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Exam Name: CPSM exam 3: Leadership in Supply Management
Number of Questions: 165 multiple-choice questions.
Duration: 3 hours (180 minutes).
Passing Score: The passing score is determined by ISM and is based on a scaled scoring system.
Delivery Method: The exam is administered online through a proctored testing platform.

- Leadership Principles and Practices
- Leadership styles
- transformational
- transactional
- servant leadership
- Emotional intelligence (EQ) and its role in leadership.
- Building and leading high-performing teams.
- Decision-making and problem-solving techniques.
- Conflict resolution and negotiation skills.
- Mentoring and coaching team members.

- Visionary leadership.
- Situational leadership.
- Stakeholder management.
- Active listening.
- Empowerment.
- Accountability.

- Strategic Thinking and Planning
- Aligning supply management goals with organizational strategy.
- SWOT analysis
- Strengths
- Weaknesses
- Opportunities
- Threats
- Long-term planning and forecasting.
- Scenario planning and risk assessment.
- Competitive advantage through supply chain innovation.
- Strategic supplier partnerships.

- Strategic alignment.
- Value chain analysis.
- Core competencies.
- Balanced scorecard.
- PESTLE analysis
- Political
- Economic
- Social
- Technological
- Legal
- Environmental
- Disruptive innovation.

- Change Management
- Leading organizational change initiatives.
- Change management models
- ADKAR
- Kotter’s 8-Step Model
- Overcoming resistance to change.
- Communicating change effectively.
- Building a culture of adaptability and resilience.
- Measuring the success of change initiatives.

- Change readiness.
- Stakeholder buy-in.
- Change champions.
- Continuous improvement.
- Organizational agility.
- Change impact assessment.

- Communication and Influence
- Effective communication strategies.
- Persuasion and influencing skills.
- Cross-functional collaboration.
- Negotiation techniques for win-win outcomes.
- Building trust and credibility.
- Managing difficult conversations.

- Active listening.
- Non-verbal communication.
- Stakeholder mapping.
- Influence without authority.
- Consensus building.
- Conflict resolution.

- Talent Development and Succession Planning
- Identifying and developing talent within the supply management function.
- Succession planning for key roles.
- Training and development programs.
- Performance management and feedback.
- Diversity, equity, and inclusion (DEI) in talent management.
- Retaining top talent.

- Competency frameworks.
- Career pathing.
- 360-degree feedback.
- Mentorship programs.
- Talent pipeline.
- Employee engagement.

- Ethical Leadership and Corporate Social Responsibility (CSR)
- Ethical decision-making in supply management.
- Corporate social responsibility (CSR) initiatives.
- Sustainable and ethical sourcing practices.
- Compliance with laws and regulations.
- Building a culture of integrity.
- Addressing ethical dilemmas.

- Code of conduct.
- Whistleblower policies.
- Conflict of interest.
- Fair trade.
- Environmental, Social, and Governance (ESG) criteria.
- Anti-corruption policies.

- Innovation and Digital Transformation
- Driving innovation in supply management.
- Leveraging technology for competitive advantage.
- Digital transformation strategies.
- Implementing emerging technologies
- AI
- blockchain
- IoT
- Managing resistance to technological change.
- Measuring the ROI of innovation initiatives.

- Disruptive technology.
- Automation (RPA - Robotic Process Automation).
- Predictive analytics.
- Digital twins.
- Industry 4.0.
- Innovation ecosystems.

- Financial Acumen for Leaders
- Understanding financial statements
- balance sheet
- income statement
- Budgeting and resource allocation.
- Cost management and reduction strategies.
- Financial risk management.
- Capital investment decisions.
- Communicating financial performance to stakeholders.

- Return on Investment (ROI).
- Net Present Value (NPV).
- Cost-benefit analysis.
- Working capital.
- Profit margins.
- Economic Value Added (EVA).

