Why Strategic Supply Chains Underperform – And What You Can Do About It

Drive performance by aligning your supply chain around what matters most

Most supply chains aren’t broken – they’re misaligned. Despite process improvements and KPIs, many strategic relationships still suffer from missed targets, escalating costs, and wasted effort. The root cause? A failure to understand and manage what truly matters to each party.

The Strategic Relationship Curve reveals a predictable pattern of underperformance driven by misalignment – of interests, expectations, and context. As complexity increases across suppliers, tiers, and partners, so does the risk of breakdown.

The Strategic Relationship Curve

Success today isn’t about tighter control – it’s about deeper alignment. That means continuously surfacing, measuring, and acting on what each party values most.

This isn’t a soft skill – it’s a strategic shift. One that transforms supply chains from transactional networks into high-performance ecosystems.

The curve makes it visible. Value management makes it actionable.

Alignment, Resilience and Coherence (ARC) are the measures to harness complexity.

Supply chain success hinges on a shared foundation — common goals, trust, and clarity — that leaders instinctively grasp yet rarely have the opportunity to measure. 

In a world awash with transactional data, these intangibles slip through the cracks, breeding waste and risk.

Quantify them, and you empower decisive, impactful action for resilient outcomes, ignore them and you’ll experience one or more of these situations:

  • The foundational “why” of the relationship is vague, assumed, or no longer current.
  • Different assumptions about the world, each other, or what “good” looks like.
  • Emotional, interpersonal, or cultural disconnects erode collaboration.
  • Information doesn’t flow freely or meaningfully across boundaries.
  • Formal structures and governance are unclear, misaligned, or both.
  • Rewarding behaviors that don’t benefit (or harm) the relationship.

Yet misalignment often goes unrecognized as the root cause of serious problems — until it’s too late to act.

Quickly start to gauge alignment

This free Alignment Diagnostic is the first step on the journey to success, giving you the chance to start gauging your internal alignment with a representative small group of people.

  • Check out the diagnostic for yourself – experience what it’s like to evaluate things that matter typically beyond the reach of traditional approaches
  • Explore and capture your perspective – consider what the current state of these things seems to be to you and (optionally) give your reasoning
  • Gather and capture other perspectives – engage up to 6 other key representative people to do the same
  • Get your secure and clearly-presented report – responses are automatically anonymized, collated and analyzed
  • See an indication of your organization’s (mis)alignment – areas of agreement, areas of divergence, potential blind spots
  • Create momentum for change – use this evidence to make the case for exploring (mis)alignment at greater scale internally; with partners; with customers
  • Discover your Strengths & Weaknesses – Share best practice and get support where needed
  • Get guidance on using this insight – Improve collaboration and decision-making

This powerful, easy-to-use diagnostic isn’t a survey — it’s a clear, structured assessment to quickly pinpoint your alignment and performance strengths, areas for improvement, and which actions will deliver the greatest impact.

Diagnostic Content

Surface, communicate and align around the following things that matter:

  • End Customer Focus
  • Shared Purpose
  • Relationship Fit
  • Prioritization
  • Commitment to Outcomes
  • Success Criteria
  • Role Clarity
  • Ownership & Accountability
  • Stakeholder Engagement
  • Capability & Competence
  • Pragmatism & Resilience
  • Mindset & Behaviours
  • Communication Protocols
  • Transparency & Reporting
  • Responsiveness
  • Decision Making
  • Consistency
  • Issue Management
  • Delivery Reliability
  • Compliance & Sustainability
  • Fairness & Equity
  • Adaptability & Agility
  • Risk Management
  • Continuous Improvement

When you invite others to join you, your perspectives are gathered and reported back to you – uncovering misalignment and helping you align

ARC Value Management

ARC Value Management also has related solutions in the following areas:

Evaluate and select partners based on strategic alignment, cultural fit, and long-term value.

  • Strategic Partnering
    Prioritizes partners aligned with organizational strategy
  • Risk Reduction
    Incorporates criteria like financial stability, operational capabilities, and reputational risk
  • Robust Decision-Making
    Uses multidimensional fit analysis (strategic, operational, chemistry)
  • Sustainable Alliances
    Focuses on learning capabilities and cultural compatibility

Define, articulate, and communicate clear, measurable strategic goals and outcomes for each alliance.

