Updated ISM LEAD Dumps – Check Free LEAD Exam Dumps (2024) [Q49-Q68]

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Updated ISM LEAD Dumps – Check Free LEAD Exam Dumps (2024)

Updated LEAD exam with ISM Real Exam Questions

NEW QUESTION # 49
Smith is a supervisor in a supply management department. Other employees in the department have complained that Smith often makes derogatory comments and inappropriate remarks towards a particular cultural group. The department director meets several times with Smith to discuss these issues. Smith responds by becoming increasingly upset and retaliating against employees rumored to be making complaints. The situation continues to deteriorate, to the point that another manager reports concerns to human resources. Disciplinary action against Smith is then initiated.
Which of the following is the MOST serious issue described in this scenario?

  • A. The negative effects of the rumor mill and workplace infighting
  • B. The director's failure to follow through with a corrective action plan
  • C. Smith's perception of the manager as uncaring or ineffectual
  • D. The lack of documentation to support allegations

Answer: B

Explanation:
The most serious issue in this scenario is the director's failure to follow through with a corrective action plan. Leadership and transformation management documents emphasize the importance of addressing inappropriate behavior promptly and effectively to maintain a positive workplace culture and prevent escalation. The director's repeated meetings with Smith without implementing a corrective action plan allowed the situation to deteriorate further, leading to retaliation and increased workplace tension. Reference highlight that effective leadership involves not only identifying and discussing issues but also taking decisive actions to resolve them, ensuring that organizational policies are upheld and a respectful work environment is maintained. Documenting actions and maintaining clear communication with HR are also essential steps in managing such situations effectively.
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NEW QUESTION # 50
XYZ, Inc. is in the due diligence phase of an upcoming merger. The team is involved in assessing the cost synergies that can be realized from the merger. Which of the following can be regarded as potential cost synergies?
I . Reduced competition
II . Sharing of marketing channels
III . Increased purchasing power
IV . Elimination of redundancies

  • A. I and IV only
  • B. II and III only
  • C. III and IV only
  • D. I, II, III and IV

Answer: C

Explanation:
* Cost Synergies in Mergers: Cost synergies refer to the potential cost savings and efficiencies that can be achieved when two companies merge. This typically includes increased purchasing power and the elimination of redundancies.
* Increased Purchasing Power: By merging, the companies can combine their purchasing volumes, leading to better negotiation power with suppliers and reduced procurement costs.
* Elimination of Redundancies: The merger allows the companies to eliminate duplicate functions, systems, and processes, leading to significant cost savings.
* Not Potential Synergies: Reduced competition is not a cost synergy; it's a market effect. Sharing marketing channels is more of a revenue synergy than a cost synergy.
* Reference: This categorization is supported by merger and acquisition literature, including studies from the Harvard Business Review and the Institute of Mergers, Acquisitions, and Alliances (IMAA).


NEW QUESTION # 51
DEF, Inc. is finalizing a contract to have its head office refurbished. Within its budget of $1.2 million there is a general risk fund of $30,000. The building is old, and the electrical wiring drawings do not appear up to date. The total project bid from Supplier X is $1 million. This includes a fee of $20,000 for updating electrical wiring drawings and the contractors' risk fund of $100,000, half of which is for building-related issues, and half of which is for electrical issues.
DEF decides to assume the risk of electrical issues. What is the contract price paid to Supplier X?

  • A. $930,000
  • B. 5950,000
  • C. 51,000,000
  • D. $900,000

Answer: D

Explanation:
DEF, Inc. decides to assume the risk of electrical issues, which means they will deduct the portion of the contractor's risk fund allocated for electrical issues from the total project bid. Supplier X's total bid is $1 million, including $100,000 for the contractor's risk fund (half for building issues and half for electrical issues). Since DEF assumes the electrical risk, the contract price should be reduced by the $50,000 allocated for electrical issues:
Contract price=$1,000,000-$50,000=$950,000\text{Contract price} = \$1,000,000 - \$50,000 = \$950,000Contract price=$1,000,000-$50,000=$950,000 However, the question might have a typo. Correcting it for clarity:
The general risk fund of $30,000 mentioned is part of the $1.2 million budget and doesn't affect the contractor's bid directly. Therefore, the contract price paid to Supplier X should indeed be:
$1,000,000-$50,000=$950,000\$1,000,000 - \$50,000 = \$950,000$1,000,000-$50,000=$950,000 Thus, the correct contract price, assuming no other deductions, is $950,000.


