I interviewed David Rogers who discussed Building Strategic Business Alliances.
David is currently running his own boutique consulting business called Insync Supply Chain Management providing an extensive range of supply chain consulting services with the main target of improving customer satisfaction levels, reducing costs, increasing profitability and providing a competitive advantage to clients.
Prior to starting his own business, David worked in the corporate environment in various senior supply chain management positions with blue chip companies
David has a Masters Business Degree in Logistics and a Diploma of Transport and Distribution (RMIT), Diploma of Project Management. David also holds Certificates in Business, Finance Management, Change Management, Materials Handling Management, Distribution Management, Training and Assessment and is a Certified Logistics and Supply Professional Asia Pacific (CLSP-AP), Certified Professional Logistician Australia (CPL).
David is the Chairman Asian Pacific Logistics Federation (APLF), Immediate Past Chairman of the Supply Chain Logistics Australia Association (SCLAA) and currently an Independent National Director, Australian Round table President of the Council of Supply Chain Management Professionals (CSCMP), National Councillor for GS1 Board in Australia.
David is also a member of the Logistics Advisory group – Transport and Logistics Skills Council and member of the International Trade and Advisory committee - RMIT
David has also lectured on Supply Chain Management at RMIT and Victorian University.
In your opinion what must be in place for Alliances to form?
The orchestration and facilitation of conversations between entities to establish a mutual benefit. – needs independent objective facilitation.
This involves mapping, analyzing and understanding the connections across the value chain to identify the key preferred connections.
Identify a need, problem, opportunity that is of mutual benefit to the select businesses and other entities involved in forming the alliance relationship
Agree on a shared purpose – vision, mission and values
Understand different business drivers and value propositions
Establish threshold conditions (Capability elements)
Build Trust between each other by determining:
- Alliance preparedness (Alliance cultural alignment internally as well as externally)
- Alliance readiness
- Alliance Feasibility
- Alliance Compatibility
- Alliance Leadership
- Alliance Governance
Structure that trust – Terms of Agreement
Monitor and Measure performance
Everyone is held accountable and responsible for the execution and the results
What are the barriers to such relationships?
Lack of trust
Different business drivers
Inability to grasp that we live in a networked society and a highly interconnected world (Systems thinking)
Myopic mindsets – moving from what’s in it for me to what is in in it for us
‘What does not benefit the hive does not benefit the bee’ – Marcus Aurelius (150 AD) he also said we are all parts of a whole
Competition based in industrial mind-sets
Reductionist mindsets rather than value creation mindsets working toward creating and capturing new shared and mutually beneficial value across the system in terms of solution value, financial value and incremental market values
Lack of investment in the futuretend to think in terms of the short term product scope rather than the long-term and envisaging the exponential and rapid growth opportunities that exist across a whole system through preferred attachment models for finding the hidden assets in a systemthat create and capture new value for all players.
What is happening outside ofindustrysectors that are influencing the industry sectors that you think needs to be addressed?
Look at CSIRO – Megatrends (Suggested reading)
The Network Imperative (Book)
Network business models (Orchestration)
Design Thinking methodologies
- Rate of technological change
- Shelf life of current products and services
- Lead time to develop new products
- Consumer trends – customer demographics and expectations
- Skills base – how long it takes to develop new skills
- Competitors initiatives
- Capital flexibility
- Political factors
- Economic factors
- Social factors
What are the other variables in the system?
What else can you think of that influences the industry, whether internal or external to your organization
Lack of seeing the problems we face as cross-disciplinary both internally and externally
Gets back to world views and mind sets
We are all in this together
What is the relationship between these forces?
Continuous and rapid Disruption
About David Rogers
Chairman at Asia Pacific Logistics Federation