All posts by Procurious HQ

3 Essential Ways to Motivate Staff and Improve Morale

Want to lead a happy and productive workforce? When it comes to improving staff morale, you need to focus on three key factors. 

Ollyy/Shutterstock.com

As a leader, you have several concerns and major responsibilities that all need your attention. This means you must be able to focus on the big picture: if you constantly have to look over the shoulders of your employees, it is going to be difficult for you to manage the larger matters that can affect the success of your organisation.

You may worry that employees will have trouble staying on task and meeting goals if you are not there to supervise. While keeping your team motivated is important, you don’t have the resources to hand out huge bonuses and you don’t want to try to rule your business through fear.

The answer to this problem is to build a culture of accountability: express the value of accountability and integrity in the workplace, have time to communicate with your employees, and make sure that you are giving regular performance reviews to let your employees know that you value their contributions.

Trust is Better Than Fear

Fear can seem like an effective tool for getting more out of your employees. It is common for some leaders to believe that they need employees to fear the potential outcome of a mistake. The problem is that fear does not build authentic motivation. The person is not performing because they want to, but rather in order to avoid an unfavorable reaction.

If you want to inspire true motivation, you need to build trust with your employees. Much of this trust building comes from open communication. In a survey of 1,000 US workers, 91 per cent said that communication issues can negatively impact the effectiveness of a leader. This includes things like not giving clear directions and not having time to meet with employees.

As a leader, you need to make sure there is time to communicate with your employees. Make sure they understand their responsibilities, ask them questions about their work, and encourage them to talk about their successes.

Set an Example

You want your employees to be responsible and to act with integrity, but these values have to come from the top. If leadership does not demonstrate these values in their work, it is going to be difficult to get employees to accept them as their own.

Furthermore, as a leader, you have to be willing to admit when you made a mistake. If something fails on your end, you can’t pass the blame onto those who work for you. If employees see their leaders are unwilling to hold themselves accountable, they are not going to accept responsibility either.

Promote the Positives

Since fear is not a good motivator, you should look to the positive side of work as a source of inspiration for your employees. According to a study from the Boston Consulting Group, appreciation for the work done is the top factor that affects employee happiness.

Let your employees know that you appreciate the work they do. You should even give compliments for minor accomplishments–employees perform better when they know they are appreciated. The simple act of showing recognition can increase happiness, motivation, and productivity in the workplace.

You don’t need to give out extravagant perks to motivate your employees. By promoting the right values and communicating with employees in the right way, you can motivate people without having to resort to punitive measures or handing out bonuses that you can’t afford.

Read more on 15Five

This article was written by Rae Steinbach. Rae is a graduate of Tufts University with a combined International Relations and Chinese degree. After spending time living and working abroad in China, she returned to NYC to pursue her career and continue curating quality content. 

Four Essential Capabilities For Your Procurement 2020 Roadmap

Procurement 2020 will look a little different with new skills, knowledge and tools to address entirely new challenges.

Procurement has seen rapid change in a relatively short span, the value creation of this function has increased multi fold becoming more strategic, collaborative and technology driven. This momentum is expected to continue and quicken in the coming years. Procurement will emerge in the forefront as an important and integral function of an enterprise.

The Hackett Group’s research showed that 85 per cent of the procurement organisation believe that digital transformation will change the way they deliver services over the next 3 -5 years. To stay competitive, procurement needs to embrace disruptive effects of technological innovation in conjunction with organisation which is lean, agile and responsive to stakeholders and suppliers.

It is imperative for the procurement function to develop journey roadmap on four essential capabilities that are vital for future – Digital Transformation, Supplier Relationship, Stakeholder Engagement and Talent. The first step in this journey will be to fully understand how the procurement landscape is shifting.

Procurement in 2020 will look very different with new skills, knowledge and tools to address entirely new challenges. Organisations that fail to embrace new procurement models may fall behind the competition, jeopardising overall competitiveness and viability.

Digital Transformation

Procurement is effectively positioned to join the Digital revolution. It can offer a radically different value proposition to the organisation as Robotics Process Automation, cloud based applications, Big Data analytics, Artificial Intelligence and Mobile Computing begin to converge. These smart tools will improve service delivery, reduce errors and free procurement staff for higher value work.

Technology provides dual track opportunities to support ‘upstream’ or Source to Contract (S2C) and ‘downstream’ or Procure to Pay (P2P) which predominately consists of operational, repetitive and transactional activities.

Technologies like Artificial Intelligence, Crowd Sourcing, Live Digital Dashboards can be effectively used for decision making accurately and with speed to support ‘upstream’ while Robotics Process Automation is widely used to drive efficiency and effectiveness ‘downstream’.

Robots interact with different IT applications to enable transaction processing, data manipulations and communication across multiple IT systems. In effect, multiple Robots can act as virtual workforce to process operational and transactional activities. This could allow CPOs’ to rebalance their functions upstream and reducing the focus on downstream activities.

Supplier Relationship

With the advent of technology, the organisations have started to realise the growing importance of suppliers in terms of innovation, security of supplies, corporate social responsibilities, risk mitigation and cost savings. Strategic partnership will be at the top of the corporate agenda and Supplier Relationship Management will be seen as significant differentiator.

Supplier Relationship Management is systematic approach for developing and managing partnership. It is focused on joint growth and value creation with limited number of suppliers based on trust, open communication, empathy and win – win orientation.

The 4C’s model will govern the future of Supplier Relationship Management – Capabilities, Continuous Growth, Customer of Choice and Creating value.

