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Recruitment, integration and retention the three pillars for leadership in logistics
The Canadian Supply Chain Sector Council is one of 33 sector
councils established by the federal government to look at labour
markets in key sectors of the Canadian economy. The fact that
the supply chain is counted among these key sectors is a
testament to its importance to our economy moving forward.
BY KEVIN MAYNARD
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Kevin Maynard |
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Euman resource issues are affecting
many sectors, and as such, we owe
it to our industry to develop strategic
initiatives to ensure that we
will have the right people with the right
skills at the right time so that Canadian
supply chains will continue to operate efficiently.
The supply chain is an area of our
economy that has been overlooked to date.
There is much groundwork to be done in
terms of developing awareness around
employment and opportunities within our
industry. Adding to the challenge is that
the market for senior level talent is highly
competitive. We’re not just competing with
other supply chain operators for our business
leaders. We are also competing with a
host of other industries that are looking for
the same combination of skills we are.
Some portions of the country have been
harder hit than others. A logistics operation
in Alberta, for example, took months
to fill a vacant senior level transportation
coordinator position, despite the fact that it
was a very well paid job with a sizeable
signing bonus. This is not the only example.
The challenges we face are rooted in
the fact that leadership in our industry
demands a comprehensive set of diverse
skills. At the same time, these challenges
translate into unique opportunities for
multi-talented leaders who thrive on diversity
and complexity, of which there is plenty
in the supply chain industry. In today’s
world of global trade, logistics involves
infinite moving parts, from ports and border
crossing functions, to warehousing and
distribution, and everything in between. As
a result, there is an incredible push to seek
out people that have the body of knowledge
required to “thread” the many pieces
of the supply chain together.
Today’s leaders must have an intuitive
ability to understand how different functional
pieces of the business interact and
interrelate. We operate in a complicated
environment in which one seemingly isolated
action can have an impact on an
entire supply chain.
Leaders must understand, for example,
how a decision made in procurement will
be felt in transportation, customer service
and support, and IT requirements. They
must have a grasp of where goods and services
are at any point in time and the business
issues relating to each of those points,
such as cross-border and security, modes of
transport, product recalls and cargo regulations,
among others. They must be in tune
with what it takes to ensure consumer protection
and quality is maintained throughout
the supply chain, and how to put the
processes in place to mitigate risk. These
are all part of the day-to-day decision
making of today’s managers.
It is becoming evident that there are
simply not enough people out there with
the high level skill sets and business experience
needed to meet growing demand. As
with many industry sectors, demographics
is a major contributor to the problem. A
large portion of current senior level managers
are approaching retirement age and
will take with them many years of handson
expertise that will be hard to replace. In
addition, there are fewer and fewer people
in the “middle ranks” who have the experience
to fill their roles. Efforts are being
made at the secondary school and college
levels to generate awareness and encourage skills building in supply chain functions.
But that does not address what we need to
consider today.
So how will the industry address this gap moving forward? For one thing, businesses need to cast a wider net for recruiting talent.
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Newcomers to Canada, for example, provide a rich source of skill sets and competencies. Although they may not have had domestic experience and have not been tested in this market, this is becoming less and less of an issue in a global market. Other under-represented groups include youth, aboriginals, older adults in transition, women and persons with disabilities. With the right training and mentorship programs, they can provide a deep talent pool from which we can build leadership skills.
Many operations are also looking beyond industry boundaries to other sectors to source broad-based management skills. Given the diverse nature of today's logistics functions, leaders of today must have a working knowledge of sales, marketing, legislative issues, IT, communications and a myriad of other disciplines. These types of skills are certainly not exclusive to the logistics market and can be found at the senior management level of just about any industry sector today.
Recruitment is only one part of a larger picture, however. Once you get these people in the door and hired, the next step is successful integration. Whether adding to your management ranks through acquisitions or working with a new hire, integration can be a significant challenge.
It is critical to understand that integration is not just about the individual brought into the fold, but also co-workers. There must be a process in place to ensure that incumbents can see the value of the newcomer so they can understand and leverage their skill sets, knowledge and competencies.
Recruitment and integration still does not guarantee that a new manager will stay. Retention is the third critical element in a solid leadership plan. Given the fight for talent, you need to give your senior managers – and all employees, for that matter – a reason not to go elsewhere.
