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ONTARIOBUYS: Performance Measurement Phase II - User Guide - Standard 6.1

Objective:

To ensure job roles and responsibilities for supply chain staff are documented and communicated

Definition

Job roles and specifications define the requirements of each position in the supply chain department, covering the position’s purpose, scope and accountability, and necessary qualifications. In addition, organizations should have a competence framework, which aligns each of the defined supply chain roles to a set of technical and behavioural competencies and the competence level required for each.1

Rationale

Documented, well-structured and up-to-date job roles and specifications help ensure that each staff member understands his or her role in the organization and the responsibilities of the job. By creating a competency framework for each job role, the supply chain department is in a position to identify skill gaps between the jobholder and the requirements of the job. Clear understanding of the expectations of their job enables completion of the performance appraisal process and employee training and development plans (i.e., standard 6.2 Performance Appraisal Process).

Benefits

Process Efficiency
A qualified team with clear roles and specifications will operate more efficiently and effectively.

Risk Management
Providing the team with clear specifications and responsibilities will mitigate the risk of staff inadvertently operating outside the boundaries of their authority, thereby placing the institution at risk.

Employee/Productivity Satisfaction
Clear direction, objectives and training plans will result in more satisfied and productive staff.

Related Metrics

6.1 Voluntary Turnover

Guiding Principles

Every supply chain position should be supported by a documented job role, clearly outlined specifications and a competency profile. These should be:

• In a standard template format;
• Up to date, with regular reviews;
• A component of the jobholder’s formal appointment documentation; and
• Discussed and agreed to by the incumbent, particularly when beginning a new position.

These documents form the foundation for standard 6.2 Performance Appraisal Process. Employees should be assessed periodically against their job requirements and the associated competency profile to identify gaps. This facilitates personal development and enables the creation of training plans to address gaps and encourage performance improvements.

The job roles and specifications and competence framework for each role in the supply chain department should be living documents. Managers must work with the Human Resource (HR) department to establish a process to review and update these documents periodically.

Key Components

Job Role
A job role and specification document should comprise, at a minimum, the following elements:

1. Job Purpose and Relationships	The purpose of the job, its relevance to the organization and employer expectations, along with reporting lines and key internal and external relationships
2. Job Scope	The scope of the job and its associated responsibilities
3. Accountability	The jobholder’s accountabilities, including delegated authority levels, reporting requirements, and legal or other requirements such as compliance with a corporate code of conduct
4. Deliverables and Key Performance Criteria	Daily, weekly, monthly or annual deliverables for the role with associated metrics and targets used to measure the employee’s success in meeting deliverables and objectives
5. Qualifications	The basic qualifications for the job plus any higher-level desired qualifications

Competency Framework
Every job role and specifications should be accompanied by a competency profile. Competency profiles provide guidance on the personal and professional skills and competencies required to be effective for each job in the supply chain department.

Understanding the competency requirements of a particular job is important for two reasons.

1. When recruiting for supply chain positions, the skills and competencies of candidates should be compared against those required to be successful in that position. Competency fit and gaps can be identified and used in the candidate selection process. These benefits apply for both internal and external recruiting.

2. Competency requirements provide a framework for evaluating the skills and competencies of the current jobholder both in terms of fit in current role and potential for growth. This evaluation, in turn, supports identification of gaps in skills that should be addressed in training and development plans.

Competencies can be divided into two generic categories as outlined below.

1. General Skills and Personal Attributes

Examples include:

• Management competencies, such as stakeholder management, strategic planning, oversight and innovation
• Building relationships
• Communication skills
• Team skills
• Problem solving
• Negotiation
• Risk management
• Presentation
  
• Managing self

2. Technical Skills and Professional Knowledge

Examples include:

• The fundamentals of supply chain management
• Purchasing/procurement
• Strategic sourcing/contract management
• Logistics/warehousing/distribution
• Supply market analysis
• Tools and techniques
• A structured approach to the development and effective implementation of supply chain management strategies
• Knowledge and application of supply chain-related information technology (eCommerce)

Competency Levels
Each of the competencies above should be assigned a minimum competency level required for each role in the supply chain department. This becomes the competency framework from which to evaluate jobholders or new candidates.

In fulfilling standard 6.2 Performance Appraisal Process, the jobholder can be evaluated and assigned a competency level. Any competency where the jobholder receives a rating lower than the minimum required competency level indicates a gap.

The following table outlines an approach for quantifying competency levels. This basic approach divides competency levels into four ratings with descriptions of the degree of competency required for each rating.

Competency Levels
1. Basic	Has basic awareness but likely to need guidance.
2. Good	Able to deal with a variety of issues but may need limited guidance.
3. Strong	Proven ability, confident in dealing with complex issues; regularly demonstrates ability.
4. Excellent	High level of ability with advanced knowledge and the ability to pass this on to others — recognized as a business expert.

Implementation Challenges