Creating and Supporting

a World-Class
Supply Management Professional

Prepared and presented by

Andrew C. Hillman
Director: Commerce Edge Academy
A Perfect Example of Talent?

Question : How many Pentagon procurement

officers does it take to change a light bulb?

Answer : Look, for only $87 billion, we can put up

this chain of fluorescent satellites that will
illuminate the whole planet.

… definitely NOT!!!
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LEARNING - KNOWLEDGE - RECOGNITION
 About Commerce Edge Academy

• Study Centre for the Chartered Institute of Purchasing & Supply

• CIPS qualifications are internationally recognised
• Provider of tuition for CIPS qualifications - levels 3, 4, 5 and 6.
• Coaching students every step of the way to achieve MCIPS
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• Tutor Enabled Blended Learning

• Self Study + online support + revision tutorials
• Classroom Based Tutorials
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LEARNING - KNOWLEDGE - RECOGNITION

Setting the Tone : A Definition of the Verbs

•Attract (-ing)
•“Arouse interest or admiration in” – Oxford Dictionary
•“To draw by appeal to natural or excited interest” –
Websters
•“To arouse interest” – Wiktionary

•Retain (-ing)
•“Hold fixed, secure services of” – Oxford Dictionary
•“To keep in one’s pay or service” – Websters
•“To keep in one’s pay or service” - Wiktionary
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Talent : A Discussion

•Talent
•Innate or natural ability or aptitude to do something well
•Innate means existing from birth, inborn
•Natural talent can be developed
•Companies seek talent for succession planning
•Associated with leadership and management
•Companies are hooked on retaining talent
•Every single individual has talent

… and that talent should be identified and leveraged

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Biggest Challenges for Procurement Functions

•Ernst & Young Survey (2008)

•“Gaining competitive advantage: The procurement
Opportunity.”
•Survey of 257 senior procurement executives
•Top issues likely to impact businesses
–Biggest Issues : Pricing pressures
–Second biggest Issue : Attracting and retaining the
right talent
–Biggest barrier to managing change
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LEARNING - KNOWLEDGE - RECOGNITION

Smart Strategies for Tough Times

•Aberdeen Group Survey (2009)

•“The CPO’s Agenda”
•Evaluation of 220 best-in-class enterprises
•Required actions by CPO’s:
–Supply risk management
–Sourcing and other cost containment initiatives
–Strategic planning : Align with the CEO agenda and
strategy
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LEARNING - KNOWLEDGE - RECOGNITION

Building an Exceptional Employee Base

•Deloitte White Paper (2008)

•Growth challenges
–Growth implies an evolution of resource
requirements
–The right people are always in limited supply
–High turnover disrupts growth
•Addressing the challenge
•Plan for the long term
•Establish motivational factors
•Monitor progress and adapt
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• LEARNING - KNOWLEDGE - RECOGNITION
The Era of Killer Talent Management

•CAPS Research
•Demand for experience supply chain talent to outstrip
supply
•Out-of-scale salaries for local talent or offshore
activities
•Senior executives may relegate procurement
•Staffed with talent equivalent to that found in
•Private equity firms
•Venture capital companies
•Strategic sourcing and strategic supplier management
skills
•Experienced people in short supply
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LEARNING - KNOWLEDGE - RECOGNITION
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The Era of Killer Talent Management

•CAPS Research
•Leverage experienced workforce
•Increased mentoring of less experienced staff
•Use of techniques to capture knowledge
•Roles and responsibilities reshaped for max. advantage
•Expanded training curricula
•Broader skill sets
•Deeper expertise
•Online learning will grow to “anytime, anywhere”
medium
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LEARNING - KNOWLEDGE - RECOGNITION
Attracting Talent : A Top Procurement Challenge

•The Challenges
•Recent economic turmoil
•Changing dynamics of the global supply chain
•Downward pressure on prices
•Price fluctuations of critical commodities / services
•Controlling and containing costs
•Driving EBITDA
•Globalisation
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• LEARNING - KNOWLEDGE - RECOGNITION
Attracting Talent : A Top Procurement Challenge

•The Demand
•Seasoned employees to fill key procurement rolls
•Keen understanding of commoditisation process
•Thorough grasp of the increasing supply chain
complexity
•High demand for skilled procurement experts
•Differentiated compensation packages
•Clear development strategy essential
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Future Skills and Capabilities for Procurement