The speed of business continues to accelerate, market expectations are higher, product life cycles are shorter, turnaround times are faster and the risks are wider and deeper. Clearly organisations rely on suppliers to bring innovative and new products to their markets.

Essentially procurement will have sound understanding of supplier market across the world and be able to link their potentials and limitations. Demands on procurement to become more business oriented, more mature and integrated in its ways of working. All of these reinforces the need to re-invent robust supplier relationship management.

Suppliers are increasingly being looked upon as trusted business partners and engaging early and ensuring all parties are on track will propel procurement organisation to  greater heights.

Business Stakeholders

Procurement has been rapidly evolving to keep pace with the changing trends.  The procurement profession has made significant leads moving from price management to category management and in the future it becomes very clear that procurement will move from category management into value creation.

Becoming a trusted business advisor is a long drawn process and time consuming, it varies from person to person. The individual has to not only understand stakeholder needs but go beyond to understand the breadth of business challenges and develop deep personal relationship.

Most stakeholder relationships are at service provider and enhanced service provider level providing answers, sharing expertise and resolving business related problems. Relationship with stakeholders are usually good at a business level but have no real depth at a person level.

The challenge seen by many procurement professionals is to move from been seen as just a service provider into being recognized by stakeholders as a trusted advisor

Elevation to consultant requires more insights and ideas into the stakeholder organisation on broader business issues and also building a stronger personal relationship. This level of relationship could be achieved through focus, time and effort.

Few people achieve the trusted advisor relationship, where there is a comprehensive understanding of all the stakeholder needs and they look up and reach out as first person to help them tackle the difficult issues they are facing.

As the procurement function changes, it will need people with new skills. Apart from being comfortable with data, future procurement professionals will need to be prepared to lead rather than simply serve their business.

CPO’s should fundamentally rethink regarding their organisation and capabilities both of which needs to be reshaped over time. Companies have to create new job profiles such as buyer for new categories, contract experts on intellectual property or Data scientist for data maintenance, analysis and mining. Only if the procurement personnel are digitally capable can a company fully benefit from opportunities provided through digitalisation.

Procurement functions must follow Seven fundamental steps to manage Talent – Plan, Attract, Recruit, Assess, Develop and Retain.

The team must be digital savvy, ability to collaborate and build relationship with internal stakeholders as well as suppliers from diverse array of geographic and cultural backgrounds.

Negotiation skills and market insight will continue to be the fundamental skills but TCO across product lifecycle, cost structure analysis and game theory will emerge highly important skills in this field.

The professional credentials will be measured by their ability to influence, persuade, and provide vision, the mind set must be strategic, global, collaborative and above all commercial.

Conclusion

Shifting the procurement team from being tactically devoted to strategically focused can be a long journey for a company. But this journey can literally make the difference between company’s definite success or failure. There are still several actions to be tackled in order for procurement to gain deep business insight, react quickly to the changing needs, drive higher overall value and greater stakeholder satisfaction. Investing in activities to elevate the role of procurement within an organisation, moving beyond the traditional role of gate keeper and cost hunter will definitely bring added value to the organisation.

Procurement in Twenty 20 will mean developing new value propositions, meeting new business needs, and integrating data across functions. It will call for using data pro-actively and intelligently. Perhaps more important, it will require fundamental reshape of procurement organisation and its capabilities to take on new challenges.

This article was written by Kumaralingam MC, Director, Global Procurement Centers – IBM. It was orginally published on Shared Services Forum. 

From Cannonballs to Mobile Apps: The Fight Against Modern Slavery

Disney, Walmart and other big players have partnered with Humanity United to launch Working Capital, a $23 million early-stage venture fund aimed at creating scalable, ethical supply chain innovations.

Image: Royal Navy Brig “Acorn” chasing a slaver vessel in 1841, by Montague Dawson.

In 1808, the Royal Navy established the Preventative Squadron, tasked with suppressing the Atlantic slave trade by patrolling the coast of West Africa. By 1860 the Squadron had captured 1,600 slave ships and freed 150,000 Africans. In the meantime, America fought a long and bloody civil war before the Emancipation Proclamation could finally be enforced through all regions.

Abolition in the 19th century – in the very simplest terms – was driven firstly by a change in the law, then enforced with the barrel of a British frigate’s cannon or a Union Army soldier’s rifled musket.

In today’s fight against modern slavery, we’re seeing a new wave of legislation, including the UN Global Compact, the UK’s Modern Slavery Act, France’s Duty of Vigilance law, Holland’s Child Labour Due Diligence law, and similar legislation being considered in Switzerland and Australia. Yet, as we know, the insidious nature of modern slavery means the perpetrators are considerably more difficult to identify than they were 200 years ago. That’s why modern slavers must be fought not with guns, but with tech solutions that remove their sources of income.      

Big names behind venture launch

Working Capital was launched by Humanity United last week with the goal of “accelerating supply chain innovations to enable corporations to operate more transparently and ethically around the world”. The launch made headlines due to the leading brands that are on-board with Working Capital, including: Walmart Foundation, C&A Foundation, Stardust Equity, Open Society Foundations (Soros Economic Development Fund), The Ray and Dagmar Dolby Family Fund, and The Walt Disney Company. The fund also received £2.5 million in sidecar grant funding from the UK’s Department for International Development.

Ed Marcum, Managing Director at Working Capital, said in a statement that “There is a growing market demand for more transparent and responsible corporate supply chains. We see an opportunity to invest in emerging solutions that will meet the demands of large multinational corporations while also benefiting millions of vulnerable workers.”

A press release from Humanity United says the fund focuses on product traceability, worker engagement, sourcing platforms, risk assessment, and ethical recruiting tools by investing in emerging technologies such as blockchain, machine learning, artificial intelligence, digital identity and Internet of Things (IoT) solutions. 

