Three Stage Implementation Model For Supply Chain Collaboration

JOURNAL OF BUSINESS LOGISTICS, Vol. 29, No.
1, 2008 93
A THREE-STAGE IMPLEMENTATION MODEL

FOR SUPPLY CHAIN COLLABORATION
by
Stanley E. Fawcett
Brigham Young University
Gregory M. Magnan
Seattle University
and
Matthew W. McCarter
University of Illinois
Acknowledgement. This research was supported by generous funding from CAPS. This paper was formally College
of Business Working Paper # 05-0114 at University of Illinois, Urbana-Champaign. Please address all
correspondence to Stanley E. Fawcett.
INTRODUCTION
Supply chain management (SCM) has been called the company’s ultimate core capability and the enabler of
winning business models (Fine 1998; Lyons 2003). As part of a well-designed competitive strategy, SCM can drive
profitability by boosting revenue growth through improved customer service and satisfaction (Hendricks and
Singhal 2003) and propelling dramatic cost reductions (Hult et al. 2004; Lee 2004). Yet, many companies struggle
to achieve these and other competitive benefits (Boddy et al. 1998). As stated in a recent supply chain (SC) forum:
“Despite years of technological and process advancements, an agile, adaptive supply chain remains an elusive goal”
(Beth et al. 2003, p. 64).
Serious barriers impede the collaboration needed to achieve the learning characteristic of an agile SC and its
benefits. SC collaboration is defined here as the ability to work across organizational boundaries to build and
manage unique value-added processes to better meet customer needs. SC collaboration involves the sharing of
resources—information, people, and technology—among SC members to create synergies for competitive
advantage. Collaboration goes beyond managing transactions for efficiency to managing relationships for creativity
and continuous improvement. The collaborative goal is to work cooperatively together to devise and implement
better approaches to solving problems and delivering the value customers expect. Collaborative SC relationships can
be governed by informal understanding or written contracts. Trust is almost always a governing principle of winning
collaborative SC relationships.
Many barriers to collaboration arise from the nature of inter-firm collaboration; others are deeply embedded in
corporate cultures (Parker and Anderson 2002). Among the most prevalent barriers are inadequate information
sharing, turf conflicts, and inconsistent metrics (Barratt 2004a; Moberg et al. 2003; Tyndall et al. 1998). These
barriers inhibit both a company’s willingness and ability to collaborate in meaningful ways. The result: most
companies struggle to implement initiatives that lead to real and effective collaboration with SC partners.
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94 Fawcett, Magnan, and McCarter
The question arises, “How can managers effectively overcome the cultural and structural impediments to SC
collaboration?” (cf. Boddy et al. 2000) To help answer this question, we combine insights from organizational
theory with findings from a series of in-depth company interviews to develop a process model that can guide
managers as they strive to build the collaborative supply chain.
COLLABORATION DRIVERS AND RESISTORS: A THEORETICAL PERSPECTIVE
Two organizational theories offer insight into SC collaboration: 1) contingency theory, and 2) force field theory.
Contingency theory has been used to better understand the dynamics of strategic alliances (Birkinshaw et al. 2002;
Nasrallah et al. 2003; Walker 1997) and has more recently been applied to SC networks and collaboration (Guide et
al. 2003; Johnson et al. 2002; Stonebraker and Afifi 2004; Wathne and Heide 2004). A contingency framework
helps identify the forces driving and inhibiting SC collaboration. Force field theory helps define the interactions
between these driving and inhibiting forces and their impact on SC collaboration (Lewin 1951).
A Contingency Approach to SC Collaboration
Contingency theory argues that managers must identify sequential, cause-and-effect relationships among
environmental, management, and performance outcomes to “match internal features” with an uncertain and
changing external environment (Luthans and Stewart 1977; Scott and Davis 2006). In a SC setting, this requires
managers recognize changes in the competitive environment and then adaptively direct organizational and SC
resources to improve performance (Fawcett and Magnan 2001; Stonebraker and Afifi 2004). For example, increased
competition, shortened technology cycles, and heightened customer demands require companies to collaborate up
and down the supply chain in order to increase asset returns (Togar and Ramaswami 2004). This contingent
response toward collaboration is shifting the competitive focus from firms competing against firms for market
presence and power to supply chains competing against supply chains (Boyaci and Gallego 2004; Corbett and
Karmarker 2001).
Figure 1 shows a contingency framework for understanding SC collaboration. An appropriate contingent

