The development of supply chain professionals cannot be left to chance. Organizations need to manage their talent pipeline to ensure that they have individuals with the skills, knowledge, and experience to design and execute strategies in a global environment. Executive education can be a key part of this effort. In fact, it can be the catalyst that drives professionals to develop a strategic supply chain perspective and identify new ways to advance the business.

By Joseph Carter, David J. Closs, John S. Dischinger, William L. Grenoble, and Vickie L. Maxon
Supply Chain Management Review September 2006

A recent article in Supply Chain Management Review (“The Emerging Supply Chain Profession,” January/February 2006) documented the need and suggested criteria for creating and institutionalizing a supply chain profession. The article advocated that persons aspiring to become supply chain professionals pursue a broad career path in multiple functional areas. Further, it encouraged them to hone their skills in four key categories: functional, technical, leadership, and global management.

Development of supply chain talent is, in fact, an essential building block for business success. Executive education is an essential part of this development effort. It’s an important resource for aspiring supply chain management professionals who desire to extend their perspective, close skill gaps, and increase their technical or global expertise. At the same time, it’s an important resource for improving supply chain performance across the enterprise.

The number and nature of educational opportunities for working supply chain professionals is rapidly expanding. These include a large number of diverse programs offered by academic institutions, professional organizations, and for-profit firms. In the case of academic institutions, the offerings range from short courses, to certificate programs, and even to degree-granting programs for working supply chain executives.

Delivery methods for the programs vary widely. They include both in-person programs and distance-based learning (via the Internet, video conferencing, compact disk, correspondence course, and so forth). Individual courses may or may not be part of a more comprehensive degree, certification, or certificate program. With all of the options, just understanding what’s available and determining which are best for the individual and the organization can be a daunting task.

The State of Executive Education
To better understand the role and extent of supply chain executive education, it’s useful to first assess the scope of current offerings. These can be broadly characterized as education or training.

Education incorporates not only the teaching and learning of specific skills but also something less tangible but more profound: the imparting of knowledge, good judgment, and wisdom. Teachers use a variety of methods and materials to impart supply chain knowledge. Many articles in supply chain-related journals, magazines, and books have documented these methods and have assessed their relative effectiveness. The pedagogy suggested in the literature includes lectures, game playing, testing, scheduling, record keeping, bullying, seating arrangements, and computer access. Yet the most important factor in any educational endeavor is the teacher’s interaction with students and the personality of the teacher.

Whatever pedagogic techniques are employed, the goal of supply chain executive education is to help participants develop the knowledge and fact base, problem-solving skills, perspective, and judgment to make management decisions in a globally integrated supply chain. Accordingly, the education should focus on knowledge, comprehension, and problem solving of complex supply chain issues. Traditional executive education tends to emphasize the skills required to do the job (see our discussion of training below). However, skill development may be neither the program’s objective nor in the best interests of the firm as supply chain management is as much about organization and strategy as it is about tactics and transactions.

Supply chain executive education must also broaden participants’ knowledge base and experiential scope so as to give executives an understanding of global supply chains and their dynamics. Tomorrow’s supply chain executives need multiple experiences both within and beyond their own supply chain domain. Business executives today, however, tend to become experts within their own vertical industry while lacking insight into best practices across industries.

In contrast to education, training refers to the acquisition of specific knowledge, skills, and attitudes, often as part of a program of vocational or practical instruction. For example, someone in purchasing might receive training in correctly completing a purchase requisition or in the legal requirements for importing and exporting. Training forms the core of apprenticeships and today is often referred to as professional development, not executive education. This article focuses mainly on “education” for supply chain professionals.

Credit or No Credit?
Supply chain executive education can be either degree-granting or nondegree granting. Nondegree-granting programs can be further categorized by whether they provide academic certification or certificates of participation. The issue of academic credit is an important one for all parties. Institutions of higher education have generally preferred not to give academic credit for executive programs. Many participants, on the other hand, want the credit so that it can be applied to a graduate or undergraduate degree.

Programs for academic credit entail a significant level of bureaucracy. Typically, they have to be approved by various curriculum committees, and the participants need to be formally admitted to the institution. This can be problematic for executive education programs as many participants are not prepared academically to take upper-division or graduate courses. Programs for academic credit also require student evaluations (through term papers, examinations, projects, and so forth). Plus they involve a higher tuition rate. Even so, a growing number of academic institutions are rethinking their attitudes toward granting credit to executive-education participants. The reason: They believe that giving credit will not only increase revenues but also create long-term bonds with program alumni.

Custom vs. Open-Enrollment Programs
Another dimension of executive education is open-enrollment versus custom educational solutions. Each option has its advantages and drawbacks—both to employers and to participants.