Two tech platforms that are about to be scaled up

 At present, Working Capital’s portfolio of slavery-fighting tech solutions lists two organisations:

Provenance: Described as “Fairtrade on the Blockchain”, Provenance is a technology platform that uses blockchain to enable brands, suppliers, and stakeholders to trace products along their journey from producer to consumer.

Ulula: A software and data analytics platform that allows organizations to engage with workers in real time to measure and monitor labour-related risks, creating more responsible global supply chains.

Watch this space

As companies such as Provenance and Ulula use this cash injection to maximise their impact, be prepared for the appearance of anti-slavery plug-ins to existing systems or even mobile Apps that rate and lock-out the use of risky suppliers.

While 19th century slavery was fought on the battlefields and on the high seas, the 21st-century frontline exists on the smartphones of procurement professionals around the globe. 


In other Procurement news this week:

 Germany’s biggest trade union strikes

  • About 260 companies were affected by thousands of striking metal and engineering workers in Germany last week.
  • The IG Metall union wants an 8% pay rise and reduced hours on full-time pay to enable workers to care for children or elderly or sick relatives. The IG Metall union has 3.9 million members.
  • The companies involved are currently willing to negotiate on pay not on reduced hours.

Read more: https://www.reuters.com/article/us-germany-wages/german-industrial-workers-start-24-hour-strikes-in-row-over-pay-hours-idUSKBN1FK0GA

 

Bananas threatened with extinction as history repeats itself

  • The Cavendish, the world’s most popular type of banana, is facing extinction as a fungus known as the Panama Disease takes hold.
  • The first strain of Panama disease, known as Race One, wiped out the Gros Michel banana in the 1950s, previously the world’s most popular banana.
  • The current strain (Race Four) now attacks Cavendish and other cultivars. 47% of bananas grown worldwide are Cavendish, with 55 million tonnes grown per year.

Read more: http://www.bbc.com/news/uk-england-35131751

 

Facebook reports more active users, less time spent on site

  • Users spent approximately 5% less time on Facebook, which translates to around 50 million hours a day, from October to December 2017.
  • Facebook’s Mark Zuckerberg commented that the priority was encouraging more personal interaction among users. Active users rose 14% to 2.13 billion people in the same three months.
  • Facebook’s annual advertising revenues jumped 47% to over $40 billion, while profits jumped 56% to $16 billion. Despite these figures, the company is adjusting its News Feed to prioritise posts from friends and family and make sponsored content less prominent.

Read more: http://www.bbc.com/news/business-42893051

What’s Coming To Procurious in 2018

What’s around the corner in 2018…? There’s a whole host of exclusive procurement content and events for you to get your teeth stuck into!

CREATISTA/Shutterstock.com

The Procurious community, at 26,000+ members,  is growing faster and providing better networking opportunites than ever before.

To keep pace with our growing membership, we’ve planned out the most exciting year yet on Procurious. From our now-famous global Big Ideas Summit series; to procurement webinars; Career Boot Camp 2018 and this year’s Gen NEXT survey, we can guarantee there’s something for everyone.

So make yourself a cuppa, open up your online calendar and let’s get some dates in the diary!

#FeeltheLove Webinar

On the 14th February 2018 – 3pm GMT/ 10am EST – we present #FeeltheLove.

NEWSFLASH: Being world-class today doesn’t mean being the best in the world. It means helping the world run better.

In 2018, you should be working beyond cost savings and process efficiencies. You should be committed to making a positive impact on the communities in which you operate by eradicating slave labour, creating ethical and sustainable supply chains and levelling the playing field for all.

Thanks to the awesome power of social media and our interconnected world it’s easier than ever before to make that happen. But the challenge procurement pros still face is kick-starting, and measuring the impact of, their purpose-led work.

This Valentine’s Day, SAP Ariba and Procurious will present #FeeltheLove – the first Procure with Purpose webinar.

Sign up for #FeeltheLove here. 

Conducting a Cognitive Symphony – Podcast Series

From 26th February, Procurious present a new five-part podcast series – Conducting a Cogntivie Symphony – sponsored by IBM.

There are many factors that require careful consideration to bring about effective, scalable and sustainable analytics and cognitive solutions. Intelligence is the conversion and enrichment of data into meaningful business insights. It is a little like an orchestra: you can get good sound from one instrument, but correctly managed, you get a symphony from the entire orchestra.

Marco Romano Procurement Chief Analytics Officer, Global Procurement, Transformation Technology, IBM; Anna Madarasz Analytics & Cognitive Lead IBM Global Procurement and Peter Hrabovski Analytics and Automation Lead, IBM Global Procurement will guide you through the steps required to conduct a dazzling cognitive symphony!

Stay tuned for sign up details later this month.

Big Ideas Summits 2018

The Big Ideas Summit is the world’s first digitally-led procurement event. With a global reputation as the most innovative leadership event for the profession, Big Ideas 2018 once again promises to light up social media, spark vigorous discussions and crowd-source ideas for the future of the profession.

The Summit is an interactive, online event where up to 50 senior executives, industry thought-leaders and CPOs come together to connect with digital delegates from across the globe via our social media platform to discuss and test strategies and solutions for real world change.

2018 will once again see the Big Ideas Summit go global, with events in London, Sydney, Chicago and Munich.

Attendees and digital delegates will be joining a community of 26,000+ procurement professionals from 140+ countries to connect, learn, discuss and innovate together.

