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Exam Number : CPSM-Exam-3
Exam Name : CPSM Exam 3: Leadership in Supply Management - 2025
Vendor Name : ISM
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CPSM-Exam-3 Exam Format | CPSM-Exam-3 Course Contents | CPSM-Exam-3 Course Outline | CPSM-Exam-3 Exam Syllabus | CPSM-Exam-3 Exam Objectives


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 exam.

- 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

- Kotters 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 exam.



- 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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