  • Shared Purpose
    Establishes quantifiable strategic objectives, fostering mutual commitment
  • Value Co-creation
    Clarifies what matters to all concerned to drive strategic outcomes
  • Improved Communication
    Facilitates open, focused goal and information-sharing
  • Strategic Integration
    Aligns objectives with broader strategic intentions.

Dynamically track and assess the health, status, and performance of strategic alliances using metrics beyond revenue, providing data-driven insights for proactive management.

  • Proactive Insights
    Tracks strategic, operational, and relationship health, enabling early identification of issues or opportunities
  • Timely Interventions
    Supports adjustments to address misalignments or underperformance, improving outcomes
  • Resource Optimization
    Highlights high-value partnerships, guiding focus and investment across the portfolio
  • Accountability
    Uses scorecards and diagnostics to measure performance against strategic goals, ensuring alignment

Bring together Diagnostic results for individual strategic relationships, enabling value-led prioritization, resource allocation, and strategic analysis.

  • Resource Prioritization
    Focuses resources on high-value partnerships, optimizing limited capacity
  • Portfolio Value
    Aligns alliances with corporate strategy, maximizing collective impact and return
  • Systemic Insights
    Identifies common challenges or opportunities across partnerships, improving processes
  • Scalable Oversight
    Manages growing portfolios with tools to reduce complexity and enhance strategic control

Consolidate relationship information, knowledge, intelligence, expertise and experience – best practice available in a structured, shared resource.

  • Team Empowerment
    Equips professionals with situation-specific resources for relationship execution
  • Standardized Practices
    Promotes consistent processes in relationship management
  • Skill Gap Closure
    Harnessing practical ‘learn as you go’ expertise, with resources organized around activities
  • Sustainable Success
    Continuous persistence and improvement of internal relationship capabilities

A ‘shared space’ to facilitate joint innovation and knowledge-sharing between partners, aligning resources and expertise to develop new solutions or processes.

  • Innovation Accelerator
    Encourages co-creation of novel value-led solutions
  • Enhanced Collaboration
    Aligns partners through the things that matter, strengthening relationships and trust
  • Complexity Harnessing
    Provides complexity-aware generative constraints to promote People-Centred engagement
  • Value Amplification
    Creates long-term synergies, generating new value-inspired revenue streams or efficiencies

Identify, assess, monitor, and mitigate risk and uncertainty affecting strategic relationships.

  • Proactive Risk Mitigation
    Puts attention on areas of risk and uncertainty
  • Partnership Stability
    Harnesses complexity manifesting as PESTLE uncertainties
  • Protected Interests
    Introduces the intangibles that complement standard contract and risk management
  • Informed Strategies
    Enables holistic risk and uncertainty evaluation to secure strategic partnering decisions

Utilize value-led parameters, ideally framed at the outset of the relationship, for evidence-based, dispassionate management of relationship terminations or transitions.

  • Value Preservation
    Facilitates orderly exits with clear processes for knowledge transfer and asset allocation
  • Risk Minimization
    Reduces legal, financial, or reputational risks during terminations through structured agreements
  • Relationship Continuity
    Maintains positive exits, preserving opportunities for future partnerships
  • Lifecycle Completion
    Addresses a critical phase, ensuring strategic coherence throughout the lifecycle
Proven Benefits

Engage with the diagnostic to begin unlocking these real-world benefits

Alignment reduces waste, streamlines processes, and boosts productivity:

  • Improved productivity and reduced waste
    Alignment minimizes resource drain and focuses efforts on priorities
  • Resource efficiency
    Organizations achieve more with fewer resources when aligned
  • Smoother value delivery
    Processes flow efficiently from customer to supporting teams
  • Realized synergies
    Stalled efforts gain momentum, and friction decreases

Alignment fosters collaboration, trust, and engagement across the organization:

  • Stronger collaboration and teamwork
    Shared goals foster a unified working environment
  • Clearer communication
    Alignment ensures everyone understands priorities and objectives
  • Increased trust and better relationships
    Shared values build sustainable connections
  • Higher morale and engagement
    Employees feel connected to a meaningful purpose

