Wednesday, October 7, 2009

"TRUST" - Glue of organizations

I heartily love this five-letter word: "TRUST"!


I do believe that trust is glue of organization. This organization can be a family, a group, a company, a supply chain, a country or any other assembly of entities.

Have you ever wondered that why managers, governors, or politicians are so much sensitive to what mass media reflect? Undoubtedly, media are powerful tools for building or destroying a trustful atmosphere in society and peoples’ brains.
By reading and pondering history of nations, I estimate that deterioration and lack of trust between people and their governors have been major reasons of revolution and turmoil in societies. On the other hand, lack of trust between countries has been an important cause of several wars and battles.

Analogically, trust between supply chain’s orchestrator and other agents of the chain plays a significant role in solid management of the system. Trust glues entities of the supply chain together. This is “trust” that enables supply chain relationships from co-operation and co-ordination to integration, then to collaboration, and finally to adaptation. How can supply chain entities collaborate and adapt with each other without a solid trustful atmosphere in the system?
I think that role of logistics service providers and third parties are very important in creation of trust in the system. I will explain this issue in another post.

Lack of trust is also a main source of non-value adding complexity in supply chains. Non-trustful entities in supply chains reveal non-trustful patterns of behavior during time. In this way, learning from emerging patterns and as a result adaptation and co-adaptation becomes harder and perplexing. Dissipative behavior and relationship amplifies chaos in the system. Later on, I will explain the relation between complexity, chaos, and evolution in complex systems like supply chains.

Sunday, October 4, 2009

Teamwork!

Coming together is a begining;
Keeping together is progress;
Working together is success. (Henry Ford)