Changing Skills for Changing Times

Evolving with the Supply Chain Management (SCM) Profession

Brian J. Gibson, PhDWilson Family Professor of SCMAuburn University

Session Overview

• Understand the SCM skills that drive effective organisational planning and execution.

• Identify SCM development options to foster professional growth and fill talent gaps.

• Discuss best practices for forward-looking SCM professional development.

Key Drivers of SCM Talent Requirements

SCM is increasingly viewed as a strategic process versus a cost function.

SCM is the linchpin to profitable globalisation of the business and customer satisfaction.

Collaborative SCM ventures and outsourcing of non-core activities continue to expand.

Exceptional SCM capabilities are essential elements of business innovation strategies.

Critical SCM Skills

Skills for SCM Career Progression

Gaps in SCM Workforce Skills

Emerging SCM Competencies Needed

“Extreme uncertainty has become the norm in many markets requiring supply chain professionals to be adept at ‘managing ambiguity,’ says a supply chain leader. In his opinion, ‘suddenly you are looking for people who are general business managers with high-order diplomacy and commercial awareness skills.’” Ken Cottrill, Are You Prepared for the Supply Chain Talent Crisis (2010).

SCM Development Options

SCM Talent Development

“It always comes back

to this: Do you have

the right talent that is

able to lead the

organisation in the

future?

If anybody asks about

what keeps me awake

at night, that’s still it.”

Company Training

University Resources

Association Capabilities

Independent Learning

Best Practices

Develop Your High Potential Talent

Step 1 – Identify Hi-Po Talent

Only 29% of top performers are actually high potential employees.

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Step 2 – Develop Hi-Po Talent

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Leadership Development

Program

Individual Development

Plans

Mentoring and Coaching

Frequent Feedback

“If people are your most important asset, you ought to develop them. It’s our philosophy that not only do people have to be developed, it ends up being a huge competitive advantage.”

Chief Learning Officer Goldman Sachs

Leadership Development Program

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“Hi-Po development programs aim to accelerate growth in key competencies through targeted exposure and active rotation, with the expectation of retaining top talent that will become leaders of the organization.”

LDP Components• Structured rotational programs• Specialized training and certification• Experience in multiple business units• Access to senior leadership team

Company CaseAn electronics company has devised a 2x2x2 high potential LDP to broaden a participant’s expertise and build his/her fact-based decision making skills. The path involves working in:

• Two different countries• Two different product areas or sectors• Two different functional areas

Individual Development Plans

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IDP Key Elements• Strengths and development needs• Career goals• Action plan with timetable• Performance measures

Company Case A car company uses a variety of tools to stimulate HiPo growth and ensure that essential competencies are being developed.

• 360-degree feedback• Behavioral testing• Nine-Box Grid

“The employee sits down with the up-line manager for a long conversation around where the individual would like to see his or her career go. Then they come up with a plan on how to best get employee there. That's been very successful for us.”

Professional Mentoring & Coaching

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Mentoring Considerations• Constructive advocacy• Professional guidance and growth• Future capabilities and skills• Professional knowledge transfer

Company CaseDuring its onboarding process, an industrial manufacturer assigns mentors to new hires to help them through the transitional period. It involves tours, meetings, job shadowing, and supplier visits to help the individual build a broad base of knowledge.

“When I coach people, I focus on three areas – building their subject matter expertise, providing contextual knowledge of the company, and helping them establish a professional network.”

Step 3 – Succession Planning

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Succession Planning Success Factors• Sr. leader engagement and accountability • Employee commitment to self-development• Honest evaluations to identify Hi-Po talent• Dedicate resources to train/retain Hi Po talent

Company CaseAt an industrial equipment manufacturer, each individual in a critical leadership position is required to identify three Hi-Po employees and prepare them for the position. They must link this succession plan back to the IDPs and performance management of the three Hi-Pos.

“Succession planning cannot take place in a vacuum. It should be an intensive, comprehensive initiative, much more than a list of names that will be tabled if the CEO is hit by a bus.”

Result = Greater Retention“Take time to understand what people want to do and together identify the gaps that they need to close. Then, help them get the right experiences and training to close the gaps. There’s a huge correlation between this process and retention.”

Director – U.S. Logistics Consumer Products Manufacturer

SCM Professional Staff Turnover Rates

Summary

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Key Takeaways:

1. SCM is a rapidly evolving field that requires broad competencies.

2. You are responsible for your team’s professional development, so invest in them wisely.

3. Leverage high impact training resources to cultivate your team’s skills and minimise turnover.

4. Strong competencies will enhance your team’s organisational value.

Questions? Comments?

For more information:

brian.gibson@auburn.edu