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John Gattorna and Friends (2009). Dynamic Supply Chain Alignment: A New
Business Model for Peak Performance in Enterprise Supply Chains Across All
Geographies. Farnham, U.K.: Gower...

Article  in  Human Resource Management · September 2010

DOI: 10.1002/hrm.20383

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 Book review:

John Gattorna and friends (2009). Dynamic Supply Chain Alignment – A New Business
Model for Peak Performance in Enterprise Supply Chains Across All Geographies, Gower
Publishing Limited, Farnham.

Kim Sundtoft Hald

Accepted version – Available at

Hald, K. S. (2010) ‘John Gattorna and Friends (2009). Dynamic Supply Chain Alignment: A New Business Model for
Peak Performance in Enterprise Supply Chains Across All Geographies. Farnham, U.K.: Gower Publishing Limited.
420 pages’, Human Resource Management, 49(5), pp. 969–973.

Supply Chain Management originates back to the early 1980s (Oliver & Webber, 1982). Since then

not much have been said about how human resources and human resource management

professionals engage in activities in the supply chain. Even today we know only little about how

human resources behave, and how they influence the efficient and effective transformation and flow

of goods from original source till the products and services reach end customers. This book is a

notable exception. Together with previous publications (Gattorna, 1998, 2003, 2006) the author

address a subject of high relevance and importance to today’s management of complex enterprise

supply chains.

Common to the listed publication is the notion of strategic- or dynamic supply chain alignment.

Dynamic supply chain alignment is a framework that integrates the formulation of strategy with

customer buying behaviour and the core capabilities inside the firm (Gattorna, 1998, 2006). It seeks

to improve alignment between end customer markets, strategy, culture and leadership, on the

premise that more alignment produces better bottom-line performance.

When I was asked to make a review of “Dynamic Supply Chain Alignment”, I considered how to

proceed. Gattorna’s work on his dynamic supply chain alignment model is comprehensive. The

framework itself and the subjects covered in his books are of a broad nature covering many aspects

of strategic supply chain design. Although this material in general is well written and of interest to

practitioners and students focusing on supply chain management, most of these subjects mobilise no

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direct link between human resource management (HRM) and supply chain management (SCM).

The focus of this review will therefore be on the chapter “People Powering Enterprise Supply

Chains”. When reference to other of the author’s publications can inform the review, I will include

them in my discussion.

In the chapter on “People Powering Enterprise Supply Chains” the author argues that we should

put customers’ needs and wants first in whatever the supply chain does. According to the author, the

problem is that enterprises today have forgotten the real “game” that the “only focus that is

important” is the customer. Instead they have become smitten with a technology focus rather than a

customer focus. “The real villains are marketing and sales personnel who are not doing enough to

translate their sometimes intimate knowledge through to other parts of the enterprise” (p. 46). The

author continues, “I see very few enterprises in my travels that genuinely understand and have an

in-depth knowledge of their customers” (p. 46). Talking about customer focus as a prerequisite for

SCM yes even as a defining feature of SCM, is certainly nothing new (Mentzer et al., 2001).

However, this is so important to the philosophy of SCM, that we might argue that such a focus is a

sympathetic endeavour.

Consistent with the theme, the author puts forward the construct of alignment, alignment between

generic supply chain design and end customers needs and wants. “Once you pin down the structure

of your marketplace, it is possible to develop a corresponding range of responses that align with the

different customer buying behaviours you have identified.” (p. 47). It is about designing service

packages or “value propositions” that is aligned with or that will fit the individual customers’ needs

at that particular place and time. Alignment then, in the vocabulary of the author, appears to be a

constantly strive for fit between customer desires, system outcomes and system capabilities. “The

dynamic alignment concept requires that four levels of human endeavour be aligned – marketplace,

response(s) to customer demands, internal cultural capabilities and leadership style – all held

together primarily with leadership, organizational structures, processes and technology” (p. 47).

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Such a concept builds on a contingency paradigm where it is assumed that the optimal system

configuration (i.e. the one leading to the highest performance) will vary over time and is dependent

on a range of factors internally in the system and externally in the system environment (Luthans &

Stewart, 1977). In this case the system that has to find its optimal configuration is the enterprise supply

chain, the factors internally to it are cultural capabilities and leadership style and the factors externally

in the environment are end customer marketplace behaviour.

The ranges of responses to customer demands proposed by the author are based on the author’s own

empirical experience and clustered in four generic types of supply chains: Continuous

replenishment supply chains; Lean supply chains; Agile supply chains and Fully flexible supply

chains.

