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Welcome to The Supply Chain Dialogues, season two, episode 16. I am Daniel Helmig.

Henry Ford once said: "Anyone who stops learning is old, whether at twenty or eighty. Anyone who keeps learning stays young." During his time he was like Steve Jobs was for our last decades. He had to constantly learn, because nothing he started was defined before fully. 

We can go even back a bit longer and end up at Socrates: “Education is the kindling of a flame, not the filling of a vessel”. 

Lifelong learning requires a willingness to spend time to learn. Learning needs to be seen positive, which when we look at our normal education systems is often trained out of us. But we can decide, that learning is a good thing that you always will own, or as  B.B.King said: “The beautiful thing about learning is that nobody can take it away from you."

In the last episode of this two part duo, we looked a leadership books in the wider sense, spanning a period of a couple of thousand years.

Today let’s look at more functionally important books. That being said, it does not mean we should read them, if we are in that particular profession. Not at all! No sure about you, but the best colleagues and leaders that I had were those that were not, what we call in German “Fachidioten”. As so often in the German language you can use one word to describe the person quite clearly. In English the nearest way to put it would be “experts with tunnel vision”. So, if we are in sales, R&D, Accounting, or in procurement, why not understand a bit more about the secret world of other professionals in your firm. Maybe there is something to learn that you can use in one way or another, or at least better understand them. And, maybe it is the first step into another profession.

So here is my selection of seven plus one great books, that made a difference, sometimes a significant one, in my, but as well many others, professional lifes: 

In computer science, IT or Gaming I loved a most recent book by Gabrielle Zevin: Tomorrow, Tomorrow, Tomorrow. And the all time favorite of many that have worked or want to work in IT: The Phoenix Project by Kim, Behr and Spafford.

In Quality and Operations the evergreen “Lean Thinking” by Womack and Jones. Then “The Goal” by Goldratt, and Velocity by Jacob, Bergland and Cox.

And from the many books I read during my professional lifetime in procurement, two that ended up in my book shelves after every move we did as a family (in total 12, 7 times moving between countries): 3D negotiations by Lax and Sebenius, The purchasing chess board by Schuh and Raudabaugh and The Handling of Railway Supplies: Their Purchase and Disposition by Marshall M.Kirkman, written in  1887.

I have one additional book for you, which is similarly written as The Phoenix Project, and the Goal as a novel. It is as well about leadership topics: The five dysfunctions of a team by Patrick Leoncini. It is about a CEO of a Software Company in the Silicone Valley in the US, but could as well hold true for any team in Europe or Asia.

So, lets get started:

IT

Tomorrow, Tomorrow, Tomorrow by Gabrielle Zevin

The first book in the IT or computer space is a work of fiction. Why I cover it here is due to three reasons, that only became clear AFTER I read the book:

First, I checked while reading the book the market size and it’s potential, understanding much better the allure of gaming while reading the adventures of Sadie Green and Sam Masur, the protagonists in the book. In 2024 the market will grow to 272 bUSD, which dwarfs the entertainment industry market. It is projected to grow to 430 bUSD by 2029. Forget Disney, Netflix, etc. here is where the real money is spend. And with companies that you never have heard of, many as well privately held with mega-successful games worldwide. 2K Games, 343 Industries, Atlus, Japan, Bandai Namco Entertainment, Behaviour Interactive, Canada, BioWare, Bungie, Capcom. There are huge gaming companies in France, the UK, Canada, Japan, and the United States - thankfully however the industry is not dominated like the entertainment industry by the US.

Now, second, as a boomer, I had a bit of a problem with the pull of games, in comparison to movies, books etc. Although my younger son is really into this, I found it hard to get the hang of it. Now - after reading the book - I fully get it, and see as well the fascination. So, in other words, I understand my son and his friends better, when they spend until the wee hours of the morning in these intricate pieces of digital art.

Finally, I believe there is a lot of cross-pollination that is and will happen between gaming and the so-called real world, or as gamers put it "IRL," "In Real Life," where they feel that the graphics are great but the gameplay is terrible.