It will not be easy for the supply chain industry. Competition for leadership talent is fierce. The diversity of skills required is expanding as the industry evolves. The good news is there are a number of initiatives – from the classroom to the boardroom – that are now focused on addressing these concerns.
Some resources: There are a number of information resources and tools available to help supply chain operations in their recruitment, integration and retention initiatives.
• www.hireanimmigrant.ca
• Toronto Region Immigrant Employment Council ( www.triec.ca)
• Aboriginal Human Resource Development Council of Canada ( www.ahrdcc.com)
• A number of universities, community colleges and industry associations across Canada offer leadership/executive training programs in supply chain management
• Canadian Supply Chain Sector Council website: www.supplychaincanada.org
• Strategic Human Resources Study of the Supply Chain Sector: http://www.supplychaincanada.org/assets/
CLSC_summary_report.pdf
• Final Report of the 2007 Labour Market Information Project, Canadian Supply Chain Sector Council:
http://www.supplychaincanada.org/user_files
/CSCSC_Final_LMI_Re port-July_31_2007.pdf 
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Kevin Maynard is Executive Director of the Canadian Supply Chain Sector Council.
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Tracey Raimondo CITT
Vice President, Logistics
Normandin Transit Inc.
Napierville, QC
After more than
15 years of running
her own successful
logistics operation,
Tracey Raimondojoined Normandinwhere she now
heads up the logistics
department for
the Quebec-based
firm. She says joining
a management
team after her years of owning her own company
has allowed her to see what it takes to maintain
and motivate staff.
When we sold our company to Normandin, it
was an interesting transition for us. You could say
that we went from being owners to employees.
Joining a larger executive team was a big decision,
but the company offered an environment
that reflected our own belief in teamwork and
respecting each employee’s interests and needs.
The power of this approach is obvious when you
consider that 80 to 90 per cent of the people on
staff at Normandin have been here at least seven
years.
Whether you are an independent operator,
or part of a larger company, it is important for
leaders to recognize individual personalities.
They must create an environment that accommodates
their people in a way that draws on the
strength of their personalities and skills.
This has been especially important for a
company like Normandin, since it has gone
through very rapid growth in the past 10 years. In
fact it was ranked fourth among the top 50 companies
in Quebec for creating the largest number
of jobs in the last five years.
With 330 employees, it is perhaps easier for
us to accommodate individual styles. We are able
to listen to what our employees have to say firsthand.
Managers and executives make it a point to
be in the middle of the action, accessible to
everyone, and always ready to hear about their
day-to-day challenges and ideas.
Our business can expect a number of challenges
in the months to come. The weakening
U.S. dollar and the rising cost of fuel, for example,
are just some of the many issues that will have a
serious impact on our industry. What we can’t
afford is to take our people for granted. Leaders
need to focus on going the extra mile for their
people to make sure they are happy and actively
engaged in the company’s success.
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Don Borsk
Chief Operating Officer Metro Retail
Supply Chain Solutions
Toronto, Ontario
With more than
25 years of logistics
experience in
all aspects of the
retail industry –
from store level to
3PL – Don Borskhas extensive
know ledge of
what it will take to
drive supply chain
success in the
future. A key element
in creating
the leaders of tomorrow is understanding the
foundations we need to put in place today.
Technology change is pretty much a common
theme when you talk to industry professionals
about labour shortages these days. It is
increasingly evident that we require a different
level of skill sets than before. Unfortunately,
given that just about every other industry out
there is going through the same technology
evolution, we’re all chasing the same talent.
When you ask what we think of as technology
in our warehouses, we tend to think in terms
of computers, inventory control techniques and
the drive for quality. Obviously there is a need for
people who can handle these complexities moving
forward.
But coupled with that are the qualities that
we tend to overlook: that is, the intuitive skills
that come with experience. In other words, the
common sense stuff we as leaders learned over
the past two or three decades. It is what allows
us to recognize good distribution centre practices
and understand what is right or wrong. I’ve
often found that management may be educated
on theoretical practices, but often has difficulty
grasping those important basics.
