DC Velocity - IdeaBook 2016

exposure to the supply chain. A typical rotational program moves the employee through a planned series of three- to six-month assignments in critical functions such as procurement, demand planning, production, and fulfillment operations. The participants handle day-to-day responsibilities and work on special projects. These short-term assignments help individuals understand the big picture of SCM and expand their personal knowledge and capabilities—all necessary if they are to join the next generation of supply chain leaders.

Recognizing the need for a boundary-spanning, finance-savvy SCM workforce, a leading beverage manufacturer is working to cross-train its high-potential talent in manufacturing, bottling operations, and warehousing. This requires some sacrifice on the part of the individual, who may have to move to a new location or work odd shifts, but the payoff is meaningful. Participants gain firsthand knowledge of the relationships among processes and how those relationships drive growth. Both are considered essential for advancement to supply chain leadership roles within the company.

PROTECT YOUR FRANCHISE PLAYERS AND COACHES

In professional sports, teams use special strategies to retain top talent. Under the rules of the National Football League’s collective bargaining agreement, each year every team can apply a “franchise tag” to one player whose contract is about to expire. This designation allows the team to retain this highly skilled player for an additional season, rather than have the individual immediately become a free agent. The one-year contract extension (with a commensurate salary increase) protects the team from short-term turnover of essential talent and gives the parties time to negotiate a new contract. Within the coaching ranks, some franchises will elevate a highly sought-after assistant coach to a “head coach in waiting” role with commensurate increases in the individual’s responsibilities and salary. These franchise tag initiatives promote talent retention and mitigate talent “poaching” by competitors.

Unfortunately, supply chain executives do not have
the luxury of franchise tags or long-term contracts to
retain talent. Still, they must be proactive in identi-
fying their top candidates for future leadership roles
and in accelerating their development. To minimize
turnover risk, companies must also support compel-
ling career progression for high-potential SCM pro-
fessionals. One way to do this is through a leadership
development program (LDP) in which a select group
of high-potential individuals participates in an extend-
ed series of skill- and expertise-building experiences.

The LDP of one international supply chain services provider is tailored to the needs of senior middle managers. Participants in the company’s Global Executive Leadership Program build cross-divisional networks, explore the latest business strategies, and develop leadership skills. Key content areas include global trends, corporate strategy, financial performance, and effective leadership. In addition, these future leaders can pursue an Executive Master of Business Administration (MBA) degree at the company’s expense as well as participate in an international mentoring program.

Companies can use other methods to send positive signals regarding their future prospects to talented supply chain professionals. Interim promotions and special assignments help to round out supply chain capabilities and minimize career wanderlust. Educational programs at respected universities are good resources for developing important general management skills. Figure 3 includes examples of strategies participants in our study found useful.