Big Ideas Summit London 2018 26th April 2018

This year, we’ve assembled some of the most energising and fascinating speakers: from IBM’s CPO to a Chicago-based Futurist and a former Las Vegas Poker Extraordinaire – it’s certainly one procurement event you won’t want to miss!

This year, our Big Thinkers will tackle:

  • Engineering Serendipity: Workplace of the Future
  • Understanding Risk, Reward and ROI
  • AI: How your human touch will win the day
  • Why Design Eats Discipline for Breakfast
  • Procure with Purpose: The power in your hands

We are also hosting:

  • Big Ideas Summit Chicago 2018 27th September
  • Big Ideas Summit Sydney 2018 30th October
  • Big Ideas Summit Munich 2018 29th November 

Find out more here  or email Olga Luscombe via [email protected] to request an invitation to London. 

London CPO Roundtables

Following our very successful Big Ideas Summits in London and Chicago, Procurious are hosting a series of London CPO roundtables. These provide a more intimate setting for our attendees to get to know their peers through working sessions and the chance to hear from some inspiring speakers.

Wednesday 7th February – Sponsored by Basware

At next week’s event we’ll be joined by Charlie Wigglesworth –Deputy CEO, Social Enterprise UK; Elizabeth Linder – Founder & CEO, The Conversational Century; Paul Clayton – Head of New Service Development, Basware and Jonathan Harvey – Global Head of Talent & Culture, Barclays PLC.

We will, of course, be reporting on the day’s dicussions for the Procurious blog but if you’re a CPO and would like to attend in person please contact Olga Luscombe via [email protected] to request an invitation

Interested in joining but can’t make it on the 7th? We’re also holding CPO roundtables on 30th May, 19 th September and 14th November –  email Olga Luscombe via [email protected] to request an invite.

Career Boot Camp 2018

Career Boot Camp  is a global professional development event for procurement and supply chain professionals. Each year the series, features five, fifteen-minute podcasts,  designed to help the most ambitious professionals put their career fitness first and upgrade their skill-sets.

It’s an opportunity to hear from the brightest and the best in the industry in a format that is FREE and easily accessible; on the go or in the workplace, providing answers to the most common procurement questions you’re desperate to have answered!

The 2018 series will kick off in September.

Stay tuned for more information and check out the full series  from 2017 here. 

Gen Next Survey 2018

When Procurious put out a call in 2017  for procurement survey participants, we were delighted that 500+ professionals across more than 50 countries shared their insights and wisdom.

The results revealed some fascinating information about the current climate in procurement and the attitudes of professionals working within the function.

We discovered that:

  • 55 per cent of procurement professionals either don’t hold memberships in professional associations or do not regard membership as benefiicial to their career development
  • Over half of those surveyed don’t trust their boss to be proactive about their career progression
  • 77 per cent of global procurement professionals have never crowd-sourced a solution to a business challenge on social media
  • 48 per cent of professionals intend to move on from their current role within two years

We’ll be launching the survey and Gen NEXT report again in 2018 and we want YOU to be involved. Stay tuned for more information and.

In the meantime email us to request your copy of the 2017 report – packed with data, insights, recommendations, and links to over 20+ Procurious articles that further explore many of the findings that are raised in the report.

Can You #FeeltheLove This Valentine’s Day…?

As a procurement professional, cutting costs is the very least you can do! Procure with purpose and start driving change world-wide…

tomertu/Shutterstock.com

Our webinar,  Feel The Love takes place at 3pm GMT /10am EST  on 14th February 2018. Register your attendance for FREE here. 

NEWSFLASH: Being world-class today doesn’t mean being the best in the world. It means helping the world run better.

In 2018, you should be working beyond cost savings and process efficiencies. You should be committed to making a positive impact on the communities in which you operate by eradicating slave labor, creating ethical and sustainable supply chains and levelling the playing field for all.

Thanks to the awesome power of social media and our interconnected world it’s easier than ever before to make that happen. But the challenge procurement pros still face is kick-starting, and measuring the impact of, their purpose-led work.

This Valentine’s Day, SAP Ariba and Procurious present #FeeltheLove – the first Procure with Purpose webinar.

What can I expect from the Feel the Love webinar?

We’ll be discussing…

  • What is Procuring with Purpose?
  • Why should professionals care about purpose-led procurement?
  • What are the small things that you can do immediately to drive big outcomes?
  • How do you measure and report social impact to the CFO?
  • The procurement teams who are already getting it right!
  • How can businesses ensure that economic growth is always accompanied by a respect for human rights?
  • Our vision for using the power of social media to drive purpose-led procurement around the world

Who are the guest speakers?

Tania Seary – Founder, Procurious

A true procurement entrepreneur, Tania is the Founding Chairman of Procurious, The Faculty and The Source. Throughout her career, Tania has been wholly committed to raising the profile of the procurement profession and connecting its leaders.

After finishing her MBA at Pennsylvania State University, Tania became one of Alcoa’s first global commodity managers.

In 2016, Tania was recognised by IBM as a #NewWaytoEngage Futurist and named “Influencer of the Year” by Supply Chain Dive. She hosts regular procurement webinars, and presents at high-profile events around the world.

Pat McCarthy – SVP and GM, SAP Ariba North America

As head of SAP Ariba’s North American business, Pat McCarthy is responsible for driving sales performance, the go-to-market strategy and overall operations of the field organization across the U.S. and Canada.Since joining SAP in 2005, he has held a number of executive roles successfully leading Net New, Mobility, and Database &Technology teams throughout the U.S.

Immediately prior to his current post, Pat served as chief operating officer for the Midwest region of the U.S., overseeing the consistent execution of sales strategies, operations and the region’s go-to-market initiatives.

