Colin Powell To Complete Stellar Keynote Line-Up At ISM2017

The fact that the Institute for Supply Management can attract keynote speakers of this calibre offers proof that the profession truly has come of age.  

ISM has announced that the former U.S. Secretary of State, General Colin Powell, will join former UK Prime Minister David Cameron to deliver a keynote at the year’s biggest conference in Supply Management, ISM2017.

General Powell will inspire and motivate ISM2017 attendees with stories of leadership under fire – and how to deliver complex supply systems when facing immovable deadlines.

As former Chairman of the Joint Chiefs of Staff, Powell assembled a multibillion dollar supply chain involving 42 nations during Operation Desert Storm in the Persian Gulf. Powell and his team pulled together millions of coordinated supplies: military goods, machinery, food, weaponry, and critical spare parts.

“As Secretary of State, General Powell used the power of diplomacy to build trust and create alliances, while also having the grit and experience forged by his military career in delivering results when it matters most,” said Tom Derry, ISM CEO. “Powell’s insight will be critical to ISM members and other purchasing and supply chain professionals as they focus on the challenges of working in a tough, ever-changing global economy.”

David Cameron, former Prime Minister of the United Kingdom, who stepped down from the position in 2016 in the wake of the Brexit decision, will also keynote ISM2017 conference attendees about his experience navigating geopolitical and public policy issues and their impact on the global supply chain. He will address a range of events in Europe and worldwide, and what they could mean to supply managers everywhere.

Powell and Cameron’s keynotes share a theme that will resonate with supply managers everywhere – how to deliver effective short-term solutions – and leadership during a time of crisis. The inclusion of two political veterans is particularly apt in 2017 as Europe continues to adjust to the effects of Brexit and the U.S. recovers from one the most divisive presidential races in recent memory.

Registrations are now open for ISM2017, which will be held May 21–24, 2017, at the Disney Coronado Springs Resort in Orlando, Florida.

Focused on “Critical Insights, Powerful Results,” the event expects to draw more than 3,000 attendees from around the world. ISM 2017 features keynotes, learning tracks, and sessions about leading in times of stress. More than 75 interactive sessions will be part of six learning tracks at ISM2017, and executives from firms such as Google, Toyota, Pfizer, Direct Energy, Zimmer Biomet and others will present.

Find out more about ISM2017

What Would You Do If The President-Elect Criticised Your Supply Chain?

Major US organisations are starting to rethink their manufacturing strategies for fear of being labelled “un-American” by the President-Elect. 

Every US-based supply manager with outsourced supply chains should follow Donald Trump on Twitter. Why? Because for major companies with overseas manufacturing operations, there’s every chance that the President-Elect will label your organisation “un-American”.

Since November 2016, Trump has criticised companies including Ford, Toyota, GM, United Tech and, more recently, pharmaceutical organisations including Johnson & Johnson, Pfizer and Bristol-Myers for moving U.S. jobs abroad. His focus appears to be on companies outsourcing to Mexico and China, where historically low-cost labour enables organisations to manufacture their products at a competitive level.

Companies changing plans

According to a report from Reuters, boards of a number of U.S. companies that manufacture overseas have directed their public relations teams to plan a response in case the President-Elect singles them out on Twitter.

Similarly, some companies are reportedly re-thinking mergers and other moves that would involve outsourcing to China for fear of being cast as “anti-American” by the President-Elect. Ford has backed away from plans to build a $1.6 billion plant in Mexico, while United Tech has announced plans to keep half of the 2,100 jobs it was shifting over the border. Reports have also emerged of dozens of major organisations contacting government relations and PR advisors to assess if they have any “red flags” that would draw Trump’s attention and lead to a damaging Tweet being sent.

New risk metric: weighing national interest

According to the Reuters report, “corporate leaders can no longer focus only on maximising shareholder value; they must now also weigh national interest.” Essentially, being labelled as un-American has become a new risk metric that needs to be weighed against the cost benefits of overseas manufacturing.

Trump’s aggressive rhetoric against China may also lead to a reduction of outsourcing to the manufacturing powerhouse as the relationship between the two countries is expected to decline. Trump has also flagged high tariffs as another way in which he plans to move manufacturing jobs from China back to the U.S.

The effects of a Trump Tweet cannot be downplayed. Lockheed Martin lost $4 billion in value as share prices feel immediately after Trump criticised the organisation on Twitter, while Toyota saw $1.2 billion in value wiped in five minutes following a similar Tweet. Developers have even created an App to alert investors to Trump’s market-moving Tweets. This week, the nine biggest pharmaceutical companies that use manufacturing plants in Europe, Asia and Africa lost roughly $24.6 billion in 20 minutes during a news conference in which Trump singled out the industry.

Alongside potential losses in share value, coming under fire from the soon-to-be President puts organisations at risk of brand damage and consumer boycotts.

