All posts by Procurious HQ

5 Ways Procurement Can Make Brexit A Breeze

So much about Brexit is still a mystery. But one thing’s for sure – procurement pros can help their organisation turn a negative into a positive!

It’s impossible to say precisely what the role of procurement will be in the post-Brexit world; the future is simply too uncertain.

And it’s easy to infer this sense of overwhelming uncertainty in the procurement world if the results of Odesma’s new Brexit survey are anything to go by.

Despite having conducted two surveys several months apart, very little appears to have changed in procurement teams with regards to their action and response plans.

As Nick Ford, Co-founder – Odesma,  admits “the interesting thing coming out of these surveys is that this is without a doubt the biggest negotiation our country is going through in terms of procurement. But it’s still a very uncertain picture. And we’re right in the middle of it.”

Indeed, over 63 per cent of respondents admitted that they have no risk register or contingency plan in place within their procurement teams post-Brexit.

And a whopping 82 per cent of professionals feel that they are under more pressure than before to reduce the cost of third party goods and services.

It’s a complex time for procurement professionals; who must consider how the function will be impacted by an increase in the cost of imported goods, freedom of movement (or lack thereof!) and a potentially depleted talent pool.

On a positive note, 73 per cent of procurement professionals believe their organisation sees procurement as an important part of its post-Brexit preparation process.

At our London Big Ideas Summit, Nick Ford discussed how procurement can help turn Brexit into an opportunity for their organisation. As businesses prepare, the role for procurement teams is increasing dramatically and it’s “a real opportunity to put procurement at the front and centre of your organisation.”

Here a just a few ways that procurement teams can add value:

1.New Negotiations

Worryingly, according to a couple of the delegates at Big Ideas Summit, some suppliers have already started adding a “Brexit Tax” into their pricing, as well as Brexit clauses within their contracts.

Rather than seeing this as a negative, however, procurement can use this as an opportunity to open negotiations with these suppliers and ensure that value is still being delivered post-Brexit and beyond.

2. Enhance procurement position in the organisation

The survey made it clear that Brexit will put procurement front and centre in organisations.

Procurement functions that show more innovative approaches and see this as an opportunity, rather than a risk, to help companies get their act together can steal the spotlight and use it to their great advantage.

3. Focus on Supplier Risk Positions

According to Helen Mackenzie, Head of Procurement in Scottish Local Government, some suppliers have started to “self-select” for contracts and not bid for overseas work in case risks prove too high post-Brexit.

In knowing this, procurement can understand the risk positions of suppliers and account for this in their tenders. This could mean more local business.

4. Re-engage Stakeholders

According to Nick, one of the biggest opportunities for procurement is re-engaging with stakeholders. Linked to enhancing procurement’s position, the profession needs to gather information from all sides and help to drag heads from the sand throughout the organisation.

5. Drives position of supplier portfolios

Brexit is an opportunity to do some supplier clean up and, as part of that clean up, get some leverage to drive costs down. Spreading the risk for procurement by having a diverse portfolio of suppliers (including local, SME and social enterprises) could give a greater foundation in the future.

Nick’s parting words? “The most positive viewpoints on Brexit are coming from companies that are actually getting their acts together!”

“It’s going to be an interesting time over the next couple of years. And we’ll see procurement rising through the organisation.”

Nick Ford spoke at Big Ideas Summit London 2018. Register as a digital delegate to hear more from him catch up on the day’s action. 

A Little Less Hesitation, A Little More Risk Taking

As human beings, we are naturally averse to risk and uncertainty. But our lives are little more certain than a game of poker – and we’d do well to embrace that! 

Caspar Berry, professional poker player extraordinaire,  knows exactly what it means to take risks. But he admits that it can be a scary business.

“People are broadly hard wired to be risk-averse and that’s not a bad thing per se. It keeps them alive. Its kept our species alive for however many thousands of years.”

“What we call risk aversion is essentially a desire to succeed in the short term. And a desire to succeed is another way of describing a fear or aversion to loss and risk.

“It’s a legacy of a period when we were, like almost every other animal, driven by only short term goals; eating, sleeping and procreation. It’s only a problem when we couple this with a desire to achieve long term goals like sales figures.  In this scenario our desire to succeed in the short term, to close every sale we try and make for example, conflicts with this long term goal and it becomes a problem.”

Life is like a game of poker…

Caspar was first introduced to Poker by a friend when holidaying in Las Vegas in the summer of 1999.  “With my background in, and love for, economics, I got it immediately. Poker is just a game of resource allocation on a terrain of uncertainty which, when you think about it, at a fundamental level is all that we ever do in business and life every day!”

