Given the growth of mutual funds, institutional investors are quick to limit funds for capital expenditures to companies that don't provide an acceptable rate of return. To court Wall Street and shareholders, steel producers are under pressure to continually demonstrate that they are investing in new technology and pursuing new business opportunities. Retraining employees Improving the supply chain means redesigning business processes and breaking down functional silos. Employees are the first to feel the impact of these changes as their jobs change. Management has to be prepared to provide employees with a comprehensive palette of skills necessary for them to succeed in a transformed organization.
Companies face staggering costs to retrain information-technology professionals.
That's why some steelmakers are outsourcing systems development, on-site computer operations, and maintenance. LTV Steel is outsourcing its Information Systems Group to Andersen Consulting through the year 2004. This sounds simple, but it involves everything from capturing data from computer systems scattered throughout the organization to synchronizing and replicating information throughout the supply chain worldwide. The team concept has replaced traditional departmental silos as organizations make their business start and end with the customer. Yet rewards for employees in teams haven't changed.