Organisation & HR

The organisational aspects of state-of-the-art RM do not always receive the attention they deserve. Two very important, and very RM-specific areas that PDC can help you with are:

  1. Design of RM organisation structure: a simple blueprint for the ideal RM organisation does not exist. The complexity of the business model, the extent of automation, the size of the business and the ambition levels regarding RM development are only a number of aspects that should be borne in mind. There are also many factors - some quite complex - that need to be considered when deciding where the RM department would fit in best in the wider organisation structure. A whitepaper on this topic (written for the Air Cargo industry, but partly applicable to other industries too) can be downloaded here.
  2. Incentive plans are pwerful but dangerous tools to align (senior) employees' own objectives with the company's objectives. It is often possible to design straigtforward schemes that work well enough, e.g. based on the revenue or contribution margin generated within the manager's department. However, the introduction of (an) RM (system) can complicate matters considerably. This is especially true if managers of different departments compete with each other for access to the same, scarce, capacity. RM is quite capable of allocating this scarce capacity in the most profitable way, but in doing so, it inevitably puts obstacles in the way of some managers, in favour of others. This happens at a very low level of aggregation, but the total effect may well prevent some managers from making their budget, in a way that is hard to anticipate at the time of budgeting. An intelligent incentive plan can address this potentially damaging discrepancy between personal and corporate goals, paving the way for a smoother implementation of succesful RM.
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