The Vision/direction Committee
The Vision/direction Committee
Alternatives
Alternative Option 1
With the basic operational structure established, the following strategic planning committees should be formed with specific responsibilities:
Vision/Direction Committee The Vision/Direction Committee (VDC) should consist of UPS chief officers and board members incorporate information from the mid level planning committees to compile long term projections for the next five years. Projections should include industry trends, global needs, and company positioning suggestions. The committee should be answering the questions “What?” and “Why?”, not “How?”. The VDC should meet twice to four times a year to discuss their five year position plan. The goal is not to establish a five year plan at year one and then meet again at year five, to establish positioning goals for year 10. Reoccurring meetings are essential, and will create an evolving five year plan to maintain flexibility in a sometimes unpredictable and constantly changing market.
Logistics Committee The Logistics Committee (LC) should consist of mid to top-level management focused on continuous improvement, congruent with UPSs mission. Communication must travel vertically, both above and below management in order to provide efficient and quality service to the customer. Preferably, VDC will meet future goals and communicate adjustments downward, allowing the LC to focus on the execution of the organization-wide strategic plan. With the future goals and positions in mind the Logistics committee can also be working towards the future. The LC also has the ability to communicate observations from the bottom of the process up to the planners.
Execution committee The Execution Committee (EC) should consists of low level management who focus on customer service and implementation of the logistics and services provided by the LC. Constantly in contact with the consumer, the EC serves as the eyes and ears for the entire company. Customer feedback about the company should be communicated vertically to the LC as changes are needed to achieve the mission spelled out in the company charter.
Advantages A cycle of information sharing is created allowing the company not only to function efficiently and effectively, but to plan and position for the future. This system of committees of different level management and executives provided both and internal and external perspective crucial to the successful direction of a company like UPS. This strategic system builds establishes an “end destination” leaving the exact route to that destination open and flexible. The VDC is basically steering the ship in the right direction and relying on the Logistics committee to determine how best to propel the ship towards its destination.
The multi- committee system has to ability through its communication channels to essentially hear from every level of the company, from the delivery driver all the way to the board of director. Knowing their observations and input is being analyzed by the upper level committees might cause the lower level committees to buy into the overall direction that the Vision/Direction committee provides.
Disadvantages
The main problem that this system doesnt address is the voice of the shareholders and shareowners. How are their views incorporated into this structure? With all the changes to corporate governance today, and issues like proxy representation and transparency, should the shareholders have the ability to vote members on or off of these committees? If yes, who is going to regulate this process, and how? If no, how are the shareholders going to have a say in the direction of the company that they own?
Alternative Option 2
To contrast a multi-committee structure, the power and responsibility of all future planning and positioning should be completely vested in the board of directors. The schedule structure of meetings should be such that the board meets at least four times a year to analyze the companys current sate in relation to future goals, to determine the appropriate course of action. The analysis and company vision should apply only to the next five years, avoiding speculation.
While most boards have committees and sub-committees within the board, strategic planning should be the responsibility of every member and should be deemed the most important responsibility. A companys success rides on the ability of a board of directors to guide, steer, and ultimately determine the industry and specific segments within the industry in which the company operates. Through analysis of financial performance, input from the CEO and other chief officers, the board of directors must determine if the current position of the company is profitable, how