It is unclear whether Trump will continue to use Twitter to drive his “Made in America” agenda, or use more traditional tools to affect change such as policies and import tariffs.

What do you think about “Made in America”? Are organisations right to be wary of a tweet from Trump?  Let us know in the comments below. 

We’ve kept one eye on the news headlines from around the world this week…

Proliferation of “non-human workers” accelerates

  • Amazon reportedly placed 15,000 robots across 20 fulfillment centres in 2016, increasing its machine workforce by 50%.
  • Similarly, iPhone manufacturer Foxconn has replaced 60,000 Chinese employees with robots, while Wal-Mart is automating up to 7000 jobs, including roles in the accounting and invoicing departments.
  • In the U.S. alone, up to five million jobs are expected to be replaced by robots by 2020.

Read more at Supply Chain Dive 

Blood supply chain faces an uncertain future

  • Due to changes in medical practices, hospital demand for blood has been dropping steadily for the past decade.
  • The strong supply and weak demand for blood has led to a 10 percent drop in the cost of a unit of red blood cells in the US, with overall revenue for the blood banking industry dropping to US$1.5 billion per year in 2014, down from $5 billion in 2008.
  • S. blood banks are expected to lose 12,000 jobs in the next few years, or roughly a quarter of its workforce.

Read more at  The Conversation

 

Top Reasons to Advance Your Career With an MBA

Competition for the top procurement jobs is fierce. Have you considered that an MBA might be one way to get ahead of the pack?

MBA

Procurement can be a very competitive industry. Both procurement managers and officers are continually looking for ways to advance their career and beat out other job candidates for the best roles.

If you’ve been in the same position for a while and seem to be struggling to rise higher, it might be time to get your nose in some textbooks and build up your network of contacts through a higher degree.

A Master’s in Business Administration (MBA) can, in particular, be a fantastic option to study. You can choose one of top online MBA programmes to work on part-time, or opt to quit your current role and study full-time instead.

Here’s why you should consider enrolling in an MBA program today.

Job Prospects

One of the major reasons why it’s worth completing an MBA is the job prospects that can come from such qualifications. Having an MBA listed on your resume can help you to stand out from other job candidates in a crowded marketplace, particularly if you’re keen to get into a higher, leadership position.

Employers typically tend to see MBA graduates as having greater business acumen, skills, and knowledge than those who haven’t completed the higher degree. They also appreciate the fact that students will often be more likely to “hit the ground running” on day one.

In addition, having an MBA under your belt can also give you more job security with your current company or within your industry. Employers tend to feel that business school graduates bring more value to their roles and to an organisation in general, by:

  • Having a broader business understanding
  • Being able to handle complex situations
  • Improving adaptability, nimbleness, and innovation
  • Being able to spot inefficiencies and better problem solve

This kind of belief can mean that if the economy tightens or a firm’s results decrease, and people start to be let go, your name will be much lower down on the list than others.

Relationship Building

Another major benefit of studying an MBA is that doing so gives you the chance to meet, and build solid relationships, with like-minded graduates from around the world.

Many people who have completed MBAs find that contacts they made during their studies become invaluable contacts in the long-term. Having this network to use as a sounding board, and to turn to for advice, ideas, and referrals, as you build your career is priceless. These connections can help you to really stand out from others in your company or industry.

Getting to know graduates from across the globe exposes you to different cultures, business practices, points of view, and networks. It’s something you wouldn’t necessarily have in many other types of degrees. MBAs are very international studies, and tend to have strong alumni networks which stay close even in spite of distance.

Learning Practical Skills

Of course, completing an MBA is also certain to give you a wide variety of practical skills which you can use at work every day. For starters, communication is something that graduates really have to get good at during their studies, whether through completing team projects, individual presentations, or work placements.

Working together in teams, and getting a group of potentially strong personalities to move in the same direction, can also help you to learn helpful leadership, management, and negotiation skills for the future. Completing studies while you’re still in a full-time job also requires fantastic time-management skills.

Other transferable skills which students can graduate from an MBA with, and use throughout their career, include:

  • Creativity;
  • Problem solving;
  • Critical thinking;
  • Computer proficiency; and
  • Cross-cultural understanding.

Learn About the Bigger Business Picture

Lastly, completing MBA studies also gives you the chance to stop and think about the bigger business picture. This will help you not only in your current role, but also throughout your career.

MBA coursework typically always involves students looking at the global economy and trading markets. This gets people to think about more than their own little world where they currently work. It also makes it easier to see how events impact on both a micro and macro level in a business.

Tiffany Rowe is a marketing administrator who assists in contributing resourceful content throughout the World Wide Web. Tiffany prides herself in her strong ability to provide high quality content that readers will find valuable.

Big Ideas Summit 2016: Big Idea #30 – Buy Social Challenge

Supply chains need to be transparent, and also more socially and environmentally sustainable. That’s why we’re challenging professionals to ‘Buy Social’.

