A successful plan should be flexible in nature and subject to improvement. It should also be subject to enforcement to be effective. A successful plan is evaluated by the extent that a plan is in conformity with the objectives of the organization and to the extent a plan satisfied the requirements of cost, speed, quality and return on investment.
Our strategy helps guide the management in selecting the best sources–those that will raise performance to world-class levels and improve competitiveness. To improve sourcing decisions, the concept of the Strategic Business Unit, or SBU, is applied to each source being considered to provide the company with goods and services. Following the SBU approach, similar product and service lines are grouped together in the corporation. As a result quality levels, delivery performance, customer service, and product advancements, as well as costs, are more easily measured and improved. Just as the focus on these five criteria leads to improved SBU performance, the same approach can be applied to enhance the performance of the individual sources of goods and services. This is accomplished by similarly quantifying and improving the quality, delivery, cost, customer service and product advancement performance of the companies’ sources, whether outside suppliers or in-house functions.
To achieve the best results we must first be willing to engage in the best ingredients. This is when we start to compromise and negotiate and decide what we really need. What outcome do we need today? Can we afford the best? Do we need the Best?
We all have dreams of being a fortune 500 company, but sometimes we need to take smaller steps to get there. So when you are focusing on the results you wish to achieve from the changes you are about to make, be sure you are ready… both mentally and financially.