Pat graduated from Elmhurst College, sits on the board of Chicago Tech Academy, a charter non-profit for Chicago high school students, and supports global charitable endeavours through Kiva.

Nicole Verkindt – Founder and CEO, The OMX

Nicole Verkindt is the Founder & CEO of Canadian technology company, OMX (theomx.com).

She is passionate about the role that data and networks can play in connecting diverse supply chains and analysing and improving the exact impacts from procurements.

The platform is the only one in the world that manages obligations companies have to invest in local businesses. OMX is an online marketplace to help companies diversify their procurement by providing opportunities through the platform that smartly matches to suppliers.

Nicole is a commentator on CBC and columnist for Vanguard magazine focusing on technology and business news and was a “Dragon” on Next Gen Dragon’s Den, which is dedicated to early stage technology businesses. She was named Canada’s national woman entrepreneur of the year in 2017.

Peter Holbrook – CEO, Social Enterprise UK 

Peter Holbrook became CEO of Social Enterprise UK in January 2010.

Social Enterprise UK is the national trade body for social enterprise and represents a wide range of social enterprises, regional and national support networks and other related organisations. SEUK works to promote social enterprise as a model for changing both business and society.

Peter has established, developed and supported hundreds of diverse social enterprises over his career. He has advised government taskforces in the UK and overseas and chaired the Social Enterprise World Forum, the global network of social businesses until 2015.

Peter has previously worked for Oxfam, Greenpeace and various disability charities. He has experience of working in overseas development, community development and public health. Peter started his career with Marks and Spencer PLC and also spent several years with Body Shop International

He was appointed a CBE in 2015.

How do I register for the webinar?

Joining the Procure With Purpose movement and registering for our webinar couldn’t be easier (and, of course, it’s FREE!)

Click here to enter your details and confirm your attendance. We’ll send you a email with a link to the webinar platform in the run up to the event.

I’m already a member of Procurious, do I still need to register?

Yes! If you are already a member of Procurious you must still enroll to access the webinar. We’ll send you a email with a link to the webinar platform in the run up to the event.

When is it taking place?

The webinar will take place at 3pm GMT /10am EST on14th February 2018.

Help! I can’t make it to the live-stream

No problem! If you can’t make the live-stream you can catch up whenever it suits you. We’ll be making it available on Procurious soon after the event (and will be sure to send you a link) so you can listen at your leisure!

Can I ask a question?

If you’d like to ask one of our speakers a question please submit it  via the Discussion Board on Procurious and we’ll do our very best to ensure it gets answered for you.

Commit to Procure with Purpose

Procure with Purpose is a movement. A coalition of committed, energised procurement professionals who want to deliver value beyond cost savings and efficiencies.

Through the Procure with Purpose campaign, we’ll shine a light on the biggest issues –from Modern Slavery; to Minority Owned Business; and from Social Enterprises; to Environmental Sustainability–and on you –our members -who are already driving exponential change.

How do I get involved ?

To stake your place, simply sign up here. It’s FREE to join –you just need to be passionate and ready to lead with purpose! When you sign up for the #FeeltheLove webinar, you’ll be automatically registered for the Procure with Purpose group on Procurious and all of our related, online events.

Our webinar,  Feel The Love takes place at 3pm GMT / 10am EST on 14th February 2018. Register your attendance for FREE here. 

Flashback Friday – Can You Make Procurement Decisions Under Fire?

Are you struggling to lead or motivate your team through difficult times and under extreme pressure? We’ve got some top advice from someone who knows a thing or two about making decisions in extreme conditions…

Przemek Tokar/Shutterstock.com

Andy Stumpf spoke at the Chicago Big Ideas Summit 2017. Read more about our upcoming event  – The London Big Ideas Summit – on 26th April 2018 and find out how you can get involved. 

“There are only two types of leadership.” begins Andy Stumpf “good (effective) and bad (ineffective).”

In today’s world, senior managers often struggle to effectively  respond and adapt to change. But the world is full of change and it’s crucial that our procurement leaders are flexible enoughto respond to the unexpected, to “read the tea leaves and meet the challenges of the real world.”

Andy  began his U.S. military career at the age of 17, transitioning from the position of an enlisted soldier, to an officer, and then,  in 2002,  he joined the most elite counter terrorism unit in the military; SEAL Team Six.

The unit, which is tasked with conducting the nation’s most critical missions, has become the inspiration for a number of Hollywood movies and books.

If you ever needed a man who knows how to plan for and adapt to change, Andy Stumpf is your guy! He’s strategised and executed hundreds of combat operations throughout the world in support of the Global War on Terror.

At Procurious’ Chicago Big Ideas Summit, Andy will draw on his wealth of leadership experience to talk about the intersections between business and combat, decision-making and empowering procurement teams.

Building the greatest leaders

“Business and combat are defined by their similarities, not differences and the theories of successful military leadership and successful business leadership are identical” Andy believes. It’s possible to apply the same principles and philosophy to your procurement teams because it’s really only the arena that differs.

“60 per cent of the time, organisations want me to talk about leadership. In fact, the definition is always the same. What can change is the way in which you approach leadership.”

So, how do the military build strong and competent leaders?

“Leadership is about empowering your people. From day one in the military we are taught, and it is enforced, that in the absence of leadership you must stand up and take control.

“Instead of creating individuals that think reactively in nature, we instead create individuals that think proactively.  You don’t have to be in a leadership position now to think two or three steps ahead.  In doing so, when a decision presents itself you’ll already have an answer for it.”

Does Andy believe these skills can be taught or are natural leaders exactly that?

