1: Ensure that Executives are in Sync with the Change Process
Companies that quickly achieve their intended results from their SCM system initiatives have secured their executives' backing for the programs right from the start. Top performers clearly define the planned changes and how these changes will support the company's strategy going forward. The executive management team then ensures that the organization understands what will be required--both in terms of the practices that must change and the resources required to sustain the change. The top team must demonstrate unshakeable commitment to the initiative as commitments "written in stone." The plan should have a robust multi-year roadmap with measurable milestones. Even if the executive team starts out with that level of alignment, they should reinforce it as often as necessary in the post-implementation phase.
Companies that lack the strong organizational commitment needed to drive strategic change often look for reasons to avoid presenting clearly targeted benefits and expectations from SCM systems. During the Y2K rush and the dot-com boom, a familiar quote was, "We don't need a business case to know that this is the right investment to make." To be sure, not all SCM benefits include tangible, measurable savings. But successful companies continually test long-term commitment and executive alignment in their reviews of investment plans and the anticipated return on investment (ROI).
We know of one chemical company that went through a series of mergers and acquisitions. Afterwards, it operated as …