And that’s Caspar’s philosophy in a nutshell. He equates the uncertainty of our everyday, working lives to  game of poker to explain our inherent risk aversion whilst encouraging us to challenge that natural instinct to flee from risk. “I try to show in my work how and why the world is more uncertain than we like to think a lot of the time and why we create that illusion – in order to be able to get through the average day.

“We need certainty and we need the illusion of control in order to be able to function. we shouldn’t be too hard on ourselves… it’s in our genes!”

The benefits of risk

If it’s in our genes why on earth fight it? Is there any real benefit to injecting a little extra uncertainty if it pains us so very much to do so?

Apparently, yes! According to Caspar studies show that the more we acknowledge and embrace uncertainty the better our judgement and decision-making apparatus.

“There’s not a lot we can do about most uncertainty: manage risk where we can; mitigate it where possible. But the economics of risk and reward say that resource allocation is most efficient where we can embrace uncertainty, think probabilistically and stop looking for the outcome most likely to succeed.

“By riding the volatility to some extent we can get better ROI as a result.

“Certainty is nice but efficiency and the bottom line is what is important. Take a long term view, accept greater ‘negative’ outcomes’ and ‘negative metrics’ and focus on the metrics that matter.”

Does Caspar believe we should take more risks in our working lives?

“We should. But it’s easy to say. In order to be able to do so we need to be aligned both with our own expectations and those of our organisations.

“It’s no good one person saying they’re going to accept greater volatility for greater long term returns: the person who judges them whether it’s themselves a colleague or boss, also needs to be on the same journey. I don’t judge anyone negatively for not being able to push the latitude and risk level but it’s important to engage in a conversation in order to try.

“Its our own results we’re sabotaging, sometimes inadvertently, if we don’t!”

Caspar Berry spoke at Big Ideas Summit London. Register as a digital delegate to hear more from him and catch up on the day’s action. 

What Is IBM’s CPO Looking For In New Hires?

IBM’s CPO, Bob Murphy, talks soft skills, AI and what he’s looking for in his leadership team at IBM…

This Article was written by IBM’s CPO, Bob Murphy.

Procurement professionals should be excited about Artificial Intelligence and robotic automation.

We’re looking to these technologies to handle the repetitive tasks, the more mundane pieces of work, so that humans are freed up for higher value activities.

Cognitive technologies will also act as advisors enabling procurement professionals with the insights to quickly adapt to changing market conditions.

I learned a long time ago that the key to success is having a great team. And there is a very human element to procurement. There will always be a need for people to handle the relationship management side of the function, with both suppliers and stakeholders and make the strategic decisions.

The acceptance and the excitement around cognitive have grown at IBM as we have educated our employees on the major opportunity that it represents and developed them in preparation for the digital age.

The importance of soft skills in the digital age

As we continue down the digitisation path in the Procurement industry, with more of our transactional functions being automated, there is a greater need for our procurement professionals to increase their soft skills.

When we think of the soft skills necessary for future success in the procurement industry, we focus on building closer stakeholder and supplier relationships. Broadening our communications skills, including active listening is a key enabler to both visibility to value proposition, but also in understanding our stakeholder requirements from their point of view.

Another critical element is having better agility skills; think flexibility, adaptability and speed.

Our requesters who run the IBM business have tremendous demands that can be fluid based upon the market environment. Our procurement professionals need to be able to react in-kind and continue to provide the IBM corporation with the best value and innovation from our suppliers.

Digital credentials have a curriculum of eLearning and experiential training for our procurement professionals to follow as they build their soft skill profile within the procurement context.

Key skills for IBM’s leadership team

In potential members of our leadership team, there are two crucial skills, that we look for.

1) Digital literacy 

Leaders who want to thrive in the procurement profession need to develop an understanding of:

  • Data analytics –we can gather data but how do you use that data to gain insights?
  • Robotic processes – how can you automate tactical processes so human capital is used to the greatest effect?
  • Cognitive computing – understanding how to digitise a process end-to-end so it is interconnected and insightful.

2) Relationship building

While leaders need to be able to use technology to get the insights and knowledge, their focus should be on developing their emotional intelligence (EQ) rather than their IQ, and their ability to talk to clients in a consultative manner. Listening is critical – When we’re talking, we’re not learning.

Project management, empathy, innovative thinking and an agile mind-set are also critical skills at IBM.

You hear a lot of people talk about procurement leaders becoming “trusted advisors” to their businesses, but I think we need to take it to the next level and become “essential partners.”

We should enhance everything that we touch.

This Article was written by IBM’s CPO, Bob Murphy.