Navigation, shopping, communication, designing, building - even meeting in a safe space could be adapted in IRL, and make a lot of things easier for us. Most of it already exists in some corners of the digital world, but it might take the next generation of digital natives to fully monetize it.

Now, a bit about the book, which is written very well, and gained a lot of awards in 2023:

Sadie Green and Samson (Sam) Masur meet each other for the first time in a hospital. Sadie, 11, is in the hospital because her sister, Alice, is being treated for cancer, while 12-year-old Sam is undergoing treatment for his broken foot. Sam was in a horrific accident that killed his mother, Anna Lee. Since arriving at the hospital, the traumatized Sam hasn’t spoken a word to anyone. Sam breaks his silence with Sadie because of their shared love of video games, and the two quickly become best friends. A bitter misunderstanding tears them apart, and they stay away from each for several years until Sam spots Sadie at a subway station in Boston in 1996. Sam is studying at Harvard while Sadie is a computer science major at MIT. Sam reaches out to Sadie, and they resume their childhood friendship.

Realizing Sadie is a brilliant game designer, Sam, who is a master at creating mazes and puzzles, suggests they make a video game together. Thus begins a creative collaboration that launches the blockbuster game Ichigo. With the help of Sam’s wealthy and generous roommate, Marx Watanabe, the trio starts their gaming company, Unfair Games. Sam and Sadie understand each other’s minds and love working together, yet they are different in many ways. Sadie is from a wealthy, white, Jewish background, while Sam is part Korean and has always had to struggle for money. 

After that lots of stuff happens: New games are launched, people die, the life of game designers is being portrait and much more. As I said, it is a human story in IRL, as well as a story about the love for games. 

I recommend it for anyone who likes good books and wants to either revel in nostalgia of all the games Sadie and Sam play or better understand gaming as such.

After this diversion into the fiction world, a book about hardcore IT projects in real life (now for real), while still adopting a fictional narrative tone, something that I come back to later as well in the operations area.

"The Phoenix Project" 

presents a brilliant narrative that weaves together the principles of DevOps, lean management, and agile practices into a fictional story set in the world of IT and business operations. The book follows the journey of Bill, who is tasked with rescuing an over-budget and chaotic IT initiative, code-named the Phoenix Project. Throughout the story, the authors introduce a series of concepts and practices that are instrumental in driving organizational transformation and improving IT operations.

The narrative kicks off with Bill, an IT manager at Parts Unlimited, suddenly being promoted to an executive position with the responsibility of turning around the troubled Phoenix Project. As he navigates the challenges of this massive project and the ensuing crises, he receives guidance from Erik, a mentor who introduces Bill to the principles of the Three Ways: flow, feedback, and continuous experimentation and learning.

The book articulates how the Three Ways, inspired by lean manufacturing principles, can be applied to IT operations, emphasizing the importance of optimizing workflow, creating fast and effective feedback loops, and fostering a culture of continuous improvement. These principles form the foundation of the novel's practical insights and recommendations for improving IT and business processes.

Along the way, Bill learns about the Theory of Constraints from Brent, a plant manager, which helps him understand how to identify bottlenecks and constraints that hinder operational efficiency. This knowledge enables Bill to address the underlying issues at Parts Unlimited and implement changes to streamline workflows, improve reliability, and respond more effectively to customer needs.

As the story unfolds, Bill and his team also apply agile methodologies, such as Kanban boards and iterative development, to enhance their project management practices, increase transparency, and deliver value more efficiently. Additionally, they embrace DevOps practices to foster greater collaboration between development and operations teams, leading to faster delivery cycles and reduced error rates.

As a former operations guy, and as well a sourcing executive studying intently suppliers, the book grabbed me instantly, since all of this rung true with my own experiences. I only can wish that many people in IT read or have read the book. For those, that did and are not sure whether to apply the principles I can only say: do it, you will love the results.

