The Value of the Student Connection to Professionals

1. The Value of the Student Connection to Professionals Robert Vokurka SW District February 12, 2011

2. The Value of the Student Connection to Professionals • Perspectives • Importance of Talent • Industry Need • SCM Competency Model • SCTAI • What Can You Do?

3. “Nothing endures but change” Heraclitus (ca. 540 - ca. 480 B.C.) Greek philosopher

4. How Old is Grandma? • One evening a grandson was talking to his grandmother about current events. The grandson asked his grandmother what she thought about the shootings at schools, the computer age, and just things in general. • The Grandma replied, "Well, let me think a minute, I was born before: • television, • penicillin, • polio shots, • frozen foods, • Xerox, • contact lenses, • Frisbees and • the pill.

5. How Old is Grandma? • Man had not invented: • pantyhose, • air conditioners, • dishwashers, • clothes dryers, • and the clothes were hung out to dry in the fresh air and • man hadn't yet walked on the moon. • Your Grandfather and I got married first-and then lived together. Every family had a father and a mother. • Until I was 25, I called every man older than I, 'Sir'- and after I turned 25, I still called policemen and every man with a title, "Sir.'

6. How Old is Grandma? • We were before gay rights, computer dating, dual careers, daycare centers, and group therapy. • Our lives were governed by the Ten Commandments, good judgment, and common sense. • We were taught to know the difference between right and wrong and to stand up and take responsibility for our actions. • Serving your country was a privilege; living in this country was a bigger privilege. • We thought fast food was what people ate during Lent. • Having a meaningful relationship meant getting along with your cousins.

7. How Old is Grandma? • Draft dodgers were people who closed their front doors when the evening breeze started. • Time-sharing meant time the family spent together in the evenings and weekends-not purchasing condominiums. • We never heard of FM radios, tape decks, CDs, electric typewriters, yogurt, or guys wearing earrings. • We listened to the Big Bands, Jack Benny, and the President's speeches on our radios. • And I don't ever remember any kid blowing his brains out listening to Tommy Dorsey. • If you saw anything with 'Made in Japan ' on it, it was junk. • The term 'making out' referred to how you did on your school exam.

8. How Old is Grandma? • Pizza Hut, McDonald's, and instant coffee were unheard of. • We had 5 & dime stores where you could actually buy things for 5 and 10 cents. • Ice-cream cones, phone calls, rides on a streetcar, and a Pepsi were all a nickel. • And if you didn't want to splurge, you could spend your nickel on enough stamps to mail 1 letter and 2 postcards. • You could buy a new Chevy Coupe for $600 but who could afford one? • Too bad, because gas was 11 cents a gallon.

9. How Old is Grandma? • In my day: • "grass" was mowed, • "coke" was a cold drink, • pot" was something your mother cooked in and • "rock music" was your grandmother's lullaby. • "Aids" were helpers in the Principal's office, • "chip" meant a piece of wood, • "hardware" was found in a hardware store and • "software" wasn't even a word. • And we were the last generation to actually believe that a lady needed a husband to have a baby. No wonder people call us "old and confused" and say there is a generation gap... and how old do you think I am?

10. People • Just in case you weren't feeling too old today, this will certainly change things. Each year the staff at Beloit College in Wisconsin puts together a list to try to give the faculty a sense of the mindset of this year's incoming freshmen.Here's this year's list (Class of 2014):

11. Feeling Old? • The people who are starting college this past Fall across the nation were born in 1988……… • Few in the class know how to write in cursive. • Email is just too slow, and they seldom if ever use snail mail. • “Go West, Young College Grad” has always implied “and don’t stop until you get to Asia…and learn Chinese along the way.” • With increasing numbers of ramps, Braille signs, and handicapped parking spaces, the world has always been trying harder to accommodate people with disabilities.