NEW QUESTION # 52
A company develops a scorecard to measure performance. The scorecard has the following criteria:
1. Profitability
2. Amount of taxes paid
3. Charitable contributions/activities
4. Average hours of employee training
5. Amount of waste sent to landfills
6. Safety incident rates
This scorecard is an example of which of the following?

  • A. Social responsibility
  • B. Environmental
  • C. Triple bottom line
  • D. Financial

Answer: C

Explanation:
* Triple Bottom Line (TBL) Concept: TBL is an accounting framework that incorporates three dimensions of performance: social, environmental, and financial. This approach encourages businesses to consider the full impact of their activities on all stakeholders.
* Criteria Alignment: The scorecard criteria cover profitability (financial), taxes paid (financial), charitable contributions (social), employee training (social), waste to landfills (environmental), and safety incidents (social/environmental). This holistic approach aligns with TBL.
* Sustainability Focus: TBL emphasizes sustainability and responsible business practices, ensuring that the company's activities are beneficial to society and the environment, in addition to being economically viable.
* Reference: The TBL framework is widely discussed in sustainability and corporate social responsibility literature, including works by John Elkington, who coined the term, and various business management resources like Harvard Business Review.


NEW QUESTION # 53
An assistant contract administrator has been promoted to a newly-created contract management position in charge of sourcing a new product line. The position will work closely with other departments. The new manager is familiar with the firm's general procedures and organization but needs to expand skills in areas related to the increased responsibilities of the new position.
Which of the following will be MOST effective in this situation?

  • A. Concentrating on training in new technologies
  • B. Providing mentors to assist with orientation
  • C. Exploring outside professional development opportunities
  • D. Employing functional rotation with related departments

Answer: D

Explanation:
The most effective solution for the assistant contract administrator newly promoted to the contract management position is to employ functional rotation with related departments. This strategy allows the new manager to gain hands-on experience and a comprehensive understanding of the different functions and perspectives within the organization. Here is a detailed explanation:
Functional Rotation:
Exposure to Various Departments: By rotating through different departments, the new manager can understand how each department operates and how they interconnect. This holistic view is crucial for effective contract management and sourcing decisions.
Skill Development: Functional rotation provides practical experience in various aspects of the business, enabling the new manager to develop the necessary skills and knowledge in a real-world context.
Building Relationships: Working closely with different departments fosters better communication and collaboration, essential for successful contract management and sourcing.
Why Not Other Options?
Exploring outside professional development opportunities (A): While beneficial, it may not provide the immediate and practical understanding needed for the new role.
Concentrating on training in new technologies (B): This is useful, but it doesn't address the need for a broader understanding of the organization's operations.
Providing mentors to assist with orientation (C): Mentoring is valuable but may not offer the extensive exposure and hands-on experience that functional rotation provides.
Reference:
Leadership and Transformation Management documents emphasize the importance of cross-functional knowledge and hands-on experience for effective leadership and management (Kotter, J.P., Leading Change, 1996).
Practical exposure through job rotation is a recommended approach for developing management skills and fostering organizational integration (Goleman, D., Emotional Intelligence, 1995).


NEW QUESTION # 54
Which of the following integrates various functions within an organization, including forecasting, materials management and purchasing?

  • A. Material requirements planning
  • B. Performance management software
  • C. Business intelligence software
  • D. Enterprise resource planning

Answer: D

Explanation:
Enterprise Resource Planning (ERP) systems integrate various functions within an organization, including forecasting, materials management, and purchasing. ERP systems provide a unified platform that allows different departments to share data and processes, facilitating better coordination and decision-making. This integration helps streamline operations, improve efficiency, and enhance overall organizational performance by providing real-time data and analytics.
Reference:
O'Leary, D. E. (2000). Enterprise Resource Planning Systems: Systems, Life Cycle, Electronic Commerce, and Risk. Cambridge University Press.
Monk, E., & Wagner, B. (2012). Concepts in Enterprise Resource Planning. Cengage Learning.