And for so many others, that hang around in IT projects that are costing millions, sometimes even billions: Read operations books, read quality books: You are not the only one’s who had to deal with massive projects. At the end most of the stuff that is being done in a company, is done by humans. And humans produce excellent work, if some to the time-honoured principles of manufacturing and quality are used. 

Speaking about time-honoured principles in operations and quality, let’s use one and go to one of the sources of the wisdom:

Operations & Quality

Lean Thinking by Womack and Jones

I was lucky enough in the 90s to have met Womack at a conference where he spoke. After that we both ended on a leather couch in the atrium, and we spend over an hour discussing his experience and what I have as well seen in the automotive industry in Europe and US at that point in time. What I remember most from the conversation was that while the topic was fascinating, Womack was a funny guy, and I laughed a lot while learning even more about lean.

The book is called "Lean Thinking: Banish Waste and Create Wealth in Your Corporation,". It outlines the principles and concepts of Lean thinking, a management philosophy that has revolutionized the way many organizations operate. The book builds on the authors' previous work, "The Machine That Changed the World," which is as well a great read, and aims to provide a comprehensive guide to understanding and implementing Lean principles in a variety of business settings.

At its core, "Lean Thinking" centers around the elimination of waste (Japanese: Muda) and the continuous pursuit of value creation. The authors introduce five key principles that form the foundation of Lean thinking, emphasizing the importance of defining value from the customer's perspective, identifying value streams, and optimizing flow by eliminating waste. They also stress the significance of pursuing perfection through continuous improvement and respecting people as the central drivers of operational excellence. By the way, this striving for perfection is not only relevant in business. Many of the principles of lean can as well be applied to one’s own life.

The book begins by introducing the concept of value from the customer's viewpoint, emphasizing that value is determined by the customer's willingness to pay for a product or service. By understanding and aligning with customer needs, organizations can better focus their efforts and resources on delivering value while minimizing wasted time, effort, and resources. I always found it amazing, how little sales people and R&D departments reviewed and learned from the voice of the customer, one key concept from six sigma. How many times did I see sales representatives or C-suites from companies, presenting my company utterly useless features, software, products that were dreamed up by themselves without any real touch with what the customer (in this case my company) needed.

Womack and Jones then delve into the idea of value streams, which represent the end-to-end processes and steps required to deliver value to the customer. They emphasize the importance of mapping and understanding these value streams to eliminate non-value-adding activities and create more efficient, streamlined processes. I can only recommend for anyone interested in taking cost or muda out of their company, to understand process mapping. And, in todays world then as well the digital form of process mining in data of ERP, MES and other systems, aligning the plan vs. actual…

The book systematically addresses the various forms of waste that can occur within value streams, categorizing waste into seven key types: overproduction, waiting, transportation, overprocessing, excess inventory, motion, and defects. 

I could talk about examples of each of the wastes for hours, just one example: A supplier used about 40% of their production site for repair and control. After the supplier introduced lean principles, he moved out of the production hall, into a building a quarter of the size, producing quicker, better, at lower cost. Funny enough the supplier moved back into the building 2 year later, because they gained so much additional business being competitive, that they used the building again, but now producing 6 times more than before in the same footprint than at the start. This is lean, friends. 

Central to the Lean thinking philosophy is the concept of flow, where value moves smoothly and efficiently through the production or service delivery process. The book presents practical examples and case studies demonstrating how organizations have restructured their processes to support uninterrupted flow and reduce cycle times, enabling them to be more responsive to customer demands.

Furthermore, "Lean Thinking" emphasizes the need for continuous improvement, or "kaizen," as a fundamental aspect of Lean philosophy. The authors highlight the role of empowering employees at all levels to identify and address problems, innovate, and contribute to ongoing efforts to eliminate waste and improve processes.

Throughout the book, Womack and Jones underline the importance of respecting people as a cornerstone of Lean thinking. They emphasize that engaging and empowering employees, building a culture of trust and collaboration, and developing leadership at all levels are critical components of successfully implementing Lean principles within an organization.