response helps firms improve performance in a dynamic environment through collaborative resource utilization
across SC participants, which is enabled by better information sharing, proactive people development, appropriate
performance measurement, SC rationalization, and trust-based SC relationships (Funk 1995; Hammer and Champy
1993; Lawrence and Lorsch 1967; Stonebraker and Afifi 2004). Two variables affect management’s ability to
implement SC collaboration initiatives—environmental driving forces and internal resisting forces. Driving forces
such as more demanding customers, greater competitor intensity, and shifting channel power dictate a change in
management practice toward more collaboration. Resisting forces such as a lack of top management support, an
unwillingness to share information, and turf conflicts inhibit change, dictating careful consideration of
management’s contingent response. Managers must mitigate these resisting forces through the implementation of the
right contingent strategic response. The diverse nature of the resisting forces requires the implementation of multiple
initiatives to attain desired levels of collaboration and sought after performance outcomes. When the right strategic
initiatives are implemented effectively, the firm can attain important performance outcomes such as superior quality
and faster cycle times.
Figure
A Force 1 Goes
Field Here to SC Collaboration
Approach
Force field analysis helps SC mangers understand the dynamics of change management so that they can better
select and implement initiatives to overcome resisting forces (Lewin 1951). Force field analysis also recognizes that
changes in the environment drive an organization to change its behavior. However, it also emphasizes the role of
resisting forces, which inhibit change and freeze an organization in its current behavior. Driving and resisting forces
can exist anywhere within an organization including people, policies, or processes, and can vary in strength and
influence (Dent and Goldberg 1999; Kotter 1995). Force field analysis brings the interaction between the drive for
change and the resistance to change into focus. Proper focus is critical since static companies in dynamic systems
cannot remain competitive as rivals take advantage of driving forces to change, collaborate, and become more
competitive (Fawcett and Magnan 2004; Friedman 2000; Grove 1996; Lee 2004).
Figure 2 illustrates Lewin’s three-phase force field model in relation to changing from a go-it-alone competitor
to a SC collaborator. To increase collaboration among SC members, managers must comprehend the nature and
strength of both the driving and resisting forces. When the forces resisting collaboration are equal to or stronger than
the forces driving collaboration, a company is frozen in an equilibrium state and will not increase collaboration
effectiveness. As summarized by Dent and Goldberg (1999), it is essential to unfreeze the organization before
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JOURNAL OF BUSINESS LOGISTICS, Vol. 29, No. 1, 2008 95
FIGURE 1
CONTINGENCY
FIGURE 1:FRAMEWORK TO UNDERSTANDING
CONTINGENCY FRAMEWORK SUPPLY
TO UNDERSTANDING CHAIN
SUPPLY CHAIN COLLABORATION
COLLABORATION
Strategic Management Initiatives
People
Management &
Driving Forces Development Performance Outcomes
Information
More Demanding Customers Sharing & Unique Products and Service
Systems SC Performance
Greater Competitive Intensity Faster R&D Cycle Times
Integration Measurement
Shifting Channel Power Superior Quality
Economic Globalization Effective SC Cost Competitiveness
Compressed Technology Cycles Shorter Order Cycles
Collaboration
Merger and Acquisition Activity Flexible Customer Response
An Information Revolution Relationship Enhanced Delivery Performance
Increased Financial Pressures Management & Rationalization Better Asset Management
Shift to SC-based Business Models Trust Building & Simplification Increased Cash-to-cash Velocity
Superior Channel Relationships
Implementation Resisting Forces

A Force Field Approach to SC Collaboration
Lack of Top Management Support
Non-Aligned Strategic and Operating Policies
Force field analysis helps SC mangersInability or Unwillingness
understand thetodynamics
Share Information
of change management so that they can better
Lack of Trust among Decision Makers
select and implement initiatives to overcome resisting forces (Lewin
An Unwillingness to Share Risks and Rewards
1951). Force field analysis also recognizes that
changes in the environment drive an organization to change
Inflexible Organizational its and
Systems behavior.
Processes However, it also emphasizes the role of
resisting forces, which inhibit change andCross-functional Conflicts and “Turf”
freeze an organization inProtection
its current behavior. Driving and resisting forces
Inconsistent Performance Measures
can exist anywhere within an organization including people, policies, or processes, and can vary in strength and
Resistance to Change
influence (Dent and Goldberg 1999; Kotter Inadequate
1995). Training
Forcefor New Mindsets
field and Skills
analysis brings the interaction between the drive for
change and the resistance to change into focus. Proper focus is critical since static companies in dynamic systems
cannot remain competitive as rivals take advantage of driving forces to change, collaborate, and become more
competitive (Fawcett and Magnan 2004; Friedman 2000; Grove 1996; Lee 2004).
Figure 2 illustrates Lewin’s three-phase force field model in relation to changing from a go-it-alone competitor
to a SC collaborator. To increase collaboration among SC members, managers must comprehend the nature and
strength of both the driving and resisting forces. When the forces resisting collaboration are equal to or stronger than
the forces driving collaboration, a company is frozen in an equilibrium state and will not increase collaboration
effectiveness. As summarized by Dent and Goldberg (1999), it is essential to unfreeze the organization before
collaboration can increase. This unfreezing process is Phase I. Frequently some form of external disruption or
significant emotional event such as loss of competitiveness or market share is required to unfreeze an organization
and make change possible. Management resolve or the adoption of new strategic initiatives can at times unfreeze an
organization. During Phase 2, called the movement phase, the driving and resisting forces collide, pushing the firm
toward 1) a failed attempt to move from status quo practice, 2) a successful attempt to establish a collaborative SC
culture, or 3) a move to a status not originally considered. It is during the movement phase that management must
carefully implement its contingent response to cultivate an environment of change. Phase 3 refers to the tendency of
companies to refreeze or settle into a new equilibrium state after a period of dramatic change.
Figure 2 Goes Here
FIGURE 2
FORCE FIELD FRAMEWORK FOR SUPPLY CHAIN COLLABORATION

FIGURE 2: FORCE FIELD FRAMEWORK FOR SUPPLY CHAIN COLLABORATION
Current State Unsteady State Future State
Internal/
External
Collaborative
Driving
Supply Chain
Forces Partner
Planned &
Managed
Initiatives
Individual
Firm
Internal/
External
Resisting
Forces
Phase 1: Unfreeze Phase 2: Movement Phase 3: Refreeze
RESEARCH DESIGN AND METHOLODOLY
Because SC collaboration is an oft discussed but poorly understood phenomenon, an exploratory research
framework employing an extensive literature review and company interview methodology was employed (Bowersox
et al. 1999). Contingency and force field theories make it clear that managing the change process is critical to SCM
success. They place particular emphasis on identifying potential change motivators as well as the mechanisms that
can sustain the transformation process. Therefore, two core questions guided the research:
1. What are the specific practices and requirements for successful SC collaboration?
2. How does a company develop an organizational culture that is capable of high levels of creative SC
collaboration?
To begin to answer these questions, a comprehensive literature search going back almost 25 years was
conducted. The search initially focused on articles in leading SC-related journals but was expanded to other journals
and the trade press using key words in the EBSCO BSC and ABI/INFORM databases. Table 1 displays the most
frequently identified practices and requirements for SC collaboration for the last ten years of the literature search.
While the greatest emphasis is on collaborative planning techniques and information sharing, the variety of
requirements listed reveals the challenging nature of SC collaboration. The literature review provided the insight
needed to design a relevant and useful interview guide capable of exploring critical motivators, resistors, and
transformation mechanisms. It also provided the context needed to analyze and interpret the interview findings in a
meaningful way.
Table 1 Goes Here
TABLE 1
LITERATURE REVIEW OF PRACTICES AND REQUIREMENTS FOR SUPPLY CHAIN COLLABORATION

