As summer turns to fall and we prepare for the kids to go back to school, many procurement practitioners are also preparing to hit the books. But just as the seasons change, so do the trends, standards, and expectations for the profession.
As we wrote a couple of months ago, the Institute for Supply Management (ISM) has revamped its examination for the Certified Professional in Supply Management (CPSM) certification, which will officially launch September 4. At the 103rd annual ISM conference in Nashville this May, I sat down with ISM’s Supply Management Program Manager, Jim Fleming, to discuss the new CPSM exam, what exam takers can expect from it, and how they can prepare for it.
The Winds of Change
According to Jim, who’s a CPSM, himself, every four to five years, the ISM goes through a job tasks analysis to evaluate relevance, a point made by ISM’s Managing Director, Jim Barnes, earlier this year on CPO Rising. For the third iteration of the CPSM, ISM staff worked with subject matter experts to determine what trends are still relevant or are emerging in supply management.
As a result, ISM will introduce a few new competencies in the new CPSM exam, focused on 1) technology and systems capability; 2) category management; 3) cost and price management; 4) financial analysis; and 5) supplier sales and operational planning.
It’s also an exam that more closely meets the needs of emerging supply management professionals across the globe, said Jim, as ISM expands beyond its US-centric perspective to capture competencies and relative information that is being used globally. For example, it will cover more international laws, regulations, sourcing, and financial implications from currency – like sourcing in USD vs. Euros, or another local currency.
While Jim doesn’t believe these changes will make the CPSM exam harder to pass, he does believe they will help supply management professionals stay competitive in their environment because “it’s going to make them more prepared and relevant in their work.”
But not everyone can take the exam, at least not right away. According to Jim, individuals with a bachelor’s degree need three years of experience before they can take the CPSM exam, while those without a degree need five years. “They need a textbook element plus ‘boots on the ground’ experience,” he said. And while ISM does allow newly-graduated students to take the exam “right out of school,” Jim advises that they’ll need to wait a few years before submitting to get additional experience.
“What’s really neat to see here are that Millennials are really picking up on this learning system,” Jim said. “And they’re seeing the benefits and are excited for them. We have a fresh group of folks that are going to be our future leaders, and are working to ensure that the exam is relevant for current and future leaders.”
Although the new version of the exam is slated to go live on September 4, ISM released updated study materials in early May. These include: 1) a digital platform that allows students to take a diagnostic prep exam and create a custom study plan; 2) a printed version of study prep material – seven books, total, which allows them to take paper-based practice exams and chart their progress; 3) a digital, virtual learning program called “Guided learning,” which allows them to work with advisers, and 4) on-site, face-to-face sessions that address their specific needs (from a few hours to a few days).
Final Thoughts
Clearly, ISM is not only changing the CPSM exam to better meet the evolving needs of sourcing and procurement practitioners, it’s also changing the way they help students prepare for the examine and position them for success.
As ISM begins to “sunset” its legacy CPSM exam this month and deploy the newest version in just a couple of weeks, Jim advises that the old exam will be available through the end of 2018, and that its corresponding learning materials will be available online. Also, for sourcing and procurement professionals that have taken CPSM One and Two but haven’t taken CPSM Three yet, they can take the third installment without starting over.
P.S.: Some of you probably had the Scorpions’ song, “Wind of Change” in your head reading that headline, didn’t you? Right on, man….
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