- Global Leadership and Cultural Competence
- Leading global and cross-cultural teams.
- Understanding cultural differences and their impact on business.
- Managing global supply chains.
- Navigating geopolitical risks.
- Building inclusive and diverse teams.
- Effective communication in a global context.

- Cultural intelligence (CQ).
- Geopolitical risk.
- Global mindset.
- Cross-cultural negotiation.
- Localization vs. standardization.
- Global trade compliance.

- Risk Management and Resilience
- Identifying and mitigating risks in supply management.
- Building resilient supply chains.
- Crisis management and business continuity planning.
- Cybersecurity risks and mitigation.
- supplier risk management.
- Scenario planning for risk preparedness.

- Risk appetite.
- Risk matrix.
- Contingency planning.
- Supply chain resilience.
- Force majeure.
- supplier audits.

- Performance Measurement and Continuous Improvement
- Developing and tracking key performance indicators (KPIs).
- Benchmarking and best practices.
- Continuous improvement methodologies
- Lean
- Six Sigma
- Process optimization and reengineering.
- Data-driven decision-making.
- Aligning performance metrics with strategic goals.

- Balanced scorecard.
- Root cause analysis.
- PDCA (Plan-Do-Check-Act).
- Process mapping.
- Cycle time reduction.
- Value stream mapping.

- Collaboration and Relationship Management
- Building strong relationships with internal and external stakeholders.
- Collaborative innovation with suppliers and partners.
- Managing cross-functional teams.
- Conflict resolution and negotiation.
- Building trust and credibility.
- Aligning stakeholder expectations.

- Stakeholder engagement.
- supplier relationship management (SRM).
- Cross-functional collaboration.
- Win-win negotiation.
- Trust-building.
- Partnership models.