TABLE 1: LITERATURE REVIEW OF PRACTICES AND REQUIREMENTS FOR SUPPLY CHAIN COLLABORATION
Blackwell & Blackwell (1999)
Stuart & McCutcheon (2000)

Benchmarking Reports (2000)
Handfield & Nichols Jr. (2004)

Carter & Narasimhan (1994)
Monczka & Morgan (1997)

Kilpatrick & Factor (2000)
Fawcett & Magnan (2001)
Bowersox & Closs (1996)
Akkermans et al. (2004)
Daugherty et al. (2005)
Pagh & Cooper (1998)

Bovet & Sheffi (1998)
Anderson et al. (1997)
Monczka et al. (1998)

Mentzer et al. (2000a)
Vokurka et al. (1998)

Lummus et al. (1998)
Moberg et al. (2003)

Bartholomew (1999)
Tyndall et al. (1998)
Waller et al. (2000)

Stank et al. (1999b)
Nohria et al. (2003)
Stank et al. (1999a)

Ballou et al. (2000)
Christopher (2000)
Hines et al. (1998)
Rajib et al. (2002)

Dyer et al. (1998)
Kulp et al. (2004)

Hult et al. (2004)
Tan et al. (1998)

Andraski (1998)
Sheridan (1999)
Lonsdale (1999)
Vokurka (1998)
Frohlich (2002)
Barratt (2004b)
Ellinger (2000)
Barratt (2004a)
Quinn (1997b)
Burnell (1999)
Attaran (2004)
Quinn (1997a)
Oleson (1998)
Marien (2000)
Bender (2000)
Poirier (1999)
Cooke (2000)
Porter (1997)
Noble (1999)
Pitera (2000)
Metz (1998)
Cox (1999)
Lee (2004)
Total
INITIATIVES
CFT/CFcollaboration X X X X X X X X X X X XX X X X X X X X X X 22
Collaborative planning X X X X X X X X X X X X X X X X X X X X X 21
Information transparency X X X X X X X X XX X X X X X X 16
IT architecture/internet X X X X X X X X X X X X X X 14
Certify/reduce suppliers X X X X X X X X X X X X X X 14
Attention to human factors X X X X X X X XX X X X X 13
Adopt strategic SCM vision X X X X X X XX X X X X 12
Formal performance tracking X X X X X X X X X X 10
Target segmented customers X X X X X X X X X 9
Shared investment/benefits X X X X X X X 7
Attention to SC dynamics X X X X X X 6
Defined alliance expectations X X X X X X 6
Top Management support X X X X X X 6
Business process tied to goals X X X X X 5
Role shifting X X X X 4
Manufacturing flexiblity/control X X X X X 5
Postponement X X X X X 5
Trust X X X X X 5
Use of SC diagnostics/mapping X X X X 4
Change management X X X X 4
VMR/co-located employees X X X X 4
Integrated product development X X X 3
ERP/coordinated data X X X 3
Explicit strategies and goals X X X 3
Open communication X X X 3
TQM/BPR/lean X X X 3
SC-wide IT strategy X X 2
Synchronized supply & demand X X 2
Chain-wide metrics X X 2
Supplier councils X 1
Total 4 5 5 1 5 6 2 4 8 1 2 4 4 7 1 4 3 2 1 1 2 6 1 3 4 3 1 3 10 1 2 10 6 8 4 1 5 4 5 3 2 1 7 1 5 4 2 13 2 4 6 4 4 1 4 2
The interview process provides a rich context to help answer important what, why, and how questions
(Meredith et al. 1989; McCutcheon and Meredith 1993; Yin 1981, p. 59). To help assure valid, SC-wide
understanding, we conducted 51 in-depth interviews across four SC positions—retailers, finished-good assemblers,
direct materials suppliers, and service providers (Pettigrew 1990). Companies were selected on the basis of their
reputation for SC excellence; that is, they were best-practice presenters at professional conferences and frequently
mentioned in the trade press. Once a company agreed to participate, a letter of introduction, a brief overview of the
research objectives, and a copy of the interview protocol were provided. A semi-structured interview guide (see
Appendix) was designed to assure comparability of findings while allowing for flexibility in pursuing insight into
unique practices and programs that became evident during the interview (Spradley 1979). All but one interview was
conducted on site at the company. The typical interview lasted 2-4 hours (the longest was 16 hours) and involved
senior managers at the director or VP level who had responsibility for their company’s SC initiatives. Because of the
cross-functional nature of SCM, the lead manager often invited other managers to participate in the interview
process. For example, information technology managers, logisticians, new product managers, purchasers, and SCM
project leaders were often involved in the interviews. This reflects the cross-functional nature of SCM. Descriptive
statistics for the participant companies are shown in Table 2.
Table 2 Goes Here
TABLE 2
CHANNEL SALES, PROFITS, AND EMPLOYEE LEVELS FOR QUALITATIVE SAMPLE (N = 51)
Channel Position Number