NEW QUESTION # 55
A subsidiary of a medical equipment company buys raw materials from suppliers contracted through the central commodity management group, which is located at corporate headquarters. The president of the local woman-owned merchants association contacts the firm's supply manager and asks why the firm does not support the local economy, as some of the raw materials are available from nearby woman-owned suppliers. Which of the following is the BEST way for the supply manager to address this concern?

  • A. Explain that sourcing policies are set by corporate headquarters
  • B. Refer the question to senior management and ask them to contact the association
  • C. Discuss purchasing social responsibility with supply management staff at headquarters
  • D. Request authority to contract locally for a portion of the requirements

Answer: C

Explanation:
Addressing concerns about local economic support and diversity requires discussing purchasing social responsibility with the supply management staff at headquarters. This approach aligns the company's sourcing practices with broader corporate social responsibility (CSR) goals. By engaging in this discussion, the supply manager can advocate for the inclusion of local, woman-owned suppliers, thereby supporting the local economy and diversity initiatives. This step is proactive and demonstrates the firm's commitment to social responsibility, which can enhance its reputation and community relationships.
Reference:
Carter, C. R., & Jennings, M. M. (2004). The Role of Purchasing in Corporate Social Responsibility: A Structural Equation Analysis. Journal of Business Logistics.
Porter, M. E., & Kramer, M. R. (2006). Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility. Harvard Business Review.


NEW QUESTION # 56
Two large industrial organizations with global operations merge. Prior to the merger, the two companies had individual buyers at each manufacturing location, and these buyers were very successful. In the newly merged company, a sourcing team is established, with commodity managers reporting to the chief purchasing officer (CPO). Saving money has always been a top priority of the procurement staff, but the CPO is concerned about the new company's culture, as the commodity manager role didn't exist in either of the two companies prior to the merger.
Which of the following should the CPO be MOST concerned with to ensure the success of the new commodity managers?

  • A. Risk management
  • B. Optimization effort
  • C. Cost avoidance
  • D. Cost containment

Answer: A

Explanation:
* Merger Context: The merger has created a new structure with commodity managers, a role that didn't previously exist in either company. This restructuring can introduce various risks, including operational disruptions and cultural integration challenges.
* Risk Management Focus: The CPO should prioritize risk management to ensure the transition to commodity managers is smooth and successful. This includes identifying potential risks, developing mitigation strategies, and monitoring implementation.
* Risks to Consider: Potential risks include resistance to change, lack of clear role definitions, and integration of different corporate cultures.
* Importance of Risk Management: Effective risk management helps in anticipating and addressing issues that could derail the integration process and ensures that the new structure supports the company's strategic goals.
* Reference: Best practices in merger integration and change management literature, including "Making Mergers Work" by Price Pritchett and the Project Management Institute's (PMI) guidelines on risk management, emphasize the importance of focusing on risk management in such transitions.


NEW QUESTION # 57
A U.S. company wants to expand its business and market to the government. This will require government approval of a small business plan, encompassing proposed spend with several categories of small businesses. The firm's supply manager has been asked to investigate the requirements to comply with this new market. Which of the following is the BEST course of action for the supply manager to take in this situation?

  • A. Review Federal Acquisition Regulations Part 19
  • B. Benchmark the best practices of several leading competitors
  • C. Contact the Library of Congress and use one of its small business lists
  • D. Contact the National Bureau of Labor Standards

Answer: A

Explanation:
* Understanding the Requirement: To expand business and market to the government, the company must comply with federal regulations, specifically those pertaining to small business participation.
* Federal Acquisition Regulations (FAR): FAR Part 19 focuses on Small Business Programs. It provides the policies and procedures for ensuring small businesses receive a fair proportion of government contracts.
* Compliance Necessity: Reviewing FAR Part 19 will provide the supply manager with the necessary guidelines and requirements to develop an acceptable small business plan. This includes understanding the definitions, eligibility criteria, and mandatory goals for various categories of small businesses.
* Best Course of Action: By thoroughly reviewing FAR Part 19, the supply manager can ensure the company's small business plan meets all legal and regulatory requirements, increasing the likelihood of government approval.
* Reference: The Federal Acquisition Regulation (FAR) is the principal set of rules in the Federal Acquisition Regulations System. Specific information can be found in FAR Part 19, accessible through government websites and procurement training resources.


