Supply chain especially procurement drives almost 70% of commodities daily in companies to sustain the performance for strategic intent. Working in an environment where teams function cross-functional and also building relationships with suppliers performance normally give rise to high expectations both for the company contracting suppliers and the suppliers conducting various tasks contractually to fulfil demanding orders. Defence and contractual defence commodities in South Africa has decreased exponentially since 1980 till 1994 even so today that many suppliers have lost their skills and manufacturing ability to inter a market that is very risky today. Besides the normal performance measurement rating a supplier as an approved supplier, the author argued with existing frameworks how little modern and well established companies know about their suppliers contributing to strategy.
Taking the conceptual frameworks based on performance, quality, SRM (Supplier Relationship Management) and SOB (Supplier Organisational Behaviour) the author is of opinion that suppliers can be measured using organisational behaviour concepts to enhance performance at suppliers. The research will contribute new ideas developed by others as a concept to gain information about the behavioural patterns why key suppliers contributing for Company X cannot perform effective and efficiently. By means of a survey targeting keys suppliers the research formulated wanted to gain tacit information about the following elements that drives performance from a project management approach:[...]
TABLE OF CONTENTS
DECLARATION
DEDICATION
ACKKNOWLEDGEMENTS
ABSTRACT
GLOSSARY OF TERMS
TABLE OF CONTENTS
LIST OF FIGURES
LIST OF TABLES
CHAPTER 1: INTRODUCTION AND BACKGROUND
1.1 INTRODUCTION
1.2 BACKGROUND TO THE PROBLEM
1.3 PROBLEM STATEMENT
1.4 THE RESEARCH QUESTION
1.5 THE SUB-INVESTIGATIVE QUESTIONS
1.6 THE PRIMARY OBJECTIVE OF THE RESEARCH STUDY
1.7 THE RESEARCH THESIS CONSTRAINTS
1.8 THE STRUCTURE OF THE THESIS
1.9 CHAPTER 1: SUMMARY
CHAPTER 2: LITERATURE REVIEW
2.1 INTRODUCTION
2.2 SUPPLY CHAIN MANAGEMENT
2.3 PERFORMANCE MANAGEMENT
2.4 SUPPLIER RELATIONSHIP MANAGEMENT
2.5 LEADERSHIP BEHAVIOURS & LEADERSHIP STYLES
2.6 TEAM METRICS AND TEAM COLLABORATION
2.7 CULTURE AND PERSONALITY VALUES
2.8 JOB SATISFACTION
2.9 STRESS AND MOTIVATION
2.10 TRUST JUSTICE AND ETHICS
2.11 QUALITY CONCEPTS FOR SUPPLIERS
2.12 LEARNING AND DECISION-MAKING STRATEGIES
2.13 ORGANISATIONAL STRUCTURE
2.14 CHAPTER 2 SUMMARY
CHAPTER 3: RESEARCH DESIGN AND METHODOLOGY
3.1 INTRODUCTION
3.2 RESEARCH DESIGN
3.3 POPULATION AND SAMPLING
3.4 SUPPLIER PERFORMANCE QUESTIONNAIRE (SPQ)
3.5 SUPPLIER QUALITY QUESTIONNAIRE (SQQ)
3.6 GENERERIC CONTENT OF THE SPQ
3.7 PRE-TESTING OF THE QUESTIONNAIRES
3.8 DATA ANALAYSIS
3.9 ETHICAL CONSIDERATIONS OF THIS THESIS
3.10 THE THESIS ANTICIPATED RESEARCH ASSUMPTIONS
3.11 THE THESIS CONSTRAINTS
3.12 CHAPTER SUMMARY
CHAPTER 4: DATA ANALYSIS
4.1 INTRODUCTION
4.2 RESPONDED MEASURED SAMPLING
4.3 RESPONSE OF SPQ AND SQQ
4.3.1 SUPPLIER # A# RESPONSE DATA
4.3.2 SUPPLIER # B# RESPONSE DATA
4.3.3 SUPPLIER #C# RESPONSE DATA
4.3.4 SUPPLIER #D# RESPONSE DATA
4.3.5 SUPPLIER #E# RESPONSE DATA
4.3.6 SUPPLIER #F# RESPONSE DATA
4.3.7 SUPPLIER #G# RESPONSE DATA
4.3.8 SUPPLIER #H# RESPONSE DATA
4.3.9 SUPPLIER #J# RESPONSE DATA
4.3.10 SUPPLIER #K# RESPONSE DATA
4.3.11 SUPPLIER #L# RESPONSE DATA
4.3.12 SUPPLIER #M# RESPONSE DATA
4.3.13 SUPPLIER #N# RESPONSE DATA
4.3.14 SUPPLIER #O# RESPONSE DATA
4.3.15 SUPPLIER #P# RESPONSE DATA
4.3.16 SUPPLIER #Q# RESPONSE DATA
4.4 SPQ RESPONSE FOR JOB PERFOMANCE
4.5 SPQ RESPONSE FOR COMMITMENT
4.6 SPQ RESPONSE FOR STRESS
4.7 SPQ RESPONSE FOR MOTIVATION
4.8 SPQ RESPONSE FOR TRUST, JUSTICE AND ETHICS
4.9 SPQ RESPONSE FOR LEARNING AND DECISION-MAKING
4.10 SPQ RESPONSE ON LEADERSHIP SKILLS
4.11 SPQ RESPONSE ON SUPPLIER TEAM WORK
4.12 SPQ RESPONSE ON CULTURE AND DIVERSITY
4.13 RELIABILITY ANALYSIS FOR THE SPQ RESPONSES
4.14 VALIDATING PERFORMANCE OF KEY SUPPLIERS
4.15 VALIDATING SQQ AND SUPPLIER JIT RESPONSE
4.16 CHAPTER SUMMARY
CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS
5.1 INTRODUCTION
5.2 OVERVIEW OF THE RESEARCH STUDY
5.2.1 CHAPTER 1 OVERVIEW
5.2.2 CHAPTER 2 OVERVIEW
5.2.3 CHAPTER 3 OVERVIEW
5.2.4 CHAPTER 4 OVERVIEW
5.3 CONCLUSION OF THE RESEARCH STUDY
5.3.1 JOB PERFORMANCE
5.3.2 COMMITMENT
5.3.3 STRESS
5.3.4 MOTIVATION
5.3.5 TRUST JUSTICE AND ETHICS
5.3.6 LEARNING AND DECISION MAKING
5.3.7 LEADERSHIP SKILLS
5.3.8 TEAM PERFORMANCE
5.3.9 CULTURE AND DIVERSITY
5.3.10 SUMMARY ON SUPPLIER PERFORMANCE
5.3.11 SUMMARY ON JIT PERFORMANCE
BIBLIOGRAPHY
APPENDIX A:SUPPLIER PERFORMANCE QUESTIONNAIRE(SPQ)
APPENDIX B:SUPPLIER QUALITY QUESTIONNAIRE (SQQ)
APPENDIX C:COMBINED CRONBACH ALPHA CALCULUS ON PERFORMANCE
APPENDIX D: COMBINED CRONBACH ALPHA CALCULUS ON STRESS
APPENDIX E: COMBINED CRONBACH ALPHA CALCULUS ON STRESS
APPENDIX F:COMBINED CRONBACH ALPHA CALCULUS ON MOTIVATION
APPENDIX G:COMBINED CRONBACH ALPHA CALCULUS ON TRUST, JUSTICE AND ETHICS
APPENDIX H: COMBINED CRONBACH ALPHA CALCULUS ON LEARNING AND DECISION MAKING
APPENDIX I:COMBINED CRONBACH ALPHA CALCULUS ON LEADERSHIP SKILLS
APPENDIX J: COMBINED CRONBACH ALPHA CALCULUS ON TEAMS
APPENDIX K: COMBINED CRONBACH ALPHA CALCULUS ON CULTURE AND DIVERSITY
declaration
‘I, Louis Jansen van Rensburg, hereby declare that the contents of this thesis submitted for the degree Doctor in Project Management at Atlantic International University (AIU), represents my own original unaided work and that this thesis has not previously been submitted to any other institution of higher education towards any qualification. I further declare that all sources cited or quoted are indicated and acknowledged by means of a comprehensive list of references”.