Through a blend of theoretical concepts and practical examples, the book offers a comprehensive framework for understanding and implementing Lean thinking, ultimately enabling organizations to banish waste, create wealth, and deliver greater value to their customers. The book is based on lessons learned in the 70s and 80s, the things learned by Ford, and later done to perfection in toyota and many other japanese companies. If you’re not into reading full books, get the jist with one of these great yellow books: “Lean for Dummies”...but best is to see lean actually being applied. I was lucky enough to have seen hundreds of operations being transformed in the 90s and 2000s - and as well have seen many companies in Europe, especially UK, France and Germany feeling they did not need it - and disappear. Only because they thought that change was optional, which is true, but as well so is survival as Deming put it very succinctly.

Now the other book I love is "The Goal" by Goldratt. Similar like “The Phoenix Project it is written as a novel. And it is  a cornerstone of the modern management and operational excellence literature. Through the compelling story of Alex Rogo, a plant manager facing a crisis at his manufacturing facility, the book introduces readers to the Theory of Constraints (TOC) and the principles of operational improvement.

The narrative unfolds as Alex Rogo, who is facing mounting challenges at his manufacturing plant, is given an ultimatum to improve production efficiency within three months or face the closure of his facility. Faced with this high-stakes scenario, Alex reconnects with Jonah, a former physics professor who has become a mentor. Jonah introduces Alex to the fundamental concepts of the Theory of Constraints, providing practical insights and guidance that significantly impact how Alex views and addresses the operational challenges he faces.

One of the central themes of the book is the Theory of Constraints, which is based on the fundamental principle that every complex system, such as a manufacturing process, is limited in achieving more of its goals by a small number of constraints or bottlenecks. By identifying and addressing these constraints, organizations can improve overall efficiency and productivity.

Throughout the story, the principles are presented through a series of thought-provoking conversations and situations in which Alex and his team apply these concepts to transform their operations. They learn to identify and manage constraints, optimize flow, and implement practical solutions to enhance the overall throughput and effectiveness of their operations.

Moreover, "The Goal" introduces the concept of "Herbie," a metaphorical representation of constraints within a system. This helps portray the idea that in many operational environments, one or a few constraints impact the overall system's performance. Through this and other storytelling devices, the book effectively illustrates how individuals and organizations can systematically address constraints and improve system-wide performance.

I’ve seen TOC being applied in many operational situations, either on the shop floor or in process settings in commercial departments - it works like a charm. To get going on the principle, I can recommend the book warmly.

In the same spirit, but taking the TOC principle further, combining it with six sigma and lean, you get the book by Jacob, Bergland and Cox: Velocity.

Velocity by Dee Jacob, Suzan Bergland, and Jeff Cox

In the book, the authors propose integrating three powerful improvement methodologies—Lean, Six Sigma, and the Theory of Constraints (TOC)—to achieve breakthrough performance in organizations. The book provides a comprehensive guide to understanding and effectively combining these methodologies to drive operational and business excellence.

The authors begin by highlighting the limitations of each individual methodology when used in isolation and emphasize the benefits of integrating them to achieve greater impact. They argue that Lean's focus on eliminating waste, Six Sigma's emphasis on reducing defects and variation, and TOC's approach to addressing bottlenecks and constraints are each valuable in their own right but can be more powerful in combination. You would not believe the abyss between the lean experts, the six sigma black belts and the manufacturing folks swearing on the book of Goldratt. Each look at manufacturing and processes from their view of the world.

The book introduces the concept of "Velocity" as a means of integrating Lean, Six Sigma, and TOC to maximize operational performance and speed. Velocity is framed as a holistic approach that embraces the strengths of each methodology while addressing their individual limitations, ultimately leading to more impactful and sustainable results.

Throughout the book, the authors provide practical insights and case studies to illustrate how Velocity can be applied to various industries and functions. They offer a comprehensive roadmap for implementing Velocity, emphasizing the importance of leadership commitment, organizational alignment, and a culture of continuous improvement.