The idea of aligning supply system capabilities with intended system outcomes to serve a particular

market segment is well integrated with research on lean/agile or le-agile supply chains, and how

such generically different supply chain process configurations should be matched with product-,

service- or market-characteristics (Christopher & Towill, 2002). Fisher (1997) for instance in his

seminal publication on “What is the right Supply chain for your product” argued that supply chains

serving end customer markets demanding innovative products should be designed as agile supply

chains, whereas supply chains serving end customer markets demanding few new innovations

should be designed as efficient supply chain. Thus the proposition posed by Gattorna on aligning

supply chain systems with end customer market demands or behaviours is well integrated with

previous and current research and thinking on supply chain design. Of more interest to this special

issue is the author’s proposition that customer buying behaviour should be aligned not only with

processes and technology, but also with supply chain sub-culture and leadership style. It is

interesting that the author propose to align supply chain system design and end customer markets on

more dimensions than what have been proposed in previous literature on supply chain design. In the

contingency paradigm it seems valuable to make the supply chain system representation more

3
detailed and include in its design and contingency problem, considerations on team- and job-

structures, human resource capabilities, human resource behavioural design mechanisms and

communication forms and modes.

The author proposes that supply chain sub-culture is formed by a list of “cultural capabilities”, but

both “sub-culture” and “cultural capabilities” remain unexplained and no argument why and how

one leads to the other is provided. As a consequence, we should ask to what extent are the

components in the list of cultural capabilities (organizational design, process, IT, KPIs, incentives,

job design, internal communication, training and development and recruitment) culture enforcing

mechanisms? To what extent do they lead to ‘the collective programming of the mind which

distinguishes the members of one group from that of another” (Hofstede, 1980)? How do they lead

to the presence of shared values, beliefs, assumptions, and patterns of behaviour (c.f., Schein, 1992)

in the four generic supply chains proposed by the author?

Four generic sub-cultures are proposed, each one should according to the author uniquely match

one of the generic supply chains. In a continuous replenishment supply chain focusing on

relationship development with key customers a “group subculture” should be constructed. In a lean

supply chain focusing on high volume, low variety and low cost supply, “a hierarchical sub-

culture” should be enforced. Finally an agile supply chain focusing on responsiveness and a fully

flexible supply chain focusing on hedging and deployment of resources should be matched with a

“rational subculture” and “an entrepreneurial subculture” respectively. However no definitions

of these arguably different subcultures and no arguments why they should be aligned and designed

as proposed is provided. As a consequence the reader stands back with a range of questions. What is

meant by these different subcultures? Why should they be aligned and designed as proposed? Why

should design of incentives in an agile supply chain be guided by “achieve targets; cash and in-

kind bonuses” (p. 50)? Why should training and development in a lean supply chain be made with

4
an “emphasis on analysis and measurement”? (p. 49) and what does such an emphasis exactly

mean?

Both deficiencies are to some extent avoided in a previous publication (Gattorna, 2006). What

remains however, is an impression of a well though up conceptual idea, but no real evidence of how

and if sub-culture can be constructed, shaped or mingled with in the manner and with the

mechanisms the author propose.

An example of a mechanism supposedly able to shape supply chain subcultures is the use of key

performance indicators or performance measurement as introduced in chapter 14. The overall

argument presented in this chapter is that “performance measurement ‘done right’ will also be a

major facilitator and shaper of culture and subcultures within the organization” (p. 207).

Performance measurement is even elevated to “the primary tool at management’s disposal for

directing the behaviours within the organization” (p. 208). Although this chapter is well written

and will be of interest to practitioners as inspiration on how to proceed with performance

measurement in their own organizations, from an academic point of view it is uncritical. The author

seems to assume that if measures that fit the focus of the organization or supply chain are selected,

then more or less automatically the desired subculture will emerge. Such a straight forward

argument is much too hasty (Bititci et al., 2006). Does it in fact require a certain organizational

culture for performance measurement to work as intended in the first place? (Bourne et al., 2002;

Franco and Bourne, 2003).

