the last couple
years, there has been this sort of iron-triangle
model regarding supply chain improvements - it’s
about people, process and technology. Is that
the right model? Did you think about change using
these three dimensions, or would you add anything
to that triangle?
LaHowchic: Work is activities,
and activities are processes done well. They can
be made more efficient and very effective. Technology
has evolved so much, and now with the Web you
have to think about it very differently. On the
people side of it, you are always operating inside
of a culture, which either needs maintained or
enhanced. So all three of those things are important,
but at times you really need to go back to the
core: “Why are we here?” And the answer
to that question is customers, associates, and
suppliers.
The whole supply chain is really trying to think
of them together, and you need to make sure they
are part of that solution set in terms of designing
what I’ll call the supply chain architecture.
In many cases, unfortunately, we get focused on
the people, process and technology first, and
then we are try reconnecting with the consumer
and the customer again. By the time the supply
chain got to that, the other stuff was irrelevant.
So, my dogma is that you continue to go back
to the customer. If you don’t keep that
straight in front of you, the rest of the stuff
is important but not sufficient.
Gilmore: There’s often
some debate about how savvy a supply chain leader
needs to be in terms of the technology side. What
is your take on that?
LaHowchic: What they need to
be savvy on I think is more what are the appropriate
capabilities, not how the technology works, and
I’ve seen some execs get tied up in that.
For example, in many cases now we have the ability
to have visibility so that we can all parallel
process. But most companies still serially process.
I don’t really care what technology allows
me to do either of those, but understanding that
the team can know everything about what is being
produced, what is being sold, and everything in
between at key milestones, so they could make
better, faster and contextual decisions based
on a response to the ultimate consumer –
that’s what the executive needs to understand.
The underlying technology capabilities that get
us there, that’s what CIOs are for.
Let me put this in simple terms. If you are a
great race car driver, how much do you need to
know why the engine burns the way it does? Your
talents and skill are taking those things and
getting a better result from it. I think your
question about the leadership is very much the
same thing. A supply chain leader is not there
to figure out what the pit crew ought to know
or what the scientist ought to know about the
engine, but to know what the engine is capable
of doing and how can I use it with other things
to move myself, my organization, and my company
where it wants to go.
Supply chain leadership needs more than ever
to change now to support the growing global nature
of business today and the rapidly accessible information
that matters to lead organizations that can better
than ever create more satisfied consumers and
profitable companies. Our belief in this new call
to action is what convinced Don Bowersox and I
to write a book with this discussion in mind called
START PULLING YOUR CHAIN! Leading Responsive Supply
Chain Transformations.
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