Retailer 14
Finished-goods assembler 13
Direct Raw
raw materials
Materialssupplier
Supplier 15
Service provider 9
Public v. Private
Public company 34
Private company 17
Sales ($) Profits ($) Employees
Mean 28,751M Mean 1,740M Mean 134,706
Median 9,045M Median 589M Median 44,750
Minimum 103M Minimum -705M Minimum 2,701
Maximum 285,222M Maximum 10,267M Maximum 1,700,000
During each interview, extensive notes were made for later reflection. These notes were then translated into
structured case write-ups to avoid “data asphyxiation” from the large amounts of data (Pettigrew, 1990). As the
interview process continued, the researchers met to compare notes. These lengthy discussions were used to dissect
the findings, perform a preliminary content analysis, and derive a consensus regarding their meaning. This
discussion-based process led to an initial coding of the interview findings. However, a major concern at this stage of
the content analysis was to avoid reaching premature conclusions from “information processing biases.” Therefore,
after the interview process was concluded, a new researcher was brought in to independently analyze the interview
summaries.
The new researcher employed Eisenhardt’s (1989a) approach for building theory through case studies. Each
case was viewed as a “stand-alone entity” to help identify unique patterns and to form generalized theory in cross-
case comparisons. The data were then analyzed from two distinct perspectives. First, individual write-ups were
compared to the literature to identify and classify key collaboration practices/requirements. Second, the write-ups
were analyzed by SC position to compare similarities and differences (Eisenhardt 1989b). This process led to a
careful coding of the interview summaries. The Top 25 practices/requirements for effective SC collaboration were
ranked by frequency (see Table 3). These results were then compared to those derived by the original research team.
An iterative discussion process was then used to resolve discrepancies and classify the Top 25 requirements into
seven collaboration categories that correspond with a generalized methodology for developing SC collaboration.
This classification relied on the literature and the interview write-ups to contextualize why and how each
practice/requirement is managed. The order in which the categories are listed in Table 3 reflects this process and the
logic shared via the interviews.
Table 3 Goes Here
TABLE 3
TOP TWENTY-FIVE PRACTICES AND REQUIREMENTS FOR SC COLLABORATION

Number of Firms Percent of Total
Rank Identifying Firms
Management Commitment
Garner chief executive commitment 39 76%
Make the rationale and need for change/collaboration visible—even palpable 38 75%
Obtain senior functional management support 33 65%
SC Mapping and Role Definition
Establish common supply chain vision and objectives 38 75%
Define and document business principles, polices, and procedures and map
back to value proposition 30 59%
Develop a holistic view via supply chain mapping—organization, process, and
technology 29 57%
Identify and establish ownership of critical value-added processes and core
competencies 20 39%
Define the specific role(s) of individual supply chain members and
aggressively pursue role shifting 20 39%
Determine the supply chain's value proposition 16 31%
Information Sharing and System Integration
Established information systems capable of sharing real time accurate &
relevant information (connectivity) 44 86%
Inculcate a willingness to share information across functions and between
organizations 35 69%
Establish a revenue-tracking system 20 39%
Improve forecast accuracy throughout the entire supply chain 19 37%
People Management and Development
Provide supply chain training throughout the organization/supply chain and
then hold people accountable 33 65%
Develop mechanisms to share learning throughout the organization and the
supply chain 22 43%
Establish cross-functional management and project teams and develop cross-
experienced managers 22 43%
SC Performance Measurement
Establish performance measures that lead to cooperation/collaboration and
create visibility 41 80%
Design a proactive supplier scorecard-based rating system to drive continuous
improvement 17 33%
Relationship Management and Trust Building
Establish a high level of trust within the organization as well as with supply
chain partners 35 69%
Find qualified product suppliers and service providers that are committed to
continuous improvement 28 55%
Define the appropriate type of relationship to establish with specific supply
chain members 23 45%
Establish a supplier development program via process improvement and
product development teams 18 35%
Rationalization and Simplification
Identify and take advantage of commonalities and collaborative improvement
opportunities 29 57%
Simplify the network—supply base, customer base, and service provider
reduction 27 53%
Eliminate unnecessary or slow moving SKUs 16 31%
THREE-STAGE PROCESS MODEL FOR SUPPLY CHAIN COLLABORATION
The interviews revealed that despite highly publicized success stories, true synergistic SC collaboration is rare.
Creative collaboration requires managers close the cultural, emotional, physical, and strategic gaps that are an
artifact of modern organizational design and promote turf protection. These gaps prevent synergistic collaborative
behavior. Managers often lamented the challenges they encounter in trying to eliminate these gaps and the fact that
no roadmap exists to guide collaboration efforts. This reality drove the effort to combine the interview findings with
the literature to develop a process model for SC collaboration. Managerial frustration with failed or underperforming
efforts to change business practices and take advantage of collaborative opportunities highlighted the role of force
field analysis. Practices that could help managers to “unfreeze” and then “transform” a company’s culture and
structure to support greater SC collaboration were identified and categorized according to their use by interview
companies.
The three-stage process shown in Figure 3 organizes the interview and literature findings according to
contingency and force field theories to provide insight into managing the collaboration change process. The three
stages of the process are: 1) create commitment and SC understanding, 2) remove resisting forces to SC
collaboration to change culture and practice, and 3) continuously improve collaboration capabilities. Figure 3
highlights the fact that the three stages span the boundaries suggested by force field theory. That is, the practices
employed in each stage cross phases to promote the change that is needed to achieve higher levels of SC
collaboration. Thus, the three stages are highly interdependent—the activities and outputs in the stages often
overlap. The three-stage conceptualization helps managers understand that three very different sets of behaviors and
skills are needed to enable winning SC collaboration:
1. Managers must consciously make the case for specific change,

2. They must navigate the difficult, dynamic, and potentially lengthy transformation process, and
3. They must promote a new “fluid” state that is responsive to a rapidly changing market.
Figure 3 Goes Here FIGURE 3
THREE-STAGE SC COLLABORATION MODEL WITHIN A FORCE FIELD FRAMEWORK

FIGURE 3: THREE-STAGE SC COLLABORATION MODEL WITHIN A FORCE FIELD FRAMEWORK
Individual Firms SC Management Practices and Requirements Integrated SC Network