At the Big Ideas Summit 2016, we challenged our thought leaders to share their Big Ideas for the future of procurement.

From ideas that have the potential to change the very nature of the procurement profession, to ones that got the assembled minds thinking about the profession’s impact outside of the organisation, the response we received was amazing.

Buy Better, Buy Social

Peter Holbrook, CEO of Social Enterprise UK, introduced the assembled professionals to the ‘Buy Social Challenge’. The aim of the Challenge is to grow £1 billion of spend in the UK with social enterprises.

Peter argues that procurement needs to make supply chains much more transparent, as well as more socially and environmentally sustainable. By working with social enterprises, they can both do well, and do good, at the same time.

Catch up with all the delegates’ Big Ideas from the 2016 Summit at the Procurious Learning Hub.

Want to find out more about Big Ideas 2016? And maybe what we have planned for 2017? You can visit our dedicated website!

If you like this (and you haven’t done so already) join Procurious for free today. Get connected with over 18,500 like-minded procurement professionals from across the world.

5 Hot Topics on Social Media for Procurement Professionals

Social media makes it even easier to keep you finger on the pulse. But what topics are global procurement professionals discussing right now?

Procurement colleagues around the world are increasingly embracing social media to share their views, concerns, and (most importantly) their success stories. This sharing has the positive effect of broadcasting the value our function brings to any organisation.

As you know, social media runs rings around traditional media in terms of early access to news. We have access to unadulterated commentary from diverse sources, as well as an interactive forum for discussing, rather than just reading about, the biggest issues facing our profession.

From enduring topics such as risk management to disruptive events such as Brexit, this list will give you an idea of what’s keeping CPOs and their teams chatting on Procurious and other social media platforms.

1. Brexit and what it means for procurement

It takes a truly momentous event to catch the attention of procurement professionals all over the world. Brexit was one such event. It generated so many comments, articles and questions posted on social media, that it deserves top spot on this list.

ISM CEO Tom Derry told Procurious that his organisation received hundreds of queries about Brexit’s impact in the US. This prompted them to survey their members to cut through the speculation with hard facts.

Their supplemental “Brexit Report” found that despite the hype, Brexit will have a “negligible” impact on US business decisions in the short-term, with the main concern being currency fluctuations.

We’re still seeing a high level of chatter about Brexit and its potential impacts, but thanks to ISM’s leadership in this area, resulting business decisions in the US are more likely to be based on facts, not fear.

Other political events are also taking major prominence in conversations. However, we anticipate that Brexit will continue to hold everyone’s attention for many months to come.

2. Risk – Managing the unmanageable

Risk is one of those enduring topics in procurement that will never go away – and nor should it. Questions abound on the Procurious discussion board about measuring, managing and mitigating risk, all tapping into collective knowledge and experience.

The discussion board is simply buzzing with questions and answers about risk in procurement. We’ve had members getting their questions answered across a variety of topics, including:

  • Balancing supply chain efficiency versus risk;
  • Segmenting suppliers by risk profiles;
  • Governance and risk management;
  • Travel risk management;
  • Risk and resilience;
  • Avoiding “unknown” risks; and
  • Risk-mitigation KPIs.

The disturbing frequency of disruptive events such as natural disasters, labour strikes, cyber crime and brand-damaging scandals in the supply chain keeps risk firmly in the spotlight for procurement professionals in the US and elsewhere.

3. The e-procurement debate

Choosing the right e-procurement system to support your business’ objectives and targets is a big decision. It’s for this reason that a lot of procurement professionals reach out to their colleagues online for advice on this very topic.

Discussion boards regularly feature recommendations, warnings and also (we’re sorry to say) complaints about the various options available.

Recommendations have focused on the importance of going with a cloud-based system. We’ve also seen debate on whether having multiple “best-of-breed” systems is preferable to the convenience of a single, unified solution.

Procurious members regularly share their challenges around implementation, struggling with overly-complex functionality and looking for advice on winning stakeholder buy-in.

The big systems developers are becoming increasingly aware of the discussion going on online, and are jostling for social media users’ attention to win their business.

4. Capability and training

Hard skills, soft skills, core skills, essential skills…the list goes on. Capability is another of those enduring topics that will always feature in social media discussion in our profession.

Again, the burgeoning choices around what kind of training is required, and how it will be delivered, leads many people to ask for recommendations on social media. There’s plenty of discussion around which certification provider to go with, and also a steadily rising level of interest in eLearning options for procurement.

One question that frequently crops up on Procurious is “What are the most important skills needed in Procurement?”.

This demonstrates that we’re still debating this question as a professional community, despite the training providers out there who claim they have the definitive skill-set. There’s no ‘right’ answer, of course, as capabilities will always need to be tailored to circumstance and industry. But the frequency of this discussion really highlights that the skills needed to be successful in Procurement are in a constant state of evolution.