One of the key strengths of the book is its focus on addressing both operational and strategic elements of improvement. The authors present a framework for aligning improvement initiatives with organizational goals, ensuring that improvement efforts are oriented toward delivering meaningful value to the business and the customer.

These are some of the interesting books I re-read from time to time - and I can wholeheartedly recommend to read through.

Now, coming to the part of my original profession, Procurement. And while I start with 3D Negotiations, I go back to what Sun Tzu said: If you prepare correctly there is no war, and in the context of procurement: There is no negotiation necessary. This is what I teach in my strategic sourcing courses, and have experienced for most of my life. If you get into a negotiation, emotions rule, even if it is just one party - results hence are erratic at best.

3D negotiations is the 20s century re-imagination of the “Art of War”, at least in my opinion. David Lax, one of the authors, with whom I discussed this over a coffee saw it differently, but as it is with all work of art - the reader can have a different opinion than the author, and still can love the book.

The authors of this book, all published in the Harvard Business Review, stay in the tradition of other great negotiation books in the english language: Getting to yes or the Harvard Concept from the Harvard University. Now, I said english negotiation books, because brilliant negotiation books are as well available from other countries in different languages, but little read outside of their respective countries. With English being the dominating language for now, we tend to look at mainly those books and universities. By the way: in this context - isn’t it amazing that most high ranked universities in angloamerican global tables are in Britain or the US? The normal statistical distribution would put more excellent universities somewhere outside of these two countries, which just represent about 5% of the human population. Maybe it has something to do with the fact that the assessment criteria used are as well angloamerican…

But I am digressing. Let’s get back to the excellent book of David Lax and James K. Sebenius.

Procurement

3D Negotations by David A. Lax and James K. Sebenius

"3-D Negotiation: Powerful Tools to Change the Game in Your Most Important Deals" by David A. Lax and James K. Sebenius offers a groundbreaking approach to negotiation, providing readers with a comprehensive strategy for achieving successful outcomes in complex and high-stakes deals. The book introduces the concept of "3-D Negotiation," which involves systematically analyzing the dimensions of a negotiation to maximize value, build relationships, and mitigate risks.

The authors emphasize that traditional negotiation approaches often focus solely on the "deal table" phase, where parties engage in direct bargaining over terms and conditions. However, "3-D Negotiation" expands this perspective by introducing two additional dimensions: "setup" and "design." Here you see Sun Tzu having a very similar approach

In the setup phase, negotiators lay the groundwork for success by shaping the underlying structure of the deal, including selecting the right parties, determining who has the authority to make decisions, and influencing the context and timing of negotiations. This dimension involves strategic planning and careful research to position oneself advantageously before formal discussions begin.

The design phase involves creatively shaping the negotiation process itself to unlock additional value and overcome potential obstacles. This dimension includes crafting innovative deal structures, setting up contingent agreements, and using various tactics to address differing interests and concerns among the parties involved. The authors emphasize the importance of using creativity and insight to design a negotiation process that maximizes value for all parties.

"3-D Negotiation" places a strong emphasis on understanding the interests, constraints, and psychological dynamics that underlie negotiations. Lax and Sebenius stress the importance of strategic thinking, comprehensive preparation, and effective communication throughout each phase of the negotiation process.

Both authors have plenty experience in advising not only on business, but as well on negotiations between countries. And I am glad they did, since their methodology is excellent. Now, since the book is published, everyone can learn how to negotiate in 3D format…but just reading it, is no guarantee of success. Not sure whether they still do it, but some time ago they as well trained company staff on their method. I had them train my staff at Infineon, and the training was excellent.

Speaking about having brilliant methodology in the public domain brings me to the best book on category strategy - full stop.

The Purchasing Chessboard by Christian Schuh and Joseph L. Raudabaugh

"The Purchasing Chessboard" by Christian Schuh and Joseph L. Raudabaugh introduces a comprehensive and strategic framework for procurement and purchasing that can be used to drive breakthrough performance and value creation within organizations. The book was created during their time in Kearney, at that point still A.T. Kearney, and for the life of me I never understood, why Kearney put this book in the open. But maybe they gathered, that like in the case of 3D Negotiations, just reading it, will not make a great category strategy process in a company.

