1. Supply Chain Logistics Management
Chapter 17: Organization and Relationship Management

2. NOT ALL GROUPS ARE TEAMS: HOW TO TELL THE DIFFERENCE
Groups vs. Teams
NOT ALL GROUPS ARE TEAMS: HOW TO TELL THE DIFFERENCE
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Working group Team
Strong, clearly focused. Shared leadership roles.
Individual accountability. Individual and mutual accountability.
The group's purpose is the same as Specific team purpose that the team
the broader organizational mission. itself delivers.
Individual work products. Collective work products.
Runs efficient meetings. Encourages open-ended discussion
and active problem-solving meetings.
Measures its effectiveness indirectly Measures performance directly by
its influence on others (e.g., financial assessing collective work products.
performance of the business).
Discusses, decides, and delegates. Discusses, decides, and does real work
together.
Source: Jon R. Katzenbach and Douglas K. Smith, "The Discipline of Teams," Harvard Business Review, 71:2, March-April 1993, p. 113.
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

3. A SNAPSHOT COMPARISON
Communities of practice, formal work groups, teams, and informal networks are useful in complementary ways. Below is a summary of their characteristics.
What’s the purpose?
Who belongs?
What holds it together?
How long does it last?
Community of Practice
To develop members’ capabilities; to build and exchange knowledge
Members who select themselves
Passion, commitment, and identification with the groups’ expertise
As long as there is interest in maintaining the group
Formal work group
To deliver a product or service
Everyone who reports to the group’s manager
Job requirements and common goals
Until the next reorganization
Project team
To accomplish a specified task
Employees assigned by senior management
The project’s milestones and goals
Until the project has been completed
Informal network
To collect and pass on business information
Friends and business acquaintances
Mutual needs
As long as people have a reason to connect
Source: Reprinted with permission from Etienne C. Wenger and William M. Snyder, “Communities of Practice: The Organizational Frontier,” Harvard Business Review, January-February 2000, p. 142.
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

4. Logistical Organizational Development Cycle
Fragmented Functional Structures
Stage 1 Functional Groupings
Stage 2 Functional Groupings
Stage 3 Functional Groupings
Stage 4 Process Functional Integration
Stage 5 Process Information Integration
Fragmented
Functional Aggregation
Process Integration
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

5. Traditional Organization of Logistics Related Functions
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper
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6. Stage 1 Logistics Organization
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper
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7. Stage 2 Logistics Organization
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper
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8. Stage 3 Logistics Organization
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper
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9. Supply Chain Processes
KEY PERFORMANCE OBJECTIVES
Order Generation and Fulfillment Process
Reduce Cycle Time
Integrated Logistics Process
Reduce Costs
Commercialization of Technology Process
Reduce Throughput Time
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

10. Horizontal Management
Chief Executive Officer
Analysis
Pricing
Research
Sales
VP of Support Services
Chief Operating Officer
Strategy
Advertizing
Strategy
Production
Shipping
Service
VP of Strategy & Planning
Design & Engineering
NEW PRODUCT DEVELOPMENT
SALES AND FULFILLMENT
CUSTOMER SUPPORT
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.