5. Social procurement

Corporate social responsibility, and the role procurement can play in building a sustainable future, has well and truly entered the mainstream and is now a significant part of every procurement professional’s role.

Social media users are sharing articles and discussions on the many aspects of social procurement, including:

  • Environmental sustainability;
  • Slavery;
  • Diversity; and
  • The role innovation can play in creating change in this area.

Social procurement is one of those topics that tend to be driven by champions such as Alis Sindbjerg-Hemmingsen. They quickly gain a following of like-minded people on social media, and come to be known as experts in their fields.

Hemmingsen is adamant that sustainable procurement is worth fighting for. She has argued passionately that it can be achieved through greater transparency to drive change, having regulators and first-movers showing the way with best-practice collaboration, and integrating sustainable supplier innovation.

Keep your finger on the pulse

Procurement leaders are using social media to stay ahead of the game when it comes to the latest thinking and development in the profession.

Perhaps the most exciting aspects of social media – which you can’t get from reading an article in a traditional industry publication – is the ability to ask a question and receive a solution from someone halfway across the country (or the world) who has experienced and overcome the same challenge as you.

Throwback Thursday – #suckit – The Art of Speechmaking

There’s an art to great speechmaking, and we can all take note how to improve. But could it also be the key to finding great talent?

I’ve just woken up in Los Angeles and am still in awe of Cate Blanchett’s amazing acceptance speech at last night’s Oscars.

No – I wasn’t in the audience (maybe next year!), but watching with a group of friends in our Art Deco hangout in Santa Monica. It felt a bit like watching the AFL Grand Final from an apartment in East Melbourne. The action was only metres away, but there you were, watching it on television like the rest of the world.

Cate’s speech was the demonstration of a well educated, articulate, thoughtful, and endearing individual. She came across as a true professional who was both confident and competent – a rare combination.

As far as I’m concerned, her speech ticked all the boxes. She used this once in a lifetime opportunity to talk to the world about the wealth of Australian talent, the important role of women in business, and her number one passion, the Sydney Theatre Company.

 

And, I’m sorry, I have always tried to avoid writing negative comments about specific individuals, but Cate provided a VERY stark contrast to the best male actor who…quite frankly…in his acceptance speech reinforced a lot of stereotypes about the acting world and Hollywood. Enough said!

Don’t Get Sticky Fingers

Now, I know there will probably be social media furore over her comment, “Julia, #suckit.” The background to which Blanchett is staying close-lipped.

It would seem Cate’s has proved correct an earlier, very clever quote from Julia Roberts regarding social media: “It’s like cotton candy. It looks so appealing, but then you just end up with sticky fingers”.

Wow!  What a great analogy – sticky fingers.  Really made me rethink my little personal journey on twitter, which you can read about in “Who gives a tweet?”.

Anyway, back to great speechmaking. While scrolling through my Twitter timeline to learn more about Cate’s big win, I stumbled across AFL Boss Andrew Demetriou’s 11 minute resignation speech.

OK, so it’s not everyday someone draws a link between Andrew Demetriou and Cate Blanchett! But in a matter of 24 hours, both these Australians made great leadership speeches that will help define their respective legacies.

Both speeches had the following in common –

  • Paid respect to their respective “codes”
  • Showed humility and empathy
  • Recognised where they had come from and those who had supported their journey
  • Sent a clear message about their passions/key communication points
  • Thanked their family

Because of their statesman-like, intelligent and heartfelt comments, they left their audience thinking even more highly of their respective professions.

Your Speechmaking Checklist

It’s not everyday that we mere mortals are called on to make landmark speeches, but the checklist above certainly gives us some good reminders as we walk through our professional lives.

So when that day arrives, and you’re in front of the camera, audience, or friends, will you be able to deliver a compelling summary of your contribution?

Here’s some thought starters:

  • As we interact with our team, do we show gratitude?
  • Are we investing our energy in those people who will be part of the winning team?
  • Will we have contributed in a material way to the development of our “code” or profession?
  • Have we supported our family as much as they have supported us?
  • Do we have a view, an opinion, or a passion that we are actively promoting to others as we interact daily?
  • Are we living and working by our values?
  • Are we showing empathy and humility?
  • And what about our team and others we have dealt with along the way?  Will they be our greatest advocates?

Speechmaking – The Key to Finding Talent?

But the importance of oration goes even further than our own ability to present professionally it would seem. It could just be the key to finding great young talent.

I’m always looking for great talent to help build my three businesses – The Faculty, The Source and Procurious. So, when I came across advice in Forbes on “how to find the Millennials who will lead your company,” I really took notice.

The author, Robert Sher, advised us to be on the lookout for Millennials (born between 1980 and 2000) who have had experience in speechmaking and debating.

He highlights that the world needs business executives that have a deep understanding of how to persuade, how to present clearly, and how to connect with an audience.