Louis Jansen van Rensburg
19/08/2013
Copyright © Atlantic International University (AIU) 2013
DEdICATION
‘This research thesis is dedicated to myself for showing commitment and motivation to conduct research work on this level of achievement to obtain satisfaction to accomplish a milestone in my academic live to date. Without God’s grace and glory such accomplishment will not be possible in this life on earth.
Thanks to Edward Lambert my personal AIU tutor that always encourage me throughout the study program.
To Melinda that always boost and encourage me being my best friend, loving partner in my social and working environment contributing her passion and energy in a motivational spirit seeing me working on academic work to complete this thesis with passion.
acknowledgements
“I would like to express my sincere gratitude and appreciation to the following people and / or parties who have enabled me to complete this work:
My closest family and loved ones giving me the support;
My own motivation and aspiration to grow and develop my dream;
I would like to convey my sincere thanks to my study advisor, Dr. Franklin Valcin for his immense knowledge, advice and guidance during my E-study period at AIU and on various assignments leading to this degree program. I am honoured to be part of AIU and that Dr, Valcin contributed to my work and reviewing my thesis.”
abstract
Supply chain especially procurement drives almost 70% of commodities daily in companies to sustain the performance for strategic intent. Working in an environment where teams function cross-functional and also building relationships with suppliers performance normally give rise to high expectations both for the company contracting suppliers and the suppliers conducting various tasks contractually to fulfil demanding orders. Defence and contractual defence commodities in South Africa has decreased exponentially since 1980 till 1994 even so today that many suppliers have lost their skills and manufacturing ability to inter a market that is very risky today. Besides the normal performance measurement rating a supplier as an approved supplier, the author argued with existing frameworks how little modern and well established companies know about their suppliers contributing to strategy.
Taking the conceptual frameworks based on performance, quality, SRM (Supplier Relationship Management) and SOB (Supplier Organisational Behaviour) the author is of opinion that suppliers can be measured using organisational behaviour concepts to enhance performance at suppliers. The research will contribute new ideas developed by others as a concept to gain information about the behavioural patterns why key suppliers contributing for Company X cannot perform effective and efficiently. By means of a survey targeting keys suppliers the research formulated wanted to gain tacit information about the following elements that drives performance from a project management approach:
- Supplier leadership,
- Supplier teams,
- Supplier personality and culture,
- Supplier job satisfaction,
- Supplier stress,
- Supplier motivation,
- Supplier Trust & Ethics and
- Supplier learning and decision making
glossary of terms
illustration not visible in this excerpt
TABLE OF CONTENTS
LIST OF FIGURES
Figure 1.1: Key Supplier Performance in
Figure 2.1: Supply Chain Management
Figure 2.2: Basic Management Duties
Figure 2.3: Strategy Performance Framework
Figure 2.4: Performance Matrix
Figure 2.5: The Three Cultures
Figure 2.6: The Organisational Value Chain
Figure 2.7: The Seven S Framework
Figure 2.8: The Parts of the Mind
Figure 2.9: Purchase Categories
Figure 2.10: Supplier-Company Relationship Lifecycle
Figure 2.11: SRM Benefit on Cost Data
Figure 2.12: : Krause and Handfield supplier development model
Figure 2.13: Five Steps of Procurement Management Cycle
Figure 2.14: The Knowledge Value Creation Model
Figure 2.15: Strategic sourcing process model
Figure 2.16: Sourcing Value Chain
Figure 2.17: The power of Leadership and Influence
Figure 2.18: Attributes of Great Leaders
Figure 2.19: The 8th Habit
Figure 2.20: An Attribution Leadership Model for poor performance
Figure 2.21: Transactional Leadership Model
Figure 2.22: The Balance Scorecard by Kaplan and Norton
Figure 2.23: The Leadership Code
Figure 2.24: The Team Trilogy
Figure 2.25: Transformational Leadership and Team Performance
Figure 2.26: Workplace Social Exchange Network Flow Diagram
Figure 2.27: Fundamental Attitudes and Behaviour in Conflicts
Figure 2.28: Influence of Culture on Behaviour
Figure 2.29: RIASEC model
Figure 2.30: Correlation between Job satisfaction & various dimensions
Figure 2.31: Job Characteristic Theory
Figure 2.32: Goal Difficulty and Task Performance
Figure 2.33: Maslow’s Need Hierarchy
Figure 2.34: Model of Ethical behaviour in the work
Figure 2.35: Competitive Benefits of TQM
Figure 2.36: The Deming Cycle of Improvement
Figure 2.37: The 4-P Model
Figure 2.38: The Benchmarking Process
Figure 2.39: Quality Costs-Traditional
Figure 2.40: Quality Costs-Continuous Improvement
Figure 2.41: Seven Quality Control Tools
Figure 2.42: Customer Driven CRM System
Figure 2.43: Quality Action Cycle
Figure 2.44: Consensus Decision making
Figure 2.45: Contingency model for Decision Strategies
Figure 3.1: Research Methodology Approach
Figure 3.2: Performance Matrix
Figure 4.1: Measured Dimensions Supplier A-SPQ
Figure 4.2: Measured Dimensions Supplier A-SQQ
Figure 4.3 Measured Dimensions Supplier B-SPQ
Figure 4.4: Measured Dimensions Supplier B-SQQ
Figure 4.5: Measured Dimensions Supplier C-SPQ
Figure 4.6: Measured Dimensions Supplier C-SQQ
Figure 4.7: Measured Dimensions Supplier D-SPQ
Figure 4.8: Measured Dimensions Supplier D-SQQ
Figure 4.9: Measured Dimensions Supplier E-SPQ
Figure 4.10: Measured Dimensions Supplier E-SQQ
Figure 4.11: Measured Dimensions Supplier F-SPQ
Figure 4.12: Measured Dimensions Supplier F-SQQ
Figure 4.13: Measured Dimensions Supplier G-SPQ
Figure 4.14: Measured Dimensions Supplier G-SQQ
Figure 4.15: Measured Dimensions Supplier H-SPQ
Figure 4.16: Measured Dimensions Supplier H-SQQ
Figure 4.17: Measured Dimensions Supplier J-SPQ
Figure 4.18: Measured Dimensions Supplier J-SQQ
Figure 4.19: Measured Dimensions Supplier K-SPQ
Figure 4.20: Measured Dimensions Supplier K-SQQ
Figure 4.21: Measured Dimensions Supplier L-SPQ
Figure 4.22: Measured Dimensions Supplier L-SQQ
Figure 4.23: Measured Dimensions Supplier M-SPQ
Figure 4.24: Measured Dimensions Supplier M-SQQ
Figure 4.25: Measured Dimensions Supplier N-SPQ
Figure 4.26: Measured Dimensions Supplier N-SQQ
Figure 4.27: Measured Dimensions Supplier O-SPQ
Figure 4.28: Measured Dimensions Supplier O-SQQ
Figure 4.29: Measured Dimensions Supplier P-SPQ
Figure 4.30: Measured Dimensions Supplier P-SQQ
Figure 4.31: Measured Dimensions Supplier Q-SPQ
Figure 4.32: Measured Dimensions Supplier Q-SQQ
Figure 4.33: High and Low Values for Job Performance
Figure 4.34: High and Low Values for Commitment
Figure 4.35: High and Low Values for Stress
Figure 4.36: High and Low Values for Motivation
