Many Professional Societies Need to Reframe Their Strategic Outlook.

1. Reframing Professional Societies
(APICS and ISM)
OR:
“Let’s Go Out and Break Some Paradigms!”
James D. Reeds
MS, C.P.M., CPCM, CFPIM, CIRM
President
ISM Silicon Valley, Inc.
and
APICS Region 10 Staff
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2. For Your Consideration
 Present Paradigms and Paradigm Shifts
 Scientific Management as a Mental Straight Jacket
 The Evolution of Supply and Contract Management
Thinking
 Slouching Toward the Future - The Need for
Breakthrough Thinking
 A New Model for Supply and Contract Managers
 The Way Forward
 Q&A
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3. Proposition
 At the End of 2006, the Paradigms that have Guided
the Professions of Supply Management and Contract
Management are Obsolete.
 Symptoms:
♦ Absence of a Cohesive, Articulate Strategy
♦ Muddled Vision and Way Forward
♦ Confusing, Contradictory Terminology
♦ Empty Slogans and Dubious Marketing Campaigns
♦ Bleeding Membership
 Perception:
♦ Out of Touch with the Now and Future Business
Environment
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4. Paradigm
A Typical Example or Pattern of Something; a
Model
A Worldview Underlying the Theories and
Methodology of a Particular Scientific Subject
ORIGIN Late 15th Cent.: Via Late Latin From Greek Paradeigma, From
Paradeiknunai - Show Side by Side, From Para- beside + Deiknunai - to
Show.
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5. Paradigm Shift
A Fundamental Change in Approach or
Underlying Assumptions.
ORIGIN 1970s: term used in the writings of Thomas S. Kuhn (1922-96),
philosopher of science.
5

6. Portable Radio - Paradigm 1922
WGY Schenectady, New York, 1922
Portable Crystal
Radio
6

7. “Portable Radio” - Paradigm 2006
Apple I-Pod Nano
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8. On the Currency and Certainty of Knowledge
“Fifteen hundred years ago everybody knew the
earth was the center of the universe. Five hundred
years ago, everybody knew the earth was flat. And
fifteen minutes ago you knew that people were alone
on this planet. Imagine what you’ll know tomorrow.”
Tommy Lee Jones to Will Smith - “Men in
Black”
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9. Solving the Supply Management and
Contract Puzzle
 In What environment
does Supply
Management Operate?
 How does Supply
Management, Contract
Management and
Supply Chain
Management Interact?
 How do we make sense
of it all?
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10. Supply and Contract Management Knowledge and
Professional Competencies
 People
♦ Where Can I find Quality Education and Training?
 Companies
♦ Where Can We find Competent People?
 Schools
♦ Where Does a Supply and/or Contract
Management Curriculum Fit?
 Governments
♦ Where Can We find Competent People?
 Nation States
♦ Elevate Supply and Contract Management as a
Strategic and Competitive Asset?
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11. For Corporations: The Ghost of Freddy Taylor
and Functional Silos
The Father of Scientific Management
 Find the One Best Way
 Choose Workers Based on
Task Specialization
 Match People to the Task
“Do Not Think - Just Do”
♦
 Hire Managers to Plan and
Control
Frederick Winslow Taylor
Supervise, Reward and
(1856-1915) ♦
Punish
 Apply Labor Efficiency
The Foundation of Industrial Engineering
Top-Down - Hierarchic Organizational Structures
Reductionism
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12. For Corporations and Governments: The
Conundrum of Compliaance
Super-National
People National Government Regulators Taxonomies
Government
Social
Process
Laws/Regulations Regulation Models
Environment Standards Orgs
Technology
Analysts External Auditors
Competitive Industry Best Practice
Stakeholders
Pressures
Jurisdiction Harmonize Internal with External
CEO Senior Leadership
CFO Business Policy
Internal Processes
Board of Directors
CRO
CxO
CxO CGO Audit Committee Internal Auditors
CxO
OpRisk Models
Strategy Process
Bus Proc Owners
Modification
Business Process & Rules Modeling Tools

 Deployment Tools

Refined Business Process & Rules
Proj mgr, Implementers
Business Process Execution
Modelling and Deployment Reporting Systems
Policy Provisioning
LOB execs