Sher notes that many professionals, “fall short when it comes to speaking and communications skills. Many are good at making Power Point slides, and some are good at presenting facts clearly—even recommendations clearly.

“But few practice, or are aware of the techniques behind moving the emotions of audiences; whether they be in a meeting, or in an all-hands gathering of hundreds of people. We all know that people spring to action based on emotions, then simply justify it with logic.”

Here is the truth about students who compete in speech and debate. They’ve spent hundreds of hours perfecting their speaking skills.  Many have done intensive research to write their speeches.

All have endured the pressure that competition brings. They have performed well intellectually under such pressure, and they’ve made connections and friendships with other high performing peers. All of these behaviours are excellent predictors of success on any leadership team.

Faster, Cheaper, Better – The Future of Logistics

As technology drives change in logistics, companies must meet increasing consumer demand. But what does it mean for traditional labour roles?

logistics

Logistics has never felt more fluid and subject to change. In this article, we’re going to look at the key factors driving all this change and then consider how technology will develop in the next 10-20 years. Then, in our second piece, we’ll consider how new business models will evolve before trying to draw some conclusions.

Faster, Cheaper, Better

Commercial interests have always demanded logistics move stock quickly, cheaply and in large quantities. Historically, transport improvements – from horses through to planes – answered this demand. But in the future, it will be the digital world that provides these answers.

The 21st Century customer is an unforgiving beast. However, while new shopping patterns are placing extra demand on logistics providers, they are also generating fresh opportunity. As end customers become more focused on flexible, fast and cheap solutions, logistics companies that optimise their digital usage are well-set to take advantage of weak competition at every stage of the supply chain, including retailers.

Technological advances, forecasting and new business models all offer glimpses of how these demands can be answered. There is even the possibility that much of the future supply chain will be autonomous and self-organised.

One thing for sure is that it will faster, cheaper and better – the customer won’t accept anything less.

Interconnected World, Interconnected Supply Chain

3D Printing

3D printing makes it possible to print exact working replicas of parts and products using metals, plastic, composite materials, and even human tissue. This can be done quickly, on demand and to a customer’s specification. This makes it a central technology in the development towards “batch size one” production.

It also means it will no longer be necessary to store large amounts of stock. Though it is possible there may be a counter-balancing increase in raw material storage.

In markets in which 3D printing is relevant (for example, spare parts), this has the potential to heavily disrupt logistics. And the best 3PLs will provide 3D printing services at the point of delivery to dovetail with other services.

Internet of Things (IoT)

The IoT is the developing ability for digital devices to communicate directly with each other across the internet. It’s estimated that by 2020, more than 50 billion objects will be “web-enabled”. And, if you consider that they will be able to “talk” to one another, the potential becomes clear.

Immediacy of communication can lead to many direct benefits. Creation of automated orders for domestic resources, lorry sensors informing maintenance schedules – all focused on improved speed, efficiency and cost.

From a customer perspective, the ability to track items through their RFID chips and via GPS will mean 100 per cent visibility across the whole delivery cycle. From a logistics perspective, one can also envisage other variables – such as location, temperature, pressure, humidity, etc. – being monitored throughout the supply chain for improved transportation efficiency.

However, the biggest single opportunity arguably comes from the unrivalled quantities of consumer data that will arise, feeding into forecasting and automated processing. For those who can embrace and take advantage of it, this goldmine of information is a very exciting prospect.

Automated Systems

Whilst the idea of automation can seem like something from science fiction, there’s no denying the groundswell of development this area has seen in the last 2-3 years.

Labour costs are always a critical element in any operating model. In logistics, the trade-off between quality of service and cost is central to success. Automation could re-write this equation by providing a faster and better service for less money.

Relatively simple loading and unloading systems are already available. But these will become more sophisticated as advances in optics and data processing mean forklifts can navigate autonomously in dynamic environments, and with less error than human drivers.

In addition, autonomous delivery is on the horizon. DHL and Amazon both plan to launch drones for last-mile deliveries. And the appetite for them is strong amongst manufacturers, retailers and customers.

Autonomous lorries are also a real possibility using the same optical and AI developments that underpin driverless forklifts.

Not only would driverless vehicles be cheaper – both in labour and fuel costs – they will also be safer and more predictable making them ideal tools for efficient supply chain management. Add to this the fact the whole transport industry is suffering from dramatic driver shortages, and it’s not a surprise this technology is very appealing to most industry segments.

Augmented Reality

Augmented reality (AR), overlays relevant information (such as sound, vision or tactile data) onto a user’s normal sensory input, generally via body suits/gloves, goggles or headphones.

Wearable devices are already available that offer a glimpse into the potential future of this technology. Smart phones, smart watches, and VR goggles all give indications of how additional relevant data can be communicated.