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CPSM exam 3
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CPSM exam 3: Leadership in Supply Management
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Question: 936
During a cross-cultural negotiation, a team notices that their counterpart is using indirect communication. What should they do to Excellerate understanding?
1. Ask clarifying questions to ensure comprehension
2. Challenge the counterpart directly about their communication style
3. Ignore the indirect cues and focus on the main issues
er: A
nation: Asking clarifying questions helps bridge communication gaps and ensures both partie tand each other effectively.
ion: 937
of the following strategies is most effective in communicating change to a workforce that h cally resisted new initiatives?
of jargon-heavy presentations mited disclosure of information quent updates and transparency
ying solely on written communication er: C
nation: Frequent updates and transparency can build trust and reduce anxiety, making it easie yees to accept and adapt to change.
ion: 938
pplication of RPA to supply chain processes, which of the following is a key factor to cons etermining the return on investment (ROI) for automation initiatives?
Conclude the negotiation if communication is unclear Answ
Expla s
unders
Quest
Which as
histori
1. Use
2. Li
3. Fre
4. Rel Answ
Expla r for
emplo
Quest
In the a ider
when d
1. The number of employees trained
2. The size of the technology vendor
3. The overall increase in product pricing
4. The reduction in processing time and associated labor costs Answer: D
Explanation: The reduction in processing time and labor cost savings are critical components in calculating the ROI of RPA initiatives.
In a risk matrix used for assessing supplier risks, which of the following factors is least likely to be considered when determining the likelihood and impact of a disruption?
1. Geographic location of the supplier
2. Supplier's financial stability
3. Supplier's market share
nation: While market share may reflect competitiveness, it does not directly contribute to ass elihood or impact of a disruption compared to geographic location, financial stability, or hist mance.
ion: 940
of the following scenarios best illustrates the concept of financial risk management within a chain context?
ompany investing in employee training to Excellerate productivity.
ompany using hedging strategies to protect against raw material price fluctuations. ompany expanding its distribution network to enhance market reach.
ompany increasing its marketing budget to boost sales. er: B
nation: Using hedging strategies is a direct example of financial risk management, as it aims te potential losses from price volatility.
ion: 941
ply chain manager is mentoring a junior team member. What is the most effective approach ce the mentee's critical thinking and problem-solving skills?
Historical performance data of the supplier Answer: C
Expla essing
the lik orical
perfor
Quest
Which supply
1. A c
2. A c
3. A c
4. A c
Answ
Expla to
mitiga
Quest
A sup to
enhan
1. Providing direct solutions
2. Setting strict deadlines
3. Giving detailed instructions
4. Asking probing questions Answer: D
Explanation: Asking probing questions encourages the mentee to think critically and explore various solutions, fostering independence and deeper understanding in problem-solving.
In a scenario where an organization aims to Excellerate its talent pipeline for supply management roles, which program would be most beneficial for early career professionals?
1. A rotational program that exposes them to various supply chain functions
2. An internship program focused on administrative tasks
3. A mentorship program with senior executives only
nation: A rotational program provides early career professionals with diverse experiences acr functions, building a well-rounded skill set and understanding of the supply chain.
ion: 943
is using value stream mapping to identify waste in its production process. They find that ive waiting times are a major contributor to inefficiencies. What would be the best approach these waiting times?
plement cross-training for employees to increase flexibility rease inventory levels before each production stage
end the production schedule to account for delays mit communication between departments
er: A
nation: Implementing cross-training for employees increases flexibility in the workforce, allo cker responses to delays and reducing waiting times in the production process.
ion: 944
eholder engagement, it is critical to prioritize stakeholders based on their influence and inter eholder mapping exercise results in four groups categorized as "High Influence/High Interest, nfluence/Low Interest," "Low Influence/High Interest," and "Low Influence/Low Interest,"
A series of online courses without practical application Answer: A
Expla oss
various
Quest
A team
excess to
reduce
1. Im
2. Inc
3. Ext
4. Li
Answ
Expla wing
for qui
Quest
In stak est. If
a stak "
"High I which
group should the supply manager engage most actively?
1. High Influence/High Interest
2. Low Influence/High Interest
3. High Influence/Low Interest
4. Low Influence/Low Interest Answer: A
Explanation: Stakeholders with High Influence and High Interest should be actively engaged to ensure
A team is struggling with the transition to a new performance measurement system. What is the best initial step for leadership to take in addressing this challenge?
1. Mandate compliance with the new system
2. Limit discussions about the new system
3. Provide comprehensive training and support
er: C
nation: Providing comprehensive training and support helps employees understand and utilize ystem effectively, addressing challenges and promoting successful adoption.
ion: 946
