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ISM LEAD Exam Syllabus Topics:

Topic
Details

Topic 1

People Development and Coaching: In this section, focus is on nurturing talent and fostering skills growth within the supply management team.

Topic 2

Strategy Development: This section covers creating and carrying out long-term supply management plans to meet organisational objectives.

Topic 3

Systems Capability and Technology: This domain covers developing talent and expanding skill sets among the supply management group members.

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ISM Leadership and Transformation in Supply Management Sample Questions (Q36-Q41):

NEW QUESTION # 36
A company develops a scorecard to measure performance. The scorecard has the following criteria:
1. Profitability
2. Amount of taxes paid
3. Charitable contributions/activities
4. Average hours of employee training
5. Amount of waste sent to landfills
6. Safety incident rates
This scorecard is an example of which of the following?

A. Environmental
B. Triple bottom line
C. Social responsibility
D. Financial

Answer: B

Explanation:
* Triple Bottom Line (TBL) Concept: TBL is an accounting framework that incorporates three dimensions of performance: social, environmental, and financial. This approach encourages businesses to consider the full impact of their activities on all stakeholders.
* Criteria Alignment: The scorecard criteria cover profitability (financial), taxes paid (financial), charitable contributions (social), employee training (social), waste to landfills (environmental), and safety incidents (social/environmental). This holistic approach aligns with TBL.
* Sustainability Focus: TBL emphasizes sustainability and responsible business practices, ensuring that the company's activities are beneficial to society and the environment, in addition to being economically viable.
* Reference: The TBL framework is widely discussed in sustainability and corporate social responsibility literature, including works by John Elkington, who coined the term, and various business management resources like Harvard Business Review.

NEW QUESTION # 37
A company's human resources manager feels that the HR department can obtain indirect services efficiently and that centralizing their purchases through supply management adds no value. Which is of the following is the BEST response supply management can make to these claims?

A. Quantify procurement's indirect spend savings
B. Eliminate bottlenecks at critical processes
C. Implement an earned value management system
D. Validate procurement efficiency metrics with finance

Answer: A

Explanation:
* Addressing the Concern: The HR manager believes that centralizing purchases through supply management adds no value. To counter this perception, it is essential to demonstrate the tangible benefits that supply management can bring.
* Quantifying Savings: By quantifying the savings achieved through procurement's management of indirect spend, supply management can provide concrete evidence of its value. This includes cost reductions, efficiency improvements, and better contract terms.
* Data-Driven Argument: Presenting data on cost savings and efficiency gains helps build a strong, fact-based argument that can be more persuasive than subjective opinions.
* Collaboration with HR: This approach also shows a willingness to work with HR to improve processes and outcomes, rather than simply defending existing practices.
* Reference: This strategy is supported by procurement best practices and strategic sourcing principles outlined in resources such as the Chartered Institute of Procurement & Supply (CIPS) and the Institute for Supply Management (ISM).

NEW QUESTION # 38
A supply manager is evaluating the firm's supply management training courses developed for non-department staff. Which of the following should the supply manager address FIRST when evaluating these courses?

A. "Do the skills learned in the courses support organizational goals?"
B. "Are the costs of training reasonable compared to the results?"
C. "Is the participation rate reasonable considering the total number of employees?"
D. "Are the instructors appropriately certified to teach the subject matter?"

Answer: A

Explanation:
* Evaluation Focus: When evaluating training courses, the primary concern should be whether the skills taught align with and support the organization's strategic goals and objectives.
* Alignment with Goals: Ensuring that training programs are aligned with organizational goals guarantees that the training contributes to the company's overall success and effectiveness.
* Importance of Relevant Skills: Training programs that teach relevant skills enhance employee performance and ensure that the workforce is equipped to meet the company's needs.
* Reference: Training and development best practices, as outlined in resources such as "Employee Training & Development" by Raymond A. Noe and the guidelines from the Association for Talent Development (ATD), emphasize the importance of aligning training with organizational goals.

NEW QUESTION # 39
A buyer for TUV, Inc. transfers to headquarters from one of the company's subsidiaries. The buyer creates performance concerns for the department by ignoring policies regarding attendance, failing to document transactions properly and lacking focus. The department manager learns that the buyer did not receive training following the transfer because TUV's policies and procedures at headquarters differ only slightly from those within the divisions. Given this situation, which of the following is the BEST course of action for the department manager to take?

A. Provide the buyer with additional training
B. Revise performance evaluation criteria for transferred employees
C. Request that human resources (HR) conduct a gap analysis
D. Admonish the employee for not meeting expectations

Answer: A

Explanation:
* Identifying the Root Cause: The buyer's performance issues stem from a lack of understanding of the policies and procedures at headquarters, indicating a need for additional training.
* Training and Development: Providing the buyer with comprehensive training will address the gaps in knowledge and align the buyer's practices with the company's expectations and standards.
* Performance Improvement: Proper training ensures that the buyer understands the importance of attendance, accurate documentation, and focus, leading to improved performance and adherence to company policies.
* Long-term Benefits: Investing in training supports employee development, increases job satisfaction, and reduces the likelihood of similar issues in the future.
* Reference: Best practices in human resource management and organizational behavior emphasize the importance of training and development in managing performance issues. Sources include "Human Resource Management" by Gary Dessler and guidelines from the Society for Human Resource Management (SHRM).

NEW QUESTION # 40
MNO, Inc. is developing a five-year business plan. The organization's vision, mission and value statements have been established. Which of the following should the organization do NEXT?

A. Develop pricing models for goods and/or services
B. Develop goals and objectives
C. Develop plans to achieve goals and objectives
D. Develop a communication plan for the statements

Answer: B

Explanation:
* Strategic Planning Process: After establishing the vision, mission, and value statements, the next step in strategic planning is to develop specific goals and objectives. These goals and objectives translate the high-level vision and mission into actionable and measurable targets.
* Goals and Objectives Development: This process involves identifying the key areas where the organization wants to achieve results and setting specific, measurable, achievable, relevant, and time-bound (SMART) objectives.
* Importance: Developing goals and objectives provides a clear roadmap for the organization and aligns the efforts of all departments towards common strategic priorities.
* Reference: This step is emphasized in strategic planning frameworks such as those by the Balanced Scorecard Institute and strategic management textbooks like "Strategic Management: Concepts and Cases" by Fred R. David.

NEW QUESTION # 41
......

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Bob Brown Bob Brown

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