Collaboration along the Chain

I revisited Michael Porter’s Value Chain recently. I am big fan of his model and have used it for several years.

One thing occurred to me: moving along the chain from left to right requires greater collaboration. Yes, there is collaboration and effective communication throughout; otherwise, things fall through the cracks, products go out of stock and customers do not get the service they expect. But the quality of the service is wholly dependent on everything that came before as well as the support activities. That also means that as we move rightward, there can be less of a need for departments. While there is still a need for accountability, there is less of a need for staff to operate only within their given function. In fact, allowing them to flow through projects, collaborating at a high level, will offer greater insights, newer concepts and better communication.

In the end, you will be adding even more value to your Value Chain.