Bob Murphy will be speaking at Big Ideas Summit London 26th April 2018. Register as a digital delegate to hear more from him and follow the day’s action live. 

Conference Season Is Upon Us!

Turn on the auto-reply, pack your suitcase and strap yourselves in – it’s #procurement conference season.

Why are so many great conferences packed into the same few weeks of the year? Yes, the weather is usually reliable, but having successive (or even overlapping) conferences forces procurement pros to pick and choose carefully. And your conference budget isn’t the only issue here – simply finding the time to step out of the office for more than one multi-day event (plus travel) can be very challenging.

Let’s have a look at some of the big events in your region.

EUROPE

SAP Ariba Live

Amsterdam, 23-25 April

SAP Ariba’s biggest event in Europe will be packed with interactive presentations and workshops, and offers the chance to meet some of the real thought-leaders and technical wizards from SAP Ariba itself (not just salespeople!). The agenda reflects SAP Ariba’s ongoing theme for the year, Procure with Purpose.

Procurious will be there! Don’t miss the Diversity and Leadership panel session featuring Procurious Founder Tania Seary talking about how procurement professionals can leverage our uniquely human qualities in the world of Industry 4.0, and the critical importance of supplier diversity for the future of procurement.

Related articles on #ProcurewithPurpose:

How Your Network Can Turbocharge Procurement – SAP Ariba President Barry Padgett

Exploding the 4 Social Enterprise Myths

Supplier Diversity? I Don’t Have Time For That!

… and be sure to sign up for our upcoming #ProcurewithPurpose webinar on Modern Slavery.

 

Procurious Big Ideas Summit

London, 26 April

You didn’t think we would forget to mention our very own flagship event? The Big Ideas Summit is an innovative, digitally led event with a small audience of 50 or so procurement influencers in the room, and hundreds of Digital Delegates interacting online. So, while you might not get a chance to attend in person, be sure to click the link above and register as a Digital Delegate to receive a treasure-trove of content and videos from the Summit.

Speakers include legendary IBM CPO Bob Murphy, ISM CEO Tom Derry, risk-taking and decision-making expert Caspar Berry, futurist and business-builder Sophie Hackford, futurist and urbanist Greg Lindsay, security expert Justin Crump and a whole host of procurement gurus from some of the biggest brands in the profession.

Related articles on #BigIdeas2018:

How to Prepare For Post-Brexit Procurement In The Dark

Why Diligence Is Due

6 Critical Skills You Need If You Want To Succeed In A Digital World

IBM CPO: You’re Finished If You Think You’ve Finished!

How to Turn Your Procurement Team into a Cracking Intelligence-Gathering Organisation

4 Ways to Engineer Serendipity in Your Workplace

Don’t forget to register! https://www.procurious.com/big-ideas-summit-digital-delegates

 

ASIA-PACIFIC

The 11th Annual Asia-Pacific CPO Forum

Melbourne, 1-2 May

The Faculty CPO Forum attracts the top CPOs from all across the region, but funnily enough, this event isn’t all that focused on procurement. Instead, the agenda is packed with big-picture thinking, with futurists, experts on disruption, sports stars, diplomacy and trade experts, and others all contributing to a thought-leadership extravaganza that has delighted delegates for over 10 years now. Includes the announcement of the 2018 Asia-Pacific CPO of the Year.

Procurious will be there! Be sure to keep an eye on the Twitter hashtag #CPOForum18 for blog articles and a running update from the 2-day event.

Related articles on #CPOForum18:

4 Things Supply Managers Need To Know About China’s Belt And Road

Leadership Under Fire

4 Things CFOs Really Want From Procurement

 

USA

ISM2018

Nashville, 6-9 May

If you haven’t been to ISM’s massive annual conference before, we can’t stress enough how BIG this event is. With an action-packed agenda featuring no less than 100 educational sessions to choose from, it’s vital that attendees arrive in Nashville with a plan.

Don’t miss out on seeing Huffington Post founder Arianna Huffington on stage, along with two giants of the U.S. Intelligence Community, General Keith Alexander and John Brennan. Keynotes aside, ISM2018 offers fascinating Signature Sessions, Learning Tracks, an Emerging Professionals Experience (featuring the inspirational 30 Under 30 Supply Chain Stars), and more.

Articles related to #ISM2018:

Navigating the World’s Largest Procurement Conference

30 Under 30 Stars Prove This Enduring Stigma Is Disappearing From the Profession

 

Other major events on the procurement conference calendar:

ProcureCon Indirect

Copenhagen, 16-18 April

REV2018 Jaggaer Conference

Las Vegas, 24-26 April

Featuring a keynote from Stephen J. Dubner, award-winner co-author of Freakonomics.

