Framework presented at FACT 2009, showing how to effectively and efficiently implement your strategic initiatives.

1. From Strategy to Implementation:
Filling the Chasm
Shira Yoskovitch
Supply Chain (R)Evolution

2. Objectives for this session
• Provide a general framework to operationalize
strategies
• Understand the significance of the Voice of the
Customers and Suppliers
• Highlight the importance of the people, process,
systems trade-off
• Demonstrate the need and allowance for ongoing
review and continuous process improvement

3. Aligning strategy to implementation
What should you be asking yourselves?
Where do you What will it How do you
Where are
know it’s
want to be take to get
you today?
tomorrow? there? working?
Baseline: Strategy inputs Gap & impact Implementation
People analysis KPI
Processes Audit
Systems

4. Aligning strategy to implementation
The basic framework
How do you know
What will it take to get there? it’s working?
A. Strategy
Where do
inputs
you want to
be
C. Gap &
D. Implementation
tomorrow? E. Audit
Impact
& KPI
Analysis
Where are
B. Baseline
you
today?

5. The People, Process, Systems Trade-off
Process
The action
Strategy
Stakeholders
Customers
Suppliers
People Systems
Market
... How action is
Who actions performed

6. Why follow this framework?
• It forces holistic consideration
• Provides opportunity to validate that the strategy will be
achieved at each opportunity
• Consistency and clarity- better opportunity for adoption by
internal and external teams, and achievement of strategy
KPI’s
• It works in different strategic development scenarios (new
and redesigns)

7. A. Strategy inputs
Remember the “5 W’s” and the “H”- what is driving the
strategy?
• Competitive landscape
• Is this a divisional or corporate strategy?
• Near and long-term strategy
• Intended outcomes

8. B. Today’s state
Understanding today’s business environment
Who
performs
Understanding what is actually the actions
done in the process (versus what
was intended in design) is the key
to establishing a proper baseline.
Today’s
Internal
The tools
and
utilized to
external
world execute
Suppliers
To do so, you need to consider
and document all major
elements in a holistic sense Internal
and
external
Customers

9. B. Today’s state
Documenting the process
Supplier(s) Process Outputs Customer(s)
Inputs
• Identify key (core) processes that will directly impact the strategic KPI’s
• For each process, identify the suppliers & inputs, as well as the outputs
& customers.

10. B. Today’s state- the “Who”, “What” & “How”
Connect the processes to understand workflow
Outputs
Supplier(s) Process Customer(s)
Inputs
Supplier(s) Process Outputs Customer(s)
Inputs
Supplier(s) Process Outputs Customer(s)
Inputs
• Customers of one process are often the suppliers for another in the
workflow.
• These dual roles, as well as the handoffs, are key signals for
efficiency and / or value leaks

11. B. Today’s state- the “Who”, “What” & “How”
The full picture- people, processes, systems
Home delivery programs (EPP, UCC, VIP, Builder)- Inventory and outbound (first time) orders- DRAFT v2 (page 3)
ng/ Cdn Inventory / Warehouse / Trans.
Sales Credit Department Merch Ops Order Desk Customer
Supplier Mgmt Provider
Continue from page 2 Continue from page 2
I17. Loads failed
O14. UCC /
(exceptions) report
Yes
Builder?
generated
Who is performing the steps? O15. Make
O16. Call Customer photocopy of order to
I18. Model # on
for credit card info hand carry to Credit
report?
dept. (6)
O17. Provide credit
Yes
card number and
Which tools and systems are authorization
I19. Supply Planner
used to execute?
reviews C009
O18. Credit release
in SAP (7)
O19. Order transmits
I20. Pipeline to warehouse (8)
changes
needed?
Yes
I21. New po or Whse
change existing? fulfillment
How many handoffs are required
process
Change
to complete the task?
I22. Close
current po
New
memo
release (5)
O20. Customer
accept delivery?
I23. Manually
generate PO in SAP
No Yes
to FDC
Go to
End
returns
process
Back to page 1
(FDC confirmation
of PO)

12. B. Today’s state- the “Why”
The voice of the customer and suppliers
Inputs
Supplier(s) Process Outputs Customer(s)
Internal and external partners- who are they?
What do they need from you to successfully execute their actions?
What do you need from them to successfully execute your actions?
Understanding these early will reduce the noise and increase adoption rates,
therefore improving likelihood of achieving strategic kpi’s.