12. Feeling Older? • Had it remained operational, the villainous computer HAL could be their college classmate this fall. • John McEnroe has never played professional tennis. • Clint Eastwood is better known as a sensitive director than as Dirty Harry. • Fergie is a pop singer, not a princess. • They never twisted the coiled handset wire aimlessly around their wrists while chatting on the phone. • DNA fingerprinting and maps of the human genome have always existed.

13. Feeling Real Old? • Doctor Kevorkian has never been licensed to practice medicine. • Colorful lapel ribbons have always been worn to indicate support for a cause. • Korean cars have always been a staple on American highways. • Woody Allen, whose heart has wanted what it wanted, has always been with Soon-Yi Previn. • Leasing has always allowed the folks to upgrade their tastes in cars.

14. Feeling Real Old? • Unless they found one in their grandparents’ closet, they have never seen a carousel of Kodachrome slides. • Computers have never lacked a CD-ROM disk drive. • They’ve never recognized that pointing to their wrists was a request for the time of day. • Reggie Jackson has always been enshrined in Cooperstown. • Second-hand smoke has always been an official carcinogen.

15. Feeling Real Old? • Once they got through security, going to the airport has always resembled going to the mall. • Bud Selig has always been the Commissioner of Major League Baseball. • Pizza jockeys from Domino’s have never killed themselves to get your pizza there in under 30 minutes. • American companies have always done business in Vietnam. • Russians and Americans have always been living together in space.

16. Feeling Real Old? • The dominance of television news by the three networks passed while they were still in their cribs. • They may have assumed that parents’ complaints about Black Monday had to do with punk rockers from L.A., not Wall Street. • A purple dinosaur has always supplanted Barney Google and Barney Fife.  • Having hundreds of cable channels but nothing to watch has always been routine.  • The U.S, Canada, and Mexico have always agreed to trade freely.

17. Feeling Real Old? • Ruth Bader Ginsburg has always sat on the Supreme Court. • They have never worried about a Russian missile strike on the U.S. • The nation has never approved of the job Congress is doing. • One way or another, “It’s the economy, stupid” and always has been. • Honda has always been a major competitor on Memorial Day at Indianapolis.

18. “Things do not change; we change.” Henry David Thoreau (1817-62) American naturalist and writer

19. “It’s hard for me to get used to these changing times. I can remember when the air was clean and sex was dirty.” George Burns American actor and author

20. Technology Adoption InventionDateWidespread Use • Button 13th C. 400 years • Bicycle 1818 50 years • Telephone 1876 35 years • Television 26 years • PC 16 years • ??? ? years

21. Technology Adoption Years to Reach 150,000,000 users • Telephone 89 years • Television 38 years • Cellphone 14 years • IPod 7 years • Facebook 5 years

22. Products – The Explosion of Choice early late Item19701990s • Breakfast cereals 160 340 • Pop-tarts 3 29 • Soft drink brands 20 87 • Colgate toothpastes 2 17 • Magazine titles 339 790 • New book titles 40,530 77,446 • OTC pain relievers 17 141 • Frito-lay chip varieties 10 78

23. Technology - When and What? • The economy is stuck in the doldrums, thanks largely to the broken promises of technology. Dazzled by seemingly limitless returns, bankers had funded hundreds of companies, all going after the same dubious markets. Heedless, individual investors clamored to get into the stock market, driving share prices to unheard-of levels. Soon the overheated market crashed, turning the new heroes of business into goats and scoundrels. Now, disillusionment reigns, and nobody knows what’s going to happen next.

24. Who and When? … • Cycle Time • “One of the most noteworthy accomplishments in keeping the price of our products low is the gradual shortening of the production cycle. The longer an article is in the process of manufacture and the more it is moved about, the greater is it’s ultimate cost.” • Process Improvement • “Our own attitude is that we are charged with discovering the best way of doing everything, and that we must regard every process employed in manufacturing as purely experimental.”

25. Who and When? • Quality • “We shall never reach the point where we can’t improve.” • “… which incidentally proves that there is nothing incompatible between quality and mass production.” • Factory Focus • “We believe that no factory is large enough to make two kinds of products.”