 Coupa Inspire

San Francisco, 6-9 May

Interestingly, Coupa Inspire is going head-to-head with ISM2018 this year with their event being held on 6-9 May in San Francisco. It’s another big one, with 100+ sessions and 8 keynotes including the Terminator himself, Arnold Schwarzenegger!

Ivalua Now

New York, 17-18 May

Know of any other major conferences (in April or May) that should be added to this list? Let us know in the comments! You might also want to check out Spend Matters’ conference recommendations.

6 Critical Skills You Need If You Want To Succeed In A Digital World

How should procurement professionals adapt in order to survive in a digital world? The digitally enabled workforce needs to nail six key skills…

This is a unique time for procurement organisations.

Never before have companies been able to derive more competitive advantage from superior procurement capability. The function’s role is shifting from a sourcing gatekeeper to a provider of insight and decision support, made possible by improved access to digital technologies, data and advanced analytics.

Investments in automation have helped make these organisations more efficient, allowing them to redirect headcount from compliance and operations-focused processes to higher-value activities such as sourcing and supply base strategy.

But this is only the part of the story.

World-class groups achieve their superior performance because they have higher-caliber people who apply their skills to effectively harness digital technologies and capabilities.

The Digitally Enabled Workforce Requires Six Key Skills

Effective procurement teams focus on people development from multiple points of view. Softer skills like relationship management and business acumen are important for managing customer relationships, while technical skills are necessary for analysing data and developing strategic insights.

The following skills are fundamental to the operations of procurement organisations in the digital era.

1. Business acumen

As economic volatility increases, category managers need to sit side by side with their stakeholders to make business decisions that impact the supply base.

It is crucial to understand complex business needs and be able to identify ways for procurement to address them using new technologies. Business acumen is fundamental to elevating procurement’s role as a trusted advisor.

2. Relationship management

Evolving the value of procurement requires working cross-functionally with a variety of stakeholders, from senior budget owners to line managers, as well as being a customer of choice and partnering with valuable suppliers. Procurement should have multiple communication channels open with business partners and customers to fully understand their needs.

3. Supply risk management expertise

In a market of increased risk and volatility, risk management capabilities are more valuable to the enterprise. For procurement, this no longer means simply reacting to events – now the focus is on predicting and avoiding risk using internal and external tools.

4. Strategic mindset

Understanding the broader market and aligning procurement’s vision with that of the business is fundamental to navigating change and extracting value from the supply base.

5. Data analysis and reporting

Big data will change the way procurement organisations use information. Those able to sort through the data and draw the right conclusions have the potential to add value to the organiSation. The tools are available today, but it will take years for widespread adoption, making analytics a prime vehicle for competitive advantage for early adopters.

6. Savings and financial analysis

Tying savings and value benefits to financial statements documents the business value contributed by the procurement organisation and drives profitability. Identifying direct procurement impact on the budget can be elusive but critical.

Digital Technologies Are Changing the Way Organisations Hire and Retain Talent

Access to new technology makes it possible to hire more effectively. By analysing demographics, job experience, recruiting data (like quality of resume) and environmental data, organisations can increase the effectiveness of new hires.

Even the culture of procurement groups is changing now that hiring standards have risen. Social media has provided new channels for knowledge and learning. Learning on demand is a common service delivered to employees, allowing access to training modules or experts from their preferred devices.

Joining networks of colleagues and outside communities to tap into knowledge and solutions to problems is common with tools like LinkedIn.

Strategic Implications

It is getting harder to find and retain people with transformation change experience and the ability to think strategically.

Unfortunately, procurement’s hiring practices, training and skills have not kept pace.

To compete, they must not let themselves be limited by organisational or geographical borders. By hiring globally, procurement deepens the potential talent pool and opens the door to new ways of thinking.

Next-generation procurement organisations are “borderless,” allowing for the free flow of ideas and talent regardless of geography. Leadership is distributed based on supply and customer priorities, not headquarter location.

The model that procurement must work toward is one that is capable of expanding, contracting and adapting rapidly as situations change, just like modern-day supply chains.

This article was written by The Hackett Group’s Laura Gibbons Research Director, Procurement Executive Advisory Program and Amy Fong Associate Principal, Procurement Advisory Program, and Program Leader, Purchase-toPay Advisory Program. 

The Hackett Group’s Chris Sawchuk will be speaking at Big Ideas Summit in London later this month. To find out more information and register to attend in person or as a digital delegate visit our dedicated site. 

Do You Know What Your Supplier’s Supplier’s Supplier Is Up To?

So you’re pretty sure there’s no slavery lurking within your supply chain? But what can you do to be 100 per cent sure?

