Bring all your credit and debt together

Order Fulfillment wanted to control inventory reordering. Since they were responsible for inventory cost and managing stock levels, this seemed to make sense. But since Sales Development had the relationship with the vendor; had access to industry trends, consumer tastes, and changes in network features; and understood the impact these factors had on the marketplace, Sales Development wanted to control the ordering process. The situation got so bad that it created animosity between the leaders in the organization. The essence of the situation boiled down to power and control. The power came from the inventory budget: money equals power and control. This is a fairly common dynamic in many organizations, one that can drive some pretty bizarre behavior.

When we brought the two groups together, they agreed to form a partnership. First we clarified their goals. Since sales and order fulfillment objectives were closely related—to make a profit and to satisfy the customer—we were able to align them quickly. Once we had a common goal we were able to redesign the equipment-ordering process so that each group was able to get its needs met. After working through their conflict, the team actually streamlined the process while reducing inventory overhead. This occurred over a one-month period. In the end, the leaders of the two departments created a full partnership between the two departments.

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