Internal/External Stage 3: Continuously Improve Collaboration Capability
Driving Forces Service
• Benchmark environment, technology, and industry to keep the Lower-tier Provider
company focused on appropriate collaboration and at the cutting edge Supplier
Customer Supplier
of SC practice.
• Implement collaborative improvement initiatives to constantly upgrade
the company!s culture of collaboration (see Stage II activities).
Service
Supplier
Provider Stage 2: Remove Resisting Forces to SC Collaboration Supplier Supplier
• Identify resisting forces and implement practices and projects to help navigate the transformation process:
Information Sharing and Systems Integration: Establish technology connectivity and a culture of willingness
so that real time accurate and relevant information is shared.
Non- People Management and Development: Create a safe collaboration zone by investing in training and team
integrated building to develop mangers who know how to collaborate and are aware of opportunities to do so. Collaborative
Individual Supply Chain
Firm SC Performance Measurement: Identify and establish measures that both promote and support long-term Partner
collaboration and document its competitive benefits.
Rationalization and Simplification: Eliminate unnecessary complexity through rationalization. This process
makes it easier to dedicate scarce resources to relationships with higher collaboration potential.
Relationship Management and Trust Building: Build trust and establish advisory boards to change
traditional relationships and promote collaboration.
Finished Service
Service Supplier
Goods Provider
Provider Stage 1: Create Commitment and Understanding Assembler
Managerial Commitment: Commitment to collaboration must
exist at the top, extend across functions, and be visible.
Supplier Customer
SC Mapping to Solidify Commitment and Create Understanding:
Customer Customer
• Create a visual image of a company!s SC strengths and
weaknesses to promote widespread commitment. Internal/External
• Identify where the organization is frozen in counterproductive Resisting Forces
behaviors.
• Develop roadmap of specific activities needed to transform Phase 3: Steady State of
the culture.
Phase 1: Unfreeze Evaluation and Continuous
Improvement
Phase 2: Unsteady, Transformational State
Stage I: Create Commitment and SC Understanding
Recognizing that the world has evolved and that new rules govern competition motivates change. Managers
identified the loss of market share, the emergence of a disruptive technology, and the advent of new competition as
forces that triggered this recognition. Over two-thirds of the interview companies emphasized that the recognition of
the need for change must be translated into managerial support for collaboration. Managers noted that this
commitment must exist at the top, be widespread, and be made visible to people throughout the organization.
Managers viewed the creation of a visual image of a company’s most important role in the SC network as a
critical prerequisite to building widespread support for SC collaboration. Mapping is a vital tool for creating buy-in
beyond that of the SC champion. Specifically, mapping the “as-is” state of the supply chain is needed to help
managers understand the company’s strengths and weaknesses and compare them to competitive realities. Mapping
also reveals where the company and the supply chain may be “frozen” into uncompetitive behaviors and practices as
well as where collaboration can improve performance. Pinpointing how and where counterproductive behaviors
impede competitiveness is critical to communicating the need for change. Managers noted that the following types
of questions help make sense of a SC map, motivate change, and guide the transformation process:
1. What are the sets of satisfactions delivered to the ultimate customer? Understanding what customers
expect from the supply chain enables managers to identify the value-added roles that lead to
success. It also makes gaps painfully obvious.
2. What are the critical success factors for each SC level/player? This knowledge helps managers to
clearly define: 1) their company’s roles in the network, 2) how they can better meet customers’
needs, and 3) how they should evaluate and select potential collaboration partners and activities.
3. Where are power and profitability located within the supply chain? Channel power enables some
SC members to achieve higher margins than other SC participants. To identify the source of power,
managers must understand the influence of 1) critical technologies, 2) key processes, and 3) each
player’s linkage to the end customer. When the sources of power are understood, managers can
define desirable “should-be” roles of SC participants. Again, identifying and understanding the gaps
between “as-is” and “should-be” roles is a powerful motivator for change.
At this point, managers understand the SC strategy, structure and culture. They know what value the supply
chain must create and deliver. Gaps between existing and required capabilities and roles can be evaluated. The
need for specific changes begins to crystallize, helping managers see both why and where they must focus
efforts to “unfreeze” existing SC behavior. Mapping’s ability to make the need for change visible solidifies
managerial commitment by helping managers agree on the specific activities that must be initiated to transform
the organization. Mapping thus provides a roadmap for change. Establishing commitment and creating
understanding are prerequisites to establishing the willingness and ability to collaborate effectively.
Stage II: Remove Resisting Forces to SC Collaboration
Stage II shifts the managerial emphasis to transforming organizational practice to support a culture of
collaboration and is a natural extension of Stage I. That is, managers use the insight and commitment gained through
the mapping process to undertake specific initiatives to remove the forces that impede collaboration. Managers
typically discussed the following categories of requirements that must be implemented to remove resisting forces
and transform a company’s culture.
1. Information Sharing and Systems Integration