For example, stock control data (SKUs, pallet contents, BBEs, etc.) could be accessed without leaving the warehouse floor, displaying data for on-the-spot planning and organisation. And when incorporated into transport, it could offer intelligent last mile assistance (navigation, traffic information, etc.)

Essentially, AR enables greater collaboration between systems and workers. As such, all logistics companies need to consider how AR can ensure all the elements work well together.

Whither the Worker?

With more automation, traditional labour roles will diminish. As such, redefining the place of the human worker within a more technologically advanced environment, will be vital.

In some areas, we will see happy confluence, such as a diminishing driver workforce being superseded by automated delivery solutions. But elsewhere there will be less need for human skills, and an increased need for other skill sets that, historically, have not been required.

For example, automated pick and pack solutions make warehouse operatives less relevant. However, at the same time air and sea transport are both chronically understaffed, with no expectation that the industry demands will drop.

The onus will be on logistics companies to identify future HR needs and pay close attention to their recruitment. In addition to recruitment, the whole sector will need to become more proactive in training, encouraging transferable and future-proofed skills to ensure an engaged and productive work force.

Central will be the development of technically proficient workers. Low-skilled roles will diminish markedly and ICT-related knowledge will be vital.

Zupplychain employs algorithmic matching of customer’s search requirements to warehouse availability to show warehouse pricing, along with an automated and structured process to progress enquiries and a cloud based system to manage customer stock in provider’s warehouses.

What is the Future of Knowledge Management in Procurement?

Knowledge management is becoming critical for organisations as the current generation retires. So how can procurement leverage technology to ensure knowledge isn’t lost?

tree of knowledge management

Introducing Watson Supply Chain from IBM. Get to know Watson here.

“Knowledge is power,” proclaimed Francis Bacon, the English philosopher whose advocacy of the scientific method fuelled the scientific revolution. Centuries later, Dale Carnegie, the American philosopher and writer, and perhaps the father of corporate training, responded, “Knowledge isn’t power, until it is applied.”

Bacon’s and Carnegie’s time may have passed – our economies and businesses are exponentially more global and complex – yet, their words still ring true.

Trends Influencing Talent and Knowledge Management

For a global business, managing procurement essentially means tackling the enormous challenge of managing information and knowledge. Today’s complexities emanating from globalisation, dispersed workforces, and massive amounts of data make information and knowledge oversight critical.

Further, demographic and talent management trends make the issue even more pressing:

  • Key personnel are retiring

Baby boomers, the experienced core of procurement and supply chain teams, are retiring at a record pace. Replacing their knowledge and experience is a hefty task.

  • Replacements are inexperienced

The millennials who make up the bulk of new hires, although tech-savvy, often lack procurement and supply chain experience and knowledge. They also are hard to retain – averaging less than two years in their positions.

  • Teams are expanding

Procurement teams are expanding in line with the maturation of the profession and the greater, more strategic responsibilities and objectives put on procurement organisations.

  • Teams are dispersing

Further, with globalisation and growth, procurement teams are increasingly decentralised and located globally, making it harder to pass knowledge and expertise through day-to-day personal interactions.

Amidst these trends, how do you retain, build, and share procurement and institutional knowledge not just within the organisation – but across the globe and across systems?

Technology Trends and Evolution

This is all occurring at an interesting time from a technology standpoint. Procurement has seen technologies evolve over the past 20 years from point solutions, such as spend analysis and sourcing solutions, to suites that span the entire procure-to-pay and source to-pay process as well as the larger strategic supply management process.

This really has been an evolution focused on ever-greater automation and connectivity across the global procurement organisation. Increasingly, their goal is to centralise procurement and supplier data for the sake of efficiency and to get the entire enterprise on the same page.

It’s led to tremendous advances in sustainable savings, risk mitigation, and supplier management and innovation.

Now we’re at another technological inflection point. From the procurement point of view – and talent management point of view – it’s coming at an excellent time.

That next big evolution is cognitive solutions. Or, as it’s also popularly known, artificial intelligence.

The Emergence of Thinking Technologies

Cognitive technologies are now being regularly used by forward-thinking procurement organisations at Fortune 1000 companies to tackle specific tasks, such as assessing risks or profiling suppliers.

In the months and years to come, these cognitive technologies will be weaved into procurement and supply chain enterprise solutions. Cognitive technologies go beyond information management and process automation; they are solutions that can understand, reason, learn, and interact like a human.

They can analyse data, both structured and unstructured, from internal and external sources, at enormous scale and speed. This allows for deeper analysis and insights.

Cognitive technologies are an evolution of the first order. They are more in line with the advent of enterprise software, mobile phones, or the Internet, than the progression from point solutions to suites.

IDC estimates that, by 2020, 50 per cent of all business analytics software will incorporate some cognitive computing functionality.

Additionally, the Pew Research Center notes, “By 2025, artificial intelligence will be built into the algorithmic architecture of countless functions of business and communication, increasing relevance, reducing noise, increasing efficiency and reducing risk across everything from finding information to making transactions.”

