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ISM LEAD Exam - Topic 2 Question 47 Discussion

Posted by Ellen on Nov 04, 2026 at 10:28 PM

MNO, Inc. is a small global manufacturing company. The firm hires a new director of procurement to change the culture within the procurement team and focus on organization-wide key performance indicators (KPIs). The director suggests tracking the number of purchase orders created by each buyer across the organization to establish a baseline of activity. Smith, the department's senior buyer, is completely opposed to this KPI, and discovers that the other buyers are as well. Smith is concerned that many staff will resign if the director's initiative is instituted. Given this situation, which of the following is the BEST course of action for Smith to take?

Suggested Answer: A

Understanding the Situation:

The new director proposes a KPI that is unpopular with staff, risking resignations.

Best Course of Action:

Consulting with the Director: Open communication to share concerns about staffing risks and the potential negative impact of the proposed KPI.

Ensures the director is aware of potential consequences and can consider alternative metrics or approaches.

Alternative Options:

Advising against tracking without offering constructive feedback may be seen as non-cooperative.

Escalating the issue to the CEO could undermine the director's authority.

Remaining silent does not address the core issue and could lead to staff dissatisfaction.

Conclusion: Consulting with the director to share risks is the most constructive approach, fostering open communication and collaboration to find a mutually acceptable solution.


''Crucial Conversations: Tools for Talking When Stakes Are High'' by Kerry Patterson, Joseph Grenny, Ron McMillan, and Al Switzler

Change management principles from Kotter International

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