LEADERSHIP THOUGHTS FOR TODAY’S GLOBAL SUPPLY CHAIN CHALLENGES

Chris HunterPRESIDENT & CEOCRS TEMPORARY HOUSING

CHRISTOPHER HUNTER

ENGLAND Born in England.

CANADA Raised in Canada

UNITED STATES Moved to the U.S.

CHILE Lived in Chile for 3 years.

UNITED STATES Moved back to the U.S.

TIMELINE

CHRIS HUNTER

CEO CEO OF LATIN AMERICAIndustrial ChemicalsCEO

SVP OF GLOBAL MARKETINGChemicals

SVP

PRESIDENT & CEOWORKING WITH GLOBAL CUSTOMERSInsurance Industry

CEO

SVP OF GLOBAL MANUFACTURING & SUPPLY CHAINChemicals

SVP

PRESIDENT & CEO OF GLOBAL MARKET LEADERAutomotive and D&A

CEO

CHRIS HUNTER

GLOBAL ROLES

1 PROCESS VS. CONTENT

2

How long you believe there will be a need for a positive ongoing relationship between the parties (short term or long term).

Each party’s wish either for a Win-Win outcome. Or to beat the other side (mutual gain or own gain).

The overall willingness of both parties to undertake the process (high or low).

Process Outcome (largely to do with the desired relationship)

Content Outcome (which may be short term or long term)

ALWAYS FOCUS ON THE OUTCOME

You collectively want to receive

3

The Aspiration point (high or low) what each side would dearly like to achieve

Realistic point (high or low) what may be seen by each side as a reasonable result

Resistance point (high or low) The worst deal that each side would accept

The three point range

PREPARE A RANGE OF OBJECTIVES

4

SatisfyingNeeds

Needs of both sides2 levels of need

Organizational or group level – Stated needsPersonal or individual level – Unstated needs

10 %

90 %

*Iceberg

STATED NEEDS VS. UNSTATED NEEDS

5

Common ground as a process bridge

ALWAYS LOOK FOR COMMON GROUND

Locate & build common ground at a personal level and organized level

6

has more influencing power than

A STATEMENT

A QUESTION

What questions should you ask?

How should You ask them?

When should you ask them?

Consider 3 points:1. Keep questions simple.2. Consider the effect on

climate3. Carefully monitor the

timing

• Open • Closed • Reflective• Hypothetical • 5 Whys

ALWAYS ASK QUESTIONS

7Competitive Cooperative

Negotiation Style Spectrum

10 9 8 7 6 5 4 3 2 1 1 2 3 4 5 6 7 8 9 10

CONSCIOUSLY CHOOSE A STYLE

8

TimePre negotiation timeTime to start/finish

Overall pacing/durationTime limits

Post negotiation time

PlaceLocationVenueSettingSeating

Facilities

MoodWord/phrasesTone/pacing

Body languageLanguage structure

Listening skills

Give power or take power.

All can be used in a RED or BLUE. Competitive Cooperative

CHOOSE A CLIMATE

9 RECOGNIZE THE BALANCE OF POWER

10

4 PHASES

Introductory phase in which parties develop their relationship through building early common ground

Differentiation phase in which parties investigate and explore their differences, present their positions and determine the limits of the areas of conflict. This phase is characterized by the parties moving apart.

Integration phase in which parties develop and review options and search for alternative solutions that could be used to solve problems and determine agreement. This phase is characterized by the parties moving together.

Settlement phase in which parties make final offers and lock-in commitment to the agreement.

MANAGE PHASES OF THE NEGOTIATION

GLOBAL CONTEXT

RFP Process today vs. 5/10 years ago much more complex

Complexity is rising everyday

Need to find new and innovative ways to address the challenges

Use partners and suppliers as contributors

1 INCREASING COMPLEXITY OF COST AND SERVE

2 IT AS AN EFFICIENCY AND CUSTOMER EXPERIENCE DRIVER

- Need to leverage and embrace rather than resist

Example: Uber: Efficiency driver

3 GROWING GLOBAL COMPETITION

- Need to compete or exit

Example: iPhone: Designed in USA, manufactured and assembled in Asia, then sold throughout the world

4 STRATEGY: EFFICIENCY, CULTURE AND GROWTH

- Need to consistently look for opportunities to improve or enhance:

- Efficiencies company wide

- Corporate culture

- Growth opportunities

5 LEADERSHIP IS PARAMOUNT

- Multiple examples of poor leadership exist today

- Wells Fargo

- BP

- Chipotle

Engaged and enlightened leadership is the key to success

Continuous learning is critical to the success of both individuals and organizations

Unfortunately this has become a “lost art” since the great recession

But it provides a competitive advantage

6 CONTINUOUS LEARNING

7 VELOCITY, AGILITY AND QUALITY

- Size and strength are no longer prerequisites for business success

- Today the ability to adapt quickly and apply new strategies is far more important

All are important

8 ORGANIZATIONS MUST BECOME SOLUTION PROVIDERS

- Need to identify pain points and provide relief in the form of solutions

Need to provide solutions to real problems

9 GLOBAL COMPETITION IS HERE TO STAY

- Will come in all shapes and sizes:

- Direct

- Indirect

- Hidden

- Undiscovered

Your competitors will compete with you!

People are the most valuable resource – not just words

anymore

War for talent is real Engage talent at all levels in your organization

10 THE RIGHT PEOPLE IN THE RIGHT ROLES ARE KEY

THANK YOUQUESTIONS?