13. B. Today’s state- the “Why”
An example of the Voice Of The Customer exercise
Inventory accuracy are dependencies across teams
Order Warranty /
Warehouse Carrier
management Installation Ops
Internal Customer
Account managers
Who are Warehouse Warranty Ops Account managers
Order management
Warranty Ops Installation Ops Carrier
they?
Credit department
What do • Order is aligned with • Accurate delivery • Accurate customer
they need / • Timely receiving
inventory availability status info
• Raise issues asap • Accurate inventory • Timely shipping • Accurate
want from
• Accurate order info issue reporting replacement needs
you?
Order management
Who are End consumer
Carrier End consumer End consumer
Customer
Retailer
they?
External
Retailer
What do
• Order delivered per • Ordered delivered • Clear statement of
they need / • Damage-free product
commitment per commitment services and cost
• Timely scheduling
want from • Raise issues asap • Raise issues asap • Timely action
you?
Order delivery and issue identification are critical, but to different teams at different times

14. B. Today’s state- the “Why”
Needs vs. Wants & Urgent vs. Important
Using the Voice of Customer / Supplier exercises, separate each
according to Urgent, Important, Needs, Wants
Impact on Separating these 4
High(er) Important Urgent
value leaks elements lets you focus
energy on where you
(internal and
should be looking for
external
Low(er) Wants Needs
performance
fiscal KPI)
improvements.
Low(er) High(er)
This will become
Impact on ease of doing business
increasingly influential once
(internal and external partner
the gap analysis is done.
relationships)

15. C. Gap and impact analysis
The strategy- The baseline-
The Gap
where you want to be where you are today
1. Workflow and system gaps
Then
2. Human resource gaps

16. C. Gap and impact analysis
Revisiting the “Why”
Important Urgent
• Plot each gap against the
• •
Installation / tech service triage Select delivery date at time of
impact grid. High(er) order placement
• order changes- call centre
• Address validation logic
• Systemic credit card validation
• Check in with your • Automated order entry
Impact
stakeholders- is everyone on
aligned? value
Wants Needs
leaks
• Revisit your strategic KPI- do • •
Contract management tool Warehouse- extended visibility
window to outbound order
they align with how the gaps Low(er)
schedules
are identified? • Customer visibility- order
status- via call centre
• If your short and long term • Preselect package at kiosk
strategies differ, you will need Low(er) High(er)
to repeat this exercise for each
Impact on
ease of doing
business

17. C. Gap and impact analysis
Addressing time constraints in impact analysis
• Once the gaps are identified and ranked, time sensitivities need to
be considered:
– Marketplace changes (including competitive impacts)
– Partner requirements
– Seasonal impacts
• With the addition of time constraints, it may become necessary to
revisit the strategic priorities decided earlier, to ensure that they
account for the impact of the time sensitivities.

18. D. Implementation and KPI
Defining timelines
Step 1: Step 2: Step 3:
Rank each gap For each gap,
consider:
• Definition & development Combine all time
1. Urgent
• Role & responsibility requirements
2. Need
definition
3. Important
• Training
4. Want
• Testing (!!!)
Are all stakeholders aligned?

19. D. Implementation and KPI
Testing, Testing, Testing!
Spend the time now, or spend more time and money later
• User Acceptance Testing (UAT): how does the User interact with the
process and / or system? Is it as was intended?
• Quality Assurance / Quality Control (QA/QC) testing: does the system or
tool produce the results intended in a controlled and uncontrolled
environment?
How much time should you spend?
A rule of thumb is:
Testing time = 1/3 of development + coding time
i.e. if you spent 6 months developing & coding, testing period is 2 months

20. D. Implementation and KPI
Defining Go / No-go metrics and KPI’s
• Go and No-Go metrics: important for new or significantly altered program
• Operational KPI’s:
– Each core process must be measured
– People, processes and Systems all need KPI’s
– Not all operational KPI’s are purely financial
All metrics must:
1. be clearly defined, understood, and directly linked to specific elements
2. be clearly and openly measurable
be absolutes- there’s no room for a “maybe” state
3.

21. E. Ongoing audit and process improvement
Review, tweak and then let it settle down
• Regular and frequent checkpoints during and post-implementation
– Review metrics
– Decide go / no-go
– Corrective actions as necessary
– Is everyone aligned?
Keep in mind:
Changes will be required once the program moves to ongoing operations.
The regular audits are there to identify and action tweaks as early as possible
Once you make a change, give it time to let the noise settle down.

22. Key Takeaways
• Clarity of purpose and performance is key
• Communication, communication, communication
• Review and tweaks are inevitable, but let them settle down.
• While the length and complexity of each stage may differ depending on
the nature of the strategy, the process should remain the same.
The outcomes:
A more efficient, flexible and sustainable program
Better and more effective change management
Greater likelihood of achieving your long terms KPI’s