Typical open-enrollment programs are held in a classroom setting. They last from three to five days and cover multiple topics. As part of the classroom experience of the open- enrollment program, participants from multiple firms are exposed to a wide range of perspectives from their fellow participants. In fact, attendees frequently comment that they learn as much from other participants as from the instructors.

One drawback to open-enrollment programs is that it can be challenging for participants to apply what they’ve learned to their own organizations. Because of the breadth of material offered in most open-enrollment programs, there is little time in class to tailor the instruction to each individual’s on-the-job challenges. Although they may be energized by the learning experience, participants often find it extremely difficult to apply what they’ve learned to their jobs and to transfer this new knowledge to others. This has led many firms to solicit custom-designed options.

While custom-designed programs can be created for any time period, the most common are three to five days as well. The custom-designed program has obvious benefits for the sponsoring organization and the participants—but at a higher cost. Firms that opt for a customized approach are able to develop their own learning objectives and link them to program outcomes. By developing objectives that are aligned to the firm’s strategy, they can rest assured that a program will integrate the firm’s strategy and plans and will be conducted in an environment that does not compromise security. A custom program also can facilitate the development of action plans to accelerate a supply chain transformation within the organization.

However, custom programs lack the cross-industry fertilization of ideas that comes from multiple-company participants. Large organizations mitigate the impact of this shortcoming by ensuring a cross-functional and cross-geographic representation of participants from within the organization. Although smaller firms would have a harder time doing this, they do have other options. For example, if the program instructors are aware of the limited diversity within the group of participants, they can provide materials and their own insights to broaden the learning experience appropriately. Filling these gaps in experience will greatly enhance the educational experience. However, it requires instructors willing to tailor content to meet the company’s needs. (And it will come at an additional cost.)

Role of Technology
Any discussion of the state of executive education needs to address the role of technology. Technology is becoming an increasingly important element of supply chain executive education. Computers, software, the Internet, mobile phones, iPods, and personal digital assistants (PDAs) are all being widely used to both complement established executive education practices and advance new ways of distributive learning such as online education. These technologies provide supply chain executives with the time and location flexibility that they require today. Technology also offers powerful learning tools such as supply chain simulation software and network optimization algorithms that can engage and educate students.

Designers of executive education are incorporating this technology into their programs as part of a comprehensive educational package that includes case studies, interactive lectures, field learning, simulations, and peer-to-peer information sharing.

Executive Education’s Role in Professional Development
Collectively, the institutions represented by the authors have offered and purchased both open-enrollment and custom executive education programs for more than 40 years. We believe this gives us the needed experience and perspective to accurately assess the executive education needs of a true supply chain professional.

To manage effectively in today’s global environment, supply chain professionals need to rapidly increase their cross-functional capabilities. Yet at the same time, they are being asked to focus intently on individual supply chain functions. They must operate in today’s business environment while also attempting to visualize the future. They are required to fully understand the scope and depth of all operations within a supply chain, analyzing strategy and leveraging opportunities across multiple organizations and geographies. Although these are daunting challenges, executive education can help meet them. An executive education experience can provide an immersion into the whole supply chain, highlighting opportunities and challenges. Further, it can facilitate a more rapid acquisition of the broad supply chain perspective required today.

Just what is the role of the supply chain executive today, and how does executive education support that role? One leading company, IBM, answered that question by interviewing six individuals who recently completed a custom executive education program, asking them to share their perspectives on the experience. The interviewees, all experienced business leaders, represent broad business and supply chain expertise. Note that in parallel with this innovative program, IBM has created a structured framework to help supply chain professionals advance their careers. (The accompanying sidebar, “A Structured Approach to Professional Development,” describes this initiative and gives the typical experience and criteria associated with each of the career levels.)

It is interesting to note that all six of the interview subjects credited the executive education experience with giving them a more global perspective on their roles and responsibilities. Prior to the program, they distinguished themselves by leading separate business organizations, working collaboratively with other units as needed under traditional business models. Following the executive education experience, they emerged with a new awareness of the globally integrated IBM enterprise as well as a better understanding of how to seize opportunities to leverage global integration for business advantage.

Each individual was asked to comment on the following questions regarding his or her executive education experience:

Is there a connection between executive education and the role of a supply chain professional? If so, what do you see as being most important?
Should executive education be a requirement or used as a reward for top supply chain talent?

Here are their responses to the first question:

“Executive education provided an opportunity to extend cross-functional knowledge and experience above current functional responsibility. The relationships among participants are an additional enabler for development.” —Norbert Hardt, Procurement Manager/Global Logistics, Europe.

