Category Archives: Career Management

2017 Rewind – Help! A Potential Employer Asked For My Facebook Password

As part of our 2017 Procurious rewind, we’re taking a look at the top blogs of the year. Today’s article advises what to do when a recruiter asks for your Facebook password! 

Have you ever been asked to hand over your social media details in a job interview? Don’t panic – it’s probably just a stress test.

Stress tests are designed to put you under pressure and see how you handle it. They range from grilling you about your weaknesses, to subjecting you to a barrage of quick-fire questions to try to fluster or catch you off-guard.

Heineken took this to the extreme in their viral recruitment video where interviewees are subjected to a range of stressful situations, including a creepy hand-holding interviewer who later feigns a heart attack. While it’s fun to watch, there’s a lesson here – in an age where candidates often give text-book answers to text-book interview questions, recruiters are looking for ways to separate the wheat from the chaff.

“We need your Facebook login details”

Your three potential reactions:

A) Meekly handing over your password: Wrong answer. This shows that firstly, you’re desperate for this job and secondly, you’re a pushover. Is this how you would behave when representing the company in a tough negotiation?

B) Anger: You’ve fallen into the trap. Even though it’s an outrageous demand, getting angry only demonstrates that you won’t be able to remain calm in the face of on-the-job pressure.

C) Politely but firmly refuse: Correct! You were on the lookout for a stress test, and you’ve identified this one as such. This takes the pressure off, allowing you to present a calm and logical response.

Unfortunately, that’s easy to say and hard to do!

How to say “no” politely 

  1. Call them out

If you’ve read the situation correctly, then you could simply respond by saying, “This is one of those stress-tests, right?”, and then launch into a detailed explanation of how you’re able to stay calm under pressure, with examples.

If they still insist, and genuinely appear to be demanding your Facebook login (and you still want this job), then you’ll need an excuse beyond the bare fact that you don’t want them seeing your drunken photos from the big party last weekend.

  1. Privacy

“I have an obligation to protect my friends’ privacy. They have their own privacy policies set on their accounts to safeguard themselves and their loved ones and that’s their right. If I start sharing their information with potential employers then I’ll have broken my trust with them.”

  1. Work/life

“For me, work and home are two separate things. I’m careful to keep work-related posts off my Facebook page, so it’s in no way relevant to any potential employers.”

  1. Direct to LinkedIn

“I think you mean LinkedIn? While I wouldn’t hand over my login details, I’d be happy to connect with you on LinkedIn so you can see how I present myself professionally on social media.”

  1. Show me yours and I’ll show you mine

This one’s a bit more provocative! “Absolutely fine – I think this is a great idea. I’d also like to see the type of team I’m joining, so if you can share your log-in details, along with your director’s and all the team members’ Facebook passwords, then I’d be happy to share mine.”

  1. Throw the question back at them

Whatever you decide to say, it’s vital you do so in a professional, calm and reasonable way. In a stress test, how you say it is more important than what you say. The interviewer will be judging your response, attitude and manner, but you can turn the tables by asking them to put themselves in your shoes.

For example:

  • “I’m sure you would agree …”
  • “I’m sure that if you were in my position…”
  • “From a privacy perspective, my friends wouldn’t be comfortable with me showing their information to people. I’m sure your friends and family would agree.”

Asking someone to put themselves in your position makes it almost impossible to be offended by a calm and rational argument.

In the end, keep in mind that there is no right answer to a stress-test question. It’s designed to judge how you react, so be confident in whichever answer you choose.

Procurious Picks: What Were You Reading In 2017?

As the year draws to a close, we’re taking a look at some of our most-read blogs of 2017…

The procurement people have spoken* and we can now confirm the official top five Procurious blogs of 2017.

From assessing the impact of blockchain to exclusive interviews with global CPOs; from recruitment advice to top career tips, we think it’s a brilliant sample and representation of all the great content Procurious has to offer.

*read

5. 5 Global CPOs Answer Your Top Five Procurement Questions

Wouldn’t you like to know how the best in the business feel about the value in professional certifications? Or maybe you’re keen to hear their take on the biggest mistakes made by procurement pros?

