Achieving Transportation Excellence by Focusing on Daily Improvement
Part 1: Delivering on Promises and Achieving Goals
When first engaging in a partnership, shippers and their logistics providers have certain objectives in mind. It may be to reduce transportation costs or centralize their transportation management but, unfortunately, over time, daily activities often fail to directly connect to those original objectives. In order to achieve the desired ROI and deliver on the promises made during the sales process, both parties need daily activities to align with that objective.
By taking a strategic approach to managing operations and applying an OGSM (Objectives, Goals, Strategies and Measurements) model, shippers and logistics providers can partner to:
- Better define their overall vision
- Set tangible goals
- Build strategies in order to focus their daily efforts on achieving those goals
- Establish benchmarks to track and assess their progress
Delivering on Promises and Achieving Goals
Organizations are constantly looking for ways to reduce operating costs, gain a competitive advantage and deliver better service to customers – which is why many may partner with a logistics provider to support (or fully manage) their transportation operations.
In that relationship, both parties identify a desired outcome and work collaboratively to deliver on those promises. However, while both sides have the best of intentions to deliver ROI and committed value propositions, targets are often missed in the midst of business “noise”. Lack of communication, changes within both organizations and near-sighted focus on tactical/first order problems pull focus away from the commitments derived from the subsequent goals created during the life of the partnership.
By applying a proven methodology to business management, shippers and their logistics providers can better define the overall vision. But what should that methodology look like, and how should shippers and their logistics providers be applying it in their everyday operations and ongoing partnerships?
OGSM = A Disciplined Approach to Business Management
In order to establish (and maintain) a disciplined approach to business management, it’s helpful to use a proven process such as OGSM (Objectives, Goals, Strategies and Measurements). OGSM is a strategic planning process that provides clear goals and identifies the strategic choices to achieve them – a model for delivering alignment, transparency and metrics that truly define success. OGSM also frames what the business needs to achieve and provides a prescriptive approach to getting there.1
By clearly defining objectives, goals, strategies and measurements from the beginning, all parties involved can be focused on achieving the commitment promised in the contract each and every day. Then, if there are shortfalls, they can be identified on a daily basis and day-to-day accountability can be assigned to specific individuals for remedying those shortfalls.
While this approach isn’t going to magically solve or fix anything, it does limit the period of time where issues can linger and lead to greater potential for risk and service disruptions. OGSM can help to:
- Ensure that all goals, strategies and measures directly connect to overall objective.
- Provide better standardization for processes and measurement – from the beginning.
- Quickly identify shortfalls, leading to root cause analysis and the creation of a tactical/strategic solution.
- Empower employees to drive organizational change.
How are you working toward daily improvement at your organization?
 “OGSM: Developing, Aligning and Deploying Strategy; ArchPoint Consulting