Figure 4.37: High and Low Values for Trust, Justice and Ethics
Figure 4.38: High and Low Values for Learning and Decision Making
Figure 4.39: High and Low Values for Leadership Skills
Figure 4.40: High and Low Values for Team Work
Figure 4.41: High and Low Values for Culture and Diversity
Figure 4.42: Total Scoring Values for Key Suppliers
Figure 4.43: Key Supplier Performance Evaluation
Figure 4.44: JIT Supplier Evaluation
Figure 4.45: Supplier JIT Evaluation
Figure 5.1: Job performance Breakdown at Suppliers
Figure 5.2: Supplier Team Performance Tuckman Plot presentation
Figure 5.3: Key Supplier Performance Evaluation
Figure 5.4: Supplier JIT Evaluation
list of tables
Table 2.1: Supplier Attribute Model
Table 2.2: Supplier Relationship Matrix
Table 2.3: When to use conflict resolution styles
Table 2.4: Predictive and Effectiveness
Table 2.5: Eight steps for successful change
Table 2.6: Ten Commitments of leadership
Table 2.7: A framework for Emotional Competencies
Table 2.8: Stressful Life Events
Table 2.9: Principles of Vertical Loading
Table 2:10 Phases & elements of ethical management
Table 2.11: Limitations of Ethical Management Programs
Table 2.12: Ethics training from two perspectives
Table 2.13: Advantages and Disadvantages-Group Aided Decision Making
Table: 2.14: Characteristics of Mechanistic and Organic structures
Table: 3.1 Supplier Industry Selection
Table 3.2: SPQ Inputs
Table 3.3: Rating Scale for the SPQ
Table 3.4: Rating scale for JIT
Table 3.5: SQQ and SPQ Combinations
Table 4.1: Measured Data for Supplier A
Table 4.2: Measured Data for Supplier B
Table 4.3: Measured Data for Supplier C
Table 4.4: Measured Data for Supplier D
Table 4.5: Measured Data for Supplier E
Table 4.6: Measured Data for Supplier F
Table 4.7: Measured Data for Supplier G
Table 4.8: Measured Data for Supplier H
Table 4.9: Measured Data for Supplier J
Table 4.10: Measured Data for Supplier K
Table 4.11: Measured Data for Supplier L
Table 4.12: Measured Data for Supplier M
Table 4.13: Measured Data for Supplier N
Table 4.14: Measured Data for Supplier O
Table 4.15: Measured Data for Supplier P
Table 4.16: Measured Data for Supplier Q
Table 4.17: Descriptive Statistics for Performance
Table 4.18: Descriptive Statistics for Commitment
Table 4.19: Descriptive Statistics for Stress
Table 4.20: Descriptive Statistics for Motivation
Table 4.21: Descriptive Statistics for Trust, Justice and Ethics
Table 4.22: Descriptive Statistics for Learning and Decision Making
Table 4.23: Descriptive Statistics for Leadership Skills
Table 4.24: Descriptive Statistics for Team Work
Table 4.25: Descriptive Statistics for Culture and Diversity
Table 4.26: Cronbach Alpha Calculus Summary
Table 4.27: Statistical Description Total Performance
Table 4.28: Statistical Description Total JIT Evaluation
chapter 1: introduction and background
1.1 INTRODUCTION
To sustain growth and performance at suppliers from a project management approach has a numerous impact to any organisation that want to measure performance to set a benchmark for stakeholders that will generate profit on a long-term basis. Increasing customer demands for quality products have forced organisations to adopt quality philosophy of TQM (Total Quality Management) and SRM (Supplier Relationship Management) in every aspect of the business. Research literature normally contributes performance contributing by forecasting (Mentzer and Bienstock, 1989; Chase, 1999). In implies that when forecast accuracy increases, cost and performance consequently improves with a correlated forecasting error. Due to dynamic technological, political and variable economic changes in world and in particular South Africa a dearth of performance and growth in key and general suppliers have been experienced owing to late deliveries concerning the products manufactured, the quality and service provided by the suppliers that influence and terminate important business in the defence industry we contribute as world class customers.
Validating key suppliers at company X where the author is currently working was taken on monthly intervals on data provided by quality departments, also treated to be confidential data and these data were compiled and summarised for the year. It presented information that lead to this thesis to be formulated finding why suppliers especially key suppliers performance do not increase. Behind the normal philosophy to evaluate quality, price, delivery and services suppliers provide measuring their performance the argument leading to the thesis also pertains to a hypothetical question i.e. “what do we know about the our supplier?”. The knowledge about the suppliers itself remains unknown if we cannot measure the internal affairs of the suppliers itself leading to performance and growth making supply chain successful. From the theory leading to non-performance from suppliers it limits an organisation to perform. It is also seen as constraint. Waller (2003), defines constraint as anything that limits an organisation, operation or system for maximising its output meeting goals or objectives. The constraints like supplier non-performance in delivery, services, cost and quality of the products must be taken into account when conducting strategic consideration. The constraint of not knowing the supplier that well also has an impact on performance in the long-term from a strategy perspective. According to Finch (2008), the weakest link need in the identified that withholds the supplier or company to perform.
Defence products are very complex and the quality output are normally high in relationship with normal commercial commodities produced by suppliers. Suppliers also seen here as our manufacturing organisations contributing to performance have many challenges improving their manufacturing systems to venture in superior performance as discussed by many researchers (Hayes and Wheelwright, 1984, Hill, 1994 and Schroeder and Flynn 2001). According to Chae (2009), the role of performance measurement factors is the feedback in the supply chain management.
According to Lynch (2006), every organisation needs to manage its three main strategies, namely:
- Internal resources,
- External environment within which the company operates, and
- The organisation’s ability to add value to what it does.
By adding value the researcher is in contact with suppliers both internally and externally on a daily basis, where improvements and frameworks could be implemented to grow suppliers to be congruent with the researcher company meeting strategic objectives. Based on Lynch (2006), argument the organisation’s ability to add value in the competing global market is super imposed on five critical key elements summarised as follows:
- Sustainable decisions that can maintained over time,
- Develop a process to deliver the strategy,
- Offer competitive advantage – taking innovation into consideration,
- Exploit linkages between the organisation and its environment that enhance superior performance and
- Vision-the ability the move the organisation forward beyond the current environment.