NEW QUESTION # 58
As part of a firm's global cost reduction strategy, a supply manager has been asked to lead a team of purchasing professionals from several different countries. Because of the wide variety of cultures represented on the team, it will be MOST important for the supply manager to

  • A. schedule calls at times convenient for all members
  • B. focus on selecting team members of similar ages
  • C. implement a cloud-based collaboration tool
  • D. determine and focus on the need for the team

Answer: D

Explanation:
* Cultural Diversity Management: Leading a team with diverse cultural backgrounds requires a focus on common goals and the purpose of the team. This helps unify the team and provides a clear sense of direction.
* Team Purpose and Need: Clearly articulating the need for the team and its objectives ensures that all members, regardless of cultural differences, understand their roles and the importance of their contributions.
* Effective Team Leadership: Focusing on the need for the team helps in overcoming cultural barriers and fosters collaboration, commitment, and a shared sense of purpose.
* Reference: This approach is supported by leadership and team management principles, such as those outlined in "Leading Global Teams" by Harvard Business Review and "Cultural Intelligence: CQ" by David Livermore, which emphasize the importance of a shared mission in managing culturally diverse teams.


NEW QUESTION # 59
DEF, Inc. is a large global manufacturer. Two of DEF's supply managers, who are located in offices in different countries, are assigned to lead a new product development team. The team is to be comprised of two stakeholders from each of the supply managers' locations. The supply managers, as well as their respective departments, have had some friction between them in the past, and there is concern they will not be able to work together effectively on this project. Of the following, the BEST approach for assigning stakeholders to the team would be for the supply managers to

  • A. select stakeholders from their own locations
  • B. create a list of stakeholders from each location and make the selections together
  • C. select stakeholders from each other's locations
  • D. ask senior management to intervene in making the stakeholder assignments

Answer: B

Explanation:
* Conflict Resolution: Given the history of friction between the supply managers and their departments, a collaborative approach is necessary to prevent further conflict and ensure effective teamwork.
* Joint Decision Making: By creating a list of stakeholders from each location and making the selections together, the supply managers can ensure that the team is balanced and that all perspectives are considered. This collaborative approach fosters a sense of shared ownership and mutual respect.
* Stakeholder Involvement: Involving both managers in the selection process ensures that the chosen stakeholders are acceptable to both parties, reducing the likelihood of bias and increasing the commitment of all team members.
* Building Trust: Working together to select stakeholders can help build trust and improve the working relationship between the supply managers, setting a positive tone for the project.
* Reference: This approach aligns with best practices in team building and conflict resolution as discussed in leadership and management literature, including works like "The Five Dysfunctions of a Team" by Patrick Lencioni and guidelines from the Project Management Institute (PMI).


NEW QUESTION # 60
A risk management program for a fast food chain finds a high probability of legal action due to possible food poisoning. Accordingly, the firm establishes legal plans to address potential lawsuits. This is a mitigation step for which type of risk?

  • A. Environmental
  • B. Operational
  • C. Technical
  • D. Financial

Answer: B

Explanation:
Establishing legal plans to address potential lawsuits due to food poisoning is a mitigation step for operational risk. Operational risk refers to the risk of loss resulting from inadequate or failed internal processes, people, systems, or external events. In the context of a fast food chain, the risk of legal action due to food poisoning is a significant operational risk, as it directly impacts the company's ability to operate safely and maintain its reputation.
Reference:
Lam, J. (2014). Enterprise Risk Management: From Incentives to Controls. Wiley.
Hopkin, P. (2017). Fundamentals of Risk Management: Understanding, Evaluating, and Implementing Effective Risk Management. Kogan Page Publishers.


NEW QUESTION # 61
Which of the following is the FIRST step that a supply manager should take to ensure proper social responsibility in the management of regulated materials?

  • A. Determine the relevant regulatory agency criteria to follow
  • B. Select only certified suppliers for sourcing events
  • C. Implement a proactive approach when considering regulated materials
  • D. Embed contract language with criteria to handle disposal of regulated materials

Answer: A

Explanation:
The first step a supply manager should take to ensure proper social responsibility in the management of regulated materials is to determine the relevant regulatory agency criteria to follow. Leadership and transformation management documents stress the importance of compliance with regulatory requirements as the foundation for responsible management practices. Understanding the specific criteria set by regulatory agencies ensures that all actions related to the handling, storage, and disposal of regulated materials meet legal and safety standards. Reference emphasize the necessity of being well-informed about regulatory guidelines to implement effective and compliant practices in supply management.
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NEW QUESTION # 62
A new buyer is hired, and over time the department supervisor notices the buyer's writing style is consistently unprofessional. To improve the buyer's written communications, the supervisor edits several of the buyer's memos, and returns them with a note as an example of how company communications should be written. However, this does not result in any changes in the buyer's writing style.
How should the supervisor rate the "written communication" portion of the buyer's performance review?