How do cognitive technologies impact talent and knowledge management?

From a knowledge management perspective, cognitive solutions enable an organisation to retain institutional and supply chain information and experience. They offer the power to elevate personnel by providing thinking solutions that inform, speed, and improve day-to-day actions and decisions.

These solutions can extend or expand the knowledge of global personnel.

With cognitive technologies, knowledge sharing becomes automated. For example, a new millennial team member – in Mumbai, Shanghai, or Austin – can access the professional knowledge of a 20-year procurement veteran. Or a procurement professional who has worked his or her entire career in Boston can tap into specialised knowledge about markets, practices, and suppliers in Brazil.

Cognitive solutions provide personnel with deep insights and experience, collected over time, drawing from sources inside and outside the organisation. These technologies learn and operate by organisational preference – developing a “supplier playbook” – and can provide actionable recommendations to personnel. Further, cognitive technologies can foster collaboration across the company and with suppliers.

In sum, cognitive technologies elevate and empower both individual employees and the entire team.

Indeed, we’re amidst a knowledge revolution – where procurement personnel proactively advise the business, offering smarter insights, deeper analysis, and greater strategic value.

If knowledge is power, organisations are risking losing power if they don’t have effective knowledge management processes. But technology, such as IBM Watson Supply Chain can help retain this knowledge and pass it to the next generation. Find out all your need to know here.

6 Top Tips for Running a Successful Law Firm Panel Process

Running a panel tender for law firm services can be challenging and time-consuming. So what can procurement do to ensure they tick the right boxes?

panel tender law services

A panel tender process can be long and arduous for all parties involved. A recent survey said 42 per cent of law firm respondents spend over 15 hours on each tender, with 19 per cent spending over 20 hours.

Firms complete multiple tenders each month. When you think that most respondents are partner or director level, this adds significant additional cost to a law firm’s operations. This will, in turn, factor into increased costs for the client.

Any tender must be targeted and specific, and aim to get to the right result as quickly and efficiently as possible.

We have set out our top tips to ensure a successful panel process below:

  1. Agree a clear strategy

Whether it is procurement, in-house legal, or claims managers, who ever uses the legal services and, ultimately, whoever is involved in selecting the panel composition, need to agree the strategy for any panel review.

You should consider questions such as:

  • Are you looking to reduce firm numbers?
  • If yes, how will you manage conflicts?
  • Is the aim to reduce costs?
  • If yes, how do you plan to manage increases to ensure firms remain incentivised to provide the best possible advice (and lawyers)
  • If no, how do you plan to manage increases and ensure you are not overpaying?
  • Do you want to look at innovation and technology?
  • Are you focusing on AFA’s or hourly rates?
  • How long will you look to hold rates firm for?
  • How will you manage individual lawyer annual increases? (For example, as a lawyer goes from being 1 year post qualified to 2 years post qualified)
  • Managing exceptions to the panel – how will you do it? (For example, if you need to use a specific partner from another firm due to expertise)?
  • How will you manage historic matters and pricing – especially if a firm is removed from panel?
  • How will you factor in and measure historic performance?

You need to make sure you document this, ensuring everyone is clear on and signed-up to the approach.

  1. Full understanding of legal spend

This may sound straight forward but for most organisations it is not. Many organisations resort to asking their own panel firms to provide spend figures to allow for more accurate analysis of historic spend patterns.

Many organisations find that when they come to undertake a detailed analysis of spend, there are limitations on their data. For example, data might not detail fee earner level, or how many hours a firm works on any individual case.

Real data and real analysis allows for side-by-side comparison of law firms, with the ultimate goal being to obtain data that allows for some means of understanding both cost and performance.

  1. Stakeholder Engagement

Too often procurement teams drive panel review processes without real input from those who use the legal services. On the other side, in too many organisations GCs and in-house counsel run tender processes without valuable input from legal procurement specialists.

You are left in a position where many tender processes do not deliver on the strategy set at the outset as old alliances between in-house counsel and law firms remain, or procurement drive too hard for reduction of cost. Some organisations have a more cohesive and collaborative relationship between legal and procurement but these are in the minority.

A real attempt must be made to bring together a “core team” to run the legal tender process, who are bought into the overall strategy and work together to run the process.

  1. Sticking to the strategy

Often great strategies are set but ultimately decisions are taken on hourly rate reductions or past experience with a firm.

While neither of these reasons of themselves are incorrect, if your strategy was to reduce your panel, you need to look beyond relationships, and take tough decisions.

Too often, final panels can be decided upon, only for an unsuccessful firm’s senior partner to get on the telephone to a key decision maker asking that they be reappointed – and they are then reappointed. It is very common and hugely undermines the value of the whole process.