Modern Slavery. You’d know it if you saw it, right?

Especially if it was under your nose…

And on your watch…

In fact, you’re certain that there are no instances of modern slavery in your supply chain, because you’ve safe guarded against that terrible reality. You’ve got procedures in place.

But do you really know what your supplier’s supplier’s supplier is up to?

Given that 40.3 million people are victims of modern slavery across the world, it’s quite possible you don’t.

Finding instances of slavery somewhere along the supply chain is the stuff of every procurement pros worst nightmare, but the stats don’t lie.

And that’s why it’s so important for procurement teams around the world to accept and address the problem, in order to put this abhorrent practice to bed for good.

Procurement Unchained

On 2nd May 2018 we’ll be hosting a new webinar – Procurement Unchained – in partnership with SAP Ariba as part of the Procure with Purpose movement.

We’ll be discussing:

  • What can you do to identify instances of modern slavery within your supply chains?
  • How to eradicate slavery once it’s identified and ultimately, prevent occurrences altogether
  • How is legislation like the UK’s Modern Slavery Act impacting business policy? 
  • Could blockchain and other emerging technologies help us put an end to this abhorrent practice?

Who is speaking on the webinar?

  • Tania Seary, Founder – Procurious
  • Padmini Ranganathan,  Global Vice President – SAP Ariba
  • Fiona David, Executive Director Global Research  – Walk Free Foundation
  • Alisa Voznaya, Manager, Risk Consulting – KPMG UK

How do I register for the webinar?

Registering for Procurement Unchained 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 10am EDT/ 3pm BST on 2nd May 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.

Our webinar,  Procurement Unchained takes place at 10am EDT/ 3pm BST on 2nd May 2018. Register your attendance for FREE here. 

30 Under 30 Stars Prove This Enduring Stigma Is Disappearing From the Profession

Procurious uncovers the five factors in common across this year’s inspirational group of 30 Under 30 Supply Chain Stars.

Delivering over $20 million in cost savings, building a new procurement function from scratch and creating a cutting-edge suite of analytical tools are among the outstanding personal achievements of 30 young professionals named winners in the ThomasNet and Institute for Supply Management (ISM) 30 Under 30 Rising Supply Chain Stars Program.

This award shines the spotlight on a trend that is taking place in companies large and small all over the globe, where Millennials are being asked to step into senior roles earlier than expected in order to fill the vacuum created as an entire generation of Baby Boomers retires.

The generations in the middle, X and Y, are also moving into executive roles, but the problem is that there simply aren’t enough of them to do so. That’s why Millennials are leap-frogging through the ranks in nearly every profession – including procurement and supply management.

This year’s 30 Under 30 winners have been chosen for unique achievements that are particularly impressive so early in their Supply Chain careers. There are, however, five factors that are held in common across the group.

  1. They’re not afraid to change roles and companies

This year’s group of 30 Under 30 winners provides further proof that any remaining stigma around frequently changing roles (or to use the disparaging term, “job-hopping”) is rapidly dissipating in the profession. Rather than being seen as damaging to procurement or supply career prospects, working across different organisations or varying roles within the same organisation is now recognised as an enriching experience that brings crucial diversity to any team.

Flex’s Elizabeth Richter, for example, completed internships at MeadWestvacso, Kohl’s and Cisco before landing a plum role as chief of staff for the CPO at Flex, a company that she calls “supply chain heaven”.

Examples abound among the 30 winners, with similar stories of experience across multiple companies, while a small handful have remained at a single organisation from graduation to the present day.

  1. They’ve all had experience on strategic projects

In general, the 30 Under 30 have rocketed beyond the role of purchasing officers impressively early in their careers. These winners are all strategic procurement and supply professionals, and are being recognised for more than just achieving cost savings but for driving truly game-changing projects. Megawatt Winner Charlotte de Brabandt, for example, successfully coordinated a global team at Johnson & Johnson to find a single global service provider to assist with global energy procurement for 920 sites across three continents. Google’s Neta Berger managed the daily war room meetings that focused on resolving immediate supply shortages after the 2011 Japanese earthquake and tsunami while she was at Cisco.

At Google, Berger has managed materials for international expansion into seven countries of the Google Home and Google Wifi products and was tasked with mitigating risk for the Google Home Mini.

  1. BUT… they still generate significant cost savings

If someone were to total up all the cost savings these young professionals have won for their companies, the figure would prove once and for all the true dollar value of a top-performing procurement professional. For example, United States Steel Corporation’s Chelsey Graham (age 27) drove $20 million in cost improvements with a single high-visibility project with manufacturing stakeholders, while Madeline Martin (Mars Petcare) has saved an estimated $14 million in her short time with the company.