2. People Management and Development
3. SC Performance Measurement
4. Rationalization and Simplification
5. Relationship Management and Trust Building
The interviews revealed that, for many companies, mitigating resisting forces depends on a strategy of
momentum building. Managers repeatedly pointed to pilot projects that were implemented in one of the above
requirements areas. Pilot projects were typically selected to balance early successes and meaningful results. Baseline
performance was carefully evaluated, the targeted practice was implemented, and performance improvements were
documented. Properly communicated, performance improvements create visibility and justify further investments so
that more challenging practices can be implemented. At a couple of companies, advisory boards played a key role in
helping build consensus with SC partners regarding new programs. At a minimum, managers must cultivate one or
two receptive SC partners who are willing to collaborate in pilot programs. One participant turns to the same trusted
customer every time it wants to test a new program. By working cooperatively on a new forecasting system,
impressive results were obtained—a 50 percent increase in sales was supported with a third less inventory. Such
results made it easy to keep the transformation process moving forward both internally and with other customers.
The need to build and sustain momentum must not be overlooked. Organizational inertia constantly works to
refreeze the organization, especially in the early stages of change. Managers must therefore apply constant heat to
keep the organization fluid and enable real transformation. Well-run pilot projects help do this.
While the interviews provided insight into the generalized process for mitigating resisting forces, they also
emphasized the fact that this change process is seldom easy. Indeed, the interviews indicated that companies
struggle to adopt collaborative SC practices because many policies and practices related to the above areas “freeze”
the company’s culture and behavior. Some of the more common challenges encountered by the participant
companies as they struggled to establish more collaborative cultures are discussed in the following paragraphs.
Information Sharing and Systems Integration. The single most mentioned requirement for SC collaboration was
“better information systems.” Technological connectivity is an enabler in supply chains (Alkadi et al. 2003;
Robinson et al. 2005), because it facilitates the sharing of ideas and allows for coordination of SC initiatives
(Sanders and Premus 2002). However, when managers were asked to describe their information deficiencies and
desires, they described a more complex issue than simple technological connectivity. Managers described an ideal
world where decision-making information is frequently, honestly, and openly shared. This supports research that
suggests people’s willingness to share information determines the effectiveness of technology systems (Spekman,
Kamauff, and Myhr 1998). The interviews revealed that a major problem with current information capabilities is
that people are not willing to share information they perceive to be sensitive. Managers resist sharing information
that may diminish their decision-making control. Technological connectivity must be supported by policies and
measures that promote a willingness to share relevant information in a timely manner. Few companies get both parts
of the information integration equation right simultaneously.
People Management and Development. The interviews evidenced that managers often fear the vulnerability
inherent in a collaborative culture. Although risk aversion is not a new concept in organizational change (e.g.,
Denrell and March 2001), the interviews revealed that managers are caught between wanting to attain the long-term
benefits of collaboration and being vulnerable to counterproductive short-term measures and mindsets. They worry
that if the company’s structure and culture do not change quickly enough to support collaborative behavior, as early
collaborators, they will be punished by short-term, financially oriented performance measures. Numerous managers
complained that while today’s environment demands greater collaboration, today’s financial climate inhibits it.
Managers viewed investments in training and team building as a sign of the company’s true commitment to SC
collaboration and as an indication of whether it was “safe” to explore collaborative opportunities. Such investments
keep the momentum for transformation alive and promote the behaviors that lead to real change over the long haul.
Managers across all channel positions felt that SC education was needed throughout the organization. Senior
executives need education regarding the potential return of various collaboration practices to more effectively
establish priorities and allocate resources. Middle managers need an expanded vision of organizational processes to
understand how they can contribute value to activities that take place outside their own domain. Ultimately,
sustained investment in people’s skills and emotional safety is needed to overcome the resisting forces of inertia and
risk aversion and establish a collaboration culture.
Supply Chain Performance Measurement. Manager comments suggest that measurement affects attitudes and
behavior more pervasively than other managerially controlled variables. A common refrain was, “Our performance
measures do not drive collaboration; they promote turf protection.” Managers were often impassioned as they talked
about their companies’ measures. They were frustrated that existing measures tend to be very functionally,
financially, and short-term oriented. Managers commented, “How can you show the immediate P&L impact of a
long-term collaborative initiative?” While appropriate measures were the second most frequently discussed
requirement for effective SC collaboration, counterproductive measures were identified as the most entrenched
resisting force to SC success.
Measurement’s role in sustaining organizational transformation cannot be overstated. Indeed, interviewed

managers were fully cognizant that SC programs do not sell or sustain themselves. Measures that communicate the
value of SC collaboration must be identified, refined, and implemented to document the competitive power of
collaboration and justify the pain and expense created by change. Unfortunately, to date, no easy, silver-bullet
measures have been identified. Therefore, a diligent and sustained effort must be made to develop measurement
systems that promote appropriate behaviors and enable effective collaboration (Slone 2004).
Rationalization and Simplification. Interviewed managers insisted that a major hurdle they face in developing a
collaborative supply chain is managing complexity. They noted that supply chains are naturally unwieldy, consisting
of too many physical and information flows, too many SKUs, and too many relationships. An almost limitless
number of decisions must be frequently made and constantly revisited. The result: managers spend so much time
putting out fires and resolving crises that they do not have time to pursue more cooperative relationships or identify
collaboration opportunities. As more than one manager related, “There just are not enough resources to do
everything.”
Although the interview managers pointed out that a conscious effort must be made to simplify the network, they
acknowledged that their rationalization (or supply chain simplification) efforts are often immature and progressing
at a slower-than-desirable pace. The interviews revealed that much of the difficulty arises from the way companies
pursue rationalization. Timing was a particular challenge. Specifically, until the analysis of Stage I is complete and
the previous Stage II activities are well underway, managers are not likely to possess the time or insight needed to
tame the challenges of SC complexity. They simply do not have the knowledge needed to tell necessary complexity
from counterproductive complexity. As a result, they are not confident regarding where to begin, are overwhelmed
by the magnitude of the task, and lack resources to proceed. In the end, they struggle to untangle what one manager
described as the “web of complexity.” Managers decry the fact that their companies pursue rationalization blindly,
making only marginal progress in using rationalization as a tool to promote cultural transformation and improved
collaboration. Ultimately, when rationalization efforts begin too early in Stage II, rationalization often becomes the
goal rather than the tool to achieve a more collaborative supply chain.
Relationship Management and Trust Building. The interviews emphasized the point that few companies possess
the skills to effectively manage collaborative alliances. Many companies have been unable to “unfreeze” and
“transform” traditional cultures and structures that are designed to manage arms-length, potentially adversarial
relationships. This reality is reflected in the seventh most frequently cited requirement for SC collaboration
success—the need to establish high levels of trust both within the company as well as with SC partners. When asked
to identify the most important prerequisites to alliance success, trust was identified as the single most important
relationship-building factor. Trust enables cultural transformation, making it possible to transform the nature and
state of SC relationships. Trust assures alliance partners that power will not be abused (Malhotra and Murnighan
2002). Trust enables members of the SC team to rely on each other and thereby promotes collaboration, flexibility,
risk taking, shared information, and shared resources. Yet, managers lamented that relatively low levels of trust
typify SC relationships. When confronted with market demands for improved performance, companies resort to
familiar practices that squeeze immediate performance improvements out of SC partners. As one manager noted,
“The customer always has the upper hand.” Another observed that opportunism is common as he described a key
customers approach to risk and reward sharing: “They keep all of the rewards and pass all of the risks to us.”
Because opportunistic behavior is still widely evident in the following areas, navigating the uncertain relationship
transformation process will be an arduous, enduring challenge:
1. Companies do not follow through on commitments

