What results do you want us to achieve?
- Short term results or project results for program management which are closely monitored by customers, management & employees and suppliers?
- Mid term results in the supply chain closely monitored by management, investors (roi) and regulators (compliance)?
- Temporary program or interim management results which are focused on coordination & innovation in the supply chain and the cooperation and cultural (inter-)change in the teams?
Midterm and strategic results
Midterm and strategic results are more often the reason for the existence of programs.
Investors (e.g. roi), regulators (e.g. compliance to legislation) and senior management are deeply interested, because they are widely effected. The midterm goals and strategic goals are formulated abstractly, however the results to be achieved cannot leave any space for misinterpretation.
Maybe an example will clarify this better: in one of our programs the goal was to diminish stock by means of the introduction of a number of European distribution centres whilst closing down national distribution centres. The explicit midterm goals were to open EDC’s in 3 countries (1 in south-east Europe, 1 in western Europe and 1 in the Netherlands), to staff & equip 2 of them, to close 23 NDC’s, also avoiding publicity in the separate countries, and redesigning the scheduling and ordering process. As a consequence stock was decreased by 43%.
Examples of achieved results by Red Stone Program managers: In all the programs we have been responsible for, we have achieved a minimum of 70% of all the agreed projects, however near to 100% of the all agreed targets in employee management and strategic results.
For instance, “realizing offshoring of services within 9 months, while the internal customers were serviced in a normal way during transition” or “changing the scheduling & procurement process worldwide of electronic equipment within 12 months; closing 23 national distribution centres and opening 3 European distribution centres in order to diminish stock cost with 34% ‘ or “non fuel category management and changing the ordering process in all fuel sites in France, Belgium, Luxembourg and Holland to ensure that the store profit rose by 17,5% and the CPAs approved our yearly charter”.
Short term results
Short-term results in programs are often projected results: Specific for those short-term goals is the focus on satisfying customers, suppliers and management. Investors and regulators are mostly not interested in these short-term results. Typical short-term results are “select a location for these European distribution centres, based on internal company criteria and rules, (Stakeholder: Management)”, “communicate with the National Sales Organisation, define a realistic planning to close down the specific NDC, and execute the plan (Stakeholders: Customer and Supplier)”
These goals are extremely important for communication and the decision making Red Stone Managers are trained carefully to give this explicit attention. These goals and results are essential for monthly monitoring and reporting to the program board. Through the monitoring and reporting process, we are able to initiate new projects and stop projects in full progress that are not contributing anymore to the program targets. The program board is an important governance body of the (monthly) decision making process on these matters (target achievement). The goals are fixed for duration of the program, but can be adapted through keeping an open mind to issues within the client’s organization.
Temporary program results
Temporary program results which are focused on coordination & innovation in the supply chain and the cooperation and cultural (inter-)change within the teams.
Results have to be delivered and common pitfalls for a program is to focus only on project results, or on shared resources within the program and sharing those resources with other programs or the line, or on program hygiene (reporting in any form). All of these are true, but its actually people making the business work – this is what Red Stone Management believes and this is why RSM managers are particularly good at selecting a balanced team with complementary forces to reach the agreed targets. They even prefer internal resources within the program team contributing to “unfreeze, change and refreeze” because the change will be sustainable.