Every one of the 30 Under 30 winners has a similarly impressive cost savings achievement under their belts, demonstrating that while a strategic lens is important, it’s also vital to retain focus on the bottom line.

  1. Falling into the profession is no barrier to success

Is the fact that many people move sideways into supply management the profession’s greatest strength, or weakness? ThomasNet reports that 60 per cent  of the 30 winners planned on a career in supply chain. The winners include a former attorney, a mechanical engineer, a civil engineer, a technology entrepreneur and even a former chef.

Backgrounds like these can only serve to enrich procurement and supply management team skill-sets, especially when combined with the skills of professionals who have a “pure” professional and educational background in supply management.

Megawatt Winner Charlotte de Brabandt, for example, did not originally plan on pursuing a career in supply chain, but soon discovered the opportunities that the profession could offer. “It quickly became a clear career choice for me [after I’d] led a few supply chain projects in different fields of strategic procurement, project procurement, logistics and quality,” she told ThomasNet.

  1. Some organisations are producing 30 Under 30 winners every year

For those of us who have observed the 30 Under 30 program since its inception, a pattern is beginning to emerge where certain organisations have produced supply chain stars nearly every year for the past four years. These companies, including USSC, Johnson & Johnson, DuPont, Dell and the United States Postal Service, are not only talent magnets in the profession but are gaining a reputation for being fantastic supporters and promoters of their top performers in supply management.

In a previous interview with Procurious, ISM CEO Tom Derry talked about the importance of coaching trees in the procurement and supply management profession.

“Sometimes it’s companies, sometimes it’s individuals”, he said. “Certain CPOs have gained a reputation for coaching and developing people who have subsequently left, and gone on to make their mark.” Their organisations benefit by being seen as an employer of choice for top procurement talent, and the CPOs themselves benefit from the dynamism and vitality of a team made up of the brightest the profession has to offer.

Learn more about ThomasNet and ISM’s 30 Under 30 Supply Chain Stars program here.

Procurious will catch up with the 30 Under 30 winners at the Institute For Supply Management’s flagship event, ISM2018 in Nashville, Tennessee. Learn more about the ISM 2018 Emerging Professions Experience: http://ism2018.org/2018events/emerging-professionals/

4 Realities of a Cloud Spend Management Implementation

Implementing new tools and systems is enough to make the bravest of procurement pros shudder with dread. So what are the four biggest risks associated with cloud spend management implementation…

With a wide array of cloud-based applications on the market, many organisations are saying goodbye to out-dated, legacy systems and adopting new Software as a Service (SaaS) solutions. These tools are changing the game in spend management, providing companies with increased visibility across all areas of spending and identifying new opportunities to drive cost savings.

However, despite all of the obvious benefits associated with these cloud systems, implementing a new tool across an enterprise can still be very challenging. For example, change resistance is often problematic when it comes to encouraging end users to utilise new systems. Without proper planning, you risk running into multiple issues that could derail the process and prevent a successful implementation.

Below are the top four risks associated with implementing cloud-based spend management solution:

  1. Getting Suppliers On Board

To successfully implement a new spend management solution, supplier enablement is imperative. The amount of work that’s necessary to get all of your suppliers on board with the implementation is commonly underestimated. In order to get it right, you should develop a supplier enablement strategy that carefully outlines each step of the process. Make sure you clearly communicate all of the changes that will take place, what your expectations are for suppliers, and how implementing the new tool will improve day-to-day workflows.

  1. Navigating the Integration

Don’t believe all the hype that you hear during sales demo—take everything with a grain of salt and follow up with questions about the integration process. Even if the integration sounds simple, remember that somebody has to do the work. There are several things to address regarding integration: Who is doing the mapping and file transformation? Which Enterprise Resource Planning (ERP) system will be used? Whose standard is being adopted?. You will also want to learn the integration method and inquire about any limitations per integration object. Make sure the vendor spells out all of these details before you sign a contract. This will guarantee you aren’t met with any unwelcome surprises down the road.

  1. Achieving End-User Adoption

Although it has become much easier with SaaS-based source-to-pay (S2P) and procure-to-pay (P2P) systems, achieving end-user adoption is still one of the biggest challenges that organisations face when implementing a new tool. The resistance to adoption typically begins when specific use cases are overlooked or not addressed appropriately. Lack of support from senior leadership, poor communication, and inadequate training can also be roadblocks to end-user adoption. You can avoid these roadblocks by considering all applicable use cases and crafting a detailed communications plan that includes all key stakeholders.

