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    « Customer Centered Supply Chain at P&G | Main | Market Ends With a Roar - Housing Market?? »

    November 19, 2006

    Supply Chain Metrics

    As businesses move more and more towards accountability for results in their performance systems, metrics and measurements have become all the rage. How can you hold someone accountable for a result if you cannot measure it? This becomes harder and harder the further away from "individual contributor" status you go.

    After reading how Chevron approached it I wonder if we are not backwards in our metrics development. Most companies (it does not appear Chevron did this) design dashboards from the top down. What does the CEO need to know, then the VPs etc. etc.

    However, the only people who can really affect day to day performance and execution are those at the ground level! There are thousands of decisions being made in a supply chain every day that the CEO and VPs don't even know about let alone have any influence over. Therefore, I believe the question should be asked, "What metrics and measurements have we put in place so those executing the day to day business can actually change their behavior, strategies and tactics"?

    My guess is that there is not enough attention put in the individual contributor / basic team level (for those in the Army 'Platoon level") metrics and measurements for any change to occur.

    Thoughts?

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