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Supply Chain Transformation: Practical Roadmap to Best Practice Results by Richard Sherman

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Chapter 3

Market Drivers and the Dynamics of Change

So, change is inevitable and we've put the business in perspective. We have established a road map and game plan, and we're ready to start on the yellow brick road to Leader City and our transformational journey. Becoming a resident of Leader City, though, requires innovative approaches to the market environment that we operate in. In my experience, most companies are entrenched in a culture of efficiency. They are at level three in transformational culture maturity, and they think that progress is driven by incrementally trying to squeeze cost out of the company's operations each year. And they assume it will never end.

The problem with level three is its comfort in complacency. People really like the security of level two and the good feeling from level three. Change may disrupt that feeling of comfort. So they resist it and try to control their environment and do everything in their power to maintain the status quo. In reality, the market cannot be controlled, as more than 80 percent—or 400 of the original Fortune 500 from 1955 that are no longer in that revered group can attest. If you aren't scanning the market for emerging trends and assessing the impact they might have on your business, you may find yourself among the many casualties of market dynamics...the collateral damage of change.

Leaders, as we have said, are often at level four or five in transformational culture maturity. They have the confidence and esteem to ...

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