Are Your C-suite Operations & Supply Chain Leaders a Flight Risk?

Leadership StrategiesCareer TransitionsCareer AdviceLeadershipSuccessionOperations and Supply Chain OfficersExecutive SearchC-Suite SuccessionDevelopment and Transition
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March 22, 2023
7 min read
Leadership StrategiesCareer TransitionsCareer AdviceLeadershipSuccessionOperations and Supply Chain OfficersExecutive SearchC-Suite SuccessionDevelopment and Transition
EXECUTIVE SUMMARY
As more C-suite operations & supply chain executives consider a career change, organizations should invest in retention efforts specific to these leaders.
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If you think your operations & supply chain leaders are content in their roles, think again. Nearly half are willing to make a career move today.

 

 

C-suite operations & supply chain leaders refers to C-suite operations, procurement and supply chain executives.

 

According to Russell Reynolds Associates’ Q4 2022 Global Leadership Monitor, 44% of C-suite operations & supply chain leaders reported willingness to make a career change (Figure 1). This figure is up from our Q2 2022 Monitor. Given that insight, we are likely to see increased movement of C-suite operations & supply chain leaders in 2023. In addition to movement within their own industries, over one-third of these leaders are open to opportunities beyond their current sectors, indicating increased competition for talent and more challenging retention environments.

While a comparatively high percentage of these leaders are open to leaving their current organizations, they are also concerned about losing high quality talent on their own teams and supportive of investments to retain critical talent.

Our data shows that—compared to the rest of the C-suite—operations & supply chain leaders hold unique motivations and require a bespoke retention approach. In this piece, we outline these motivations and recommend specific actions to help retain these leaders.

Figure 1: Percentage of operations & supply chains leaders that are a flight risk

Source: RRA 2022 Global Leadership Monitor Q4 2022, base n = 71 C-level Operations, Procurement and Supply Chain executives

 

For many C-suite operations & supply chain leaders, the grass is greener at other companies

Operations & supply chain leaders have led through significant disruption over the past few years. Generally, these leaders have been loyal to their organizations, but with continued economic and geopolitical uncertainty, more have begun to explore new career options.

Half of the C-suite operations & supply chain leaders open to a career move cited “greater faith in stability or long-term success of a different company” as the top factor, followed by “career advancement” and “seeking new responsibilities” (Figure 2). Interestingly, this top factor was ranked sixth in our Q2 Monitor—meaning that the percentage of operations & supply chain leaders who have lost faith in their organization has increased by over 20%. This highlights how quickly buy-in on organizational vision and strategy can evolve—or plummet.

Similarly, two out the top three reasons are related to career growth, likely indicating that many of these leaders are hungry for development opportunities that they feel are not available within their current organizations.

 

Operations & supply chain leaders have different motivations than the rest of the C-suite

While most of the top six reasons for a career move are the same, the order of importance varies between operations & supply chain and other C-suite leaders. Only 24% of the other flight risk C-suite executives cite “greater faith in stability or long-term success of a different company” as a top factor, compared to 50% of operations & supply chain leaders.

Also notable: “better pay” ranks surprisingly low with operations & supply chain leaders. While this is the number one reason the broader C-suite would consider a career move, it only ranks fifth for these leaders.

It appears that the stressors of the last three years have manifested differently for C-suite operations & supply chain executives, perhaps causing them to consider opportunities that provide more stability and career advancement. This may also be a consequence of being squarely and uniquely responsible for managing supply chains through crisis and disruption that have affected global companies.

 

Figure 2: Top reasons for making a career move – operations & supply chain leaders vs. C-suite

Source: RRA 2022 Global Leadership Monitor Q4 2022, base n = 49 C-level Operations, Procurement and Supply Chain executives, base n = 553 C-suite executives

 

Concern about operations & supply chain talent applies across multiple levels

While a significant proportion of C-suite operations & supply chain leaders are flight risks themselves, they are simultaneously aware of the talent risks facing their current organization. In our Q4 2022 Monitor, operations & supply chain leaders ranked “availability of key talent” second behind “uncertain economic growth” as the top factors impacting their organization over the next 12 to 18 months. Furthermore, C-suite operations & supply chain leaders ranked “investments into retaining critical talent” as the most important response to recession, while "engage is workforce reductions" was the least chosen response (Figure 3).