We put  five global CPOs to the test with a round of quick-fire questions. Hear what they each had to say on the value of formal procurement certifications, the biggest mistakes procurement pros make and how to stand out from the crowd!

Read the full article and listen to our CPOs answers here. 

4. Help! A Potential Employer Asked For My Facebook Password

You’re in the middle of a job interview when the recruiter shocks you by asking for your Facebook password, citing “company policy”. Do you…

A) Meekly handing over your password: Wrong answer. This shows that firstly, you’re desperate for this job and secondly, you’re a pushover. Is this how you would behave when representing the company in a tough negotiation?

B) Anger: You’ve fallen into the trap. Even though it’s an outrageous demand, getting angry only demonstrates that you won’t be able to remain calm in the face of on-the-job pressure.

C) Politely but firmly refuse: Correct! You were on the lookout for a stress test, and you’ve identified this one as such. This takes the pressure off, allowing you to present a calm and logical response.

Read the full article here.

3. Why Being Reliable Spells Doom To Your Career

Do people in your workplace ever refer to you as reliable, trusty, dependable? That’s got to stop!

Being known for getting the job done is not enough to build value and does not get you the pay scale, nor the flexibility you crave.

Defining your value and pouring your heart and soul into developing that is what’s priceless. It’s a linchpin in your ability to create the career you really want.

Read the full article here.

2. IBM CPO: You’re Finished If You Think You’ve Finished

The numbers are eye-watering. IBM CPO Bob Murphy looks after a $70 billion spend – $25 billion internally and $45 billion 3rd-party. The company has around 150,000 contracts across 17,000 suppliers, with its flagship cognitive technology, Watson, reading 900 million pages in multiple languages per second.

As we prepared for our interview with Murphy, it’s understandable, then, that we expected to find him entirely focused on data analytics, automation, AI and the other tech that’s rapidly impacting so many professions. We were wrong – what comes across loud and clear is that this is a charismatic, engaging leader where people and relationships matter.

Read the full interview here.

1.The Impact Of Blockchain On Procurement

Blockchain technology will not only impact procurement and procurement professionals but is expected to be more pervasive in our business and personal lives than the internet itself. To put the enormity of impact on procurement and procurement professionals in perspective picture yourself twenty years ago trying to explain how the Internet is going to change things. Where would you even begin?

Read the full article here.

Procurement Pudding (It’s A Trifle Complicated)

Nothing says Procurement quite like a classic trifle; it’s intricate, it’s complicated, but if you get it right… everyone wants a piece of it!

As the holidays descend upon us, it’s time to start winding down the gears to relax and – inevitably – reflect on the year that was!

Time with family and friends for me is synonymous with food! Because I almost always spend this time of year in the southern hemisphere, it’s a summer menu. It’s more about prawns and pavlova than pork and pancetta (although the latter does make it onto table anyway!) But, of course, that other p … the “p” we all love – procurement – is never far from mind and always on the menu for discussion!

During the year I have been fortunate to speak to procurement and supply chain audiences around the world about the trends we are seeing on Procurious and the impending impact of Industry 4.0 on our profession. In order to provide a framework for thinking through all the challenges and opportunities, I have been sharing a rather quirky analogy by comparing the well-loved English pudding – the trifle – to procurement and supply chain today. Putting up a giant image of a pudding on the big screen at a conference is also a great way to get your audience’s attention!

For the uninitiated, constructing an English trifle involves carefully layering sponge, jelly, custard, fruit, cream, and often garnishing with a heavy sprinkling of nuts.

Yet each layer remains distinct, and that’s how I think of procurement today – a series of self-supporting layers that feed into and out of each other. To manage our roles, we need to understand the strengths and weaknesses or the “setting points”, of those layers if we’re to stay ahead.

Let’s think through some of those layers.

Navigating the Nuts

Let’s start with the top layer of nuts. A generous sprinkling of the unexpected! This is how I think about the Black Swan events that seem to occur with alarming regularity these days. We need to be thinking about these unthinkables – hurricanes like Harvey that de-commission whole cities, man-made catastrophes like the Tianjin port disaster, not to mention recent terrorist attacks. If we can’t predict them, we can at least prepare for the unexpected, take pre-emptive action against disasters that could destroy our supply chains and analyse areas of high-risk.

