CPSM Exam 1 Part B5

What is the fundamental difference between a "group" and a "team" in a professional setting?

A group is simply two or more people meeting to discuss a topic, while a team is formed for a common purpose, possesses complementary skills, and generates synergy to maximize strengths.

What are the key action items a meeting leader must execute after a meeting concludes to ensure accountability?

Distribute the meeting minutes, clarify agreed-upon action plans (ensuring each member knows their responsibilities), and follow up on decisions made.

Why do regularly meeting groups generally have smoother meetings than newly formed, one-time project groups?

Regularly meeting groups have usually already passed through the first three stages (Forming, Storming, Norming), allowing them to operate directly in the Performing stage.

What are the 5 stages of group development (Tuckman's model) in chronological order?

1. Forming 2. Storming 3. Norming 4. Performing 5. Adjourning

How do cross-functional teams accelerate timelines compared to traditional rigid functional structures?

They replace a sequential approach with a simultaneous approach, bringing key stakeholders into the development process from concept through roll-out to ensure immediate alignment and buy-in.

What tools and steps are recommended to mitigate personal differences when an organization uses personality profiles like Myers-Briggs (MBTI)?

1. Use an outside facilitator to explain the outcomes.

2. Develop a team contract or charter designed to accommodate those personality differences.

3. Establish work rules to guide behavior.

teams are temporary, brought together for a limited time to achieve a specific outcome (e.g., a capital project or a specific negotiation).

Project teams

teams continue indefinitely to manage continuous processes (e.g., a commodity sourcing team managing long-term supplier relationships).

Ongoing teams

What are the 4 distinct roles a supply management professional might play on a team?

1. Providing support, service, or information (Advisory)

2. Project Management

3. Leadership

4. Facilitation

When a supply management professional is in a pure "Support, Service, or Information" role, what critical soft skill is required to be effective?

influence without authority since they serve in an advisory capacity and may not have a direct vote in final team decisions.

this role takes primary responsibility for the final outcome of the project.

Team Leader

this role akes primary responsibility for the final outcome of the project. focuses strictly on managing the communication process, trying to flesh out the thoughts and ideas of all participants rather than driving toward a specific preferred result.

A Facilitator

what three specific things do team members learn about each other during the "Forming" stage?

1. What each person brings to the team (expertise/skills).

2. What each person wants from the process.

3. How team members will interact with one another

At which stage of team building do members begin developing enough trust to shift focus away from interpersonal dominance and toward task responsibility and workload distribution?

Norming

Historically, what narrow role has supply management been confined to, particularly during weak economic cycles?

price minimizer, an emphasis that frequently overshadows the other strategic value and complex business solutions the function can contribute.

According to the CAPS Research study (Kull et al. 2017), what are the 5 external forces driving changes in the supply management function?

1. Changing customer requirements.

2. Government regulatory changes.

3. Technology advancements in the supply base.

4. Changing oil/raw material prices.

5. Increased emphasis on supply chain security.

What are at least four tactical ways supply management can actively enhance its public image through supplier relations?

• Fair and courteous treatment of salespeople.

• Preparing orientation materials for visiting suppliers.

• Maintaining informative webpages for prospective suppliers.

• Establishing fair policies on competitive bidding.

• Testing supplier-offered samples.

• Conducting periodic visits to major supplier facilities.

What three specific things must a supply management professional determine before doing business with an international supplier?

1. How business is culturally conducted in that country.

2. What is socially/professionally acceptable or unacceptable.

3. What is legal or illegal within those specific business relationships.

According to Merriam-Webster's Dictionary, what are the two distinct parts that make up "credibility"?

1) The quality or power of inspiring belief (on the part of the messenger) and 2) the capacity for belief (on the part of the receiver).

According to the Strategy& survey, what primary factor was associated with the rapid turnover of Chief Procurement Officers (CPOs), whose average tenure was less than three years?

Answer: Their inability to build credibility for themselves internally with stakeholders.

What three targeted questions should a supply leadership team answer when conducting a gap analysis to build stakeholder trust?