Due to the intangible nature of the performance measurement, especially in the defence business where business forecasts is high but volumes very small it has become more a “ Don’t care” zone or business to be operational and functional today. The question which normally arises is what and how can we sustain growth and performance at suppliers to become very efficiently and effectively. As a result, the researcher intends to provide insight and practical solutions to this problem by conducting research into the following aspects:
- Performance management,
- Supplier relationship management,
- Supplier organisational behaviour that enhance performance,
- Continuous improvement and quality at suppliers.
1.2 BACKGROUND TO THE PROBLEM
Since the merging and acquisition of company X where the author is conducting the research, the success rate of suppliers delivering goods on time within the design constraints do not show any remarkable improvement for this international company X shared its values on high-performance excellence. Company X have a remarkable history since established in the late 1970’s but with various arms embargoes and transformations during the epic history of the company, the survival of the company have been dependant on mergers to sustain growth in manufacturing defence products globally. Taking a snap shot from quality reports on key supplier delivery and services provided over the last quarter of 2012, Figure 1.1 do not show remarkable indicators that company X is performing efficient and effectively. For the last quarter of 2012 the companies delivery performance average at 60.81% for this Key suppliers. The services provided by suppliers indicate an average total of 73.86%. This data also reflects that company X does not perform well with suppliers and that its partnerships with suppliers need to re-evaluated to drive performance for company X with its stakeholders.
illustration not visible in this excerpt
Figure 1.1: Key Supplier Performance in 2012 (Source: Own Source, Company X Confidential information)
When taking into account price that effect total cost, South Africa with its unstable energy reserves and performance record will suffer together with suppliers if companies like company X do not act smartly to gain a competitive edge looking at its supply chain before any harm is done. To sustain growth and sustainability suppliers also need to be educated and for strategic long-term projections. Companies like company X know in fact what is happing internally in the company from an organisational behaviour perception, but little or less is known about our suppliers that create the wealth we want to achieve high-performance companies. Company X cannot do this alone and from a supply chain perception suppliers need to be evaluated regarding their behaviour and measured to depict performance. From this evaluation a gap analysis could be established that prohibit the performance integration with the key suppliers and company X. Suppliers not delivering on time with poor service can be formulated as a “Supply chain constraint”. To maintain continuous production flow and also having spare components on the production floor gave rise to new methods using TQM and lean management integrated with supply chain. Although improving the constraint point will also improve the throughput and according to Bozarth and Handfield (2006), the constraint itself will just move along to another point in the supply chain.
Taking this into account that constraints will pop-up everywhere the added value from this research is taken to the supplier because we do not know them so well. Company X do not know its key suppliers that well to gain strong partnerships all working together striving to gain a competitive edge performing exceptional on a level that benefit company X and its stakeholders. Today’s manufacturing environment is very complex when supply chain is involved with internal and global significant changes that happen so fast. Suppliers are changed daily to engage in through put with sometimes enormous gaps to fulfil company requirement without even evaluate them thoroughly.
This means also evaluating the core of supplier performance gap that could mismatch any company strategic intent related to performance for stakeholders. Achieving best practices and world-class performance is not only a desirable goal, but a necessity for survival (Schonberger, 1987; Elmore, 1998). Currently in South African and companies that manufacture Defence commodities have decreased since 1980 till today and several suppliers contributing to this small environment just do not exist anymore. From the remaining suppliers and new involving suppliers only a view have performed but the majority have a huge gap linked to performance and services provided as depicted from statistical quality data in Figure 1.1. South Africa is also a growing country and still in its infancy uses best manufacturing practices, new technology and skills taught from global suppliers achieving that gap linked to performance. Since 1980 till 1994 South Africa were actually isolated globally owing to political factors and trade embargos were placed on South Africa not having supply chain links to Europa, USA and many other countries producing goods on the same standard as any rival defence manufacturing company in the global world today. The rate to sustain growth and performance has left huge gaps on suppliers and certain company demands and requirements since today
1.3 PROBLEM STATEMENT
Against the above introduction and background the research problem to be researched and investigated within the context of this thesis reads as follows: “Suppliers contributing to supply chain performance in South Africa defence sector have decreased and left huge gaps to sustain growth for strategic intent”
1.4 THE RESEARCH QUESTION
The primary research question to be answered by this investigation is: “What strategic tools used today could enhance performance and be measured to sustain growth at certain key suppliers taking in account supplier organisation behaviour for strategic intent?”
1.5 THE SUB-INVESTIGATIVE QUESTIONS
The investigative questions to be researched in support of the primary research question hypothesis reads as follows:
- What benefits can SRM (Supplier Relationship Management) contribute to decreasing suppliers arms manufacturing suppliers to sustain growth effective and efficiently?
- What information is required to rate suppliers to performance besides, price, delivery, quality and services?
- What emergent strategies are in place for suppliers producing commodities in South Africa for the use on defence related products.
- Do they truly understand the quality philosophy in its own in-house environment linked to best practices
- What benefits can be gained to improve leadership growth and team work at suppliers for strategic intent?
- How often is training supplied to new and existing suppliers conforming to strategic intent maintaining talent management for the selection process enabling suppliers to perform in South Africa?
1.6 THE PRIMARY OBJECTIVE OF THE RESEARCH STUDY
Like most like research studies on supply chain and project management the core objectives is done on developed countries. For a growing country like South Africa and still in the infancy stage of a developing there is a dearth of significant study in project management concerning supply chain integration. Compared to the rest of the world South Africa have talent capable innovative human beings ready to transform the environment within Africa connecting to the global world. The specific research objectives based on a strategic intent for this thesis read as follows:
- To mitigate the research problem defined,
- To analysis the gap that exist in supplier organisation behaviour leading to performance with a questionnaire.
- To fully understand key suppliers and their roles to be effective and efficient contributing to company X success and,
- To conduct and analyse a performance measurement with respect to supplier relationship management (SRM), within the quality framework on which the suppliers supply a service to company X.
- To add value about the feedback and implement the concept to maintain and sustain the suppliers role contributing to the defence industry within South African.
1.7 THE RESEARCH THESIS CONSTRAINTS
The following limitations and de-limitations will be applicable to this research thesis study:
Limitations:
- The study is only limited to South African suppliers and employees and will not include supplier information from other global suppliers, owing to the fact the company the author is working in using more internal key South African suppliers in the defence sector contributing to the research study.
- The research study is limited within the company’s human resource requirements and policies and the author of the thesis conducting the research for this company may not mention or expose the company name, nor the various key suppliers being evaluated for this research thesis. This could harm the strategic intent of the company and its global market strategy. The reason for this administrative and ethical behaviour is that if this thesis are being approved by AIU and submitted to be published, it will be visible on the internet and harm the company reputation for strategic compliances.
De-limitations:
- The study could benefit the company and the key suppliers participating having a mind-set working rather together as against each other paying the way forward for strategic intent.