Geopolitical jelly

Brexit is just one example of how our supply chain forward planning can become somewhat suspended by macroeconomic and geopolitical changes. In Europe, the UK’s decision to activate Brexit is having clear ramifications including a rise in nationalism that’s reflected across Europe. Currency fluctuation and workforce migration also impact procurement and supply chain. The costs to import goods within supply chains will increase; there could be a loss in freedom of movement both in goods and services for UK and EU businesses, and procurement talent could also be considerably affected if the talent pool is reduced.

The Fruits of Progress

We all have front row seats at the parade of new and exciting technologies that are driving the 4th industrial revolution. The rise of the Internet of Things, robotics, blockchain and artificial intelligence will create what we are calling Procurement 4.0.

Cognitive procurement & supply chains are the most exciting developments to happen during my 20-year career. These innovations will enthuse a whole new generation of procurement professionals to join our ranks, but we need to be flexible, agile and able to foster a culture of continuous invention to stay on the leading edge and avoid extinction.

The Foundation Layer

Finally there’s the layer in which we hold the power: Procurement.

Procurement is the sponge at the bottom of the trifle. No matter how many unstable layers of fruit and jelly and custard are piled on top of us, we remain intact. We successfully juggle with the events and changes over which our stakeholders and suppliers have only limited control.

Fortunately, social media helps. I don’t know about you, but when my phone is pinging through the night with texts and emails from the other side of the globe, I’m often tempted to turn it off. But I don’t, because for all the downsides of being constantly online, the benefits of being connected are immense.

Three out of four of our respondents to our Gen Next Survey believed that being well-connected online actually improved on-the-job performance. By using resources like Procurious, not only can we maintain the layers of our trifle by staying aware of these constant changes, but we can also gain access to an enormous diversity of ideas and enthuse the next generation of procurement talent.

The Cream of Procurement Talent

To meet the challenge posed by the top layers of the trifle – unthinkable events, geopolitical earthquakes and disruptive technology – attracting the best and brightest to the profession is vital to our success.

To do that, we need to think hard about how we are bringing on Generation Next, and giving them every opportunity so their impact is not just local, but global.

While we’re talking about talent, here’s another “unthinkable” to ponder – our Gen Next survey also discovered that over 70% of our 500+ survey takers intend to leave their organisation within the next five years. How can we respond to this? The worst thing to do is to keep up the pretense that every member of your team will be sitting at the same desk in ten years’ time. Instead, it’s time to throw away the retention plan and accept the reality that today’s workforce is increasingly mobile.

But this doesn’t mean giving up on developing your team. If you’re known as a supportive manager who gives others the opportunity to go on to a stellar career, you’ll become a talent magnet in the profession. Just image the level of superstar talent that you’ll attract if you develop a reputation as someone who produces future CPOs!

Cutting Through The Complexity

Change management is such an integral part of every senior procurement professionals’ role, and often involves driving change within your organisation and amongst suppliers on a global scale.

The good news is that we’re exactly the right people for the job. Procurement’s position as the conduit of supplier intelligence, our ever-growing level of influence in our organisations, and our keenly-honed negotiation and communication skills make us natural change-management gurus.

Remember that trifle?

The challenge for today’s procurement leaders to deftly cut through all those quivering layers of economic, social, political and technological complexity to serve up a slice of procurement solutions in such a way that your audience will devour your change agenda with gusto! 

Bon Appétit!

Why Don’t You Trust Social Media To Help Crowd-Source Solutions?

Whoever said you’ve got to harness the power of the crowd, clearly didn’t get around to telling the procurement professionals! The vast majority of you have never used social media to crowd-source a solution….When Procurious put out a call for procurement survey participants, we were delighted that 500+ professionals across more than 50 countries shared their insights and wisdom.

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

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.

