03. Definitions of Levels
Overview
The Progression Model is built on the concept of incremental stages of business capability and attainment. Each indicates increasing maturity, clarity of purpose, and sophistication relative to its predecessor. The essential message is that each stage provides foundations needed for progressing to the next, and that the understanding you get in each step up are highly important for moving forward again.
The definitions are not intended to imply that any stage is unacceptable for a specific context. You should apply the guidelines at a level of sophistication appropriate to your situation. But let’s be clear, the progression defined by the model is in the direction of the stages considered more advanced.
We particularly do not want to imply that one business model is better than another, e.g.:- fab vs. fabless
- insource vs. outsource
- low latency in information is good
- Being explicit about objectives and policies (no matter how unsophisticated) is good.
- A process that has clear controls is preferred to one whose condition is indeterminate
- Coordination and collaboration tend to improve outcomes
- Level 1 Implicit
- Level 2 Explicit
- Level 3 Harmonized
- Level 4 Externally Harmonized
Level 1
Objectives, policies and practices are intuitive, undocumented and sometimes unplanned responses to the immediate environment. Expertise is retained in the individual and is not replicated on an organized, clearly articulated basis. Record keeping and measurement are inconsistent and unpredictable.
Level 2
Activities and policies tend to be documented. Individual areas of activity and responsibility have definitions and boundaries. Objectives and measurements exist but with an uncertain degree of coordination.
Level 3
Company operations are approached more holistically. Activities are rationalized against each other and integration is pursued in a disciplined manner. Alignment of objectives, policies, and processes is managed on a sustained basis.
Level 4
An extended perspective is applied to enhancing the larger supply chain and the company's participation in it. Inter-partner processes and business models are engaged with the same discipline and energy as internal company activity.