In order to get the level of expertise at the
higher level, we must put more focus on lower
level education. There is a strong need to understand
and improve the quality of many of the
basic training requirements. We must also be
able to benchmark skills in order to understand
their value. Our role as leaders is to put together
a set of standards and accreditation programs so
that employees can judge the quality of those
programs, and employers can, in turn, judge the
quality of the employees they hire.
While many are focused on the higher levels
when it comes to recruitment and retention,
they would be better served to put more effort
in lower level jobs. By far, the majority of jobs in
the supply chain industry are at non-management
levels. More importantly, we need to
ensure that the supply chain industry presents a
recognized and appealing career path for the
generations to come.
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Arthur Mesher
Chief Executive Officer
The Descartes Systems Group Inc.
Waterloo, Ontario
Art Mesher joined Descartes in 1998 and assumed the role of CEO
in 2004. Before joining the company he played a leadership role in a number
of logistics initiatives, and believes that an important aspect of good
leadership is the ability to support teams in transition.
Over the years, Descartes has been involved in a number of acquisitions.
I’m pleased to say that we’ve had an extremely successful track
record when it comes to maintaining and integrating the leadership talent
that comes with that. In fact, since I joined, of the 16 companies we acquired, only one founder bowed
out of the organization.
We’re especially proud of that track record given that founders and management teams are often
resistant to the idea of integrating with a new and larger entity. Entrepreneurship by its nature does not
lend itself to adapting to changing business models. At the same time, it is that energy and enthusiasm
that is so valuable to logistics operations today.
The ability to orchestrate a successful transition speaks to two key elements of strong leadership. One
is commitment. A strong leader simply won’t walk out the door and leave their people to fend for themselves.
For the most part the management teams that have joined us have been 100% committed to helping
their people transition to a new business model.
The other is vision. Everyone who has joined Descartes is in synch with our commitment to the concept
of ONE (one networked enterprise) serving a global logistics network. They realize the value of dealing
with a strong company that is focused on customer service and expanding our global presence.
In any integration effort, narcissistic or heavy-handed CEO behaviour simply won’t lend itself to fostering
change. We can’t afford to forget that underneath every strong founder and/or key personnel of a
successful company is a group of really good people. That means when primary management does
decide to step aside, there is a strong “underbelly” of really strong, qualified people to take up the reins.
The key is to harness that next generation that sits underneath those top managers by offering open
communication, training and support. Only then can we create a business that is much more than the
sum of its parts for years to come.
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Claude Germain
Executive Vice President & COO
Schenker Canada
Mississauga, Ontario
A successful entrepreneur and executive in the field of logistics,
Claude Germain joined Schenker as EVP and COO in 2005. An awardwinning
innovator in logistics, Germain says that metrics can deliver
important value in gauging winning performances.
While customer service is always a number one priority for our business,
close to that is the ability to attract, retain and motivate talent. This
is integral to maintaining a culture of operational and technological continuous
improvement. Corporate culture may represent the overall picture, but the nuts and bolts of
retaining talent in a global level enterprise start with good measurement.
At Schenker, we consider three key metrics as part of the human resource “scorecard” – voluntary
turnover, engagement scores and talent ratios.
Voluntary turnover is an invaluable metric in any company’s effort to improve recruitment and retention
initiatives. By measuring the first three years of a person’s tenure against overall numbers, this can
provide insight as to what point people are leaving your organization, identify potential weaknesses and
help organizations develop measures to address them.
History has proven that there is a direct correlation between high scores and financial performance.
As such, it is essential that managers be informed and aware of the success – or shortcomings – of their
engagement and communications efforts. One way to gain a clearer understanding is through engagement
scores. At Schenker this is a quarterly process that involves surveying employees across Canada and
correlating that feedback to the respective managers.
One of the most important metrics in building a successful retention strategy is talent ratios.
Measuring talent ratios is a process designed to help operations understand the inherent value of individuals
on staff. One could equate it to applying a green, yellow and red ranking on performance. People
who score in the red category for example must be dealt with decisively; while those scoring high in the
talent ratio books should be acknowledged for their strong performance.
All too many times, organizations obsess about managing poor performers and end up ignoring
the strong ones. In reality, we should be obsessing about the strong performers instead. We should
put our energies into understanding their needs, motivating them, educating them and challenging
them in ways that allow them to reach their full potential. That will help to ensure long-term stability
and fiscal success
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