1.8 THE STRUCTURE OF THE THESIS
The following chapters and content analysis will be applicable to the research study:
Chapter 1 –Scope and introduction of the research: In this chapter, a high level background will be provided of the scope of the research taking place within supply chain and procurement. The research process will be explained and the research design and methodology elaborated upon. The research constrains will be listed, and a high level overview provided of the chapter and content analysis of the thesis. The chapter will be concluded with a summary leading the a introduction for chapter 2.
Chapter 2 Literature Review: In this chapter, performance management, with SRM (Supplier Relationship Management) concepts, supplier behaviour leading to performance and continuous improvement as a quality element will contain the in depth literature review as strategic tools used today that could enhance performance and be measured to sustain growth at certain key suppliers for strategic intent. The chapter will conclude a summary and introduction to chapter 3.
Chapter 3: Research design and Methodology: In this chapter the survey questionnaire will be elaborated upon. The approach to data collection will be explained thoroughly and the population sample of key suppliers will be defined for the research purpose. The measurement scales for the surveys well as the survey design will be explained in detail. The chapter will conclude a summary and an introduction leading to chapter 4.
Chapter 4: Data Analysis and Interpretation of Results: In the chapter, all the data cleaned and prepared from the survey conducted will be analysed using descriptive statistics. The data will then be mapped in conjunction with the literature review and the research design methodology approach taken. The chapter will conclude a summary and an introduction leading to chapter 5 which conduct all the conclusion and recommendation for the research outcome.
Chapter 5: Conclusion and Recommendations: In this chapter, all the research will be concluded. The research design, the research process, the research problem with the research questions and sub-questions including the survey findings will be revisited and a final conclusion and recommendation will be drawn. In addition to this research, a holistic reflective overview will be provided of the research.
1.9 CHAPTER 1: SUMMARY
This chapter covered provided the introduction and background to the research thesis, the statement of the research problem, the primary research question with sub-investigative questions, the aim objective of the research thesis as well as the various limitations and de-limitations of the research study.
Chapter 2 will cover a literature study in support of the primary and sub-investigative questions that need to be answered. This will be followed by chapter 3 that shall formulate the research design and methodology for the research thesis. Chapter 4 shall include the data analysis and various interpretations of the data. Chapter 5 shall include the complete research thesis conclusions and recommendations arising from this research study shall be made visible to anticipated readers and future researchers building on to this research study.
chapter 2: LITERATURE REVIEW
2.1 INTRODUCTION
Since ancient times performance management have existed in biblical events since humans have paved the various ways showing the importance of performance management. Living in a century and in a millennium of constant change, businesses need to adapt with the suppliers that are integrated to the supply chain network. As technology and IT increases in our workplace with the surrounding environment we all make a living from, suppliers in a global network also cater and change to fit the ever growing changing environment. Companies and Suppliers should be become high-performance teams contributing in the supply chain network. According to Meister and Willyerd (2010), the way organisations will operate in the future to be more competitive in future will be by human development skills and working in teams. In this context the teams could be suppliers and organisations working together.
From a project management point of view supply change is the secondary engine that governs the team performance when components or products are required urgently within the time constraint. Suppliers that delivery the required goods on order very late have a serious problem understanding the terminology “Performance”. Typical in the defence sector companies rely on vendors (suppliers) for ethical reasons to obey contractual laws and agreements to always delivery goods in time. Sometimes organisations having contractual agreements with vendors (suppliers) do not understand each other in terms of the various constraints vendors and organisations have contributing to efficiency and effectiveness. It is also the behaviour of the vendor to be fully acknowledged when contracts, orders and services are placed on them. Organisations only know what is needed to be known of the vendor. What about the vendor behaviour leading to his/hers poor performance. In South Africa it is not normal to quite or reject a vendor for poor performance because the vendor sometimes have the knowledge to render its skills with better negotiations than new suppliers or vendors not having the skills.
2.2 SUPPLY CHAIN MANAGEMENT
The terminology of supply chain management originated from the late 1980’s. According to Stock and Lambert (2001), many people were using the term logistic as a substitute or synonym. SCM (supply chain management) consist of are eight key business process which highly interactive, complex and contains systematic approaches of many trade-offs. The various business processes are summarised as follows (Stock and Lambert, 2001):
- Customer relationship management (CRM),
- Customer service management (CSM),
- Demand management (DM),
- Order fulfilment,
- Manufacturing flow management (MFM),
- Procurement,
- Product development and commercialisation and ,
- Returns.
According to Stock and Lambert (2001), the SCM process flow integration with the business processes are according to Figure 2.1 depicted below. Here the entire business process is evaluated against performance and are frequently monitored. The integration flow model presents the value flow which normally congruent which modern business operating firms and companies.
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Figure 2.1: Supply Chain Management (Source: Lambert, Cooper and Pagh, 1998:2)
2.3 PERFORMANCE MANAGEMENT
Performance measurement must not always been seen as a financial entity to be measured. According to Knod & Schonberger (2001), the definitions of management normally overlaps with overlapping tasks and other functions but what is more important is the three most important duties namely :
- Creating,
- Implementing and,
- Improving.
The process is continuous as the human capital that drives them virtually takes precedence making it really happen in our modern society. Figure 2.2 depicts the most energetic cycle for that can contribute today in maintaining performance management. The duties and tasks become very interactive and create a visual strategy that cannot be neglected nor ignored to grow and sustain human capital in the workplace.
Contributing from duties and tasks include high level leadership that drives these three important functionalities forming the strategy adding the value that is the key to succession.
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Figure 2.2: Basic Management Duties (Source: Adapted from E.M Knod & R.J. Schonberger, 2001:8)
Strategic performance management is all about strategy. Delivering a value set for desired outcomes is always a challenge according to Bazzet (2010). Building strategy according to Bazzet (2010), is a start to performance management driving strategy outcomes. With this framework the BSC (Balance Scorecard) drives people, organisational processes and reporting. The framework is depicted in Figure 2.3.
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Figure 2.3: Strategy Performance Framework (Source: M.Bazzet, 2010)
Linking performance with strategy also implies translating a vision into four perspectives according to Kaplan (2010). The BSC (Balance Scorecard) is well known for the performance measurement that retains financial metrics as the major outcome that measures sustainable success. The BSC also supplements these metrics with other perspectives which summarised as follows:
- Customer: How would the company appear in the customer’s point of view to achieve a strategic vision.
- Internal Business Process: How can the company satisfy stakeholders and customers and what business and process must the company excel at.
- Learning and Growth: How to achieve a company vision that will sustain the ability to change and improve.
As customers we really do know much about our suppliers besides evaluating them based on statistical methods knowing them by name or brand, size and profit suppliers create and business they are conducting making us perform when they perform. Needless to say, how little we sometimes know about our suppliers and vendors internal structure and nature of business to grow with them making our journey and there journey successful without any problems.
To measure a supplier based on performance the general methodology of quality, price, delivery and service are the most well know criteria today to validate suppliers, but behind this criteria performance according to Colguitt, LePine and Wesson (2009) need to be viewed from this perception depicted in Figure 2.4. How little do we as customers know about our suppliers and not measure its individual mechanisms depicted in Figure 2.4 that enhances performance which leads to supplier job performance to satisfy the customer needs for strategic compliances.
