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The Supply Management Skills Challenge

May 12th, 2006 · by Tim Minahan · 3 Comments · best practices, events, skills rectruitment and development

A recurring theme both on and off stage at the ISM Conference was the need to recruit and develop new talents for the supply management team. Ten confernece workshops focused on skills and team development. The topic also weaved its way into other sessions and meetings:

  • Presenters and winners at the invite-only R. Gene Richter Award Dinner repeatedly commented on the skills requirement. Having been fortunate enough to have interviewed Gene on several occassions, I had heard his mantra (scolding?) that “technology helps, but you can’t automate great talent.” So, it was appropos when BP p.l.c. was recognized for its Capability Accelerator Program that squeezed three years of management training and development into a six-month program. The course incorporated program management, communications, performance measurement, financial decision making, strategic sourcing and supplier management training. More information on all winners can be found here.
  • In a private sit down with Supply and Demand Chain Executive Magazine, Editor Andy Reese said his publication is undertaking a major study into skills required for the next wave of supply management and how best-in-class organizations are hiring and training to meet this challenge. Andy does a cursory examination of this issue in a podcast interview with Bill Michels, CEO of ADR North America and a long-time supply chain guru. Says Michels: “When we look at the complexity of global competition, financial skills, leadership skills, cross-business skills, cross-functional skills, and supplier relationship skills are all skills that have to be developed. You need skills to do predictive models on risk or to launch a global team and drive value and cost out of the supply chain. You also have to be able to identify which areas of the business are ripe for outsourcing and to be able to manage those process. These skills are evident at some of the top-level companies, but we’re not seeing those skills at mid-level companies.”
  • Michels’ comments echo those expressed by David Karabinos, a founder and executive at both TPI and EquaTerra, the leading third-party advisors for IT and business process outsourcing. David told me that currently effective outsourcing management will require a newly skilled professional that has a mix of strategic planning, negotiation, team-building, and relationship management skills.
  • I also had breakfast with an old acquaintance and newly appointed director of supply management at a major weapon and space systems company. The first action he took in his new role was a skills assessment of his team. Next he hired (pilfered?) senior supply management talent from a major retailer that had gone through its own procurement transformation. He also signed on with the Executive Education branch of the W.P. Carey School of Business at Arizona State University to develop a strategic sourcing and supplier management training program for his staff. “We had various levels of skills on our team,” he said. “So, the program curriculum includes everything from basic sourcing principles to advanced technology usage and supplier management practices.” I received a personal invite to take part in a portion of this training next month, so I hope to share some of the learnings.
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3 responses so far ↓

  • 1 » Now Back to Our Regularly Scheduled Program: Overcoming the Skills Challenge- Supply Excellence // May 15, 2006 at 7:41 pm

    [...] When we last left our ISM Conference recap, ADR CEO Bill Michaels was speaking of the skill set required for the next-generation supply manager. Michaels’ comments reminded me of a study I conducted last year on procurement transformation. Over the course of three months, I interviewed more than 100 chief procurement officers and VPs of procurement. One area of this research centered on new skill sets and hiring practices. [...]

  • 2 » Moneyball: The Art of Buying a Great Supply Management Team- Supply Excellence // May 16, 2006 at 7:50 am

    [...] It is not by mistake that one of the first things my friend did when taking over as director of supply management at a defense company was to steal solid players from winning teams. In fact, pilfering of supply management talent is becoming much more common these days. [...]

  • 3 » The Windy City: Blogger Turned Futurist- Supply Excellence // May 20, 2006 at 9:53 am

    [...] Procurement will have a dotted line to all areas of the business: Jason says, “Procurement will increasingly be the road that bridges all aspects of the organization.” Playing this new part will require supply managers to acquire an entirely new skill set, including improved financial acumen, engineering, and risk management skills. This echoes the skills challenge debate we’ve been having here at Supply Excellence. [...]

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