26. When? … • Quality Purchasing • “Too often the question of price is the determining factor in buying. Little consideration is given to other phases of the transaction. The buyer must consider price and quality together. For one’s special and particular needs, the highest quality may be the cheapest.” • Profit Purchasing • “This country has traditionally solved the problem of getting more profit by making more sales. Conservation of natural resources and competition have forced a realization. An increase in advertising and marketing will not increase profits in proportion to the increase in expenses; hence, the need for reducing costs.”

27. When? • Strategic Purchasing • “The purchasing department makes a large proportion of the expenditures for a business. The success of a business is a function of the amount of thought given to this department and the judiciousness with which the purchases are made. The success or failure of a business may be the direct result of good or bad buying.” • Just-in-Time Purchasing • “The buying function should furnish the goods and materials at the time and in the quantity required. Buying at inopportune times or in excess of requirements is liable to entail severe losses. An accumulation of goods and suppliers beyond what is required means the following losses are incurred: depreciation, insurance, value of space occupies, and loss of interest on investment.”

28. That which hath been is that which shall be; and that which hath been done is that which shall be done; and there is no new thing under the sun. Ec 1:9

29. “To change and improve are two different things.” German proverb

30. Good to Great • Jim Collins (Built to Last - 2004) • Eleven pairs of companies • Abbot – Upjohn • Circuit City – Silo • Fannie Mae – Great Western • Gillette – Warner-Lambert • Kimberly-Clark – Scott Paper • Kroger – A&P • Nucor – Bethlehem Steel • Philip Morris – R.J. Reynolds • Pitney Bowes – Addressograph • Walgreens – Eckerd • Wells Fargo – Bank of America

31. Good Results to Great Results • First Who … Then What • “We expected that good-to-great leaders would begin by setting a new vision and strategy. We found instead that they first got the right people on the bus, the wrong people off the bus, and the right people in the right seats --- and then they figured out where to drive it. The old adage “People are your most important asset” turns out to be wrong. People are not your most important asset. The right people are.

32. First, Break All the Rules • Subtitled: What the World’s Greatest Managers Do Differently (1999) • Marcus Buckingham and Curt Coffman • Sequel: Now, Discover Your Strengths • Based on in-depth interviews by the Gallup Organization • Over 80,000 managers in 400 companies

33. What Great Managers Do • Select for Talent • Select the person • Define the Right Outcomes • Set expectations • Focus on Strengths • Motivate the person • Find the Right Fit • Develop the person

34. “Good people will make any organizational structure work.” John G. Breen

35. Supply Chain Management 2010 • Research project supported by APICS E&R Foundation, Michigan State University, and SAP • Where the field was expected to be in the next 4-5 years, then gaps that needed to be filled

36. Major Gaps • Strategic visibility and alignment • Talent management and leadership • Supply chain models including optimization, risk, and cost • Process measures including measures, information, and integration • Relationships and trust • Supply chain architecture and structure

37. Talent Management and Leadership • There is a need to develop competency models for the types of talent that [are] needed now and into the future. Previous talent needs were more functional in nature, requiring training in a specific discipline. Supply chain employees are now needed who are more generalists and can integrate with various disciplines. Today, there is a lack of sufficient supply chain graduates and demand outstrips supply. There are insufficient ties between industry and educational institutions to foster the development of talent. Finally, there is a dearth of student (at the undergraduate, graduate and doctoral levels) and faculty internships to provide a training ground and experience base. There are too few students who understand strategic SCM. There are far too few faculty [members] who can teach strategic SCM.

38. AMR Research, Inc. • Investments in AMR Supply Chain Top 25 would achieve investment returns far in excess of DJIA (2008) • Found firms faced a giant obstacle in achieving the goal • Shortage of trained SCM professionals at all levels

39. State of Supply Chain Education • Many firms struggle to find managers capable of executing strategies and creating value across organizational and national borders (2009) • “We can find great entry-level people—the ones with strong functional skills. But finding people who can bring everyone together to work as a cohesive team is a real challenge. They’re just not out there.”

