
28 • Value Analysis and Engineering Reengineered
the performance of each small piece of the fulllment stream. But such
a setup supports only isolated functional silos and leads to continually
optimizing a piece of the stream at the expense of the whole. Silo thinking
or verticalization suboptimizes. Organizations should reorient themselves
away from managing functions toward facilitating interconnected hori-
zontal processes in the supply value chain. With horizontal management,
organizations will be able to work in teams and networks across organiza-
tional silos, and that would be central to good governance.
e question is, how much of each ...