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FOR IMMEDIATE RELEASE
Supply Leadership Changes
The Chief Purchasing Officer is Critical to the Performance of the Supply Function
Tempe, AZ, March 14, 2007 – As the pace of change in senior executive ranks continues
to accelerate, a new study in Supply Leadership indicates the success of the supply
management organization will, for the most part, depend on who will be the Chief
Purchasing Officer (CPO) and to whom he or she will report. According to the authors
of the CAPS Research Focus Study titled "Supply Leadership Changes", Fraser Johnson,
Ph.D., and Michiel R. Leenders, D.B.A., the person who holds the Chief Purchasing
Officer (CPO) position in an organization is critical for the leadership and overall
performance of the supply function. The study included case-based research from
30 North American and European companies and found that the frequent changes in
CPOs have required companies to exercise great care and attention to assure a seamless
transition after change.
Twenty-nine of the 30 companies investigated reported the assignment of a 'first'
CPO during the previous 10-year period, which implies there was a high frequency
of decentralized supply in these large companies. The first CPO assigned has the
daunting task of launching a corporate supply presence. He or she will most likely
develop a corporate supply strategy, build a supply team, identify the supply responsibilities,
and devise a plan for growth and results. For the replacement CPO, the company may
choose to recruit someone who has been reporting to the departing CPO, but the same
set of questions about Why change is required, Who will be selected,
and How the decision is made, remain the same.
Outcomes in the study show first-time CPOs that came into the position with a combination
of supply and non-supply experience had an average tenure of 5.5 years. This is
significantly greater than the average tenure of 3.2 years for those first-time
CPOs with supply-only experience, and 3.3 years for those with no previous supply
experience.
Whether a CPO is a seasoned supply professional or a first-time appointee does not
diminish the CPOs important role in ensuring that the supply function contributes
effectively to organizational goals and strategies. This is a good opportunity for
supply management professionals to be viewed as an equal partner in the organization.
Note: To review the CAPS Research Focus Study, "Supply Leadership Changes" click
on the following link:
http://www.capsresearch.org/publications/pdfs-protected/johnson2007.pdf
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CAPS Research is a nonprofit research organization founded in 1986 to provide leading
research to our strategic-minded corporate sponsors and to the public. Our mission
is to work in partnership with a global network of executives and academics for
the discovery and dissemination of strategic supply management knowledge and best
practices. CAPS Research is jointly sponsored by the W. P. Carey School of Business
at Arizona State University, and the Institute for Supply Management™.
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