  1. Addressing All Use Cases

To avoid resistance and ensure your new spend management tool is meeting your needs, make sure you have selected a solution that will address each unique use case. Ask yourself: Who will be using the tool and for what purpose? Simply having an assortment of features and functions isn’t enough. In order for the implementation to be a success, you need to make sure you understand how the tool’s features and functions specifically address all of the use cases to ensure the solution meets your business needs.

Although it’s certainly important to keep these major risk factors in mind, don’t let these challenges get in the way of implementing a cloud-based SaaS solution at your organisation. Creating a carefully outlined implementation plan will help mitigate risks and ensure the process goes smoothly for everyone involved.

Are you having trouble selecting a new spend management system or navigating a complex integration? Contact RiseNow today for a free supply chain consultation to help get you started.

This article, written by Matt Stewart, was originally published on Rise Now 

PLEASE FIRE ME: I JUST CAN’T QUIT!

Stuck in a miserable, but well-paid, job you can’t afford to quit? Don’t get yourself into that position in the first place!

Philip H. “hates his life”. Those are his exact words. Specifically, he hates his all-consuming job. The work bores him and he no longer believes in his firm’s mission. The gruelling hours he puts in cost him time with his family that he can never recover.

Here’s the kicker: Phillip earns several million dollars a year heading a major office of a top-tier advisory firm. So, you might ask, why doesn’t he quit?

He’s says he can’t afford to.

There’s a big mortgage on a luxury apartment, and another on the beautiful beach house he and his wife bought two years ago. (“The summer weekends we spend there are the only thing that keep me sane,” he says.) Then there are the three kids—all enrolled at a private school. The eldest will start college in a year; the others will follow soon. Tallying up his obligations, Philip envies his Wall Street friends who earn ten times as much as he does.

A couple of days ago I mentioned this story to a well-known financial columnist. “I hear this all the time,” he said. “Lots of people moan about how miserable they are at work but they can’t see a way out.”
“Boo, hoo,” you might say. “I’d trade places with Philip in a heartbeat.” But would a huge income really make up for feeling horrible about your life?

You might think that you could put up with a few years of misery for the freedom it would buy you. You’d put a lot of money in the bank, and then walk away to do whatever you like: launch a small company, or spend the rest of your days lolling on the beach. Maybe you’d devote the rest of your life to doing good in the world. Whatever your goal, you’d collect your last paycheck and say, “Adios.”

It’s not that easy, though. You wouldn’t make a bundle starting out. You’d have to put in your time first. And when serious money began to come in, it would be tempting to reward yourself creature comforts for all the stresses you endure. The higher you climb the ladder, the harder it will be to leave. Then one day you’d turn around and find yourself in Philip’s unhappy shoes.

It might seem that I’m writing about a problem that affects only a small set of people. But I think Philip’s case illustrates issues that apply wherever you are now in the organisational hierarchy, and whether you love your job or loathe it.

Most work choices aren’t either/or

It’s late in the game for Philip, but assuming a different role in his firm might be rejuvenating. Going on sabbatical might set a great example for other colleagues. By framing his decision as stay-or-go, he’s missing other opportunities.

If you’re unhappy at the office, other people know it

Philip’s negativity must come out sideways. If he hates his own job, how can he be enthusiastic when a colleague lobbies for a new project? A big part of his job is evaluating other people’s performance. His attitude is bound to warp his judgement. (I also worry about what he’s like at home.)

Toughing things out is not a career plan

Somehow Philip drags himself to work every day. Maybe he takes pride in his perseverance. As they say, however, “persisting in the same behavior expecting different results is the definition of insanity.” The way things are headed, he risks getting pushed out by his peers. Maybe that’s his subconscious agenda, but it would be an ugly way to go.

Plan your end game

When you take on a job, set a date when it will be time to move on to something else. You can always revise it one way or another, but it’s usually better to leave a year early than a year too late.

The most important lesson of Philip’s story is not getting into his situation in the first place. If Philip had kept these precepts in mind, he would have been alert to his growing feelings of frustration. At an earlier point, a lateral move to another firm or an entirely different field might have been easier. And if he had allowed for the possibility that the job might get stale, he might not have saddled himself with so much debt. But by the time he realised he was on a treadmill, he had gone so far he felt he couldn’t step off.

Sunk cost traps aren’t just financial. They can also be social, emotional, and deeply personal. Philip may have trapped himself with worries about what others will think about his walking away from what most regard as a dream job. I’d remind him of Samuel Johnson’s advice – that we’d worry less about what others think of us if we realised how seldom they do.

In the end, Philip’s self-respect is what counts. Walking away might feel as if he’s repudiating how he’s spent his recent years. But to me, belatedly changing an unhappy life sounds a lot better than doubling down.