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Figure 2.4: Performance Matrix (Source: Colquitt, LePine & Wesson, 2009)
According to Verghese (2008), the framework assumes trust and communication as the key characteristics of beneficial productive teamwork. From a framework that maps trust, and communication, the relationship is complemented by three cultures that are interlinked to one another. This framework is beneficial in “virtual” teams across contents but the application is mutual for internal teams that deliver goals and objectives for strategic intent contributing in Figure 2.5. The cultures can be summarized as depicted from Figure 2.5 (Verghese, 2008).
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Figure 2.5: The Three Cultures (Source: Verghese, 2008)
When organisations shape their programs and projects, strategic goals and orientated project / program value chains need to be considered.
According to Steyn (2010a), the presentation for this structure for learning organisations contributing to continuous improvement, transformational and capital expenditure can follow this route to achieve efficiency contributing in Figure 2.6. The presentation is depicted in Figure 2.6.
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Figure 2.6: The Organisational Value Chain (Source: P. Steyn, 2010a)
According to Lynch (2006), building a cohesive corporate strategy has huge impact when altering one element of the framework defined as the “Seven S-Framework” depicted in Figure 2.7. The author of the proposal argument is that performance has a direct relationship with customers and suppliers that generate growth and sustainability for a company when strategy, skills and knowledge is shared with suppliers. The success of a company cash flow and wealth contribution is service providers like suppliers that are acting as external staff providing the services for any company.
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Figure 2.7: The Seven S-Framework (Source: Lynch, 2006:793)
Figure 2.7 means literary that each elements cannot function without the other elements i.e. element 1 (structure) have a direct connection with elements 2,3,4,5,6 and 7. This concept framework has combination of 42 connections.
Most likely, team members working in teams have diverse personalities, needs, wants and ways showing their emotions. According to Stein and Book (2003), emotional intelligence can be defined as:
“The ability to perceive emotions, to access and generate emotions so as to assist thought, to understand emotions and emotional meanings, and to reflectively regulate emotions in ways that promote emotional and intellectual growth “.
When we work as team members or team leaders, it is imperative that our interpersonal traits, stress management traits and good mood traits be well developed. Steyn (2010a), maintain that humans should recognise that their DNA carries the inbuilt natural talents on both their cognitive and connotative make-up according to the trilogy of the mind. According to Steyn (2010a), human potential is dependent, and differentiating the active mind by three parts, which is illustrated in Figure 2.8.
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Figure 2.8: The Parts of the Mind (Source: Adapted from Steyn, 2010a)
2.4 SUPPLIER RELATIONSHIP MANAGEMENT
(SRM) Supplier relationship Management is quite a new emerging concept nowadays used in supply chain and it differ a bit from CRM (Customer Relationship Management) for it is not as theoretical as CRM. Gartner Consulting-SRM and according to (Poirier, 2003), SRM is defined as: “a set of methodologies and practices needed for interacting with suppliers of products and services of varied criticality to the profitability of the enterprise.” According to Poirier (2003), SRM requires collaboration as a supplement to negotiation. The first benefit that can be achieved with SRM according to Poirier (2003) can be summarised as follows:
- ”Optimise supplier relationships - treat different suppliers in different ways depending on the nature of the relationships and their strategic value.
- Creates a competitive advantage and drives revenue by jointly bringing new, better and more customer-centric solutions to market faster.
- Lengthen and Strengthen critical supplier relationships -integrate suppliers into your business processes and ,
- Drive profit through the reduced supply chain and operational costs while maintaining quality.”
The second benefit that can be achieved with SRM according to Poirier (2003) is purchase categories depicted in Figure 2.9.
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Figure 2.9: Purchase Categories (Source: Poirier, 2003)
The third benefit that can be achieved with SRM according to Poirier (2003) is by using the supplier relationship attribute model depicted in Table 2.1.
Table 2.1: Supplier Attribute Model (Source: Poirier, 2003)
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The fourth and last benefit that can be achieved with SRM according to Poirier (2003) is by using the supplier relationship matrix model depicted in Table 2.2.
Table 2.2: Supplier Relationship Matrix (Source: Poirier, 2003)
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All these benefits are very powerful benefits that can make a huge difference about how we think when contributing in supply chain. According to Lang, Paravicini, Pigneur and Revaz (2002), the relationship versus the suppliers and the company can be depicted in Figure 2.10 showing a typical lifecycle that is mostly to reject and attract suppliers within the entire lifecycle. The relationships between SRM and CRM from a strategic point of view is that they addresses the same issues but from opposite perspectives, i.e. buyer vs. seller (Lang et al., 2002).
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Figure 2.10: Supplier-Company Relationship Lifecycle (Source: Lang, et al., 2002)
According to Gordon (1999), end-customer relationship entirely depends on the relationship of others in the supply chain and these relationships are only as strong as the weakest link in the current chain. What Gordon
(1999), suggests regarding the statement proposed above can add value to his argument with the following suggestions formulated:
- If you have a database, have records of your suppliers and their performance.
- Expose to the supplier his/hers financial value present now and for future business for strategic intent.
- Determine bonding or cohesiveness required to conduct future relationships that can benefit him/her and your company.
- Describe the opportunities available for your company and his / hers company.
- Establish a plan to commit suppliers working together sharing new values created,
- Determine how the relationship is to be governed.
From the work from Smock, Rudzki and Rogers (2007), these authors stipulate that performance is very important to suppliers based on technology and various contract management systems that need to be place for implementation. The author’s Smock, Rudzki and Rogers (2007), also stipulate that supplier management i.e. SRM, must include working with people and interface with people, because people make decisions to support and initiative suppliers offer.
Taking the benefits into consideration SRM according to Nelson, Moody and Stegner (2001), based on actual cost can be saved showing long-term investments savings. Depicting from Figure 2.12 the following visual graphs can be explained taking long-term savings from SRM. Typically from this depiction PPI (Producer Price Index) presents indicate all the cumulative percentage growth taken over a certain time frame. The “ good company” depicts all the cost growth based on best PSCM (Purchasing and Supply Chain Management). The “best-in-class” graphical line indicates cost trends by transplant companies during the time frame.
The transplant companies could be foreign (not US companies) from this example. From this interesting graphical presentation it could be summarised that all the “best-in class” firms pays much less than company on the PPI. This conclusion is based on the fact that companies spend more attention to foster close relationships with their suppliers depicted on “best-in-class” graphical line. The depiction on Figure 2.11 indicates and explains that SCM benefit long-term which is powerful tool for strategic intent. Besides reducing prices relative to the PPI, SRM is about lower the total cost of ownership (TCO) of the end-to–end value chain thus increasing buying enterprise and ultimately the end-customer (Nelson, Moody and Stegner, 2001).
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Figure 2.11: SRM Benefit on Cost Data (Source: Nelson, Moody and Stegner,2001)
According to Ghenoweth et al. (2012), the best commercial practices for developing suppliers can be summarised as follows:
- Manage total business with each supplier,
- Measure and shape supplier performance,
- Involve key suppliers early in product design,
- Host high-level meetings that promote dialogue with suppliers,
- Recruit skilled personnel and ,
- Develop personnel so they have a thorough knowledge of suppliers.