This week, we’re putting the same group of CPOs to the test to find out why 77 per cent of global procurement professionals have never crowd-sourced a solution to a business challenge on social media. What’s so scary about the world of online networking and why don’t professionals see its value?

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 the video below we ask them how can procurement better tap into the wisdom of the crowd?

Why is procurement reluctant to crowd source?

There are a number of explanations for procurement’s reluctance to embrace crowd-sourcing.

Tony C. Astorga, Supply Chain Management Consultant, puts it down to “Organisations [getting] protective of their information.”

Michelle  Varble, Procurement Director, United Airlines  is also skeptical of its value given the stats we revealed. “The value depends upon the number of individuals participating in these exchanges as well as their level of experience. I question with 76 per cent of respondents not participating, how effective are they at this point and will they reach a tipping point where they can be more effective?”

“When you look specifically inside a supply chain you look and see specific problems to the business which aren’t necessarily something that from a crowd sourcing perspective, merit that type of approach.” says John Foody, General Manager, Procurement U.S Steel  “The challenge is finding the common ground that exists.”

David Henchliffe, Group Manager Procurement OZ Minerals suggests that scepticism about crowd sourcing might stem from  concerns over who to trust for information, “the Key thing for me is the veracity of the information you obtain. The first step is to establish that network and know who you can call on and who’s advice you would trust.”

Anne Berens, Principal AMB ProCures LLC concedes stating how “important to use this as a tool in appropriate situations, properly defining what your question is and inviting people to provide certain types of expertise. There’s always a discounting of input if you don’t know who the source is.”

What are the benefits of crowdsourcing?

Jane Falconer believes “procurement can be a bit insular in understanding how we add value or how we don’t and I think crowd sourcing is a really good way for us to be able to point to a broad base of ideas.”

Adam Cockrell, Global Procurement Lead HSBC agreed stating “The more active we are on social media in terms of seeing what innovation and strategies are out there, the better we’re going to be in terms of moving the needle from a procurement perspective.”

Jim Wetekamp, CEO Bravo Solution reasoned that “If you come to Chicago and you want to go to a nice restaurant you might go to an app and that will tell you where the best place to get a steak is.

“In essence that is  crowd-sourcing. You’re getting peoples’ input that you don’t even know and you’re going on those recommendations. You can use that same concept with procurement and sourcing. There’s so much knowledge out there that is untapped.”

Eric Lynch, Vice President, Basware admits “I’m a big fan. You may know the absolute best about procurement but there may be somebody out there in the field who has experience from a prior organisation where they know they’re getting better pricing on a certain commodity. You need to be able to tap into that knowledge.”

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. 

Career Advice To A Procurement Newbie….

Did it feel like you were thrown in at the deep end upon entering the procurement world? Some of Procurious’ resident experts offer some career advice to anyone starting out on their journey….

Starting out in a new career is never easy; there’s so much to learn, good impressions to be made and new people to meet. But all that’s made easier with a little help from your global community of procurement friends!

The discussion board on Procurious never disappoints as a hotbed for rich debate and discussion.  So, of course, we weren’t surprised  by the wealth of responses when a procurement pro in need reached out for some advice as a newbie to the profession.

To give you a helping hand we’ve compiled some of the best responses from our members….

Get qualified!

The procurement debate rages on regarding professional qualifications. Are they beneficial, are they important? Do you really need them in the age of the internet.

The general consensus amongst Procurious members is: Yes!

Anthea Simon said ” I would say a top tip would be get your CIPS qualifications, this is the advice I was given by my mentor who is a CPO for a leading manufacturing company. If you have ambitions to excel within your procurement career I would say try and get yourself a mentor.”

Steven Onyango agreed saying “have the CIPS qualification, you will really enjoy as it’s detailed and you will love and relate well with some of the units.”

Whilst Chris Cliffe conceded that the CIPS qualification will be “very valuable and worthwhile” he advises aspiring professionals not to rush “make sure it’s the profession for you first, and then commit to the training.”

Open a book

Sometimes funding and timing restraints don’t allow for official certifications and training. In these instances it’s your responsibility to take control of your career and your learning.

