A useful exercise for analyzing your supply chain is to list the groups that work

together and try to determine the dominant culture of each group. This exercise

can help you anticipate conflicts that might emerge when these groups interact

and find ways to use differences to your advantage. Here are some examples:

» Purchasing departments often have a hierarchical culture, whereas opera-

tions departments have a rational culture. The purchasing department may

feel frustrated because operations doesn’t follow the rules. Operations may

feel frustrated because purchasing is slowing it down. So you could create a

small team of expeditors, made up of representatives of both operations and

purchasing, to manage urgent orders while ensuring that all the proper

policies are followed.

» Large companies often have strict rules that lead to a hierarchical culture.

Startup technology companies that focus on innovation have an entrepre-

neurial culture. To take advantage of the latest technologies, large companies

often create dedicated programs that have more flexibility to collaborate with

smaller, entrepreneurial suppliers.

» Human resources teams often have a group culture, whereas consultants

may have a rational culture. The human resources team may find the

consultants rude and disinterested, and the consultants may view the human

resources team as being nosy and unprofessional. For these groups to work

effectively through a corporate merger, for example, you may need to

schedule time for their members to interact in a social setting, such as a

kickoff celebration.

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