  1. Concise RFP

If all you are interested in is rates, do not draw up lengthy RFP documents. It is still quite shocking to read some RFPs. They require weeks of a law firm’s time and require a whole host of analysts to review the responses. And this doesn’t even consider senior management time to accurately digest responses and take decisions based upon them.

Be honest when setting your strategy. Experience dictates that while you genuinely believe the questions you ask will form the basis of the panel decision, there are only a few core drivers. These include: rate; geographic spread; expertise; and departmental spread (particularly if looking to consolidate your number of firms).

This sounds simple, and many companies believe they are adhering to this. Yet, time and again the examples we see are unnecessarily detailed and burdensome to both sides.

  1. Performance management

The linchpin for much of this is performance management. In our experience, most companies either overlook this entirely or invest very little resource into it. While they will invest a significant amount of internal time and money on a tender process, they then fail to monitor performance, or measure any element of it, during the tenure of the panel.

The next tender rolls around and they undertake the process armed with only rates and anecdotal information on a firm’s performance. Organisations need to focus on understanding what value a firm brings them. Are they getting the best service for the best price, whatever that may be? This involves investment of resources into understanding what value is for you and how to go about measuring it.

Stacey Coote is a Legal Procurement Expert and a Partner at Coote O’Grady, a specialist Legal Procurement Consultancy.

How to Hit a Target 10 Years Away – An Olympic Effort

How do you sustain your focus on a goal that’s 10 years away? One Olympic legend shares her story – how will you apply it to your career?

Australian Olympic legend Chloe Esposito trained 45 weeks a year for an incredible 10 years before the day she won gold in the Modern Pentathlon in Brazil. Chloe visited The Faculty CPO Roundtable National Meeting in Sydney to share her inspirational story with our members.

In case you missed it during the Olympic Games, here’s the incredible moment Chloe broke away from her competitors to cross the finish line in first place.

Chloe’s interview with The Faculty’s Sally Lansbury was packed full of life lessons, insights, and a strong message about persistence and resilience that can be applied to every career.

At what point of the event did you know you were going to win gold?

I only knew I was going to win after I put down the gun (in the final shooting event) and started to run for the finish line. I just bolted out of the shooting range – I didn’t know where the other competitors were, but I just focused on myself as that’s really all I could control. When I glanced back, I knew that I had it. It was such a pinch-me moment, and one that I’d trained for basically all of my life.

What exactly does the Modern Pentathlon involve?

It’s actually five events in one – fencing, swimming, show-jumping, shooting and running. They’re spaced over the day, and you start each event with a penalty depending on how you’ve performed in the previous event.

The challenge is to train across five different areas – my father (who is also my coach) and I have deliberately focused on my weakest area, fencing.

We moved to Budapest, Hungary, to concentrate on fencing. Budapest is like the boiler room of Modern Pentathlon. It’s right in the middle of Europe, with so many competitions and pentathletes there.

My favourite event would have to be horse riding. You only get 20 minutes with an unknown horse before the event, so there’s no point trying to train the horse in that time. You just spend those 20 minutes getting to know each other.

What do you think gave you your edge over the other athletes?

Putting in the extra 1 per cent. In Budapest we doubled the hours of all training. Whether it was pouring rain or snowing, I’d still train, no matter what. My family and I got to be known as the “Psycho Espositos” – our training schedule is nuts, but it gets results!

The other factor that gave me an edge is the incredibly supportive network around me. My dad, mum, brother and sister all got behind me to help me achieve a life-long dream.

How do you sustain focus on a goal that’s 10 years away?

The secret is to set up a series of short-term goals and focus entirely on those. These were smaller competitions, world cups and so on. If you try to think too far ahead, you’ll go crazy and you won’t get there.

You also need to have the flexibility to change your short-term goals as circumstances require. For example when I tore my Achilles tendon, we changed a lot of my goals to focus on recovery, mainly through spending more time in the pool.

What’s next, now that you’ve achieved such a major life goal?

Tokyo 2020! There’ll be huge pressure now that I’m a gold-medal winner, but I’m definitely going to give the Tokyo Olympics a go. In the meantime, I’m stepping into a completely new world to what I’m used to – speaking, presenting, television appearances. I’m starting to build another career for myself.

What life lessons have you learned through your Olympic journey?

I can think of five lessons that will take me right through my career:

  1. Hard work always pays off at the end of the day. When you’ve worked so hard, something good has to come out of it!
  2. The extra 1 per cent always pays off in the results.
  3. You’ll need huge determination to achieve your career goals.
  4. Don’t rush into things – the opportunity will eventually come.
  5. Give yourself some time off. I like to do something completely unrelated to training at least once a week, such as going to the beach.

Packed with value, The Faculty Roundtable gives member organisations access to cutting-edge thought leadership and commentators, a ready supply of valuable expertise through exclusive market intelligence, as well as networking and professional development opportunities for CPOs and their teams.

Please contact Sally Lansbury for more information.