Anthea Simon says “read… read… read….read around procurement. There is so much information out there on procurement, supply chain management; anything and everything you want to know about this’ wonderful world of procurement’…

“I spend a good portion of my day reading procurement material whether on the internet, books, audios. Also ask questions. I work closely with the Head of Procurement for my organisation, and I’m always asking him questions if I don’t understand anything or I just want to learn more about something.

Sheri Daneliak agrees advising professionals to “read everything you can get your hands on concerning Procurement and Supply Chain until you can get your certification. This site is a great place for help…”

Build relationships

To succeed in procurement, building relationships is of the utmost importance; with suppliers, clients and stakeholders.

Mike Lewis suggests that procurement pros ” View [their]  critical suppliers as partners and develop relationships based on positive mutual benefit.”

Chuck Intrieri agreed statingThe key to procurement is collaboration. Adversarial relationships do not work. It has to be a “win-win” for both parties.”

“Bringing value to your end users and customers (suppliers and co-workers).” is Tahj Bomar’s top advice. “People, process, and technology. The process and technology, figure what works in the company culture/environment. But, getting people on board and understanding I find is the key! Create  “win-win” situations”

Understand your company

“Understanding in your company, area, category or commodity exactly what you are spending on what products with whom and why.” is Jim Reed’s advice. “I have been asked to save money several times in an area where the spend was low, optimised and attacking it would have been a waste of time, whilst big ticket opportunities would have been ignored. Being able to articulate the spend context has always enabled me to turn that round.”

Marcin Witkowski supports this and instructs professionals to “get as much information as you can about what you are supposed to buy.”

“Listening is the key” says Terry Gittins “find out what you customer wants and work with them to achieve it. Keep it simple and you will bring them with you.”

Click here to view the full discussion and all responses. 

What To Do When Your Procurement Employees Are Leaving You

Do your procurement employees seem to be fleeing the business left, right and centre? Trust us: it’s not you, it’s them! But in these circumstances, should you even bother developing them? 

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

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

Last week, we 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.

This week, we’re putting the same group of CPOs to the test to find out why procurement staff are moving on from their current roles so quickly and how leaders can cope with this erratic workplace dynamic.

Our survey revealed that 48 per cent of professionals intend to move on from their current role within two years.

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 the video below we ask them whether procurement leaders are choosing to help their talent prepare for their next role or if they would rather save the effort of developing talent and instead embrace the gig economy.

 

The temptation to job hop is greater than ever before. As Jim Wetekamp, CEO, BravoSolution points out, “People tend to get curious.

“You have LinkedIn, Facebook and all these other platforms and all of a sudden [the employee’s] mind starts turning. Maybe this looks cool, maybe this looks like an opportunity. People have such an easy access to information.

Under these circumstances, how should leaders be managing their procurement teams to  ensure they are able to make the most of their contributions and skills in the short term?

Why bother developing the short-termers?

If almost half of your procurement team are planning to move on within the next two years, is there any point in you bothering to develop them? What’s in it for you?

Quite a lot, according to Adam Cockrell, Global Procurement Lead HSBC! He explains “It’s not necessarily about keeping them in your organisation but empowering them to [move on to] other organisations that will also be the word of mouth that brings in more talent to your organisation.”

John Foody, General Manager Procurement U.S. Steel agrees stating “Our ability to attract talent is based on the track record we have of advancing and developing them.”

Aside from talent development benefiting organisations in the long run, many leaders rightly see it as their duty to develop their employees.  Jane Falconer believes that  “As employers, we’ve got obligations to manage our teams and do the best for them. [This includes] putting development plans in place irrespective of how long they’re going to be working with us or for us.”

That’s certainly the approach Keith Bird, Managing Director, The Faculty takes “CPOs should take the high ground and develop people. Personally, I would want to be known for developing people and when they leave they leave with our blessing.”

As David Henchliffe, Group Manager Procurement, OZ Minerals reminds us “We’ve got to acknowledge that in the fairly flat organisational structure that most of us work in, people’s opportunity for progress and change will mean that they are going to move on.”

How do you make the most of your talent before they leave?