 

Figure 3: Operations & supply chain leaders would invest in talent as response to a recession

Source: RRA 2022 Global Leadership Monitor Q4 2022, base n = 56 C-level Operations, Procurement and Supply Chain executives

Operations & supply chain talent shortages have persisted for years. The Covid-19 pandemic, quickly changing skillset requirements, and continued generational retirement factors have worsened the market outlook. A recent study conducted by EY found that 44% of nearly 100 chief procurement officers surveyed have challenges finding the right talent, and that procurement departments have seen a higher-than-normal level of attrition and movement resulting in increased competition for talent globally.1 According to Jim Rice, Deputy Director of MIT Center for Transportation & Logistics, labor shortages are clearly the biggest supply chain challenge today.2

 

Turning reasons for leaving into retention motivations

The reasons behind C-suite operations & supply chain leaders’ willingness to leave their organization can be reframed in active retention efforts and longer-term initiatives to reduce attrition. Given that nearly half of operations & supply chain leaders are open to changing employers, the situation calls for a proactive response.

Better pay almost always makes a difference, but there are more important factors to focus on to improve these leaders’ retention. To mitigate the risk of losing key operations & supply chain leaders, organizations should focus on reigniting purpose, fostering a growth mindset, investing in team development and retention below the C-suite, and offering bespoke executive development that can help broaden capabilities. Thoughtful and proactive succession planning can support these development efforts. These recommendations are specific to operations & supply chain in the C-suite and align with what most motivates these leaders.

 

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Purpose

Knowing their purpose keeps leaders engaged, connected, and confident. A clear and aligned purpose provides direction and serves as a powerful resource for leaders in times of change and ambiguity; it fosters customer engagement, loyalty, and drives financial performance. Leaders must align their personal purpose with that of their team and organization.

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Growth mindset

Leaders with a growth mindset believe that capabilities aren’t set in stone and can be developed. They seek out challenging tasks and take calculated risks, viewing setbacks, mistakes, and feedback as learning opportunities. They also value hard work and continuous improvement and are motivated by the achievements of their peers and teams.

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Executive development

At Russell Reynolds Associates, we support individual development planning and programs through our 3E Development Framework— Expertise, Experience and Exposure— coaching and career pathing. Coaching targets key development areas, increases self-awareness, mitigates derailing behaviors, and exponentially impacts leadership effectiveness. Career pathing identifies roles that are linked closely to leaders’ development gaps, exposing leaders to new opportunities that support their growth.

C-suite operations & supply chain leaders are well-positioned to navigate through continued challenges while delivering on customer expectations. With prolonged challenges and disruptions across organizations and the global economy, mitigating the risk of losing these leaders is critical. By investing in intentional and thoughtful retention approaches, organizations can design effective short and long-term retention efforts. With elevated flight risk across multiple levels within operations & supply chain management, leadership retention can also build confidence and stability across teams.

 


 

Authors

Ben Shrewsbury leads Russell Reynolds Associates’ Operations & Supply Chain Officers capability globally. He is based in Dallas.

Fawad Bajwa leads Russell Reynolds Associates’ Operations & Supply Chain Officers capability in the Americas. He is based in Toronto.

Gregory Gerin leads Russell Reynolds Associates’ Operations & Supply Chain Officers capability in EMEA. He is based in Brussels.

Vijuraj Eranazhath leads Russell Reynolds Associates’ Operations & Supply Chain Officers capability in Asia Pacific. He is based in Mumbai.

Mika Nurminen leads Knowledge for Russell Reynolds Associates’ Operations & Supply Chain Officers capability. He is based in Toronto.

 


 

References

1. 2022 Global EY Chief Procurement Officer Survey. 

2. Eric Brown, November 21, 2022. MIT News. Building resilience for the next supply chain disruption.