Tuesday 1 April 2014

Building Strategic Weaponry for Competitive Competence


Introduction
The current speed of change requires employees to be trained continuously to out-think and out-manoeuvre competitors.

Customisation is key - this article explains how to tailor programmes to maximise synergies between company strategic objectives, individual needs and lifelong learning.

Identify areas to be addressed
A previous article, “Targeting Training for Strategic Success” identified tools for determining the skills gaps of each individual within the organisation, both in terms of the company’s current needs and future strategy.

Having applied these tools, the company will have a strategic overview of what must be trained, at what level and to how many people at each level.

Structure content and strategies for training programmes
Diversity of approach and company structures mean  that there is no “one size fits all”: every company must align training to its own bottom-line objectives.

To achieve this, the company will need to create a matrix in which the identified skills gaps are grouped into areas of similarity at different levels.

Such a matrix will look something like this:



Technical
Company Systems
Strategy / Management / Supervisory
Soft Skills
General Management




Supervisory




Operator




General Worker






Identify the specific objectives of each training unit 
By populating this matrix we have a strategic overview of the competency requirements of our organisation. It also represents a lifelong learning path for each employee.

The skills gaps which have been identified in each of the matrix cells need to be fleshed out so that each defines what the person who has been trained in that area will be able to do. 

For example, if we have identified “manage inventory” as a skills gap at operator level, we might, after consultation with those involved in the function, decide that a person who has been trained in this function will be able to:
  • Explain the principles of freight logistics 
  • Receive, dispatch and return freight
  • Control and locate stock
  • Locate freight in a warehouse
  • Pack, handle and secure freight 

Million dollar question- insource or outsource?
Now the burning question: which of these competencies should be trained on an in house basis and which should we outsource to external providers?

According to the supplychainforesight 2014 report “With the education system of South Africa under increasing scrutiny, there is a clear gap between relevant qualifications and skills that are marketable in the workplace.” This is a clear indication that, at least in the field of supply chain management, the bias should be towards insourcing. This, by the way, is not a uniquely South African phenomenon.

Other considerations are:
  • What do we have the ability to execute in-house, and what can’t we perform internally with quality and consistency?
  • Which of the competencies we have identified give us our competitive edge, which of them give us our unique character in the marketplace?
  • Consider outsourcing those generic “soft skills”  (communications, time management, leadership development, decision-making, and problem-solving), as well as environmental and health-safety issues. Keep in mind that if we were to keep training entirely in-house, the only resources we’d have are the skill sets that exist in our current staff.
  • To what extent can we insource training without compromising the operational requirements of those Subject Matter Experts who will be required to do facilitate training? Put another way, how do we manage the risk of loss of focus on our core business, if we implement in house training programmes?


Moving target
Nothing stays the same. Both the competency matrix of the company should be subject to annual review as an absolute minimum.

9 comments:

  1. I totally agree to outsource the soft skills. But in order to keep as much as possible strategic training in-house, it is imperative that supply chain professionals stay on top of new developments and trends within the supply chain as an industry. This can be achieved by participating in supply chain discussions, blogs like this one, conferences and industry specific case studies. I believe that each and every supply chain professional should take at least 2 hours out of their day to focus on enriching their knowledge, searching for new development and familiarising them self's with world class trends.
    This will ensure a high standard when coming to in house training and narrowing the in house skills gap.

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  2. Hi Jacques, In order to provide strategic training in-house, would it not be important to establish an in-house training facility. If so, how could this be structured? As a formal Academy accredited to award national qualifications, something less formal (in which case would this be sustainable?) or a combination of both?

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  3. Technology plays a key role in simplifying process efficiency. However no technology will improve your processes if the core resources (staff) have not been trained on how to fully utilize these improvements. I have found so many times that the improvements, whether it be technological or process changes, are perfect but have failed dismally because staff have not been trained on how to fully utilize them. You have to get buy in from grass roots level and then commit on training on all aspects as if you are training a new employee all over again. There has to be a physical change in the mind of the operator of the system or the process to see the long term benefits for not only the business but for themselves. Making this change is not easy and requires detailed training programs which could change the way the staff member sees the business and the new addition to the process or systems. In-house training is always better to ensure that staff realize the impact on the business, after all who knows your business like you do. Having said that, there are skills that everyone should have and do require in order to effectively implement the training. This may require external training on voice coaching, soft skills in terms of general business etiquette and so on. Once you have staff on the same level in terms of the basics your training in-house will be a simple task. The easiest way of getting these skills into your organization is by employing the right people. Identify the caliber of people you want and what skills they should have. Once you have done this and interviewed the candidates you feel are suitable you will get a feel for what you want and what you don’t want. You may not see this at the start but long term the caliber of people you take on has a major impact on the type of training you need to implement. The obvious benefit is that you have staff who are knowledgeable and keen to learn more.

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  4. In-house training should be in line with the companies core business and activities, if not the outsource option must be considered. If the core business is freight forwarding, it would be hardly feasible to acquire an in-house training facilitator with expertise in environmental management. But if training on inco terms is needed, then yes, as it is a resource that can be utilised within the business.

    I don't thinks I would go so far as giving a formal academic accreditation, focus must still remain on core business. But it can be expected that staff must meet a certain standard in the field of expertise after training have been received. It is sustainable by creating and embedding a corporate culture that is supply chain driven, with the culture keeping up with changing technologies and strategies and a thirst for learning and maintaining world class standards.
    Does this make sense?

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  5. Hi Jacques,
    I agree with you to a large extent however what I have seen to an increasing extent is that where companies are needing to spend substantial amounts on training they are finding that they achieve a better return on investment by becoming accredited training institutions in their own right, influenced perhaps by the extreme variability of the training which is available in the open market.
    Irrespective of this, and where I strongly support your views, is that there has to be a strong corporate culture of supply chain management. My opinion is that the foundation of such a culture is lifelong learning for all in the business.

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  6. In house Training in my view has become a global necessity for most company's in my view for two simple reasons. One it helps staff understand the company culture and secondly helps determine any gaps in skills that any organization may have. This to me is key to success as this has become what I call " competitive advantage necessity. Supply chain is become that element that needs well skilled people & training is not an option anymore, but a must. But I believe both in house training important to understand company culture but with a mix of outsourced training to see dynamics of your business as helps in understanding your business environment both internal & external.

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  7. And in your own words Charles their must be a supply chain management culture as this is what is driving organization. We must have more qualified personnel in this field and give the necessary skills to flourish.

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  8. Adesh Dhanesur15 July 2014 at 23:43

    In my opinion, in-house solutions are the best. Take ownership of your learning environment, content and experience. People should be constantly up skilling themselves to cater for the ever demanding challenges faced with "change." I agree, that occasionally, the odd course can be outsourced for variety but ultimately if you want to achieve your strategic objectives you need to be on top of your game. Having a registered academy/ training facility with "qualified and/ or experienced" professionals; designing, configuring and delivering learning solutions makes the imparting of knowledge and the reception thereof that much more intimate and effective.

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  9. @ Adesh. In my view insourced and outsourced training both have their uses: I believe that, for those generic skills (end user computing, accountancy, business communication, to name a few) outsourcing is probably cost effective.
    In order to be competitive however we need to develop effective in house training programmes to impart those competencies which distinguish us from our competitors. To do this however requires the close cooperation between Subject Matter Experts and Instructional Designers. Have a look at the article "Customise Weapons for Winning the Competitive War" and give us some comment- look forward to your views.

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