Well, I took this book as my baseline, and designed category strategies more or less in line with it for hundreds of buyers and teams. We operationalised it in the early days with Excel sheets that spit out the best strategy based on answering a few clear questions about, guess what: Porter’s five forces. While the authors go into much more detail (at the end 64 fields needed to be filled), the success and understanding you can have by teaching this to buyers and as well salespeople is fascinating. 

Like everywhere else: if you do not have a direction and a plan, every direction and every plan looks good. With a strategy you start working towards a goal, that good teams normally achieve.

The Purchasing Chessboard concept is founded on the principle that procurement is not a homogenous, one-size-fits-all function, but rather consists of a variety of procurement categories that require tailored strategies to maximize value and minimize risk. Schuh and Raudabaugh propose a visually conceptualized "chessboard" to depict the diversity of procurement categories, which vary based on factors such as supply market complexity, business impact, and the innovation potential.

The purchasing categories, symbolized by the squares on the chessboard, are segmented into four quadrants, each representing distinct purchase strategy opportunities based on a particular combination of two dimensions. The four quadrants are Leverage, Bottleneck, Critical, and Routine. Each quadrant requires a different strategic approach, which is tailored to the unique characteristics and importance of the respective procurement category.

One of the central concepts of the Purchasing Chessboard is the strategic segmentation of supplier relationships and procurement categories. By segmenting the procurement categories based on their importance and complexity, organizations can tailor their supplier relationships and procurement strategies. For example, different categories will require different approaches to supplier management, from routine purchases that demand efficiency to critical purchases that require close collaboration and innovation with suppliers.

The book also features a practical toolkit that includes various tools and templates for applying the Purchasing Chessboard methodology within an organization. These tools are designed to assist procurement professionals in segmenting their purchasing categories, developing tailored strategies, and implementing governance and performance monitoring measures to support strategic procurement management.

Today there are companies out there that have taken this kind of principles even further and turn the artform of category strategies into a science. I’ve used with my teams some of them, and they present excellent strategies to implement. Then, all it needs is internal will, empowerment, and well trained buyers to get the benefits that you can get from category strategies in procurement. 

Now, I pointing out something that seems so normal: internal will, empowerment and well trained buyers. As I mentioned I did procurement for quite some time in my career, before operations, quality and operational transformation took over. 

But, when I read the book from Marshall M. Kirmann “The Handling of Railway Supplies: Their purchase and Disposition” I nearly had to laugh and cry at the same time.

What Kirkman was describing in 1887 was not so much different from what I saw in all the companies I either worked or dealt with. 

It makes you wonder, whether there was, besides the technological progress, anything meaningful happening in the art of procurement in the last 130 years. He bemoaned the same apathy by leadership, and missing resources, and described the same strategies that CPOs today try to implement in their companies, with more or less success. I recommend this book for anyone in this profession, who believes his or her problems are unique. History in this case does not rhyme, it does repeat over and over again.

The Handling of Railway Supplies: Their Purchase and Disposition by Marshall M.Kirkman 1887

What fascinated me about this book, is that many of the topics I found in my jobs over the last years, were the same topics that Mr. Kirkman wrote about. As well the solutions were similar. 

Without going into too much detail, it is a harrowing tale of life in procurement, the trials and tribulations, and the solutions that are true today as they were 130+ years ago.

It humbled me to read the book and it is a clear call to action from the grave of our Mr. Kirkman that we (especially the leadership of companies should get their act together and have procurement and supply chain be a major part of their thinking and strategic development process. If 50+ per cent of your value add in the value chain is being bought in, it is not a simple matter of putting a few people of diverse education in place and letting them go about in the dark (management by champignons is this called), but getting the best people (people you like to work with) and put them into the room with the rest of the so-called executive leadership team. And if the first one does not work out, get a new one - but keep this important part of the business, that can make or break you, near to you at all times.