1. What is each stakeholder group's current perception of the supply management group?

2. What is the desired perception?

3. What actions will it take to close the gap between the current and desired perceptions?

How does a leader demonstrate "Trust" and "Respect" toward their own internal team?

By showing confidence in the capabilities of their team members ("Trust") and taking their opinions and disagreements seriously ("Respect").

What two relational factors are essential for credibility?

Trust and deep business relationships with stakeholders.

What must leaders understand to build credibility with stakeholders?

Organizational needs, aspirations, challenges, and strategies.

what are central to credibility?

ethics, integrity, and trustworthiness

What are key behaviors that help build credibility?

Honesty, competence, accountability, focus, loyalty, respect, trust-building, and continuous learning.

What does “actions” mean in credibility-building leadership?

Leaders should not ask others to do what they would not do themselves.

Why is honesty important for credibility?

It builds a reputation for trustworthy communication.

What does accountability mean in leadership credibility?

Acknowledging mistakes and correcting them.

What is a key theme of effective leadership messaging?

Focusing on how to better serve the end customer.

Q: What three questions are used in a credibility gap analysis?

• Current stakeholder perception?

• Desired perception?

• What actions close the gap?

Q: How does professionalism vary globally?

What is acceptable in one country or industry may be unacceptable in another due to cultural and legal differences.

What are key areas professionals must be careful about in supply management?

Conflicts of interest, meeting locations, and personal relationships with suppliers.

What law prohibits bribery of foreign officials by U.S. companies?

The Foreign Corrupt Practices Act (FCPA).

What are three ways leaders guide ethical behavior?

Focusing attention on results, supporting ethical decision-making, and guiding behavior.

How can leaders support moral reasoning development?

Through training and leading by example.

The ethical expectations and behavior set by leaders that shape organizational culture.

tone at the top

Acting ethically and honestly in all professional activities.

What does “integrity in decisions and actions” mean?

Acting in ways that benefit and support the employer.

“value for your employer”

pholding and advancing professional standards and ethics.

“loyalty to your profession

Avoiding unethical or compromising conduct, including its appearance.

“impropriety” in supply management ethics

What does sustainabilityand social responsibility involve?

A: Promoting ethical, social, and environmentally responsible practices.

Avoiding improper “you do this for me, I do that for you” arrangements.

reciprocity in ethics

A: Following both the letter and spirit of applicable laws and agreements.

Q: What three elements should performance feedback include?

A: Expected results, actual results, and reasons for any differences.

Q: How should new initiatives or process changes be presented to management?

A: As structured business cases.

Q: What is the board especially interested in regarding supply management opportunities?

A: How supply initiatives can contribute to growth (e.g., alliances, joint ventures, new products).

Q: What does the “needs” category refer to in board communication?

A: How supply management can help the organization meet competitive needs and requirements.

Q: What does supply management need to address under “risks”?

A: Risks from supplier dependence and strategies to mitigate those risks.

Q: What does “future direction” mean in supply management reporting?

A: Presenting a vision of future possibilities to engage and excite senior management.

Eight Steps to Organizational Transformation

1. Create a sense of urgency by emphasizing the need for change.

2. Build a guiding coalition.

3. Form a strategic vision and initiatives.

4. Enlist a volunteer army.

5. Enable action by removing barriers.

6. Generate short- term wins

7. Sustain acceleration.

8. Institute change.

Q: What is the purpose of building a guiding coalition?

A: To assemble a group of passionate people who drive and coordinate the change effort.

Q: What happens in forming a strategic vision and initiatives?

A: Leaders define the future and outline initiatives to achieve it.

Q: What is meant by “enlist a volunteer army”?

A: Inspire many people to support and align with the change effort.

Q: What does “enable action by removing barriers” involve?

A: Eliminating obstacles like inefficient processes and siloed structures.

Q: What does “sustain acceleration” require?

A: Continuing to push for change after early successes without losing momentum.

Q: Why are short-term wins important?

A: They build momentum, motivate people, and demonstrate progress.

A: To embed new behaviors into organizational culture so they replace old habits.

A: To embed new behaviors into organizational culture so they replace old habits.

Q: How does speed in supply chains create value?

A: It improves responsiveness, reduces costs, and increases cash flow.