Alignment enhances adaptability, resilience, and cohesive decision-making:

  • Enhanced agility and adaptability
    Alignment enables quick, purposeful responses to change
  • Greater resilience
    A cohesive system withstands uncertainty and pressure
  • Improved consistency and coherence
    Efforts align across the organization for a unified approach
  • More effective decision-making
    A shared focus streamlines choices and actions
  • Sustained strategic and operational strength
    Clarity, efficiency, and cohesion drive success

Alignment drives innovation, responsiveness, and customer satisfaction:

  • Boosted innovation
    Valuing insights leads to practical, creative solutions
  • Improved market responsiveness
    Alignment sharpens anticipation and speeds delivery
  • Better customer satisfaction
    Focus on customer needs improves outcomes.

Gauge Alignment

identify where there is and isn’t convergence of opinion

Diagnose Issues

spot potential issues before they turn in to serious problems

Share Strengths

capture and share best practice to improve outcomes and motivation

Diagnostics Trusted by Supply Chain Leaders

More from Mick Harris on wider use of Diagnostics – full interview / highlights here.

Align around things that matter

🎯 See how aligned your team is

👥 Identify areas of agreement

use the Access Code you were provided


Frequently Asked Questions

This is not just another survey.

We understand people get “survey fatigue”, but aside from some superficial similarities, the purpose, nature and outcomes of this diagnostic are entirely different to a survey:

This is a structured diagnostic tool for synthesizing, comparing and highlighting differences in perspectives.

It will not only reveal misalignments you wouldn’t otherwise see, but it will clarify them through the specific detail of the Value Codes – focused areas you will be evaluating.

We get it — there are many “silver bullets” out there.

This diagnostic isn’t a quick fix or a generic tool.

It’s a rigorous, collaborative process that uncovers hidden misalignments and overlooked value drivers that contracts and KPIs miss.

It helps your entire team see what’s really going on, so you can act with clarity and confidence:

  • It’s proven to scale — but feels deeply personal.
  • It builds insight before demanding action.
  • It fits how people naturally learn, decide, and engage.
  • It doesn’t impose or instruct — it invites and unlocks.
  • Most importantly: it works where other efforts haven’t.

Alignment is a necessary foundation for success.

But it is very difficult to achieve and very difficult to know how far away you are from achieving it.

This diagnostic will give you an idea of where things really are, and establish a benchmark which you can return to later, to track change and evaluate the effectiveness of actions taken.

If everything is looking good, and if everyone agrees, then the diagnostic will start to substantiate this.

More likely, though, you’ll uncover areas of opportunity, where the diagnostic and report will:

  • Provide a constructive outlet to surface concerns regarding some key things that matter, and prepare to reorient around solutions
  • Encourage and support individuals that want to take a lead in understanding and making progress in developing alliancing capability
  • Clarify where to focus, which may include discussing and resolving different perspectives

True alignment doesn’t happen by accident.

Alignment happens when teams see their differences, discuss them openly, and take action together.

Absolutely.

Think of this as a powerful diagnostic lens that complements and enhances your current initiatives — helping to align efforts, prioritize actions, and avoid wasted time or conflicting approaches.

You’ll be asked to set a password to keep your responses secure (nothing will be shared with any third party).

After you’ve submitted your response, you can invite up to 6 other people to share their perspective.

Most participants complete it in under 30 minutes, and immediately after submitting their response, they each receive a personalized report that presents back and highlights aspects of what they have said. 

When all participants have submitted responses, a more detailed report is generated that synthesizes and analyzes all the data to identify:

  • Overall trends.
  • Specific areas that seem agreed to be of concern (and areas that seem to be going well).
  • Areas with a diverse spread of opinion, suggesting division or perception gaps to resolve.
  • Patterns amongst what has been surfaced.
  • Frequent terms used, which can be the beginnings of a shared language.
  • Recommended next steps.

Not at all.

While it’s especially valuable for high-value, high-importance relationships, any contract or partnership where outcomes matter can benefit. The approach scales to fit your needs.

Absolutely. Your responses are 100% confidential, and results, not attributed to a named person, are only shared within your participating team.