 

It’s a contentious and dividing subject. Some employers argue that it’s best to hold onto your talent at all costs by nurturing, incentivising and investing in them.

Others consider this futile, believing staff movement to be an inevitable part of business today. If that’s the case, surely it’s most beneficial to find ways to make the most of them in the short term?

“As leaders, if we understand that, instead of ignoring it”Jim Wetekamp continues, “It will allow us to communicate effectively with our teams.”

Anne Berens, Principal AMB ProCures LLC believes that “The key to making sure employees are effective in the short term, is making sure you quickly orient them to what the goals and responsibilities are for the role, support them in that process and make sure you are constantly encouraging contributions and effective behaviour in those roles.”

Eric  Wilson, Vice President,  Basware concedes but suggests managing your long-term and short-term employees slightly differently, “Look at your talent and identify which ones are the ones you should invest in for multiple year investment, multiple careers with me, and which ones you should treat more like a project based organisation,  where you’ve got to get quick wins from them but still help them prepare for their next role.”

Embracing the gig economy

It’s apparent that many organisations are reluctant to fully embrace the gig economy, which relies on flexible working, contractors and a less traditional workplace environment.

Brian Chambers, CPO CSM  Bakery Solutions highlights one major drawback,  “The problem with the gig economy is we’re in an economy of relationship building and more and more success is garnered through building relationships with folks than it is  with  bringing people in and out. So I think growing and developing the talent is much stronger than the gig philosophy.”

But if flexible working is what procurement professionals are after, there’ll have to be a level of compromise. Today 34 per cent of workers in the U.S. are freelancers, and this figure is projected to reach 43 per cent by 2020.

Michelle Varble, Procurement Director, United Airlines explains why “we do need to embrace the gig economy to a certain extent, because I’ve noticed within my organisation that individuals like to try out new and exciting projects. I’ve seen a shift away from the traditional category focussed procurement  to one where people want to be continually challenged and try out new areas.”

“I’m a classic example of the gig-economy professional”, says Kishwar Rahman, a digital transformation lawyer “I’ve moved from project to project, offering my professional skills. Businesses are increasingly looking to hire the right people at the right time for project-based employment.”

According to Rahman, the whole notion of the permanent role is becoming less appropriate as businesses transition towards a consultancy model where experts move between businesses or different projects within a large organisation. “It’s very different to the concept of the ‘job for life’ that existed in our parents’ generation.”

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. 

That’s The Sound Of Your Procurement Career Taking Off….

This pup is taking control of their procurement career by listening (for FREE!) to our Gen NEXT podcast series. Why don’t you join us…?

The Procurement Gen NEXT podcast series, sponsored by Telstra, begins on the 11th December. Sign up to Procurious (It’s FREE!) to access the full series. 

The new generation of procurement professionals want to  overcome career hurdles, tap into power of professional networks and leverage social media to supercharge their careers.

But that’s easier said than done, particularly without the guaranteed support of procurement bosses or sufficient funding for training.

Evidence of a divide has emerged between procurement professionals who are proactively seizing control of their career management, and others who are waiting for a promotion or big break that may never come. At Procurious, we’ve labelled the proactive group “Procurement’s Gen NEXT”.

At Procurious, we believe taking control of your career starts with eLearning. And what better place to start than our new five-part podcast series, sponsored by Telstra.

Listen to a sample podcast now

Listen to Shaun Hughes, Chief Procurement Officer, Telstra talk in Day One of our podcast series:

Day One: Understand Your Stakeholders

On day one of our podcast series we speak to Shaun Hughes, Chief Procurement Officer, Telstra on change management and the evolving skill-sets necessary for a procurement pro to make a difference in their role.

Shaun describes how he encourages procurement professionals (and leaders) to become indispensable, how the function should measure success and how to manage business stakeholders who are reluctant to work with procurement.

Day Two : Cut The Fluff

Michelle Redfern and Div Pilay founded Culturally Diverse Women, a social enterprise, which addresses the underrepresentation of culturally diverse women in senior leadership positions in Australia.