pany has a working capital of $1,000,000. If its current liabilities are $600,000, what is the current nd does this indicate a healthy liquidity position?
7, yes
5, no
7, yes
0, no er: C
nation: Current Ratio = Current Assets / Current Liabilities. Current Assets = Working Capit Liabilities = $1,000,000 + $600,000 = $1,600,000. Current Ratio = $1,600,000 / $600,000
ndicating a healthy liquidity position.
ion: 947
pany is exploring disruptive innovation within its supply chain. Which of the following sce xemplifies disruptive innovation in supply management?
Focus solely on the financial implications Answ
Expla the
new s
Quest A com ratio, a
1. 0.6
2. 1.2
3. 2.6
4. 1.0
Answ
Expla al +
Current =
2.67, i
Quest
A com narios
best e
1. Implementing just-in-time inventory systems
2. Introducing a subscription-based model for products
3. Upgrading existing software to Excellerate efficiency
4. Enhancing supplier relationships through negotiation Answer: B
Explanation: Introducing a subscription-based model for products represents a disruptive innovation that can fundamentally change how customers access and pay for products, potentially reshaping the market
In the context of innovation ecosystems, which of the following factors is most critical for fostering a culture of innovation among supply chain partners?
1. Open communication and shared goals among all partners
2. Strong leadership commitment from a single partner
3. Exclusive focus on cost reduction strategies
er: A
nation: Open communication and shared goals among all partners are essential for creating a orative culture that fosters innovation.
ion: 949
siness plans to allocate $60,000 for marketing in the coming year and expects a revenue incr on current sales of $300,000, what is the expected revenue after marketing expenses?
40,000
0,000
0,000
40,000
er: C
nation: Expected increase = 20% of $300,000 = $60,000. Thus, expected revenue = $300,00 00 = $360,000.
ion: 950
a negotiation with a supplier from a low-context culture, which communication strategy is ost effective?
Limited engagement with external stakeholders Answ
Expla collab
Quest
If a bu ease
of 20%
A. $2 B. $30 C. $36
D. $5
Answ
Expla 0 +
$60,0
Quest
During likely
to be m
1. Using implicit messages to convey meaning
2. Focusing on building relationships before discussing terms
3. Providing clear, direct, and explicit communication
4. Avoiding formal agreements in favor of verbal commitments Answer: C
Explanation: Clear, direct, and explicit communication aligns with the preferences of low-context cultures, facilitating effective negotiations.
Question: 951
During a conflict resolution meeting, which technique should a leader employ to ensure that all team members feel heard and valued, ultimately leading to a more effective resolution?
1. Direct confrontation
2. Avoidance
3. Authority assertion
er: D
nation: Active listening demonstrates respect for team members' viewpoints and encourages o unication, which is essential for reaching a consensus in conflict resolution.
ion: 952
multinational corporation recently discovered that one of its suppliers was involved in unet ractices, including child labor and poor working conditions. The company�s leadership is de er to terminate the contract with the supplier, considering the financial implications. What sh dership prioritize to align with ethical standards and corporate social responsibility?
minate the contract immediately to uphold ethical standards iate a dialogue with the supplier to Excellerate conditions intain the contract to avoid financial loss
k legal advice to explore options without taking immediate action er: A
nation: Terminating the contract immediately to uphold ethical standards aligns with the com itment to corporate social responsibility, prioritizing human rights over financial implication
ion: 953
eholder engagement, a company conducts a survey where stakeholders rate their satisfaction
Active listening Answ
Expla pen
comm
Quest
A large hical
labor p bating
wheth ould
the lea
1. Ter
2. Init
3. Ma
4. See Answ
Expla pany�s
comm s.
Quest
In stak on a
scale of 1 to 10. If the average satisfaction score from 200 responses is 7.5, what is the total satisfaction score calculated across all responses?
A. 1,500
B. 1,600
C. 1,750
D. 1,800
Answer: A
Explanation: Total satisfaction score = Average score * Number of responses = 7.5 * 200 = 1,500.
Question: 954
A manufacturing firm is using cycle time reduction techniques to enhance its competitiveness. Which of the following practices would most likely result in the greatest improvement in cycle time?
1. Standardizing work procedures
2. Increasing safety stock levels
3. Lengthening equipment maintenance intervals
er: A
nation: Standardizing work procedures helps streamline operations and minimize variability, nificant improvements in cycle time.
ion: 955
rganization plans to integrate new technologies into its supply chain processes. What is the ant consideration during this integration?
cost of technology alone
uring alignment with overall business strategy and goals ducing training requirements for employees
cusing only on technology features without user feedback er: B
nation: Ensuring alignment with overall business strategy and goals is crucial for the success ation and utilization of new technologies in the supply chain.
ion: 956
ness wants to calculate its NPV for a project that costs $100,000 and is expected to generat
f $30,000 in year one, $40,000 in year two, and $50,000 in year three. If the discount rate is the NPV?
Reducing employee training Answ
Expla leading
to sig
Quest
Your o most
import
1. The
2. Ens
3. Re
4. Fo
Answ
Expla ful
integr
Quest
A busi e cash
flows o 5%,
what is
A. $10,000 B. $15,000 C. $20,000 D. $25,000
Answer: C
Explanation: NPV = (30,000/(1.05) + 40,000/(1.05�) + 50,000/(1.05�)) - 100,000 = $20,000.

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