Krause and Handfield (1999), developed a network of suppliers globally aligned that consist of four stages. The first stage identifies, assess and rationalise the supply base. The other three stages of the model are classified as supplier development. With each stage from the model developed, the benefits increase and the suppliers increase integrated with the buying enterprise. The model is depicted in Figure 2.12.
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Figure 2.12: Krause and Handfield supplier development model (Source: Krause and Handfield, 1999)
Krause and Handfield (1999), within collaboration of this model identify five critical success factors necessary for implementing SRM successfully. These critical success factors are summarised as follows:
- Top Management support: Resources, schedules and other formal agreements with joint supplier development efforts requires buy-in from top executive management.
- Cross-functional support: Functional departments like purchasing, quality assurance, engineering and material management need to be involved performing supplier and other assessment risks.
- Continuous Improvement process focus: To have a functional supplier development model in SRM a formal continuous improvement culture is required.
- Global perspective: Global involvement means more business and prospective suppliers that can perform globally in the competitive interconnected supply chain economy.
- Global information systems: Sharing enterprise knowledge globally creating a path for communication within the dispersed global information network chain.
Procurement is valued as important in any huge, median and small company. There is no place for misfits like untalented, un-educated procurement specialists or buyers that cannot work as a team or approach their work and passion strategically (Dominicik & Lunney, 2012).
According to Dominick & Lunney (2012), talent management in the procurement environment is structured into five basic steps depicted by Figure 2.13.
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Figure 2.13 Five Steps of Procurement Management Cycle (Source: Dominick & Lunney, 2012:38)
Every company should consider the complete value chain from beginning to end which either depicted by a push system or pull system. Pull –systems as value chain implementation need to have quick responses from the suppliers either to produce mistakes using MRP as demands are forecasted interactively (Leong, 2008).
Looking into a project that is executed by a project manager or even the procurement buyer on the team fulfilling this function for the project sharing knowledge Yeh (2008) provided a quantitative knowledge creation model that can benefit various intensive projects. The model shares either information from the buyer to the supplier and vice versa. This presentation model is depicted in Figure 2.14.
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Figure 2.14: The Knowledge Value Creation Model (Source: Yeh, H, 2008:878)
Finding the right supplier, does not imply the greatest quality and price but its net benefit will be congruent to the buyer’s organisation. Strategic sourcing is a rigorous demanding process in the procurement department identifying suppliers meeting the goals of the buyer’s organisation.
The sourcing agent is sometimes the team leader in the procurement department that focus on this process and task to be beneficial to all in the organisation. According to Dominick & Lunney (2012:71), the approach to follow for a strategy sourcing process is depicted in Figure 2.15.
Figure 2.15: Strategic sourcing process model (Source: Adapted from C. Dominick & S. R Lunney, 2012:71)
According to Anderson and Katz (1998), strategy sourcing value chain is a set of processes on which strategy sourcing decisions are made to plan, develop requirements, select suppliers, procure goods and develop CRM
(Customer Relationship Management) with suppliers that enhances excellence. The sourcing value chain is depicted in Figure 2.16.
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Figure 2.16: Sourcing Value Chain(Source: Adapted from Anderson, M.G & Katz, P.B, 1998:7)
2.5 LEADERSHIP BEHAVIOURS & LEADERSHIP STYLES
Viewing from outside the supplier boundaries regarding leadership behaviour it become a very interesting how leadership depict performance at suppliers. When connecting to suppliers collaboration occurs when both parties work together achieving maximum output (Colguitt, LePine and Wesson, 2009). When a leader in this context referred to as the supplier doing the business with customers regard negotiations about cost, delivery, service or any other element required conflict arise when disagreements is settled or not reached . The approach to following according to Thomas (1977), adds value by taking the conflict resolution style depicted in Table 2.3.
Table 2.3: When to use conflict resolution styles (Source: Thomas,1977)
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Leadership decision making has become very important when organisational or competitive thoughts are made to steer the direction where problems are. Leadership styles normally links to the decision making fundaments and character of the leader he or she are made off. According to Colguitt, LePine and Wesson (2009), leadership and particular four styles for decision making are known today to encourage a high follower control or opposed high leader control. These styles are summarised as follows:
- Delegating Style,
- Facilitative Style,
- Consultative Style and
- Autocratic style.
These leadership styles are also linked to a time-driven model of leadership developed by Vroom (2000). The model developed assist leaders taking them from a delegating, facilitating, consulting and autocratic leader to a delegating, facilitating, consulting and autocratic situation that is combined with seven key factors summarised as follows:
- Decision significance: The significance to the project or organisational.
- Importance of commitment: It is normally the “buy-in” to the decision making process.
- Leader Expertise: Does the leader in control have the expert knowledge to take the lead.
- Likelihood of commitment: Will the employees trust the leader decisions and commitment.
- Shared objectives: Do the employees share the objectives or do they have their own agenda of things and matters.
- Teamwork skills: Can the employees work together to solve problems and without conflict or any inefficiency.
Even in the supply chain domain leaders, can obtain create achievements making their environment very attractive as role players and according to Adler(2009), owing to a positive work environment with culture foundations in his or her workplace great leader have basic five attributes sharing and influence others staying on the competitive edge. These attributes are depicted in Figure 2.18
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Figure 2.18: Attributes of Great Leaders (Source: Adler, 2009)
Leadership roles is challenging and moving constantly from descriptive strategy way of thinking to an emergent role to face the changes in the environment – supply chain and procurement could mean doing certain jobs differently with more passion becoming success.
According to Kotter and Cohen (2002) created a mind-set of eight strategic action points to enhance the behaviour output creating success. Guiding a large successful company or project, vision is required to change the old methods of thought and covert these methods into a mission of change (Kotter and Cohen, 2002). These steps formulated are depicted in Table 2.5 enhancing a large change.
Table 2.5: Eight steps for successful change (Source: Kotter and Cohen, 2009)
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Companies have very complex systems, procedures and other methods striving to fulfil strategic objectives and according to Kouzes and Posner (2007), getting things done extraordinary in companies will evoke basic five practices of exemplary leadership that are defined as follows:
- Model the way,
- Inspire a shared vision,
- Challenge the process,
- Enable others to act, and
- Encourage the heart.
Taking into account the five basic practices of leadership it could be suggested that this leadership approach could be the foundation for a typical project manager. This approach depicted by Kouzes and Posner actually guides the project manager to grow undiscovered skills, learn good qualities to lead and obtain success through-out the duration the project or program. These leadership practices according to Kouzes and Posner (2007), are broken down into 10 commitments which are adding value aligned to any project, program or the organisation itself leading typical by a CEO (Chief Executive Officer). The commitments are depicted in Table 2.6.
Table 2.6: Ten Commitments of leadership Source: Adapted from: Kouzes & Posner, 2007)
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Leadership is really a gift and all humans have this talent to lead. Leadership is not only for the gifted view, but there for all to use it, develop it, for future applications in our daily lives to enable a professional career adding value abundantly. Kouzes and Postner (2010) expose ten truths about leadership which give synergy to leaders enhancing their skills, coaching others to be more effective leaders in the future. The leadership truths are summarised as follows:
- You make a difference,
- Credibility is the foundation to leadership,
- Values drive commitments,
- Focusing on the future set leaders apart,
- You can’t do it alone,
- Trust rules,
- Challenge is the crucible for greatness,
- You either lead by example or you do not lead at all.