This article was written by Professor Michael Wheeler and was originally published on LinkedIn. 

It was first published on Procurious in August 2017.

Professor Michael Wheeler’s Negotiation Mastery course on Harvard Business School’s HBX launched earlier this year. Applications for the next wave of students, starting in September, are now being accepted. Version 1.4 of his Negotiation 360 self-assessment/best practice app is available for both Apple and Android devices. It includes coaching videos and a tactics exercise.

5 SOFT SKILLS PROCUREMENT PROS SHOULD BE DEVELOPING…NOW!

If you want to hold on to your procurement career  in the long term, you ought to be worrying about mastering your soft skills!

We got wind of the fact that IBM, arguably the world’s most robotically advanced procurement team,  is focussing on its employees’ soft skills.

As Justin Mcbryan, Learning & Development, Strategy, Communications Manager- IBM, explained,  why would IBM need a high volume of data scientists in their midst when they have Watson!?

Technological advancements will soon permit the automation of our processes; handling the sourcing and the market intelligence. In this environment, it’s the softer skills procurement professionals must master to ensure a long-term career.  That’s the real skills gap procurement should be worried about!

In this blog we outline the specific skills procurement pros should be mastering to prepare for the post-cognitive age, with the help of Justin and John Viner Smith, Principal-Mercer.

1. Design Thinking

There are some “incredible and transformative technologies that offer solutions to problems that were unimaginable just a few years ago ,but they’re just half of the puzzle.” begins John.

“Subject matter experts will have a role to play in framing  [these problems] in the most efficient way.”  It’s important that the solutions aren’t simply “sticking plasters but fundamental root cause fixes”.

This is a role for procurement’s best and brightest, and the skill needed to fulfil this role is Design Thinking; “the process of being at the forefront of bringing new technologies to bear on business problems.”

2. Thinking at the speed of digital!

Joh asserted that procurement must recognise that “thinking of digital solutions requires some understanding of new processes and ways of thinking.”

“Procurement people should be learning about methodologies like Google’s Design Sprint or Eric Ries’ concept of Intrapreneurship as defined in the Lean Startup that are used in other types of digital business.

“Too often procurement thinking is slow, bound in process and incredibly risk averse. Technology problem solving is experimental, iterative and views failures as key to learning. The idea of developing hypotheses, testing them, failing fast and iterating or pivoting in the course of a week, as per Google’s Sprint methods, would be alien to many Procurement people.”

Procurement has worked at a certain pace,  thus far. And it’s going to  have to get faster!

3. Active questioning and listening

This wouldn’t be a piece about soft skills without a mention of communication! We already know how important this skill is for procurement people but it’s going to be all the more valuable in a post-cognivite age.

Justin reminded us that communication is vital for everything “from presentation skills to phone etiquette and how to ask probing questions to your suppliers.”

In a post cognitive world you’re “going to become more of an owner and less of a process facilitator” asserts Justin, which is where active listening comes in.

When it comes to managing negotiations with suppliers, clients and colleagues, “We all have scripts e.g. How many widgets do you need, when do you need them by etc.”

“Every now  and then, you’ll have  been in a situation where a client has given a little bit more than you asked for. This is where the active [and critical] listening comes in.” How do you use that information to do the best job possible?

4. Negotiation

“We rely on the threat of competitive pressure to do our negotiating for us” says John.

“We source the spec and don’t always listen to challenges from Suppliers. When we’re engaging them to help solve complex problems, we will need to be more commercially empowered and highly skilled negotiators; able to get the best from our suppliers by offering the best of ourselves while optimising value.”

5. Imagination

“The future role of procurement can be solved in one phrase: problem solving” says John.

But procurement’s problem solving needs to take on a more innovative and imaginative approach.

“Not every situation is going to call for an RFX” explains Justin. “That speaks directly to the change we’re looking for [at IBM].” Too often “we see a need and our reaction from a process point is let’s go and do the RFX.”  Instead professionals “should take a deep breath and start understanding the client and exactly what they need,” and approach the problem in alternate ways.

John concedes, arguing that “running tender might be the solution (increasingly rarely!) but collaborative innovation with the suppliers we have is important.”

Procurement peoples’ jobs will largely focus on bringing innovation to the supply chain in the first place and really helping the business to understand their demand.

In short, Procurement needs to have a relationship with the organisation that is much more strategic and puts the function in a partnering and consultative role.  As Justin sums up, ‘ [at IBM] We’re still looking for the procurement experts, we’re still looking for people who can do the job. But we’re adding to the soft skills portfolio.”

This blog was first published in October 2017.