SCM TalenT DevelopMenT

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1 SCM Talent Development The Advance Process 1

2 SCM Talent Development The Advance Process Foreword: SCM Talent Development Study Supply chain management (SCM) is a discipline in the midst of a high profile transition. C-level executives increasingly recognize the value of strong, integrated SCM capabilities for propelling their businesses to greater levels of success. These executives have elevated supply chain leaders to strategic roles and are investing in SCM capabilities to create competitive advantage. The heightened status creates the need for a stronger, more capable SCM team. By Brian Gibson, Auburn Zac Williams, Central Michigan Sean Goffnett, Central Michigan Robert Cook, Central Michigan Recognizing the current and future need of organizations to enhance their SCM human capital, the Council of Supply Chain Management Professionals commissioned a talent development research study. This study, conducted by SCM researchers at Auburn and Central Michigan, investigates the SCM talent requirements of organizations and how they cultivate future leaders. The key findings are presented in three publications that will help you build and retain a high caliber team of SCM professionals. The ACQUIRE Process Addresses the critical aspects of finding appropriate SCM talent. This initial phase focuses on defining required skills, sourcing talent, and hiring desirable candidates. Within this publication, you will find actionable information and successful strategies for fulfilling your SCM talent requirements. The DEVELOP Process Analyzes organizational strategies for SCM training and education. Throughout this publication, you will discover leading practices for onboarding, training, and guiding supply chain talent. These talent investments will help you maximize the capabilities of your supply chain team. The ADVANCE Process Examines forward-thinking approaches to SCM talent progression. Essential strategies for SCM career path development, talent retention, and succession planning are presented in this publication. These talent advancement activities build bench strength for your future SCM leadership needs. Ultimately, the research reveals that, to be successful, your SCM talent management strategy must encompass and integrate three components: acquisition, development, and advancement. This requires C-level commitment to SCM talent development, cross-departmental collaboration, and financial investment in SCM professionals. A failure to incorporate these three elements will reduce SCM bench strength and accelerate turnover of key talent, leaving your organization deficient in the skills needed to leverage SCM to its fullest potential. isbn

3 Table of Contents Executive Summary: SCM Talent Development...5 Talent Advancement: Supporting SCM Leadership Requirements... 5 Career Path Development... 6 Talent Retention... 6 Leadership Succession Planning... 6 Talent Advancement: Leading Practices... 6 Introduction: The Advance Process...7 Essential Insights: SCM Career Path Availability... 8 Career Path Strategy... 9 Career Path Structure... 9 Engagement and Control Career Path Success SCM Career Path Summary Sidebar: Leading Practices: Career Path Availability Essential Insights: SCM Retention Methods...13 SCM Talent Turnover Retention Improvement Techniques Used Retention Improvement Technique Effectiveness Leading Edge Retention Strategies Retention Summary Sidebar: Leading Practices: SCM Retention Essential Insights: SCM Succession Planning...18 Succession Planning Strategy Succession Planning Structure Succession Planning Tools Succession Planning Outcomes Succession Planning Summary Sidebar: Leading Practices: Succession Planning Methods Leading Practices in SCM Talent Advancement...23 Career Path Availability Retention Methods Succession Planning Supply Chain Implications Summary Appendix A: Study Methodology and Participant Information...25 Exhibit A-1: Interview and Focus Group Script Exhibit A-2: Demographic Characteristics of Online Questionnaire Participants Appendix B: Survey Questions and Selected Results...27 Appendix C: Leading Practice Cases...33 Case 1: Career Paths Programs Exhibit C-1A: Specialist Career Path Options Exhibit C-1B: Generalist Career Path Options Exhibit C-1C: Supply Chain Boundary-Spanning Career Path Options Case 2: Retention Case 3: Succession Planning Endnotes

4 List of Figures Figure 1: Primary Level of Talent Management Challenges...7 Figure 2: Perceptions Regarding SCM Career Paths...8 Figure 3: SCM Career Path Options and Examples...10 Figure 4: SCM Talent Turnover Rates...11 Figure 5: Average SCM Staff Turnover Rates...14 Figure 6: Retention Technique Use vs. Effectiveness...16 Figure 7: Perceptions Regarding SCM Succession Planning...19 Figure 8: SCM Succession Planning Process...19 Figure 9: SCM Succession Planning Structure...20 Figure 10: The Talent Management Puzzle...24 List of Tables Table 1: Description of SCM Career Path Planning Activities...9 Table 2: Comparison of Career Path Engagement Options...11 Table 3: highest Rated Organizational Benefits of SCM Career Paths...12 Table 4: highest Rated Individual Benefits of SCM Career Paths...12 Table 5: Top Ten Reasons for SCM Talent Turnover...14 Table 6: Use and Effectiveness of Talent Retention Improvement Techniques...15 Table 7: Primary Component of a Best-In-Class Retention Program...17 Table 8: Succession Planning Roadblocks...20 Table 9: Succession Planning Outcomes...21 Executive Summary: SCM Talent Development Supply chain management (SCM) is a discipline in the midst of a long overdue and high profile transition. As C-level executives recognize the value of strong, integrated SCM capabilities for generating success, the supply chain is taking on greater strategic importance. In turn, the skills and capabilities of the supply chain team must be elevated to meet these expanded demands. To respond most effectively to these requirements, a supply chain leader must think more strategically about the people aspect of SCM and put talent issues on equal footing with supply chain process and technology initiatives. The leader s imperative is to establish a talent supply chain that is holistically planned and managed to acquire, develop, and advance essential SCM personnel. Only then will the supply chain team be properly prepared to deliver on the promise of supply chain excellence and competitive advantage. Talent Advancement: Supporting SCM Leadership Requirements After spending considerable resources to hire and develop the best SCM talent, leaders may incorrectly assume that supply chain professionals will take charge of their own career paths. The result can be devastating, as leaders see little need for career guidance or investment in career advancement programs. In such situations, talent may languish in nonchallenging positions and eventually defect for more enticing supply chain career opportunities. Progress Retain A proactive response is needed to stretch the capabilities and foster the retention of supply chain professionals. SCM Talent Development: The Advance Process highlights essential elements, strategies, and innovative practices of a strategic talent advancement process. Each element is instrumental for creating the bench strength and institutional supply chain knowledge that underpin future success. Throughout this report you will learn actionable strategies regarding the following activities and related research questions: succeed 5

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