2. Potentially important, but sensitive information is often hoarded rather than shared
3. Leverage is the primary tool used to achieve price, and other negotiated, performance targets
4. Risks and rewards are seldom shared in a way to communicate that both partners are valued
5. Relatively few companies proactively make investments in partner’s skills and capabilities
6. Decisions are often made without explicitly considering their impact on a partner’s business
On the structural side of SC collaboration, some interview companies increase trust and “transform” traditional
relationship patterns through the use of advisory councils. Three types of advisory councils were discussed: internal
senior-level steering committees, supplier advisory councils, and customer advisory boards. While the roles and
responsibilities of these councils vary, the goal is to get critical decision-makers involved in SC process and policy
design decisions as early as possible. Advisory boards act as a: 1) source of creative ideas and feedback, 2) an early
warning system for flawed ideas, 3) a proving ground for favorable new initiatives, and 4) a source of support to
help promote a new initiative to other chain members who are not on the advisory board. Over time, advisory boards
can change how SC members perceive and work with each other—a critical step in “transformation” relationships.
Well-managed SC advisory boards can provide a stream of opportunities to achieve the collaborative successes
needed to establish high levels of trust and transition to more effective collaboration.
Stage III: Continuously Improve Collaboration Capability
Contingency theory describes companies as open systems affected by an ever-changing environment. Managers
must therefore design SC networks to be dynamic and flexible. Otherwise, a supply chain that is highly competitive
today may be obsolete tomorrow. Many managers acknowledged this fear, indicating that SC collaboration must
become a never-ending process. Stage III of the SC process model addresses this reality, emphasizing the need to
develop sensory and adaptation skills. Unfortunately, few of the interviewed companies truly felt their companies
had arrived in Stage III. Rather, they find themselves in the midst of Stage II—the transformation journey. Thus,
although many of the interviews discussed the importance of this future state of SCM, none of the practices
discussed as critical Stage III activities made it into the Top 25 practices and requirements for SC collaboration
identified in Table 3.
Nonetheless, the reality is that changing competition requires new competencies and potentially new SC team
members. In this respect, our three-stage model requires a faster perspective than often associated with Lewin’s
force field theory. Whereas Lewin proposes a refreezing of the organization, the interview managers argue that they
cannot afford to refreeze and risk becoming complacent and obsolete. They recognize that today’s clock speed runs
faster and the obsolescence curve is steeper than ever before. They therefore emphasize the need to build the unique
skills and structures needed for continuous collaborative improvement. The goal is to stay relevant and remain a
valued member of a winning supply chain. Thus, their new state is a “slushy” state of constant evaluation and
improvement. The following practices were mentioned as important to positioning companies for success even as
SC networks evolve:
1. Periodic environmental, technology, and industry scans

2. Best-practice and customer benchmarking
3. Collaborative improvement through suggestion programs, joint problem solving teams, and shared
engineering and managerial resources
Stage III presents a delicate balancing act. New SC relationships must have time to gel so that experience can be
turned into collaboration and competitive advantage. The disruption and uncertainty of Stage II must be followed by
a period of relative stability where ideas and relationships are cultivated. However, even as companies harvest the
fruits of a collaborative culture, every relationship and process must be open and examined for improvement and
renewal opportunities. The underlying message of Stage III is that the chaos of transformation cannot be replaced
with the complacency of business as usual. Ultimately, to get the most out of collaboration opportunities and assure
continued competitiveness, companies must cycle through the formal stages of the SC process model.
CONCLUSION
The interviews highlighted two facts that SC managers must grasp. First, the rules of competition are changing,
irrevocably raising the competitive bar. Getting over the raised bar will require higher levels of creativity and
collaboration. Managers must therefore learn to collaborate more effectively. Managers at companies that are
successfully implementing SCM strategies consistently reported that their performance improvement hinged on their
ability to achieve high levels of SC collaboration.
Second, systemic cultural and structural changes are required to create more collaborative supply chains. Such
changes are not easy to initiate or sustain. Managers must carefully identify the issues—philosophies, policies,
practices, and procedures—that “freeze” the company’s culture and structure. They must then implement specific
practices that can “unfreeze” and “transform” the company’s culture and practices in a way that promotes
collaboration. The three-stage model presents key practices needed to “unfreeze,” “transform,” and continually
improve a company’s collaborative capability. The critical difference in the three stages is in type of skill rather than
duration of effort. The critical Stage I activities of generating commitment and understanding must continue through
Stages II and III. Information, measurement, people, and relationship systems must also be constantly upgraded.
Pursued periodically, the three-stage process model can help companies achieve leading-edge collaboration.
The interviews also exposed the fact that many companies struggle to achieve high levels of collaboration.
Throughout the interviews, managers articulated that cultures change slowly, requiring managerial fortitude and
vision. Indeed, if we were to add a 26th requirement for SC transformation, it would be “follow-through.” Too often,
short cuts or technological solutions are sought instead of the more challenging cultural transformation. Missed
goals and frustration are the most common result. Nonetheless, interviewed managers were optimistic that they are
progressing down the path toward SC collaboration success.
Fortunately, the interviews suggested that the lack of collaboration is not a result of inadequate initiative, but
rather a lack of maturity in managing the change process. As a result, resisting forces dominate and deter driving
forces, stifling collaboration. Since our case studies revealed that managers spend a great deal of time persuading
other managers, employees, and partnering firms of the necessity and benefit of SC collaboration, it might be
beneficial for future research to consider the following:
1. At what organizational level(s) is employee buy-in the most critical to achieve SC collaboration?
2. What are the success factors that drive transformational SC pilot programs?
3. What new organizational forms—such as SC advisory councils—can help transform the way
companies view and associate with one another in the effort to drive collaboration?
Some research has already begun to explore methods of persuasively presenting the case for SC collaboration
(Munson, Jianli, and Rosenbault 2003). The three-stage SCM process model presented here provides a testable
“prescription” (Bazerman 2005) for managers and organizational partners as they undertake the challenge of
unfreezing, transforming, and continuously improving the collaborative capability of their SC processes and
relationships.
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Appendix: Sample Interview Guide Questions
Do you see SCM as a passing management fad or as an important competitive strategy? Why?
What is your firm’s working definition of SCM?
As your firm began SC collaboration, what were the expected benefits?
What are the principal barriers that you have encountered in your SC collaboration efforts?
What have you done to overcome each of these major challenges?
What are the 3 or 4 most important requirements for successful SC collaboration?
How are the roles of different SC members determined and evaluated?
Have there been any specific efforts to shift roles and responsibilities to improve overall supply chain performance?
Collaboration with Suppliers: 1