“I do see connections between the executive education and the role of supply chain professional. All the topics covered during the executive education are meaningful and relevant to supply chain professionals. However, it’s really a broad (insightful) experience/knowledge of the overall supply chain experience in this Globalization Age. The most important aspect I see is knowing all our fellow colleagues in each of the respective functions in the organization and knowing when/how to reach them in time of need.” —Winson L. H. Lim, Senior Manager, Manufacturing Engineering, Singapore.

“I believe the industry viewpoints which are shared in this kind of program are key to being a true ’supply chain professional’ vs. having an inwardly focused, sometimes myopic organizational view.” —Elizabeth Meiley, Bid Support and Proposal Services Manager, Americas Deal Hub, U.S.

“The most important connection between the supply chain profession and executive education is that executive education provides a great and full balance between theory and practice. The course was combined with best practices not only from the industry but also from the participants as well as the most recent, experience-based theory of SCM. The supply chain professional can use the material and the real-life experience easily in everyday practice.” —Peter Mohacsi, General Manager, Integrated Managed Business Processes Delivery, Hungary.

“There is a strong connection between executive education programs and the supply chain profession. The most important learning is to understand what is happening in the supply chain world and what will be the future of supply chain. This understanding will help us to drive the changes in our organizations.” —Sivakumar Periasamy, Client Procurement Manager for India (currently on assignment in the United States).

As for the second question about executive education being a reward or a requirement, the IBM executives we interviewed did not see the issue in either/or terms. They all agreed that it is an appropriate reward for past performance. But many also felt that executive education is a fundamental requirement for any global enterprise seeking to improve its supply chain performance. Some representative comments are shown below:

“I see two perspectives. First, the education should be a requirement. Second, the selection process can still be a form of a reward vs. individual registration.”—Norbert Hardt

“I think programs like this should be a requirement for supply chain top talent. So many aspects refocused us on the ‘big picture’—the customer insight, the deep dive on globalization, the networking with peers from across ISC [IBM's Integrated Supply Chain organization]. Leaders need this kind of broad perspective to foster creative solutions and to take teaming to a global level.” —Elizabeth Meiley

“This is a very high-level class which should reach the top talent/executive resources pool either as a reward or as a prerequisite to obtaining executive/managerial SCM positions in the future. It was the best class I’ve ever attended.1396986481 —Peter Mohacsi

The question of requirement vs. reward brings up the broader issue of how companies view the role of education generally. We’ve observed a significant difference in perspective between organizations that operate under a traditional hierarchical model with largely independent multinational units and those that operate as a globally integrated enterprise.

These businesses hold diverse views regarding talent, recognition, and rewards. Specifically, multinational corporations and globally integrated enterprises hold separate and distinct perspectives regarding global talent. A major focus of the traditional multinational, with its strong command-and-control culture, is on locating and leveraging low-cost labor. The globally integrated enterprise, on the other hand, concentrates on a longer term approach to identifying and developing talent. They understand the value of open information flow and seek to collaborate both inside and outside the enterprise to enhance overall performance. These leading organizations understand that securing a supply of high-value skills requires an investment in developing those skills and linking them to long-term economic opportunities, especially in high-potential markets like India and Eastern Europe.

As business changes in fundamental ways—structurally, operationally, and culturally—a new business model is required. And this new business model will, in turn, require experienced supply chain management professionals who can lead their firms to success. Executive education can play a key role in helping companies make that transformation. This example from IBM is case in point. In developing its program, the IBM Integrated Supply Chain (now part of IBM Integrated Operations) identified university partners whose combined faculties brought with them leading-edge expertise in supply chain theory and practice, leadership, and global economics. For executive education, IBM called on three of its university partners (Arizona State University, Michigan State University, and The Pennsylvania State University) to collaborate in developing and delivering an executive education program for high-potential talent. This unique relationship has provided the top talent in Integrated Operations with resources to develop new skills and a clearer perspective on the globally integrated enterprise.

Seven Steps to Success
Drawing on three years of success in the executive education program at IBM and reflecting on our combined decades of executive education in procurement, production, and logistics in both open-enrollment and customized formats, the authors offer these seven prescriptive recommendations for successful executive education programs.

1. Consider drawing from programs from multiple providers for either open-enrollment or custom-developed programs. Supply chain executive education plans should include the expertise and perspectives of multiple institutions for two primary reasons.

First, you reduce the potential for “group think” by involving multiple providers with differing perspectives. (Maintaining a myopic perspective is difficult when numerous viewpoints are presented by faculty from several institutions.) Second, your organization benefits by having a broader selection of faculty available, allowing for each institution to choose “the best of the best.” You also have a wider range of expertise from which to choose. Finally, it’s good to have a relationship with the suppliers beyond just executive education to facilitate better faculty understanding of your firm’s unique issues and concerns.

