Avoiding Corporate Death: Part III

In previous postings, I’ve mentioned employee retention and morale. Let’s take a look at how the data plotted for “likely financial performance.”
By Robert A. Rudzki, SCMR Contributing Blogger
September 04, 2012 - SCMR Editorial

The global research results demonstrate a clear relationship between an organization’s overall Beat the Odds (BTO) score across nine core principles, and key corporate longevity issues such as employee retention, employee morale, industry rank, and financial performance.

In previous postings, I’ve mentioned employee retention and morale. Let’s take a look at how the data plotted for “likely financial performance.” For survey participants who indicated that their organization’s future financial performance was likely to exceed their corporate cost of capital (red line in the Figure below), the BTO scores were significantly better. A similar pattern emerged for “recent financial performance.”

image

The research white paper has other graphs and analyses. So, if you like data, or graphs, you can download the entire white paper here

What does it all mean?

Simply put, the survey’s results are a “wake up call” to organization leaders regarding the importance of continual diagnosis and attention to core principles. In the current, dynamic business environment, it is easy to become consumed with daily emergencies and managing complexity. In fact, as the survey’s results suggest, most organizations are among the “walking wounded” long before their problems manifest themselves in their financial statements.

That is why senior leadership of organizations must set aside time to focus on periodic and comprehensive health checkups for their organizations, and pay attention to core principles on an ongoing basis.

What exactly are the nine “core principles” I refer to? My next posting will cover that.



About the Author

image
Robert A. Rudzki
SCMR Contributing Blogger
Robert A. Rudzki is a former Fortune 500 Senior Vice President & Chief Procurement Officer, who is now President of Greybeard Advisors LLC, a leading provider of advisory services for procurement transformation, strategic sourcing, and supply chain management. Bob is also the author of several leading business books including the supply management best-seller "Straight to the Bottom Line®", its highly-endorsed sequel "Next Level Supply Management Excellence," and the leadership book "Beat the Odds: Avoid Corporate Death & Build a Resilient Enterprise." You can reach him through his firm's website: http://www.GreybeardAdvisors.com

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Both the mega-port of Los Angeles, and the Port of Oakland (California's third largest ocean cargo gateway, issued positive reports this month.

The American Association of Port Authorities (AAPA) applauded introduction of The Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (TPA-2015), which is bipartisan legislation to modernize and renew U.S. Trade Promotion Authority (TPA).

Container lines must accelerate their internal-transformation efforts and extract more value from their alliances in order to restore profitability, according to a new report by The Boston Consulting Group (BCG).

A.T. Kearney released the 2015 Global Retail E-Commerce Index, a study designed to help retailers devise successful global online retail strategies and identify market investment opportunities while understanding the tradeoffs and barriers to success.

The MIT Center for Transportation & Logistics (CTL) invites readers to participate in a short survey regarding Supply Chain Visibility in their organizations.

Article Topics

Blogs · Global · Procurement · Organization · All topics

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. Contact Patrick Burnson

Comments

Post a comment
Commenting is not available in this channel entry.