  • A. Acceptable; deficiencies addressed, but continual monitoring until annual review
  • B. Unsatisfactory; performance improvement plan necessary
  • C. Needs improvement; course on business writing required
  • D. Satisfactory; deficiency addressed and no additional or further review necessary

Answer: B

Explanation:
* Assessment of current performance: The supervisor's feedback has not resulted in improvement in the buyer's writing style.
* Performance evaluation criteria: Unprofessional writing is a significant issue, especially if the provided feedback has not led to any changes.
* Performance improvement plan: According to performance management principles, an unsatisfactory rating with a performance improvement plan is appropriate when initial corrective actions fail.
* Reference: "Performance Management: Key Strategies and Practical Guidelines" by Michael Armstrong discusses the necessity of performance improvement plans for consistent performance issues.


NEW QUESTION # 63
A firm's procurement department significantly exceeds its established goals two years in a row. Senior management is concerned the goals are too easy and asks the supply manager to determine if procurement team members are being adequately challenged. Which of the following is the BEST course of action for the supply manager to take in order to assess the situation and provide a suitable answer to management?

  • A. Conduct a 360-degree feedback survey to measure the level of employee engagement and job satisfaction
  • B. Verify with internal customers that team members goals are aligned with business goals
  • C. Review the job descriptions for each procurement role to validate that the descriptions are accurate
  • D. Work with the finance department to set more challenging goals for the procurement team

Answer: B

Explanation:
Situation Analysis:
The procurement department has exceeded its goals, raising concerns about the adequacy of these goals.
Senior management questions whether the team is being adequately challenged.
Assessing Goals and Challenges:
360-Degree Feedback: Useful for employee engagement but may not address goal alignment.
Reviewing Job Descriptions: Ensures roles are well-defined but does not address goal difficulty.
Setting More Challenging Goals with Finance: Important but secondary to understanding current goal alignment.
Verifying with Internal Customers: Ensures procurement goals support broader business objectives and challenges.
Best Course of Action:
Verifying with Internal Customers: Confirms that procurement goals align with business objectives and identifies areas for more challenging targets.
Conclusion: Ensuring alignment with internal customers provides a comprehensive understanding of whether current goals are appropriate and where adjustments might be needed.
Reference:
"The Balanced Scorecard: Translating Strategy into Action" by Robert S. Kaplan and David P. Norton Performance management best practices from the Society for Human Resource Management (SHRM)


NEW QUESTION # 64
A supply manager for JKL Corporation has been working on a large purchase with Supplier A for a new type of widget. During the negotiations, the supply manager asks Supplier A to warrant its products for a year rather than the typical 30 days. However, Supplier A does not accept the extended warranty terms. The supply manager shares this information with JKL's business team. The team wants to proceed with the purchase in any case, but the supply manager would still like for the team to reconsider its position. Which of the following would be the MOST appropriate way for the supply manager to influence the team?

  • A. Communicate the risks involved at each level of approval in the process so that it is clear to all
  • B. Enter the requisition and wait to route it until Supplier A agrees to comply with the request
  • C. Ensure that no one approves the purchase order until Supplier A complies with the request
  • D. Alert someone higher on the approval channel about the risks in Supplier A's proposal

Answer: A

Explanation:
* Risk communication: Clearly outlining the risks associated with the supplier's warranty terms ensures informed decision-making.
* Influence strategy: Providing detailed risk information at each approval level helps in building a consensus and potentially reconsidering the decision.
* Leadership principles: Transparent communication and advocacy for what is best for the organization are key tenets of effective supply management.
* Reference: "Influence: The Psychology of Persuasion" by Robert Cialdini emphasizes the importance of clear communication in influencing decisions.