On day two of our podcast series they discuss why they are so passionate about inclusion, what organisations should be doing to ensure they have a diverse, and highly engaged, workforce and why every inclusion strategy needs a push and pull approach!

Day Three: Nailing Your Cognitive Strategy

Alice Sidhu, Partner, Digital & Cognitive Business Transformation, IBM will guide you through nailing your cognitive strategy on day three of the Gen NEXT podcast series.

She explains why procurement professionals should know and care about cognitive process automation,  how the function can bring value by helping the wider business understand its impacts and discusses whether automation really is the “job-killer” people fear it to be.

Day Four: Innovate Or Perish

Peter Nash, Former National Chairman, KPMS Australia believes organisations must innovate or perish in today’s world.

He discusses the ways CPOs can assist their CEOs in addressing their blind spots, what’s keeping CEOs awake at night and how procurement pros can ensure they are respected in their organisations.

Day Five: From Data Rich To Information Rich

On the fifth and final day of the Gen NEXT podcast series we talk to Enrico Rizzon, VP and Partner, A.T. Kearney who addresses how advanced analytics are impacting procurement’s value proposition.

Enrico outlines how the organisation’s perspective of procurement is changing, how CPOs can meet the expectations of their CEO and why procurement needs to speak the language of the business, and not the language of procurement.

How does it work?

The Gen NEXT podcast series will run for one working week with a daily podcast released on Procurious from 11th December.  You can access each new podcast, featuring tips, insights and guidance from the best in the business, via our eLearning area.

How do I access the Gen NEXT podcast series?

If you’re already a member of Procurious sit tight until the 11th December. The podcasts will be published in our eLearning area throughout this week.

Not yet a member of Procurious? All you need to do is register (it’s FREE!) here and you’re good to go!

And, to make things even easier, we’ll be sure to deliver each podcast straight to your doorstep (that is, straight to your email inbox!) as they become available so you won’t miss out on a thing!

When is it?

Starting on the 11th December, the GenNEXT podcast series will run for five days.  When the series is complete, all five podcasts will still be available via the Procurious learning area, FREE of charge for our members.

Is it really free?

Yes! Sign up to become a member of Procurious, and you’ll gain access to all of the podcast content, as well as all of the other resources on Procurious including featured classes, e-learning videos, thousands of procurement news articles, a curated news feed and a global events calendar.

Are the podcasts available to everyone?

Anyone and everyone is welcome to listen to the GenNEXT podcast series and it’s totally, 100 per cent free to do so- simply sign up to Procurious. 

The Procurement Gen NEXT podcast series, sponsored by Telstra, begins on the 11th December. Sign up to Procurious (It’s FREE!) to access the full series. 

Request your copy of the Gen NEXT Report

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International Supply Chain Risks: How U.S. Sanctions Can Kill Your Deal

U.S. sanctions are being applied more vigorously than ever to perceived foreign foes.  What risks do these sanctions pose to our supply chains and  what Mitigation Strategies Can be Used?

The United States (U.S.) had $2.21 trillion Dollars in exports in 2016 according to the U.S. Department of Commerce (D.O.C)i, and an estimated 10.7 million U.S. jobs supported by exports ii. Yet U.S. unilateral sanctions are being applied more vigorously than ever to perceived foreign foes, negatively affecting trade balances.

One of the most important and sensitive supply chain risks for private and public organisations is how to manage U.S. unilateral sanctions. The U.S. Treasury Department Office of Foreign Assets Control (OFAC) is responsible for administering U.S. sanctions. OFAC also distinguishes between primary and secondary sanctions, with the former prohibiting U.S. persons from engaging with sanctioned entities, and the latter targeting non-U.S. persons, outside U.S. jurisdiction, engaged in activities with the sanctioned entity either directly or in an ancillary fashion. Potentially affected businesses and individuals, therefore, must regularly consult the Department of Treasury’s online resources, or engage lawyers with OFAC compliance experience, to ensure they are not exposing themselves to significant penalties (or jail time) from U.S. authorities. For international or multi-lateral organisations, unilateral sanctions risks are particularly tricky because both the U.S. and the sanctioned country, or countries, may be among their members. This article will focus on U.S. unilateral sanctions risks affecting International Organisation deals.

