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organizational incentives

Further, decisions about organizational incentives (e. g. profit sharing, management bonus) for the supply chain participants must be aligned with the supply chain strategy and concept. Note that the APS implementation layer must be aligned with the information systems and information technology strategy (IS/IT strategy). In particular, the selection of an APS vendor is governed by the IS/IT strategy (see also Chap. 16). The relationship between business/supply chain strategy, SCM concept, organizational incentives, APS implementation and IS/IT strategy is depicted in Fig. 15.1. A third reason for the success or failure of SCM projects is found in the organizational and managerial culture of industry firms. Based on our experience from many SCM projects six management practices are important prerequisites to make SCM projects successful. These practices were also described in a study by Collins (2001) of 11 large companies that consistently and massively outperformed their competitors over a decade or more: • a mature and strong leadership, • a focus on people and their strengths and skills, • an ability to confront the brutal facts without losing faith in the end goal, • a clear and well-formulated business strategy, backed by a viable financial model, passion and ability to be world class in delivering the idea, • a culture of discipline and • seeing technology as an accelerator of business performance rather than a single cause of momentum and breakthrough. The initial phase of a SCM project must deliver a th