How aggressively does your firm pursue collaboration with suppliers?
Not at All Aggressively

With first-tier suppliers? 1 2 3 4 5 6 7 8 9 10
With second-tier suppliers? 1 2 3 4 5 6 7 8 9 10
With lower-tier suppliers? 1 2 3 4 5 6 7 8 9 10
Service providers? 1 2 3 4 5 6 7 8 9 10
Who has the major responsibility for supplier development beyond first-tier suppliers?
How do you work with 2nd-tier and lower–tier suppliers to help them achieve higher performance?
How does your firm communicate/share information with other SC members?
What are the 3/4 key measures of SC performance?
With what percent of 1st-tier SC members do you have a formal alliance?
What are the most important keys to alliance success?
How does your firm help suppliers improve their performance? 1st-tier? 2nd-tier? Service providers?
What are the primary responsibilities of service providers?
How have these responsibilities changed recently? i.e., what activities have you outsourced?
Summary:
What SC practices at your company would you consider to be world-class?

Do you have any SC anecdotes/stories that you would like to share?
Let’s take a minute to summarize key practices in each of the quadrants in the following areas.
• Employee Development
• Information Systems
• Performance Measurement
• Alliance Management
1
Parallel questions were asked regarding customer relationships.
ABOUT THE AUTHORS
Stanley E. Fawcett (Ph.D. Arizona State University) is the Donald L. Staheli Professor of Global Supply Chain
Management at the Marriot School at Brigham Young University. He obtained his Ph.D. at Arizona State University
and taught at Michigan State before joining the Marriott School faculty. Stan is an active researcher and has
published over 100 academic and professional articles as well as seven books. He has also taught professional
development in supply chain business model design in Europe, North America, and South America.
Gregory M. Magnan (Ph.D. Michigan State University) is an Associate Professor in the Albers School of
Business and Economics at Seattle University. He received his PhD in Production/ Operations Management from
Michigan State University. Dr. Magnan was recently voted the Professor of the Year (2005) in SU’s Albers School
of Business and Economics. Greg regularly speaks and gives presentations on a wide variety of supply chain-related
topics.
Matthew W. McCarter (B.S. Brigham Young University) is a Ph.D. student in organizational behavior in the
Department of Business Administration at University of Illinois, Urbana - Champaign. Before coming to the
University of Illinois, he received his BS in management from the Marriott School at Brigham Young University.
Matthew’s research has focused on social decision making with a particular interest in social dilemmas.

Three Stage Implementation Model For Supply Chain Collaboration

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JOURNAL OF BUSINESS LOGISTICS, Vol. 29, No.

A THREE-STAGE IMPLEMENTATION MODEL

COLLABORATION DRIVERS AND RESISTORS: A THEORETICAL PERSPECTIVE

A Contingency Approach to SC Collaboration

Figure 1 shows a contingency framework for understanding SC collaboration. An appropriate contingent

Strategic Management Initiatives

Implementation Resisting Forces

Figure 2 Goes Here

FORCE FIELD FRAMEWORK FOR SUPPLY CHAIN COLLABORATION

Current State Unsteady State Future State

Phase 1: Unfreeze Phase 2: Movement Phase 3: Refreeze

RESEARCH DESIGN AND METHOLODOLY

Table 1 Goes Here

LITERATURE REVIEW OF PRACTICES AND REQUIREMENTS FOR SUPPLY CHAIN COLLABORATION

Blackwell & Blackwell (1999)

Stuart & McCutcheon (2000)

Handfield & Nichols Jr. (2004)

Monczka & Morgan (1997)

Daugherty et al. (2005)

Pagh & Cooper (1998)

Monczka et al. (1998)

Vokurka et al. (1998)

Moberg et al. (2003)

Tyndall et al. (1998)

Waller et al. (2000)

Stank et al. (1999a)

Hines et al. (1998)

Rajib et al. (2002)

Kulp et al. (2004)

Tan et al. (1998)

Table 2 Goes Here

Channel Position Number

Table 3 Goes Here

TOP TWENTY-FIVE PRACTICES AND REQUIREMENTS FOR SC COLLABORATION

THREE-STAGE PROCESS MODEL FOR SUPPLY CHAIN COLLABORATION

1. Managers must consciously make the case for specific change,

Figure 3 Goes Here FIGURE 3

THREE-STAGE SC COLLABORATION MODEL WITHIN A FORCE FIELD FRAMEWORK

Individual Firms SC Management Practices and Requirements Integrated SC Network

Stage I: Create Commitment and SC Understanding

Stage II: Remove Resisting Forces to SC Collaboration

1. Information Sharing and Systems Integration

Measurement’s role in sustaining organizational transformation cannot be overstated. Indeed, interviewed

1. Companies do not follow through on commitments

Stage III: Continuously Improve Collaboration Capability

1. Periodic environmental, technology, and industry scans

* Benchmarking Reports (2000), At URL: http://benchmarking-reports.com. Site accessed April 9, 2005.

* Ellinger, Alexander E. (2000), “Improving Marketing/Logistics Cross-Functional Collaboration in the Supply

Appendix: Sample Interview Guide Questions

Collaboration with Suppliers: 1

Not at All Aggressively

What SC practices at your company would you consider to be world-class?

ABOUT THE AUTHORS

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