CRO Process Execution Platforms Storage

employees
Risk Analysts Op Apps
Internal Auditors ISV Apps Network
Operation
Historical Data
Internal Events
Event Monitoring External Events
Sensors & Actuators
Events
A Unified Framework for Governance, Risk and Compliance Must Support People, Process, and Technology.
Source: Dr. Anthony Tarantino. IBM Governance, Risk and Compliance Center of Competence. ISM Silicon
Valley Dinner Presentation. October 19, 2006. Santa Clara, Ca. “Governance, Risk and Compliance (GRC)
Introduction.”
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13. For Schools: Not Enough Degree Programs to
Meet the Demand of Industry
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14. For Professional Societies: Refocus and
Rebranding
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15. NCMA Span of Professional Certifications
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16. A New ISM Certification to Reflect New
Skills
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17. APICS - New Certification and Rebranding
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18. APICS New South Wales
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19. The Evolution of Supply and Contract Management
Stage 5
Value Network
Management
Stage 4
Value Chain
Stage 2
+S+C x
Management
Procurement
And Contract
Management
Stage 1
Change Purchasing and
+
Contract
Speed
Stage 3
+ Administration
Complexity Supply Chain
Management
2000
1970 1980 2010
1990
Time
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20. The Focus of Supply Management and Contract Management Behavior
5
The Burt-Lynch Model of Supply
Management Evolution
4
& Competitive Strategy
Systemic Focus
3
Strategic Focus
2
Process
Transactional
Focus
1
Focus
Clerical
Focus
20

21. Evolution and Focus: Supply and Contract Management Behaviors
5
Stage 5
4
Value Network
Management
Systemic Focus
3
Stage 4
Stage 2
Strategic Focus
Value Chain
Procurement 2
+S+C x
Management
And Contract
Stage 1
Transactional Focus
Management
Purchasing
Process
Focus
1
Change and Contract
+
Administration Stage 3
Clerical Focus
Speed
+ Supply Chain
Complexity
Management
1970 2000
1980 2010
1990
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22. Behavior Orientations - Personal Mindsets
Past Future
Clerical Transactional Process
Strategic Focus Systemic Focus
Focus Focus Focus
Reactive Behavior Proactive Behavior
● Risk Motivated
● Risk Averse
● Lateral Thinker
● Linear Thinker
● Embrace Complexity
● Routinized, Repetitive Actions
● Future Orientation
● Historical Precedent
● Long-Term Perspective
● Short-Term Perspective
● Guidelines
● Policies & Procedures
● Self-Directed
● Hierarchic Organizational
● Portfolio/Program/Project Management
Structure
Organizational Structure
● Internal/Functional Bias (Silos)
● Process Bias
● Adversarial Relationships
● Collaborative Relationships
● Arms-Length Stance
● External/Extended-Enterprise Stance
● Fire-Fighting
● Root Cause Problem Solutions
● Expediting
● Prevention
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23. Behavior Orientations - Organizational Mindset
Past
Clerical Transactional
Focus Focus
Reactive Behavior
 Functional Silos
 Frequent Functional
Reorganization
 Efficiency and Resource Utilization
 Optimization of Complexity
 Internal Metrics
 Hierarchic Control Structure
 “Garrison” Mentality
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24. Behavior Orientations - Organizational Mindset
Future
Process
Strategic Focus Systemic Focus
Focus
Proactive Behavior
Process Orientation