Q: What analogy is used to explain supply chain visibility?

A: The Waze app, which uses real-time input to optimize travel routes.

Q: What system did Flex implement to improve supply chain visibility?

A: The Pulse center.A: To manage suppliers, improve visibility, and support risk mitigation and response.

Q: What types of information are considered confidential in supply management?

Intellectual property, supplier contracts, product/service development plans, and technology innovations.

Q: What does ISM’s ethical standard on legal compliance cover?

A: Applicable laws, regulations, and trade agreements relevant to supply management.

Q: What are examples of intellectual property-related laws?

A: Patent, copyright, trade secret, and trademark laws.

Q: What laws govern competition in supply management?

A: Antitrust laws.

Q: What laws regulate government purchasing activities?

A: Government procurement regulations.

A: Seek training in legal aspects relevant to supply management.

A: Seek training in legal aspects relevant to supply management.

12

Q: When should legal counsel be involved in supply management decisions?

A: Early in planning and whenever potential legal issues arise.

What is a key difference between common law and civil code systems?

Common law relies on court decisions and custom, while civil code law relies on written legal codes.

Which countries commonly use common law systems?

A: The United States, England and Wales, and other countries influenced by British law.

Q: What is civil code law also known as?

A: Roman law system.

Q: What legal basis is used in some Muslim countries like Saudi Arabia?

A: Islamic law based on the Quran and Sunnah.

Q: What is the purpose of agency law?

A: To allow one party (agent) to act on behalf of another (principal).

A: The party that authorizes another to act on its behalf.

the principal in an agency relationship

The party authorized to act for the principal in dealings with third parties.

the agent

Q: Why is agency law important in business?

Because organizations cannot act on their own and rely on agents to conduct business

Q: What is a key feature of an agency relationship?

A: It is consensual and based on agreement between principal and agent.

Q: What does an agency contract establish?

A: Duties, obligations, and rights of both principal and agent.

Q: How does an agent act in a contract situation?

A: The agent negotiates with a third party, but the contract is between the principal and the third party.

Q: Who can act as agents in organizations?

A: Employees, corporate officers, government officials, and partners.

Q: Give examples of other business agents besides supply professionals.

A: Sales representatives, freight forwarders, and customs brokers.

Q: How does the Philippines define agency?

A: A person acts on behalf of another with consent or authority.

Q: What is another term for an agent?

A: Attorney-in-fact, proxy, delegate, or representative.

A: It has been influenced by constitutional and statutory law after apartheid.

A: It has been influenced by constitutional and statutory law after apartheid.

Q: When may agency designations be required to be in writing?

A: In some legal systems, such as South Africa’s statutory framework.

A: A legally enforceable written or oral agreement between competent parties defining a job or service.

a contract

How does UCC define a contract?

“The total legal obligation resulting from the parties’ agreement as affected by law.”

Q: Why is contract law important in supply management?

Q: What varies across countries regarding contract formation?

Q: What varies across countries regarding contract formation?

A: The level of formality required (e.g., written vs. oral contracts).

Q: What does U.S. UCC require for certain contracts?

A: Contracts for goods priced at $500 or more must be in writing.

Q: What is CISG?

A: A U.N. treaty governing international sales contracts across 85+ countries.

Q: What is the focus of common law jurisdictions in contract performance?

A: Strong emphasis on the intentions of the parties.

Q: What is UNIDROIT?

A: An international institute that issues principles for international commercial contracts.

Q: Are UNIDROIT principles legally binding?

A: No, they are non-binding guidelines.

Q: What is a “choice of law” clause?

A: A contract provision selecting which country’s laws apply.

A: Develops principles for international contract law and choice of law.

A: Develops principles for international contract law and choice of law.

A: An EU treaty requiring courts to respect party-chosen contract law.

A: An EU treaty requiring courts to respect party-chosen contract law.

Q: What happens if no choice of law is specified under the Rome Convention?

A: The contract is governed by the country most closely connected to it.

A: Laws governing trade relationships and commercial transactions.

commercial law

Q: What areas does commercial law cover?

A: Credit purchases, letters of credit, negotiable instruments, and logistics documents.