“neither successful teams or leaders occur by accident, these are skills that must be learned, practiced, and refined. Navy SEALs are successful because of how we select, train, and lead our teams.

“Nothing in that process happens accidentally, everything is calculated. We demand leadership and accountability from each individual starting from the first day of training. We prioritise the individuals to our left and right, and the goal of our team over personal success. This philosophy is diametrically opposed to what is often found in society, and requires a structured approach and prioritisation from leaders to be successful.”

And Andy has some strong words of advice for any over-confident leaders out there. “The 1st leadership principle within the SEAL Team is ego; if you have a massive ego you’re more concerned that your ideas and strategy is being used as opposed to striving for success of the team. You can’t meet the challenges of the real world this way!”

Plan, plan and plan some more!

“We plan for everthing in the navy. We often say that if you want to shut down the military, you simply need to shut down powerpoint!

“Every stage of a plan gets one slide and there might be between five and seven slides on the ‘what-ifs’, the contingencies. Where will we land this helicopter? Where is the nearest location for medical treatment and what alternate options do we have?” When, as Andy points out, precisely 0 per cent of planning goes as expected, contingencies are everything!

“You make primary, secondary and tertiary plans because you don’t want to have make snap decisions in a crisis. You need to be able to fall back on stable procedures”

And of course, it can’t hurt that contingency planning makes you look like something of a genius! “It’s really hard to make difficult decisions in a crisis because you’re in a time compressed environment and you may have people’s lives depending on you.  We plan for 24 -72 hours and there are 5 phases per plan. Each phase has 5-7 ‘what if‘ contingency plans because, at the end of the day, you don’t want to make decisions in a crisis, you want to be able to draw on a branch diagram.

“It’s the contingency planning especially in the SEAL teams that makes the difference between success and failure in moments of crisis.”

What can our procurement teams learn from this? Spend a lot more time planning, for starters! But Andy also reinforces the value in having baseline standards to fall back upon. “Businesses should always fall back on standard procedures so people can come together, with a clear knowledge of the protocol. This is especially crucial when you’re working under restrictive time constraints.”

Andy’s final words of advice? “Don’t get attached to your plan -get attached to success!”

Andy Stumpf spoke at the Chicago Big Ideas Summit 2017. Read more about our upcoming event  – The London Big Ideas Summit – on 26th April 2018 and find out how you can get involved. 

Do We Still Care About Professional Associations?

Do procurement professionals across the globe still see the value in professionals associations? And, if not, what can these associations do to regain their appeal?

When Procurious put out a call for procurement survey participants, we were delighted when 500+ professionals across more than 50 countries shared their insights and wisdom.

We’ve investigated the finding that 54 per cent of procurement professionals don’t trust their boss and interviewed a number of global CPOs to find out why this figure is so alarmingly high.

We also asked them why it is that procurement staff are moving on from their current roles so quickly and how leaders can cope with this erratic workplace dynamic.

And thirdly, we looked at the scepticism the profession still feels towards social media – 77 per cent of global procurement professionals have never crowd-sourced a solution to a business challenge on social media.

Our final deep-dive into the survey’s results looks at the stat that 55 per cent of procurement professionals either don’t hold memberships in professional associations or do not regard membership as benefiicial to their career development.

This result would suggest that professional bodies need to re-group and reform in order to stay relevant in today’s world…

The Results Explained By Global CPOs

At The Big Ideas Summits in Chicago and Melbourne earlier this year we revealed the results of the survey to our CPO delegates.

In this video we ask what professional associations can do to maintain relevance and membership growth. Is there still a place for these organisations?

Have today’s procurement leaders benefitted from professional association memberships?

Many of the people  we interviewed admitted to placing a lot of value in professional associations, citing them as one of the key secrets to their success.

Tony C. Astorga, Supply Chain Management Consultant described his career path and explained  “I set my goals upon  what do I need to learn to be more successful and provide greater contributions to my company. I think through certifications, memberships allow us to have those tools to be able to grow.

Josh Teperman, Senior Consultant, The Source Recruitment “A membership organisation is going to have value. It gives you access to a community of people who are all thinking about what does the future of procurement look like. If you want to stay relevant you want to be part of a reall good  membership organisation where people are talking about the future leaders in procurement, what the technologies are going to look like,  what the macro economic and politial trends are that are goint to affect procurement. So there’s certainly a lot of benefit to be had in being part of those organisations.”

So what should professional associations do to up their game…?

1. Communicate their value

“I think the challenge here for organisations is helping people understand how to maximise the benefits” argues Alan Paul, SourceIt CEO. Of course, if  prospective members, don’t see the potential benefits of a membership – they simply won’t join.

Michelle Varble, Procurement Director, United Airlines concedes stating “I do think they need to reinvent their service offerings. But having said that I think these organisations need to focus on how they market themselves. We need to move past the idea that we have an affiliation with them and move to an area where we see them as resources.”

2. Stay relevant

“I am a member of an organisation in Australia. I would have to say it has not been very relevant to me,” says Jane Falconer. ” The generations coming through universities now will have to find different ways of commuting and embrace social media in its most modern form. If we use existing means it’s not going to work.”

Anne Berens, Principal AMB ProCures LLC agrees stating  “Organisations need to remain relevant. There are so many things that organisations offer whether its education or networking or develoment or futurisitc thinking that it’s important to not try to be everything to everyone. I think then it gets spread a little bit thin- be very focussed on what your mission is and allow the customers be discerning and select what’s appropriate.”