2. Include in the executive education programs some element of project work or action planning to facilitate knowledge and skill transfer when the participant returns to the workplace. This step gives participants a chance to visualize and plan for what they will do differently and how they will effect change once they return to work. It is particularly important for customized programs in which specific goals need to be accomplished. In the case of the IBM programs, for instance, an “action plan” guided by the faculty directors has been key to achieving ongoing benefits from the program. The IBM executive education programs were conducted in 2004, 2005, and 2006. Two of those classes continue to meet to implement, extend, and enhance their action plans, and all of the participants report that they continually reach out to their executive education networks to assist with resolving problems.

3. Incorporate some aspect of experiential learning such as an extended case study or simulation. The IBM program has used a customized version of the LINKS simulation program. LINKS is one of a package of competitive simulation games often used for academic and executive education.¹ (For these programs, the supply chain version was used.) Simulations and cases enhance involvement by helping participants visualize the links between strategy and decision making during the operation and management of their own global enterprises. The simulation allows this learning to take place in an iterative and dynamic environment. To strengthen the experience, sponsoring firms should assist the faculty in dividing the participants into competitive groups accommodating diverse skills and experience.

4. Ensure that providers of supply chain executive education can incorporate a strong global component in their offering. Most supply chains today have significant global components. A solid executive education program needs to address this within the context of cultural, environmental, and operating differences. Particular emphasis should be placed on understanding the global operating environment and developing appropriate integrated strategies.

5. Integrate design of the executive education program with your evaluation and advancement program. IBM has found it helpful to utilize human resources as a primary sponsor of its executive education program. Human resources assists in identifying top candidates for the program, helps formulate the talent development strategy, and aids in the development of program objectives. Upon completion of the supply chain executive development program each year, human resources tracks participant career and technical process progress.

6. Program coordinators also should monitor the results for the action plans and work with human resources to track participant career paths. One of the reasons that IBM executive management has been so supportive of the program is that they can see changes in performance in past participants. Participants are more informed about cross-organizational activities and initiatives and more supportive of global programs. They also have access to a strong global network to resolve problems and issues quickly and effectively.

7. Measure the deliverables of an executive education program against the program objectives. Firms need to work with the provider prior to the start of any program to ensure that the measurement tools match the program objectives. They may also wish to implement additional measurements at increments of 30, 60, and 180 days. At 30 days after the educational event, you may wish to contact participants to ask if they’ve had the opportunity to use new knowledge and skills. At 60 days, you can ask them “Specifically, what new knowledge you have used?” Finally, at 180 days ask, “Have you used what you learned?”

Exhibits 1 and 2 respectively illustrate the learning objectives and the post-program evaluation process and questions incorporated into the IBM program. These post-event surveys help the firm identify any internal barriers that could frustrate the application of new knowledge. IBM can then develop targeted plans to remove any impediments. IBM believes that the track record of the program participants to date continues to justify further investment.

A Wise Investment
Executive education helps a company invest in its future, by developing its resources. Employees welcome and appreciate employer-sponsored education opportunities and recognize them as an opportunity to grow personally and professionally. Executive education programs can be the catalyst that drives professionals to develop a strategic supply chain perspective and seek out new ways to advance the business.

Further, organizational vitality is sustained when executive education participants share what they’ve learned with their communities. This is reflected in the following comment from IBM executive education participant Mary Keane, a site controller based in Ireland: “Not everyone will have the option or the opportunity to attend an executive education program. Therefore, it is up to us who did, to pass on the important messages we received—that is, how the key to the success of an organization is to have a healthy and proactive supply chain.”

It is also important to remember that supply chain executive education is not just for supply chain practitioners. It is for anyone who has a stake in improving supply chain performance. Individuals from supporting or related functional areas such as information services, human resources, research and development, finance, and sales can also benefit greatly from being exposed to supply chain education.

The state of supply chain executive education is alive and well. More programs are being offered by academic institutions and other providers than ever before. These include both in-person and distance learning as well as a growing number of custom programs. All of these offerings are being enhanced by new technology that makes the learning experience more immediate and comprehensive.

If your goal is to transform your supply chain organization through executive education, there’s no better time to make the necessary investment than now.

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Author Information
Joseph Carter is the Avnet Professor of Supply Chain Management at Arizona State University. David J. Closs is the John H. McConnell Chaired Professor of Business Administration at Michigan State University. John S. Dischinger is Program Director, Supply Chain Profession and University Initiatives at IBM. William L. Grenoble is the Executive Director of the Center for Supply Chain Research at Pennsylvania State University. Vickie L. Maxon is Learning Partner, Corporate Headquarters, Human Resource at IBM.
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Endnotes:
Additional information can be found at www.links-simulations.com