I end this episode with another of my favourite leadership books, ending on the same topic that I began in the first instalment.

By now you will have realized that I like business books that tell a story, and take the reader on a journey of discovery of the protagonists.

The Five Dysfunctions of a Team by Patrick Lencioni, is a fine example of this breed.

Leadership

"The Five Dysfunctions of a Team" by Patrick Lencioni 

It is a compelling leadership fable that examines the fundamental causes of dysfunction within teams and presents actionable strategies for high-performing teams. Lencioni takes readers on a journey through the dynamics of a struggling executive team, illustrating the five key dysfunctions and the corresponding remedies for overcoming them. This insightful fable offers valuable lessons for leaders, managers, and team members seeking to improve collaboration, communication, and overall team effectiveness.

The five dysfunctions outlined in the book are presented as layers of a pyramid, with each dysfunction building upon the one below it. At the base of the pyramid is the first dysfunction: absence of trust. Lencioni contends that trust is the foundation of effective teamwork and that it is crucial for team members to be vulnerable and open with one another. When trust is lacking, team members are hesitant to express their true thoughts and feelings, leading to a fear of conflict and a reluctance to engage in healthy debate and disagreement.

The second dysfunction, fear of conflict, manifests as artificial harmony within the team. Instead of addressing and resolving issues through constructive conflict and candid discussions, team members avoid disagreement and fail to challenge one another's ideas. This absence of productive conflict can limit the team's ability to innovate, make informed decisions, and achieve optimal outcomes.

The third dysfunction is a lack of commitment, which arises from a team's inability to openly debate and participate in decision-making processes. When team members are reluctant to voice their opinions and concerns, they may struggle to align with decisions and fully commit to agreed-upon courses of action. This lack of commitment can lead to inefficiency, missed opportunities, and reduced accountability.

The fourth dysfunction, avoidance of accountability, emerges from the team's failure to hold one another accountable for their behaviours, actions, and performance. When individuals shy away from addressing and resolving accountability issues, it can lead to a lack of ownership, discipline, and follow-through, hindering the team's overall performance and success.

At the apex of the pyramid is the fifth dysfunction: inattention to results. Lencioni explains that when team members are preoccupied with their individual needs, ego, or departmental goals above the collective objectives of the team, it undermines the team's overall effectiveness. The team's focus on personal recognition and achievements detracts from the shared efforts required to achieve meaningful collective results.

To overcome these dysfunctions, Lencioni presents a series of strategies and principles for building a cohesive and high-performing team. These include cultivating vulnerability-based trust, fostering healthy conflict and debate, creating clarity and alignment around team objectives, fostering individual and team accountability, and prioritizing collective results above personal achievements.

I have seen all of these dysfunctions, probably as well as you, in all layers of companies, up to the management board level. Heck, I have seen supplier board members come separately to my office, to discredit their peers. I ran dysfunctional teams, and spent tremendous time to rectify mistakes done in the past - or sometimes as well by me. 

Believe it or not, I even gave every one of my leadership team a copy of the book at one Christmas, asking them to reflect on this and then help me to get to a high-performing team together.

To be clear, often it means removing some of the bad apples before the whole team starts to rott. This is as well part of a the job of the leader. Egomanical leaders require a team that has the trust in each other (the base of the pyramid) to get rid of the wrong leader…it is a two-way street. 

But there is a well a lot that can be accomplished by team reflection and change - every team can improve!

I love the book and believe it should be a must-read for any team, especially any management and executive board. I’d put it in the welcome package when taking the job.

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With that, I hope you enjoyed this episode of “The Supply Chain Dialogues”. If you did, please subscribe if not already done before. Share it with a colleague, friend, or any decision-makers you know in your company. 

Stay safe, be bold and see you two week - and sharpen the saw every day - so that you stay sharp and live a little bit better, day by day by day. 

These are “The Supply Chain Dialogues”, produced and copyrighted by helmig advisory AG in 2024.