Page 485 - Fundamentals of Management Myths Debunked (2017)_Flat

484 Part 5 • Controlling
identifying, capturing, and providing the highest possible value to customers. For example,
when American Standard Companies began its pursuit of value chain management, the CEO
attended dozens of meetings across the country explaining the changing competitive environ-
ment and why the company needed to create better working relationships with its value chain
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partners. Throughout the organization, then, managers should clarify expectations regard-
ing each employee’s role in the value chain. Being clear about expectations also extends to
partners. For example, managers at American Standard identified clear requirements for sup-
pliers and were prepared to drop any that couldn’t meet them. The company was so serious
about its expectations that it did cut hundreds of suppliers from air-conditioning, bath and
kitchen, and vehicle control systems businesses. The upside, though, was that those suppliers
that met the expectations benefited from more business and American Standard had partners
that could deliver better value to customers.

Flexibility. Flexibility. Flexibility.

(5) eMPloyees/huMan resourCes. We know from our discussions of management
theories and approaches throughout this textbook that employees are the organization’s
most important resource. So, not surprisingly, employees play an important part in value
chain management. Three main human resources requirements for value chain management
are flexible approaches to job design, an effective hiring process, and ongoing training.
Flexibility is the key description of job design in a value chain management organization.
Traditional functional job roles—such as marketing, sales, accounts payable, customer ser-
vice representative, and so forth—are inadequate in a value chain management environment.
Instead, jobs need to be designed around work processes that link all functions involved in
creating and providing value to customers. This type of flexible job design supports the com-
34
pany’s commitment to providing superb customer value. In designing jobs for a value chain
approach, the focus needs to be on how each activity performed by an employee can best
contribute to the creation and delivery of customer value, which requires flexibility in what
employees do and how they do it.
The fact that jobs in a value chain management organization must be flexible contrib-
utes to the second requirement: Flexible jobs require employees who are flexible. In a value
chain organization, employees may be assigned to work teams that tackle a given process
As the global VP for team member services and are often asked to do different things on different days, depending on need. In an envi-
for Whole Foods Market, Mark Ehrnstein
ensures that the retailer’s culture of sharing, ronment focusing on collaborative relationships that may change as customer needs change,
respect, and trust extends to all value chain employees’ ability to be flexible is critical. Accordingly, the organization’s hiring process
members. It encompasses the firm’s core must be designed to identify those employees who have the ability to quickly learn and adapt.
values of creating win-win partnerships with
suppliers, delighting and nourishing Finally, the need for flexibility also requires a significant investment in ongoing employee
customers, and supporting employee training. Whether the training involves learning how to use information technology software,
happiness and excellence.
how to improve the flow of materials throughout
the chain, how to identify activities that add value,
how to make better decisions faster, or how to im-
prove any number of other potential work activities,
managers must see to it that employees have the
knowledge and tools they need to do their jobs. For
example, at defense and electronics contractor Alenia
Marconi Systems, based in Portsmouth, England,
ongoing training is part of the company’s commit-
ment to efficiently and effectively meeting the needs
of customers. Employees continually receive techni-
cal training as well as training in strategic issues,
including the importance of emphasizing people and
customers, not just sales and profits. 35

(6) organIzatIonal Culture and attI­
tudes. The last requirement for value chain
management is having a supportive organizational
Austin American-Statesman/MCT/Landov