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February 09, 2010

 

Friday Rant: Certifications and Training Alone are Not the Answer to Career Growth

Earlier this week, Next Level Purchasing announced their latest certification, the SPSM2. Judging from the look of the curriculum, it seems like it covers quite a bit of ground and some in the industry have positioned it as a "masters degree" in purchasing compared with the SPSM certification. But I've recently come to question the stand-alone value of certifications in general -- especially multiple certifications -- as they relate to career growth. Indeed, rather than look at certifications as a means of getting a leg up on the competition from a credibility perspective, I've begun to think we should look at them as one way of acquiring a base level of personal knowledge rather than paving a direct path to career mobility.



Why have I changed my tune on this? I've come to believe that applied and studied knowledge are two different things -- especially when it comes to promotion and career advancement. After all, we principally learn by doing -- not just from textbooks and lectures (or online media as the case may be). So if you're looking for that next position or promotion, chances are your superiors are going to value what you've done versus what you've studied (if you need a reason why Harvard and Wharton MBAs don't run the world, look at the I-banking implosion in the past twelve months). Now, this is not to say training and certification won't help you learn and build a knowledge base -- quite the contrary in fact. It will. But having observed procurement executives that I interact with on a regular basis, I can tell you certifications, for those at the director level and above, mean very little, at least in Global 2000 organizations. It's the person and their experience that the majority of executives value first.

To decide whether or not pursuing multiple certifications (or even individual ones) is the best use of one's time from a career growth perspective, the question to ask is whether or not working and non-working hours are better spent developing new skills through different means. For example, should an individual volunteer time to work with another area of the organization (e.g., customs/trade) versus studying for the global sourcing / VAT component of the SPSM2 certification area? I guarantee, having worked with customs compliance professionals in the past, that the nuances of import/export will never be captured in a procurement-based certification. Rather, you need to learn by doing down to the point of seeing a customs officer put his "piece" on the table in front of you to prove a point -- or at least wearing it into a meeting. Seriously, memorizing Incoterms for a test is just not as relevant as the real time team problem solving needed when you have cargo on the water or held up at port and something goes wrong.

I'm increasingly convinced that much of the certification value from ISM and other groups often derives from the networking opportunities at the regional and national levels. Sure, the base curriculum is useful, but meaningful career advancement comes from networking within the organization and building connections more than holding a framed certificate. My argument is the same, by the way, for that top notch MBA -- which is why I think professional degrees from institutions without the ability to provide a strong network for at least the first post-degree job are also a waste of time commercially.

No doubt, ISM, Next Level Purchasing, American Purchasing Society and others offer a valuable service when it comes to learning and teaching through their online and offline curricula. But if you look at who's running procurement and supply chain organizations today (or serving in Director-level and more senior roles), I suspect that they're highly unlikely to make decisions on promotions/hiring for manager or higher roles based on certification as the primary requisite. So rather than pursue certification(s) with career goals in mind, I'd suggest using them as one option for learning a baseline of knowledge from which to apply theories in the real world. There's nothing wrong with them. But like degrees -- including those from top notch institutions -- they're not a magic bullet for career mobility, either.

- Jason Busch

Comments
Hi Jason,

I enjoyed nearly all your comments about certifications. I did take some exception to this section though:

"I guarantee, having worked with customs compliance professionals in the past, that the nuances of import/export will never be captured in a procurement-based certification. Rather, you need to learn by doing down to the point of seeing a customs officer put his "piece" on the table in front of you to prove a point -- or at least wearing it into a meeting. Seriously, memorizing Incoterms for a test is just not as relevant as the real time team problem solving needed when you have cargo on the water or held up at port and something goes wrong."

First, full disclosure. I'm one of a handful of people providing training on international procurement. I wrote most of the material for NLP's two international courses.

I agree that taking a procurement directed course in customs operations will not give the level of knowledge that someone who has a customs broker license or who has worked directly in import operations for years will have. Neither will a course in purchasing law equal the knowledge of many lawyers. Nor will a course in foreign exchange management for purchasing people give knowledge that a person who has traded currencies for years has.

But that's not the goal. The goal is to give procurement people knowledge that enables them to work effectively with experts. People who take the training will know what's possible and what's not possible. They will know that if a customs "expert" answers the question "what's the duty on this part?" and doesn't ask more questions first they should distrust the answer. They might even stay out of trouble and not have goods stuck in customs or enforcement officials putting guns on the table. (Great story by the way? Did it happen to you or did it happen to some other guy who used to walk miles through the snow to school?)

And I think you somewhat trivialized the Incoterms topic. I agree memorizing Incoterms is not particularly useful. More important is being able to pick the right Incoterm prior to an RFQ or knowing items such as
-do Incoterms define risk or loss, title transfer, neither, or both?
-who has risk of loss in transit under CIF or CFR terms? Buyer? Seller? (nearly everyone, including 20 year veterans and college professors gets this one wrong).

But bottom line, I agree people get promoted on performance. Training helps performance and certification is a sign of successful training.
# Posted By Dick Locke | 7/4/09 5:00 PM
Dick,

Thanks for your comments. I agree that giving procurement (and/or supply chain professionals) a basic level of knowledge of trade/import/export will help them better converse and work with customs brokers (either internally or third-party) providers. However, there is no substitute for experience, as we both suggest. Regarding the example, "the piece," one of my old officemates that worked for my wife's firm was a licensed customs broker before getting into global sourcing. She told me the story one day as it happened to her in a previous role. Interesting skill-set to move from one to the other, but she decided that the global sourcing side presented more opportunities (especially leveraging the customs background). Besides, no one ever threatens you (or displays a show of force) with a handgun in global sourcing.

My wife has heard seen things as well (she went from a global trade background buying and selling semi-finished and finished metals products into global sourcing and supply chain consulting). Even though she is incoterm certified, she'd probably argue that putting them into practice is where you really learn how they work and how best to pick the right ones that are to your advantage based on cost/risk.
# Posted By Jason Busch | 7/6/09 5:40 AM
I agree about purchasing jobs being more interesting...I've had company customs personnel in my seminars. When they describe what they do, the general reaction from the procurement folks is zzzzzz...

As far as guns and threats, I did have one person describe a scene in Russia where a last minute request for a bribe during a negotiation came with a threat of not just no deal, but no existence. That was told to me by a guy who walked 5 miles to school in the snow uphill in both directions.
# Posted By Dick Locke | 7/6/09 3:43 PM
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