40. MIT Center for Transportation & Logistics • “A critical shortage of supply chain talent is looming at a time when the demands on the profession have never been greater. Supply chain has become a pivotal corporate function in a world where markets change with unprecedented speed and companies are expanding in unfamiliar territories. As well as proving the tactical know how that enterprises need in the competitive environment, the supply chain is increasingly being called upon to contribute strategic expertise. But this wider role requires skills that are in short supply, and there is an urgent need to build a more effective talent pipeline (October 2010).”

41. SCM Competency Model • APICS 2009 Future Leaders • Competency model using model used by the U.S. Department of Labor • Released late in 2009 • Materials Manager Competency Model - 2010

42. SCM Competency Model

43. SCTAI The Supply Chain Talent Academic Initiative (SCTAI) is an international not for profit consortium of industry, academia, and professional associations with a mission to increase the depth and breadth of the global supply chain talent pool by: • Identifying industry competency requirements for supply chain talent, and providing forecasts of those requirements for university program planning . • Assisting universities and other educational institutions in building programs to meet those requirements by providing material and other collateral. • Marketing the supply chain profession as a career of choice.

44. The Problem • Supply Chain Management has an Identity Crisis

45. Supply Chain: Not a Well Defined or Recognized Career The 30 Best Careers for 2009 – U.S. News's annual list of 30 Best Careers Top Jobs for 2009 - Fast Company 1. Nursing & Medical Services 2. Computing & Engineering 3. Education 4. Green Jobs 5. Energy 6. Infrastructure 7. The “New Finance” 8. Self-Employment & Small Business 9. Retirement Reconsidered 10.Telecommuting Audiologist Biomedical equipment technician Clergy Curriculum/training specialist Engineer Firefighter Fundraiser Genetic counselor Ghostwriter Government manager Hairstylist/Cosmetologist Health policy specialist Higher education administrator Landscape architect Librarian Locksmith/Security system technician Management consultant Mediator Occupational therapist Optometrist Pharmacist Physical therapist Physician assistant Politician/Elected official Registered nurse School psychologist Systems analyst Urban planner Usability/User experience specialist Veterinarian Occupational Outlook Handbook, 2010-2011 Edition (DoL) • Material moving occupations • Motor vehicle operators • Office & Administrative: Material recording, scheduling, dispatching, and distributing

46. Problem Statement • Most university students do not realize SCM careers and programs are available until their sophomore or junior year • Secondary school counselors do not realize SCM as a field of study and career • Department of Labor does recognize SCM as an occupation • No common industry definition of SCM • Supply and demand of SCM talent is not aligned • Hence, university SCM graduates are unprepared for day one success in their new jobs

47. Supply Chain ManagementCareer Path Models DRAFT • How would yourepresent the field, functions, and roles of Supply Chain Management? • Under discussion: • How do we package a simplified model for students? • What’s missing? • How do we standardize terms and titles?

48. 2010 Student Research • Qualtrics on-line survey • Undergrad (78%) and graduates (22%) • March – October 2010 • 435 Responses • 20 Universities

49. 2010 Student Research • Who was the first person to tell you about Supply Chain Management? (n=427) • 34% - professor, only 8% high school counselor • 19% - college career advisor • 18% - family member • 21% - other (work colleague, friend, other student) • What did they say that influenced your decision? (n=95) • Career opportunities and in demand (over 75%) • Breadth of role

50. 2010 Student Research • Why did you choose SCM as a major? (n=427, Σ=1479) • Matched my strengths = 283 (66%) • Long term career opportunities = 251 (59%) • Current job availabilities = 239 (56%) • It is “different” = 169 (40%) • Professor’s influence = 139 (33%) • Family member recommendation = 84 (20%) • Fellow student’s influence = 64 (15%) • Career services advice = 64 (15%) • Co-worker/mentor = 20 (5%) • Other (reputation- internal & external, choice available, experience, more interesting than accounting!) = 33 (8%)