• Leadership Ability
“Soft Side” Skills •
Collaborative Innovative
– Style Spirit
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International
• Cross Foreign Language
Experience Skills
• Cultural

Cross Functional Broad Business Multi-Disciplinary

Knowledge Experience

Current and Future Supply Market Supply Process

Knowledge Expertise

Source : CAPS Research

LEARNING - KNOWLEDGE - RECOGNITION

The Top Three CPO Priorities

45% •
– 35%
32% 31%
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PEOPLE: Enhance EFFICIENCY: SPEND: Increase SUPPLIERS:

department staff Improve operating spend under Improve supplier
skills and efficiency of current management of development and
capabilities department procurement group collaboration

Source : The CPO’s Agenda 2009 : Smart Strategies for Tough Times – 2009 Aberdeen Group

LEARNING - KNOWLEDGE - RECOGNITION

Managing the Procurement Workforce of Tomorrow

• Develop
Trends: Challenges :
– Acquire Retain Manage and Motivate
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•Globalisation Individuals and Teams
• Shortage
• of people Across
•High • Functions
• experienced baby
boomers to retire • Organisations
Diverse,
•Cross-organisational • Geographies
collaboration Distributed Working Environment
• Cultures
• Technology • Generations

Seek out the most capable workforce regardless of background of location

Source : CAPS Research

LEARNING - KNOWLEDGE - RECOGNITION

Plan for the Long Term

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Corporate strategy
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Understand and forecast
Who do we need? your needs
– Define resource
• requirements
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• Identify resource gaps /
redundancies
Where do we find them? Focus on specified targets

Develop you brand and

Identify targets
message

How will we get them? Establish motivational factors Develop attraction and
retention strategies

Source : Attracting and Retaining Talent 2005 - Deloitte

LEARNING - KNOWLEDGE - RECOGNITION

Aligning Procurement with Organisational Strategy

Strategic Initiatives - Prioritisation

•Compensation & Benefits •Balanced Scorecard
•Leverage Leader Behaviours •Talent Planning
Lower

•Manage Tail End Products*

•Patient Advocacy

•Understand SHI

•Employment Equity

•Field Force Effectiveness •Leverage Business Information

•Prudent use of Resources •Internal Communication
•Achieve synergy gains •Reduce Time to Market*

•Establish X-functional Teams •Create Innovative Customer Partnerships

•Managed Entry of New Products* •Leverage the Institute

•Loss of Exclusivity* •
Higher

*Requires HQ support

Immediate Payback Longer Term

LEARNING - KNOWLEDGE - RECOGNITION

Creating a Performance Culture for Talent Planning

LEARNING - KNOWLEDGE - RECOGNITION

Developing and Managing Talent

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Establish Motivational Factors

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Compensation Soft Benefits
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•• Base Salary Work / Life Balance
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••Bonus / Incentive Training and Education

Pension Career Development

Car / Laptop / Cell Phone Challenging Assignments

Healthcare and insurance Recognition

Stock Options Promotions

Source : Attracting and Retaining Talent 2005 - Deloitte

LEARNING - KNOWLEDGE - RECOGNITION

The Five R’s in Talent Management

• The Five R’s in Talent Management

– Resolving Talent
– Recognising Talent
– Recruiting Talent
– Retaining Talent
– Retiring Talent
• Skills Development
• Succession Planning
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LEARNING - KNOWLEDGE - RECOGNITION

A Best-In-Class Strategy : Up with Training!

Source: Aberdeen Group, April 2009

LEARNING - KNOWLEDGE - RECOGNITION

CIPS Professional Procurement Qualifications

Step-On-Step-Off

LEARNING - KNOWLEDGE - RECOGNITION

A Procurement Executives Diagnostic – Conclusion

•Plan for the future

•Establish motivational factors
•Monitor Progress
•Evaluate your plan
•Identify areas for improvement
… please do the 20 question survey!!!
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Survey
– Scoring Key:
• 75% Yes = You’re ready
• 50 – 75 % Yes or Somewhat = Needs more work
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Less than 50% Yes or Somewhat = Re-evaluate

LEARNING - KNOWLEDGE - RECOGNITION