Creating centres of excellence for supply chain analytics

Many organisations are recognising the benefits of creating small teams of individuals (called centres of excellence [COEs]) dedicated to specific tasks, which require specialised skills and capabilities from team members. But not all such COEs are successful, and many are disbanded due to budget shortfalls, lack of internal executive support or failed outcomes. In this research, we address the question: What are the critical factors that lead to successful COE performance? Based on an extensive set of interviews with chief supply chain officers and COE leaders, we find that several key elements distinguish successful from unsuccessful COEs. Specifically, successful COEs are governed by specific and well-defined metrics, receive funding based on performance outcomes and ensure that they are staffed by individuals with demonstrated analytic and project management skill sets. These essential elements were consistently mentioned by supply chain executives who have deployed multiple COEs with successful outcomes. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.