- The best leaders are the best learners and,
- Leadership is an affair of the heart.
According to Covey (2006:4), striving, being effective and being an efficient leader, are no longer optional if one is to obtain fulfilment in organisations. To leap beyond being effective and being efficient as a leader Covey (2006), suggests a framework/ model of eight habits but also defines four roles of leadership that encompasses the following:
- Modelling- setting a good example,
- Become a pathfinder-see vision and focus the end results,
- Aligning-become congruent with the managing system and ,
- Empowering-focus on results, assist people daily.
According to Covey (2006) leadership cannot be taught. It can be learned with create effectiveness for those that really want to. In relationship with effectiveness Covey (2006) developed 8 habits to be dealt with when leadership is present. This could be expressed as summarised as follows:
- Habit 1: Be-Proactive
Being very proactive is linked to people that grave change. This implies not to be victims of blame but be change agents.
- Habit 2: Begin with the End in Mind
For large, small or medium projects or programs, teams, individuals forms and shape business.
- Habit 3: Put First Things First
Prioritise and plan the around the organisation to add value.
- Habit 4: Think Win-Win
Always think win-win achieving the best results and negotiations in the framework supplied.
- Habit 5: Seek First to Understand, Then to be understood.
Always listen to be well understood. Here effectiveness lies in the balance to be create
- Habit 6: Synergise
Sometimes think out of the black box. Solving problems and seeing opportunities working in teams creating results overcoming all fear.
- Habit 7: Sharpen the Saw:
Adapt the physical and social responsibilities-becoming metal fit.
The eighth habit provides the pathway to an enormously promising side of reality, which is the voice of the human spirit, full of hope and intellect, resilient by nature, boundless in its potential to serve the common good which is illustrated in Figure 2.19 (Convey, 2006).
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Figure 2.19: The 8th Habit (Source: Covey, 2006)
The attribution theory of leadership according Gibson, Ivancevich, Donnelly and Konopaske (2009), are connected with the cognitive process by which a person interprets behaviour caused by cues in the relevant environment. It actually explains why behaviour is happening. It is most significant when problems or failures occur in the environment that leaders need to solve taking into account their skills and experience. Figure 2.20 depict an example based on poor performance (Mitchell & Wood, 1979).
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Figure 2.20: An Attribution Leadership Model for poor performance (Source: Mitchell & Wood,1979: 94)
Research support is very limited and there is a huge need to test the theory against organisations settings (Gibson et al., 2009).
The transformational leadership model helps followers achieve a high level of performance that result in rewards and it satisfy both the leader and the follower to accomplish strategy goals. The framework is depicted in Figure 2.21 according to (Bass, 1985).
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Figure 2.21: Transactional Leadership Model ( Source : Bass, 1985:12)
Based on leadership model for performance building consensus around the organisation to obtain a strategy for vision and mission Kaplan and Norton (2001), developed a four process model which assists executive leaders to follow this approach of thinking. In the Project management world, this model also presents the focus and link to the business units where program and project management are operational from in various companies. The process is depicted in Figure 2.22
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Figure 2.22: The Balance Scorecard by Kaplan and Norton (Source: Steyn, 2010)
According to Ulrich, Smallwood and Sweetman (2008), leadership matters, and good leadership always inspires, excites and engages energy. Presenting an effective leader for the future Ulrich, Smallwood & Sweetman (2008), formulated five basic rules, titled the leadership code which is illustrated in Figure 2.23. This framework encourages better leaders and guides the new generation leaders in various job positions for strategic intent.
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Figure 2.23: The Leadership Code ( Source: Ulrich, Smallwood & Sweetman, 2008:14 )
2.6 TEAM METRICS and team collaboration
Companies using suppliers should have a team strategy when working with various suppliers. Teams within suppliers contribute more than individuals providing their services. In fact internal teams in a company can learn much more about their contributing suppliers that enhance performance providing effectiveness and efficiency for a company. According to Reynolds (2012), success is virtually a science, no matter the history in time various people have ruled in. From this statement is all links to strategy. Success contributes to teamwork that paved the way to performance excellence.
According to Thompson (2007), performances depicted within teams are very dependent on productivity, cohesion, learning and integration. This leads to group cohesiveness, a “we feeling” binding members together. To achieve a certain performance level from a team, there should have been a certain process employed to enable it to reach the desired performance. According to Kreitner & Kinicki (1998), the approach following the process is directly linked to Tuckman’s five –stage theory which explains a team life cycle. The process is set out in certain stages that are explained as follows:
- Stage 1: Forming
Group or team members are still uncertain of their roles in the team.
- Stage 2: Storming
Group or team members test the leader’s policies and assumptions. All the team sub-groups moderately take shape working together. There is some rebellion from the team members owing to power politics.
- Stage 3: Norming
Group members collaborate to find their way with regard to each member’s authority. The power struggle between members of the group is resolved in an unemotional manner. Group and team member’s effective and efficiently bond together. Team members all work towards a common goal.
- Stage 4: Performing
There is a climate of a “we feeling” in the team and open communication to all team members. Conflicts disputes in and within teams are handled constructively and efficiently. A very high commitment is reached as a team.
- Stage 5: Adjourning
The work and goals is done within the team. They celebrate their successes and move onto other things with shared lessons learned.
The statement approach normally raised to suppliers executive level are: “On what level of performance are my suppliers?”. From theory depicted by Kreitner & Kinicki (1998) on team stages, companies mismatch with suppliers because the congruency still need to be developed. The argument and meaning from the author point of view that internal teams using the service teams could be on norming level and suppliers interacting with them on the performing level. These stages need to be measured to evaluate why services supplied by suppliers don’t align with any company strategy.
According to Katzenbach and Smith (1993), the essence of a basic team trilogy is skills, accountability and commitment and without commitment groups and teams cannot perform. Here performance is the driving factor with commitment from the team that engage into a powerful unit of collective performance. This psychological characteristic in the context of any organisation fulfilling a team trilogy is explained in Figure 2.24 which gives the best description of the vital three apex points including performance results, personal growth and collective work.
Teams outperform individuals acting alone. Using the trilogy basic building blocks can lead to high-performance teams. The performance contract of the team is also directly linked to the strategy for the organisation. This essence to align teams to company strategic milestones, are the only way of moving forward in the future, with excellent team members equipped with well developed, enthusiastic trained team leaders.
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Figure 2.24: The Team Trilogy (Source: Katzenbach & Smith,1993:9)
According to Dionne, Yammarino, Atwater and Spanger (2004), globalisation of marketplaces and information availability, have increased significantly with increased competitiveness. Although the reliance on teams has increased in the decade up to today, research surrounding team development has not been able to keep pace with the issue of how teams can achieve more effective performance which also link to Figure 2.25.
[...]
- Quote paper
- Louis Jansen van Rensburg (Author), 2013, A Project Management Approach for Supply Chain Management to Sustain Growth and Performance at Suppliers, Munich, GRIN Verlag, https://www.grin.com/document/233242
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