DC Velocity - IdeaBook 2016

team: Acquire (strategic talent acquisition), Develop (training and education), and Advance ( advancement and retention). All three reports are available at http://cscmp.org/resources-research/research/ supply-chain-management-talent-development.

Our investigation revealed that of the three, the advancement process has received the least attention from companies. Of the 350- plus supply chain professionals who participated in the study, only 12. 5 percent indicated that their organizations have formal succession-planning programs (Figure 1). Yet nearly 80 percent indicated that an effective SCM succession plan positively impacts talent retention and company performance (Figure 2).

Organizations that fail to manage this important factor in their long-term success are leaving individuals to create their own progression plans. This potentially can create uncertainty for supply chain professionals, who may not understand the available career options within their company. It also leaves the door open to misinterpretation about the timing and requirements for promotion. When these situations arise, individuals may feel that they are being unfairly passed over for advancement and will look for “free agent” opportunities with other companies.

Instead of taking a hands-off approach that generates unwanted turnover, companies should actively engage in talent advancement through targeted pro-fessional-growth opportunities and succession-planning efforts. This will support retention and the preparation of high-caliber SCM professionals who possess the skills needed to win when they are handed the ball, so to speak.

To ensure deep bench strength at every critical
position and to drive succession planning, supply
chain executives should consider adopting the fol-
lowing proven talent management strategies from the
world of professional sports.

CREATE A DEPTH CHART

A fundamental talent management tool used by professional football teams is a “depth chart” that identifies the primary and backup players. There will often be three people on the depth chart for the quarterback position and other critical roles. Talent scouts and general managers use these depth charts to evaluate personnel quality across the system and to identify gaps in the talent pool. This information is invaluable for planning roster moves, player trades, and draft picks. Baseball and hockey teams also track players in their minor-league systems to create an extended depth chart that lists potential replacements in case of injury or poor performance. Supply chain executives and human resources (HR) specialists also should develop detailed depth charts outlining their company’s existing talent base. These charts should identify the potential candidates for each critical role, what further development each candidate needs in order to be ready to take on that role, and how long it will take before each candidate is ready for advancement. This information serves as a direct input to workforce planning, development needs, and personnel promotions.

Depth charts proved helpful to a technology equipment manufacturer when it was developing a supply chain transformation road map. During that exercise, the executives overseeing the project realized that talent planning was absent from the initiative. The company has since established a five-year workforce Formal