The Pin Factory

There maybe examples of a Strong strategy that are elegantly simple, however it has been my experience that Weak strategies begin with over simplified value propositions that are drowned in superfluous analysis. Strong strategy finds its grace in a balance of goals not in brevity or simplicity. Balance requires investigation of multiple scenarios and a thoughtful decision-making process. A Strong strategy typically involves more than just one goal, for instance sales, revenue, and net income. Not just cost improvements. When a company engages in cost improvement strategies at the operational level to meet a budgetary target they typically end-up with weak strategies that can leave a negative impact on the whole organization. In the end a Strong strategy is one that is adaptable, because the organization knows exactly why it chose it, and for what reasons it will have to change in order to meet changing objectives.

A number of blogs suggest outsourcing and offshoring may have run its course as a sourcing strategy. Outsourcing has been with us since the beginning of time, and offshoring although a new term has been with us since sailing ships began to move commerce. Offshoring is a strategy often relied upon when the business strategy for the category is overly simplistic and focused only on cost reduction. A GOOD business strategy is rarely so monochromatic, and requires a more comprehensive set of goals and objectives including sales, revenue, net income as well as cost. However, offshoring without a clear strategy can lead organizations to mixed results and potentially great harm. The bottom-line is that we need transformation to drive strategic sourcing especially in categories considering offshoring.