
A Boeing 747-409LCF Dreamlifter (one of four produced) lifts off at Edinburgh Airport. Boeing uses the Dreamlifter, which is an extensively modified Boeing 747, to transport sections of its 787 Dreamliner, which are being engineered and manufactured at multiple locations worldwide. The supply chain includes companies such as Mitsubishi Heavy Industries and Kawasaki Heavy Industries in Japan, Alenia Aeronautica and Global Aeronautica in Italy, Korea Aerospace Industries in South Korea, Boeing in South Carolina, and many more, for a total of about 50 suppliers. The complex of issues involving multiple suppliers has been so difficult to manage that initial delivery of 787s was more than three years late. I've found no reports of unresponsive suppliers, but one can certainly speculate about the frequency of difficult teleconferences for any project of this size (USD 32 billion) that runs over three years late. For more, see the Reuters Special Report, "A Wing and a Prayer: Outsourcing at Boeing."
Unresponsive suppliers are the bane of project schedules. Most planned organizational efforts must meet some sort of schedule. Efforts called projects usually have detailed schedules, which we take very seriously. But the schedule performance of any such efforts that require contributions from outside parties — generically called suppliers — is dependent on the schedule performance of suppliers. Problems can arise when a supplier fails to meet its commitments and doesn't respond to attempts to resolve the matter.
Three guidelines help to make solid relationships with suppliers:
- Ensure that the relationship rests on a firm foundation of mutual respect
- Maintain clarity and ease of communication
- Be easy to work with and make only reasonable demands
Here are some tactics for preventing the problem of unresponsive suppliers, or dealing with it if it develops. In this Part I we explore the foundation of the relationship.
- Verify that the relationship is in good standing
- Before escalating any issue, consider the possibility that the supplier might be acting reasonably. Has your organization been paying its bills when due? Is any legal action underway? Is the contract still in force?
- Ensure that the contract (if there is one) gives you what you need
- A contract requiring that the vendor provide the level of service you'll actually need is helpful, not because it has any force, but because the supplier's having agreed to it usually means that you will be paying a fair price. If the contract doesn't provide what you need, seek a renegotiation. If that isn't possible, identify schedule risk in your risk plan and state that the risk can only be compensated, not mitigated. This is especially relevant in the case of long-term contracts such as leases of real property.
- Know who in your organization can apply pressure
- If you lack Threats you're unwilling
or unable to execute
are riskysufficient clout yourself, determine which people in your organization can credibly press unresponsive suppliers. Let these people know well in advance that assistance might be required. Keep them informed of the scale and expected value of the damage that can result from the supplier's unresponsiveness. - Do not threaten idly
- Threats you're unwilling or unable to execute are risky. If your supplier decides to test your resolve, and you don't follow through with your threatened action, the result will only damage your credibility.
- Consider alternative suppliers
- If your organization is a tiny portion of your supplier's sales, or if the supplier has other more pressing and lucrative accounts, getting the service you need might be difficult. Switching to an alternative supplier (if possible) might be the best available solution, even allowing for any consequent delays and rework. Run some projections to make a careful decision.
Next time, we'll turn our attention to preventive communication practices. Top
Next Issue Next in this series
Is your organization a participant in one or more global teams? Are you the owner/sponsor of a global team? Are you managing a global team? Is everything going well, or at least as well as any project goes? Probably not. Many of the troubles people encounter are traceable to the obstacles global teams face when building working professional relationships from afar. Read 303 Tips for Virtual and Global Teams to learn how to make your global and distributed teams sing. Order Now!
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Related articles
More articles on Conflict Management:
When Leaders Fight
- Organizations often pretend that feuds between leaders do not exist. But when the two most powerful
people in your organization go head-to-head, everyone in the organization suffers. How can you survive
a feud between people above you in the org chart?
First Aid for Wounded Conversations
- Groups that meet regularly sometimes develop patterns of tense conversations that become obstacles to
forward progress. Here are some ideas for releasing the tension.
Agenda Despots: I
- Many of us abhor meetings. Words like boring, silly, and waste come to mind. But for some meeting chairs,
meetings aren't boring at all, because they fear losing control of the agenda. To maintain control,
they use the techniques of the Agenda Despots.
Quips That Work at Work: II
- Humor, used effectively, can defuse tense situations. Here's Part II of a set of guidelines for using
humor to defuse tension and bring confrontations, meetings, and conversations back to a place where
thinking can resume.
Bullying by Proxy: II
- Bullying by proxy occurs when A bullies B at the behest of C. Organizational control of bullying by
proxy is difficult, in part, because C's contribution is covert. Policies that control overt bullying
are less effective at controlling bullying by proxy.
See also Conflict Management and Project Management for more related articles.
Forthcoming issues of Point Lookout
Coming June 7: Toxic Disrupters: Tactics
- Some people tend to disrupt meetings. Their motives vary, but they use techniques drawn from a limited collection. Examples: they violate norms, demand attention, mess with the agenda, and sow distrust. Response begins with recognizing their tactics. Available here and by RSS on June 7.
And on June 14: Pseudo-Collaborations
- Most workplace collaborations produce results of value. But some collaborations — pseudo-collaborations — are inherently incapable of producing value, due to performance management systems, or lack of authority, or lack of access to information. Available here and by RSS on June 14.
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