3. Be “on topic”

John Foody General Manager Procurement, U.S Steel believes that “Organisations have to be topical. Sometimes at the local level the meetings, the challenges, the issues aren’t topical to our people so the ability to address issues that are relevant in the moment and tie it up with that membership is the challenge that any organisation faces”

Keith Bird, Managing Director, The Faculty  shares this view arguing that “As long as you invite a membsership that adds value to the CPO, the CPO’s direct reports and the team overall that can bring the global insights to you then I think it’s worthwhile.”

Request your copy of the Gen NEXT Report

The Gen NEXT report, exclusively available to Procurious members, is packed with data, insights, recommendations, and links to over 20+ Procurious articles that further explore many of the findings that are raised in the report. Email us to request your copy. 

Dude, Where’s My 3D-Printed Car?

3D printers have been around for 30 years, yet the prediction of “one in every household” has not yet come to pass. When will this technology really hit the mainstream, and how will it impact our careers in procurement?  

For those of us keeping an eye on the coming megatrends that will impact the procurement profession, the list of technological disruptions is a familiar one. Big data, cognitive technology, cybersecurity and blockchain are frequently included in “what’s next” articles, but here’s the thing – rather than being futuristic ideas that are 5 to 10 years away, all of these technologies are already here. What’s lacking is our ability to unlock the full (and vast) potential of these disruptive forces.

This concept holds true for another frequent inclusion in this list – 3D printing.

3D printing is still regarded as a futuristic technology despite the first additive manufacturing equipment being developed in the 1980s. The 30-year technology is seen as revolutionary even today because it is constantly evolving, and has not yet realised anywhere near its full potential. Every year we hear of innovative companies utilising 3D printing to produce cars, trucks, aircraft, clothing, firearms, and even body parts, yet these advances still tend to be reported as the “experimentation” rather than a new way of doing things.

When will we know that 3D printing has truly arrived? Perhaps it will be the day that you can walk into the showroom of an average car dealer and be told that 90% of the cars for sale are 3D printed. Or maybe when it becomes normal practice to go online to build a custom pair of sneakers that are 3D printed and delivered to your door. Or when organised crime catches on to the potential of 3D tech to print unheard-of amounts of firearms, counterfeit products, and drugs.

Meanwhile, keep an eye on the innovators who are helping push 3D printing ever-closer to the mainstream while regulators scramble to keep up. In just the past two weeks, we’ve seen:

What does the rise of 3D printing mean for our procurement careers?

3D printing means that every organisation will become a manufacturer. Instead of scouring the global supply chain to find the widget that’s required, the role of supply management risks devolving into two basic steps:

  1. acquiring the 3D model
  2. ensuring your organisation’s printer has the raw material it needs.

Doesn’t sounds like a very fulfilling career, does it? To take things one step further, consider the fact that it doesn’t take a human procurement professional to perform either of those tasks. End-users could source 3D models themselves, while 3D printers are intelligent enough to manage their own stocks of materials, just as an IoT-enabled laser printer re-orders its own ink when supplies are running low.

Here’s the good news, though – the result of being freed up from the tactical work of sourcing means that the profession can concentrate on the strategic projects that we really want to be doing, rather than just responding to a buy signal.

Image from Pinshape.com.

Sustainable Procurement: Reversing The Race To The Bottom

Don’t dismiss the importance of supply chain sustainability! Learn from the mistakes of others and count yourself out of the race to the bottom! 

A short-sighted focus on cutting costs and speeding products to market is resulting in a race to the bottom that will cost companies more in the long-run. Top performers in sustainable sourcing will emerge with stronger supply chains, higher margins, more trusted brands and happier customers.

Consumers are increasingly putting their money behind sustainability, with Nielsen reporting 66 percent of global consumers are willing to pay more for products from companies they perceive as sustainable. This is forcing every industry to innovate in a way that makes transparency and sustainability permeate throughout the entire supply chain. Companies are often stuck in a race to the bottom, focusing on offering the lowest possible prices to compete with retail giants like Amazon and Walmart. Manufacturers who sell through these giants are also competing with each other, facing immense pressure from their customers to have the lowest price each week. Although price may seem like the best factor to emphasize, quality and sustainability considerations are often sacrificed in favor of cutting costs and speeding time to market. Even companies that have made sustainability promises often retreat after the initial pressure wears off due to perceived higher costs, but the long-term impact of irresponsible sourcing will impact their bottom line even more in the end. In fact, a recent BCG study found that gross margins were 4.8 percent higher for companies that were top performers in sustainable sourcing compared to those who were median performers.

In the long-run, participating in the race to the bottom is bad for business as it results in cheaply made, low-quality products and services that undermine the viability of the companies they are sourced from. This will all eventually be discovered by consumers and other stakeholders, and will open companies up to varying kinds of risk, including economic and financial, reputational and quality control consequences. Because these risks can impact a company’s bottom line, it is crucial to consider how sustainability can mitigate risk before it happens.

Unfortunately, hesitation and fear around competition (antitrust) laws are deterring businesses from working together to promote sustainability. A new report from the Fairtrade Foundation found that businesses are wary of working with rivals to improve the quality and security of their supply chain, but with fluctuating trade fees and climate change they have no choice but to collaborate. Instead of competing with peers to be fastest and cheapest to market, companies should be working together to promote sustainable procurement. When companies within an industry work together, it sends a much clearer signal to suppliers about the importance of responsible practices. With the right indicators and tools, those buying organizations can help suppliers advance in maturity and improve their practices – not only in sustainably issues but across all business operations. Companies should be working with other industry players – instead of against them – to ensure efficient and effective sustainable practices.

