The Supply Chain Workforce Dilemma – Lessons from the NBA Finals

by Sterling J. Scott, Marketing Communications Coordinator, MHI | @mhi_sterling

The NBA Finals just ended and for the second year in the row, featured the defending champion Miami Heat against the legendary San Antonio Spurs. The Spurs won the championship, winning four of five games. all by at least 15 points. The two, elite teams boasted some of the best records in the NBA; however, both teams filled their talent needs very differently. They reflect two ways that organizations can fill talent needs, and the lessons that can be learned from the two make this rivalry much more interesting beyond what it means in sports.

The Heat were led by their three stars of LeBron James, Dwyane Wade, and Chris Bosh, three top-five draft picks from 2003 who joined forces in the summer of 2010 through free agency. The Spurs were led by Tim Duncan, Tony Parker, and Manu Ginobili, three players who were drafted and developed within the Spurs The Heat have won two consecutive championships behind their stars, all of whom currently are in their prime. The Spurs just won their fifth championships with Duncan and with Parker and Ginobili contributing in three of them – all seasoned veterans questionably past their prime.

The supply chain industry is facing a growing talent shortage making the competitive recruiting atmosphere even more competitive for companies facing talent shortages. Businesses can follow the traditional method of finding early career professionals with the potential to develop into great supply chain workers. These businesses can develop their employees by providing supplementary education and training. Businesses can also try to find the talent they need in professionals already experienced in the industry that are working with other companies. There are pros and cons to both means.

Talent Development | San Antonio Spurs
When companies target, recruit, and develop early career professionals there is the benefit of being able to fill talent needs at a lower total compensation cost, develop that talent to fit the specific needs of the company, as well as mold the employees to reflect the organizational culture. As the new professionals develop into seasoned veterans in the industry, the company can bring in more talent to develop under them, thus preserving a strong culture and eliminating the urgency from recruiting.

The Spurs have followed this method and have not had a losing season since 1996-97, making the playoffs every year since then – 17 years in a row. Also, their bench players have developed into starting quality players that can take over starting roles once the veterans retire, ensuring more winning seasons and playoff berths.

Similarly, the Oklahoma City Thunder is a young team on the rise and has filled their talent needs using the Spurs model. They drafted Kevin Durant, Russell Westbrook, and Serge Ibaka, their leaders, and have been developing talent behind them. They are still in the early stages, but have been a perennial playoff team since drafting Durant and Westbrook in 2007 and 2008.

As demonstrated through the Thunder, one drawback to this method is that it takes time to develop a championship-caliber team. It’s been seven years since they drafted Durant and six since they drafted Westbrook with only one NBA Finals appearance; whereas the Heat signed James and Bosh in 2010 and went to the NBA Finals their first year before winning championships the next two.

Talent Acquisition | Miami Heat
In contrast, the Miami Heat have acquired experienced professionals and have since made four consecutive NBA Finals appearances, winning two. However, the free agent signings (James and Bosh) that made the Heat a championship team can also take that away, as they have demonstrated their willingness to switch teams. If these players sign elsewhere, the talent has not been developed behind them to take over their roles as they are not actively preparing for life after the Big Three. Furthermore, there is not as much of a sense of loyalty to the organization. They begin their careers elsewhere, signed on to play together to win championships, and may sign elsewhere. That is not the team that drafted them nor is it the team where they have spent most of their careers. The Miami Heat have followed the same method used by the Boston Celtics.

In 2007, the Boston Celtics formed a Big Three by trading for Kevin Garnett and Ray Allen who joined Paul Pierce. This team won a championship in the players’ first season together. They made the playoffs each of the next five seasons, returning to the NBA finals once; however, when Ray Allen left the team, the wins were harder to come by and fewer in number. Then when Kevin Garnett and Paul Pierce signed elsewhere, the team finished the season without a playoff spot and with one of the worst records in the league.

When companies target experienced professionals and bring them into their organization to fill talent needs, it usually works; however there is not a system in place for developing talent and there is not as great a sense of loyalty to the organization. Success is generally short-term and recruiters are pressured with making sure that they continuously search for experienced talent to step in and fill needs.

Conclusion
It could be argued that small market teams like the Spurs and the Thunder have difficulty attracting big name free agents while large market teams like the Heat and Celtics can sign them with ease due to the money that can be made in those large media markets. In the supply chain world, talent could be drawn to larger more reputable companies (or industries) where they can make more money or find more opportunity. Whether talent acquisition and development are driven by business strategy or market forces, both methods of filling talent needs are effective. One is more sustainable and the other often leads to quicker success.

While it is tempting to view the NBA Finals series between the Heat and Spurs as a competition between means of filling talent needs, it is better to look at it as a celebration of the merits of each method. Companies can learn from both of these teams. Recruit experienced professionals while bringing in new professionals to develop under them. Companies can learn a lot from the Miami Heat and San Antonio Spurs, two teams that have Hall of Fame players and coaches, as well as great track records of success using their respective methods of filling talent needs.

To learn more about the supply chain talent gap, download the 2014 MHI Annual Industry Report.

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