"NLA showed a remarkable ability to understand our company's culture and resources and focus precisely and efficiently on the task we wanted to accomplish.  The map they created for us has served as an effective guide for almost a decade and the advice they gave was professional, executable and done just as promised. Their disciplined approach assured that we would get what we needed, on budget with no surprises."

Jerry Raymond
Chief Executive Officer
Datamation Systems, Inc.

Senior Supply Chain Expertise: Shrinking Supply

In a recent article in Supply Chain Management Review (March-April 2017), Robert Trent, PhD, observed that baby boomers who now comprise the foundation of senior level supply chain experience, are retiring. Often in reserve is junior level management, not yet ready to fill senior-level vacancies. Contributing to the critical shortage of senior level managers is a less populous cadre of mid-level managers who are prepared to move into vacant senior-level roles. He wrote:

“that 80% of HR and IT executives at mid-size to large US-based companies say that the threat of losing critical expertise is more of an issue today than it was 5 years ago, when the first of the baby boomer generation turned 65 and began to exit the workforce … and 84% in that same survey say they sometimes are frequently do not have a successor in place when a top manager leaves.”

Trent suggests several alternatives to acquire and develop senior level managers. Talent acquisition can be the result of executive recruitment, internship programs, direct recruiting from outside one’s organization, tapping into the military for honorably discharged soldiers, and recruiting experienced management consultants.

Leadership mentoring programs for junior or mid-level managers, and professional training and development programs are time consuming, potentially expensive, and outcomes are uncertain. Some developing managers, over time, will evolve to seasoned and successful senior level managers, and some will not! … at which point an employer in need remains wanting. As distressing, consider the organizations’ lingering deficit!

The strategies of executive recruitment, internship programs, direct recruiting from outside one’s organization, and tapping into the military for honorably discharged soldiers can potentially drive favorable outcomes. Consider though, that lead times can be exhaustive, recruiter fees can be aggressive, and onboarding new hires can be expensive and time consuming. The shortage of high quality senior level managers creates a high demand for a scarce resource … which likely precipitates a market driven high price. Of course, there is the risk that the recruit may not work out satisfactorily, resulting in squandered time and resources. The continuing void of seasoned supply chain management could well set back organizations in need, leaving them at risk not only for expensive supply chain deficits or costly disruptions, but also the real potential of losing ground to the competition. Consider, as well, that it is a sellers’ market for the senior level supply chain candidate, and job-hopping can prove lucrative and enticing - a real risk to longer term supply chain sustainability.

Assuredly, recruiting and retaining senior level supply chain leadership is critical. But the above strategies focus largely on recruiting and development, are time-consuming, and can invite uncertain outcomes. Indeed, favorable outcomes cannot be guaranteed, and there is risk in everything. But consider the risks associated with an immediate and continuing void of seasoned supply chain management: The inability to build and measure productive programs, to develop supporting processes and to form functional and sustainable organizations!

The key for organizations in need is to have near term and ongoing availability of senior level leadership needed to address immediate and ongoing supply chain requirements at any point in the continuum; leadership that can plan and build organization, process and metrics. The tactics of “talent acquisition” and “talent development” are time-consuming and clearly focused on getting to the starting line – not on running the race!

I hesitate to pitch in favor of consultants because that is what the reader expects consultants to do. However, for organizations in immediate need, consultants may well be the textbook solution! “Consultants” per se need not necessarily be career consultants, but consultants in kind. Recently retired senior level managers can be retained on an interim basis to facilitate the development of processes, procedures, and measurements - as can career consultants.

 

Skilled consultants are typically:

  • Readily available
  • Successful and experienced practitioners
  • Experienced in consulting methodologies and broad in perspective
  • Economical when compared to the cost of employed senior level managers
  • Seasoned in the process of identifying and resolving organizational challenges
  • Excellent communicators
  • Quantitative in their approach
  • Accountable
  • Quick on the uptake

 

Consultants

  • Can solve the immediate and urgent need for senior level supply chain leadership
  • Can “fill the gap” until replacements can be onboarded, and beyond
  • Can assist in developing junior level managers, and in the process, provide their organizations with executable solutions
  • Are paid only for the time that they invest, and not for the overhead garnishments of a senior level employee
  • Are available to impact contingencies as they surface, and available to post-audit and re-engineer implemented solutions if and as needed