Learn from the mistakes of others

Nike, Asics and Puma saw the consequences a lack of sustainable and ethical practices could bring when more than 500 workers in four factories were hospitalised after fainting on the job. Outsourcing factory jobs to Cambodia may have saved the company some money on labor and wages, but unethical work conditions including long days and soaring temperatures canceled out any small benefit the retailers may have seen. The reputational and operational consequences turn out much worse than the small cost reduction initially intended. Improving ventilation and adding air conditioning, although good intentions, only put a band aid on the problem – these retailers and other companies should be working together to implement ethical and sustainable procurement practices as part of a long-term solution.

Geopolitical considerations

The turbulent political and trade climate in recent months is also challenging. Companies in almost every industry in the U.K. are facing a difficult choice between joining the race to the bottom to secure post-Brexit deals in terms of purchasing cheaper products from other countries and promoting high-quality, ethical and sustainable practices. Unfortunately, lower standards mean lower quality products and services, which will not just limit the emphasis placed on tackling issues like climate change and modern slavery, but also impact business revenues in the long run. NAFTA is having a similar effect on North American companies, making the consequences of the race to the bottom a universal concern. Instead of panicking about the effects of eminent trade deals, companies should be focused on working together to pursue sustainable procurement and mitigate risk before it happens.

Fortunately, many local and global governments are encouraging businesses to get on board and combat modern slavery, environmental sustainability and other risks in the supply chain. California recently signed the “Buy Clean California” act, which will clamp down on imported carbon emissions by creating rules for the procurement of infrastructure materials purchased with state funds. The U.K. just pledged $53 million to combat modern slavery with a focus on improving the apparel supply chain, joining the U.K. Modern Slavery Act in attempting to ensure business compliance. Australia may follow suit and introduce its own laws designed to root out forced labor and compensate potential victims.

At this point, we shouldn’t be thinking of it as “sustainability for sustainability’s sake,” but sustainability for risk mitigation and improved business operations. Technology is evolving to help companies better trace suppliers and other parties and improve transparency throughout the supply chain. Regulations around the world are banning or limiting unethical practices. The movement towards sustainability has changed in the last decade, placing the burden directly on companies to ensure responsible practices – both within their own operations and those of their partners. It may seem daunting to invest in sustainability while competitors are continuing to race to the bottom in pursuit of producing the cheapest products fastest, but companies that go above the standard will find it truly improves their bottom line and creates more value throughout their supply chain.

Pierre-Francois Thaler is co-founder and co-CEO of EcoVadis, a supplier rating company that helps organisations institute corporate social responsibility (CSR) and various sustainability programs. Pierre brings 15 years of experience in procurement and developing innovative sourcing solutions. Prior to starting EcoVadis, Pierre was CEO of B2Build SA, the first B2B marketplace for the European construction industry, and also served as a director of Ariba’s Procurement BPO business.

Taking The Heat Out Of The Resolution Room

If you can’t take the heat get out of the resolution room! Or invite Watson! 

VladisChern/Shutterstock.com

We’ve all been there. Something’s gone terribly wrong with a major customer delivery. Emails are flying around and there are rumours from HQ that “heads are going to roll”.  Everyone concerned has been summoned to “THE meeting” in order to resolve the supply chain issue.

We know what happens next; fists slamming, red faces, an embarrassing lack of data and a lot of verbal ping, pong. Eventually, a resolution is found.

But what happens when Watson is in the resolution room? Could this take the heat out of your supply chain disputes?

 What is a Resolution Room?

A Resolution Room provides the organisation the ability to collaborate quickly to resolve supply disruptions. Users can discuss and resolve issues with other colleagues, business partners, or their suppliers. What distinguishes Resolution Rooms from all other collaboration platforms is Watson.

What does it mean to have Watson in the resolution room?

The big benefit of Watson being in the resolution room is that it recommends experts, provides insight from all data and actionable advice based on learned best practices.  Over time, it leverages Watson’s capability to develop a body of knowledge by learning how issues were best addressed in the past.  This enables greater speed and accuracy in responding to future events.

“Watson provides the opportunity to deliver business value and insights from all of these data insights – structured and unstructured, data from weather patterns, news, D&B and supplier IQ,” explains Joanne Wright, Chief Supply Chain Officer, IBM.

“It does this with speed and accuracy. No more are we saying ‘OK…let’s get the data and meet again tomorrow’ because Watson takes my team’s input and incorporates that into the next iteration as we go.”

Watson In The Resolution Room: A Case Study

IBM Watson is always a room participant, so you can draw on Watson’s expertise using natural language to ask a question, for example: @Watson what is the status of order ABC123?

Imagine the following scenario; A Late Shipment alert in the Ops Center reveals that orders of your most popular drone are in jeopardy because the shortage of the entire supply of a critical part, a lithium battery, has been delayed. You create a Resolution Room to manage the incident collectively.

Watson is in the room.

Whilst your team discusses how best to manage the problem you have the ease of asking Watson questions such as:

  • Which customer has the most sales dollars that will be late?
  • What are the financial impacts of any late orders?
  • Have we experienced this problem before? Who are the experts who have worked on these similar issues in the past?
  • Are there any alternate suppliers for part number 46001?
  • Why is there a shortage of lithium batteries?

Watson can provide answers to questions such as these based on the data available in the data model and in other Resolution Rooms. Learning over time, it becomes smarter and able to provide better insights about your supply chain.

Click here to try a Resolution Room demo. 

Got a big idea you want to push through a big company or simply want to learn more about Watson and the Resolution Room?

Sign up for next week’s procurement webinar, How IBM Built the Cognitive Supply Chain of the Future. hosted by Tania Seary and featuring IBM’s Chief Supply Chain Officer Joanne Wright.