Process Integration and Harmony

System Effectiveness

Flexibility

Global Metrics

Program/Project Teams

Relationship and Alliance-Building

Value Realized Amongst Chain and

Network Player Innovation
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25. Stage ONE - Clerical Behaviors
STAGE 1. Clerical Beh a v i o r
VARIABLES Tactical Bu y i n g
Timely Availability,
Value Driver
Convenienc e
Financial Overhead-Cost Center
Impact
Stage 5
Value Network
Management
Integration
Level & No Internal Integration
Functional Purchas i n g
Stage 4
Elements
Value Chain
Stage 2
Management
+S+Cx Procurement
and Contract
Basis of
Management
Stage 1
Competitive Do the Job
Purchasing and
Change
Advantage
+
Contract
Speed
+ Stage 3
Administration
Performance
Complexity Supply Chain
Timeliness & Efficienc y
Metrics
Management
Performance
Noth i n g
Metrics
Thomas Directory
Knowledge Phone Book
1970 2000
Rolodex
1980 2010
1990
Supplier
Personal
Relationships
Time Focus Isolated from Cust o m e r
1975 Environmental Not Considered
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26. Stage TWO - Transactional Behaviors
STAGE 2. Transactional Behavio r
VARIABLES Transactional Bid-Based Buying
Value Driver Purchase P r i c e
Improve Bottom Line,
Financial
Impact No Consideration of Revenue
Stage 5
Impacts
Value Network
Management
Integration
Level & Low Internal Integration
Functional Procurement & Logistics
Stage 2
Stage 4
Elements
Procurement and Value Chain
Management
Contract
+S+Cx
Management
Basis of Leverage Size of Buyer
Competitive Power Dynamics Between
Stage 1
Change Purchasing and
Advantage Buyer & Seller
+
Contract
Speed
Administration
+ Stage 3
Performance Low Component/Unit Cost
Complexity Supply Chain
Management
Metrics On Time Delivery
Performance Squeeze the Vendor
Metrics Internet, Auction s
e-Commerce
Knowledge
“Should Cost” Analysis
1970 2000
1980 2010
1990
Supplier
Adversarial & Transact i o n a l
Relationships
Time Focus Reactive to Cust o m e r
1985 Environmental Added Cost Factor
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27. Stage THREE - Process Oriented Behaviors
STAGE 3. Process Based Behavi o r
VARIABLES Supply Chain Managemen t
Quality
Value Driver J ust In Time
Total Cost of Owners h i p
Improve Bottom Line
Financial
Some Consideration of
Impact
Revenue Impacts
Stage 5
Value Network
Management
Integration
Partial Internal Integration
Level &
Procurement, Logistics,
Functional
Operations, Engineering
Stage 4
Elements
Value Chain
Stage 2
Management
+S+Cx Procurement
Basis of
and Contract
Through-Put
Competitive
Management
Global Impact
Stage 1
Advantage
Change Purchasing and
+
Contract
Speed
Stage 3
Performance Coordination & Cos t
+ Administration
Complexity Supply Chain
Metrics Develop Suppliers
Management
Process Innovation
Performance
Develop Requirements
Metrics
Near Defect Free Su p p l y
Knowledge Understand Suppliers
1970 2000
1980 2010
1990
Supplier Transactional &
Relationships Collaborative
1995 Time Focus Responsive to Custom e r
Environmental Considered As Part of T C O
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28. Stage Four - Strategic Behaviors
STAGE 4. Strategic Behavior
VARIABLES Value Chain Management
Innovation
Value Driver Top & Bottom Line
Internal Integration
Revenue & Bottom Line
Impacts
Financial
Increase Share Holder Value
Impact
Transform Innovation into
Stage 5
Value
Value Network
Management
Moderate Integration
Integration Internal & External
Level & Integration: Supply , R&D,
Functional Logistics, Operations,
Stage 4
Elements Engineering, Marketing,
Value Chain
Stage 2
Customer Service
Procurement
+S+Cx Management
Coordination &
and Contract
Basis of
Management
Synchronicity
Competitive
Stage 1
Interconnectedness
Change Purchasing and
Advantage
+
Relationships & Trus t
Contract
Speed
Administration
+ Stage 3
Complexity
Performance Speed, Effectivenes s
Supply Chain
Management
Metrics Monitor Supply Environmen t
Speed & Integration,
Performance
Design Supply Base,
Metrics
Integrated Supply Strategy
Understand Industries,
Knowledge
Supply Base
1970 2000
1980 2010
1990
Supplier Transactional, Collaborative,
Relationships & Alliance
2006 Time Focus Pro-Active To Custom e r
Pro-Active as Market
Environmental
Differentiator for Custom e r
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29. Stage FIVE - Systemic Behaviors
STAGE 5. Systemic Behavior
VARIABLES Value Network Managemen t
Total Value Impact
Innovation
Value Driver Costs
Revenue
Speed
Present & Future Revenue
Financial
Bottom Line impacts
Impact
Stage 5
Supplier & Stakeholder Impact
Value Network
Management
Full Internal & External
Integration Integration: Supply,
Level & Procurement, Logistics,
Functional Operations, Engineering, R&D,
Stage 4
Elements Sales, Marketing, Service,
Value Chain
Stage 2
Customer’s Strat e g y
Management
Procurement
+S+Cx
Hyper-Competition
Basis of
and Contract
Technology Hybridization
Management
Competitive
Speed, Innovation, &
Stage 1
Advantage
Change Customization
Purchasing and
+
Contract
Innovation, Synchronicity
Speed
Performance
Administration
+ Stage 3
Synergy
Metrics
Complexity Supply Chain
Monitor Customer Environment
Management
New Processes, Systems
Performance
Solutions
Metrics
Leverage Supplier Technology
Customer’s Future Needs
Knowledge Industry Trends
Connect i v i t y
Multi-Dimensional
1970 2000
1980 2010
1990
Supplier
Collaborative, Networked
Relationships
Vision & Values Bas e d
2006 Time Focus Pre-Active with Custom e r
Pre-Active with Customer to
Environmental
Reengineer as Added Value
29

30. Harmonization: Toward Relationship and Alliance
Management
Supplier Customer Supplier Customer
Relationship Relationship Relationship Relationship
Management Management Management Management
1 2
Alliance and
Relationship
Management
3
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31. 31

32. Toward Systems Simulation Capabilities
32

33. Adopting a Process View of The Business and
the
Value Chain
Change Processes Change Processes Change Processes
Work Process
Work Process
Decision Communications Organizational
Making Processes Learning
Processes Processes
Behavioral Processes Decision Communi- Organizational
cations
Making Learning
Processes Processes Processes
TIME
Moving From Functional Silos to Process-Focused Project
Teams
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34. Contact Information
 Jim Reeds
 Address
jaydr@mindspring.com
♦
 767 Santa Barbara Road,
Berkeley, California 94705
USA
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