A constant theme throughout chapter 1 on “People Powering Enterprise Supply Chains”, but most

forcefully so in the beginning, is the criticism of HRM professionals. “The number of HRM

professionals is increasing, but their impact is getting less.” (p. 45). The argument appears to be

that HRM professionals are supposed to advice and assist top management to shape the people

power of the enterprise and not only preoccupy themselves with administrative-, reactive- and

routine tasks such as personnel administration, car polices, recruitment, wages and awards payment,

5
health and safety and superannuation (p. 45). Instead HRM professionals should aim to understand

and address the interface between strategies or enterprise intensions and the internal cultural

capabilities of the enterprise. It is in this interface, the reason why most plans are never delivered

and supply chains underperform, are to be found, the author continues.

It makes sense to ask HRM professional to adopt a more proactive role in the shaping of corporate

culture and overcoming supply chain implementation barriers (Gowen III & Tallon, 2002). Such

recommendation is further in line with the symbiotic relationship between a firm's culture and its

HRM policies discussed by other scholars within the domain of SCM (McAfee et al., 2002) and

HRM (Ogbonna & Whipp, 1999; Ulrich, 1984). McAfee et al. (2002) for instance point towards

four human resource policy areas – staffing, training, compensation, and evaluation of employees –

and claim the execution of them to have significant effects on organizational culture.

But is it really as bad or negative as Gattorna let us believe? Is the involvement of HRM

professionals in cultural and human resource design issues totally absent in all organizations? We

do not know since arguments are based on the authors’ travels around the world and his personal

engagement with major corporations.

Finally, we should ask, why is this problem of special interest to supply chain management?

Gattorna talks about organizational- not supply chain- inefficiencies, strategies and plans, but isn’t

this a chapter dedicated to supply chain practices? Where are the unique supply chain issues, the

issues cutting across multiple companies in a chain or a network? Organizational culture must be

shaped according to end customer market buying patterns (p. 47), but why are cultural implications

on suppliers not discussed? Adopting a holistic supply chain management view, all participating

actors in the chain should shape their internal culture and leadership style to fit end customer buying

behaviour?

In summary the book is a well written collection of interesting and topical chapters. The book is

bound together by a common reference to supply chain management, and packaged nicely into the

6
dynamic supply chain alignment framework developed by Gattorna in previous publications (1998,

2003, 2006). From this perspective I would recommend practitioners who have an interest in one or

more of the topic to buy and read it as a sort of inspiration for their own work practices. Overall I

enjoyed reading this book and especially the chapter on people powering supply chains. However,

since important discussion on for instance culture and leadership is left out of this chapter, it is best

read together with the authors other publications. The treatment of “sub-cultures”, “cultural

capability” and the severe critique of HRM-professionals raises some questions. Why limit the

framework to a focus on how internal company sub-cultures can be shaped, when the book deals

with supply chains? Can in fact, sub-cultures be shaped with the mechanisms and cultural

capabilities suggested in the book? Is the involvement of HRM professionals in cultural and human

resource design issues totally absent in all organizations, and if so what are the consequences? Is a

contingency approach as suggested in the book, the best approach for us to apply when we study

HRM-practices in the supply chain? This aside, we should recognize Gattorna as one of the few

early contributors adding to an emerging discussion on synergies and dynamics between HRM- and

SCM-practices.

References
Bititci, U.S., Mendibil, K., Nudurupati, S., Garengo, P. & Turner, T. (2006). Dynamics of
performance measurement and organisational culture. International Journal of Operations &
Production Management, 26(12), 1325-1350
Bourne, M., Neely, A., Platts, K. & Mills, J. (2002). The success and failure of performance
measurement initiatives. International Journal of Operations & Production Management,
22(11), 1288-310.
Christopher, M. & Towill, D.R. (2002). Developing market specific supply chain strategies.
International Journal of Logistics Management, 13(1), 1-14.
Fisher, M. (1997). What is the right Supply chain for your product?. Harvard Business Review,
Marts-April.
Franco, M. & Bourne, M. (2003). Factors that play a role in managing through measures.
Management Decision, 41(8), 698-710.
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Management, Gower Publishing, Aldershot.
Gattorna, J.L. (2003). Handbook of Supply Chain Management, 5th edn, Gower Publishing,
Aldershot.
Gattorna, J.L. (2006). Living Supply Chains, FT Prentice Hall, Harlow.
Gowen III, C.R. & Tallon, W.J. (2002). Enhancing supply chain practices through human resource
management. Journal of Management Development, 22(1), 32-44

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 Hofstede, G. (1980). Culture’s Consequences, Sage, Beverly Hill, CA.
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McAfee, B, Glassman, M. & Honeycutt J.E.D (2002). The effects of culture and human resource
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