NEW QUESTION # 65
DEF Company acquires MNO, Incorporated. The new firm's chief procurement officer (CPO) is tasked with consolidating duplicate components under one supplier for the lowest total cost. The CPO plans to use the firms' combined cognitive procurement system to complete this task. Which of the following will this system MOST likely yield in order to aid the CPO?

  • A. The price, quality, performance and reliability of the components and the suppliers
  • B. The level of risk posed by each supplier based on location and disaster recovery plans
  • C. The financial strength of the suppliers providing the components
  • D. The demand for the components for both DEF and MNO

Answer: A

Explanation:
Using the firms' combined cognitive procurement system, the CPO is most likely to yield information on the price, quality, performance, and reliability of the components and the suppliers. This data is crucial for consolidating duplicate components under one supplier for the lowest total cost.
Cognitive Procurement Systems: These systems utilize artificial intelligence and data analytics to provide comprehensive insights into procurement activities. They help in assessing various parameters such as cost, quality, and supplier performance.
Decision-Making: Having detailed information on price, quality, performance, and reliability allows the CPO to make informed decisions about which suppliers to consolidate, ensuring that the best overall value is achieved.
Optimization: This approach helps in optimizing the supply chain by selecting suppliers that offer the best combination of cost efficiency and reliability, ultimately reducing total procurement costs.
Reference:
Handfield, R.B., & Nichols, E.L. (1999). Introduction to Supply Chain Management. Prentice Hall.
Monczka, R.M., Handfield, R.B., Giunipero, L.C., & Patterson, J.L. (2015). Purchasing and Supply Chain Management. Cengage Learning.


NEW QUESTION # 66
The compliance division within EFG, Inc. is reviewing the company's procedures for monitoring and addressing employee fraud. The current system involves employees who suspect fraud reporting their concerns to an internal company email mailbox. Many of the firm's employees are concerned about the confidentiality of this process. Which of the following would be the BEST course of action for EFG to take in order to reduce this concern?

  • A. Announce through the intranet the company's commitment to non-retaliation in fraud reporting
  • B. Explore opportunities to outsource the reporting function to an independent third party
  • C. Change the reporting policy and have employees report concerns directly to their individual managers
  • D. Develop a training program that emphasizes the risks caused by employee fraud and the importance of proper reporting

Answer: B

Explanation:
* Confidentiality Concerns: Employees are worried about the confidentiality of the current fraud reporting process. Addressing these concerns is crucial to ensure that employees feel safe reporting potential fraud.
* Independent Reporting: Outsourcing the reporting function to an independent third party can enhance confidentiality and impartiality, making employees more comfortable reporting fraud.
* Credibility and Trust: An independent third party can provide a neutral and trusted channel for reporting, which can increase the credibility of the fraud reporting system.
* Best Practices: Using third-party services for reporting fraud is a common best practice in compliance and risk management to ensure anonymity and reduce the fear of retaliation.
* Reference: This approach is supported by guidelines from the Association of Certified Fraud Examiners (ACFE) and best practices in corporate governance and compliance management.


NEW QUESTION # 67
DEF, Inc. does not have a firm control of expenditures, and its global procurement department does not have a strong reputation within the organization. DEF asks the supply manager to centralize the procurement organization, engage stakeholders, and educate the organization on the value of procurement. Which of the following should the supply manager do FIRST to ensure proper engagement and adherence to policies?

  • A. Validate the current procurement structure
  • B. Create a global communication plan
  • C. Communicate the procurement policy
  • D. Communicate a global procurement vision

Answer: D

Explanation:
Issue Identification: DEF Inc. needs to centralize procurement, engage stakeholders, and educate the organization on procurement's value.
First Steps for Effective Change Management:
Communicating a Global Procurement Vision: Provides a clear direction and purpose, aligning the organization towards common goals.
Sets the stage for stakeholder engagement and adherence to new policies.
Helps build a unified understanding of procurement's value across the organization.
Rationale:
A clear vision serves as the foundation for all subsequent actions, including validating structures, communicating policies, and creating communication plans.
Ensures everyone understands the importance and benefits of the centralized procurement strategy.
Outcome:
Establishes a clear and compelling case for change.
Facilitates stakeholder buy-in and supports successful implementation of the new procurement structure.
Reference:
John P. Kotter's "Leading Change" model
Change management best practices from Prosci's ADKAR model


NEW QUESTION # 68
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