Why Is This A Problem?

Nearly all international organisations have clauses prohibiting contracts, transfers of goods, or even technical cooperation engagements with vendors or countries subject to sanctions imposed by the United Nations Security Council. However, these organisations are not required by international law to adhere to unilateral sanctions of any one member country against another, due to the privileges and immunities conveyed upon them by international conventions.iii In theory this means that if the U.S. imposes sanctions on Iran for example (both member countries of the U.N. since 1945), but the United Nations itself does not impose sanctions on Iran, then U.N. agencies and similarly, non-U.N. multi-lateral organisations, could continue doing business with Iran and not have to abide by the U.S.’s unilateral action. In practice however, multi-lateral agencies may find it difficult to ignore the U.S.’s persuasive sanctions arguments, despite the detriment unilateral sanctions may cause another member. Why? The United States is a major actor on the world stage, and it has considerable influence. It can wield its tremendous political and economic clout as a powerful member of nearly every international organisation in the world, to ensure its objectives are met, and that any transgressions by suppliers or international agencies, are swiftly discouraged.

What Are The Supply Chain Risks?

Supply interruption – U.S. unilateral sanctions can be applied overnight because the surprise element is very powerful in coercing the sanctioned party to comply with U.S. demands iv. Because sanctions may be implemented quickly and unexpectedly, their enactment can trigger immediate supply interruption of goods and services. All members of the supply chain can become subject to rigorous product or service inquiry to determine continued eligibility, and re-negotiation of terms is a real possibility. Suppliers may find themselves scrambling to ensure their contract doesn’t involve activities or persons that expose them to secondary sanctions.

Payment restrictions – Cash flow can also become a problem, especially if suppliers negotiate special payment terms in certain currencies. If an international agency engages a supplier to provide goods or services, and that supplier is somehow involved with a sanctioned entity, directly or indirectly, payments or advance cash transfers may get tied up by banks who suspect the transfer may reach an entity subject to U.S. unilateral sanctions. This can lead suppliers to struggle to meet contract targets or cease delivery altogether. It can also make repatriation of payments back to a payer more difficult.

Reputational Impact – Although the U.N., other multi-laterals, and their staff enjoy immunity from legal processv, suppliers do not enjoy the same protections. Sanctions can bring additional costs they hadn’t expected and they may attempt to secure compensation when things go awry. Even when the relevant law and jurisdiction for disputes is determined by the international agency, suppliers may still aggressively pursue disputes and the reputational risk for the agency if it does not comply or compensate for a presumed breach, is high. Diplomatic and political resources often prevail in settling such disputes away from the prying eyes of the press and public, however, coming to a satisfactory resolution involves time, money, and uncertainty.

What Mitigation Strategies Can be Used?

The answer is…. “It depends.” First, it’s important to understand that navigating unilateral sanctions can be a political minefield for an international organisation! Unlike private entities, there is no clear system in place to manage unilateral foreign policy objectives of one sovereign member state against another. Second, although international agencies monitor political developments of member countries, and no doubt try to avoid dealings that would disturb the delicate balance within these structures, it is not within their purview to implement unilateral sanctions against a member, unless there is consensus among all members to do so. Third, supply chain risks are inherently unpredictable. Supplier audits and screenings only show a snapshot of current relationships, not entanglements with sub-contractors or third party beneficiaries. Although parties can attempt strong due diligence and even stronger government compliance, knowing the rules to follow when caught in the web of unilateral sanctions actions is challenging.

To read the full article by Magda Theodate, please click here. 

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i U.S. International Trade Administration, Department of Commerce 2016 Exports Fact Sheet, https://ibc- static.broad.msu.edu/sites/DEC/images/resources/1159b5b1-8a59-47a1-b988-4bb1836c9904us-exports- factsheet.pdf

ii U.S. Office of Trade and Economic Analysis, Department of Commerce Jobs Supported by Exports 2016 https://www.trade.gov/mas/ian/build/groups/public/@tg_ian/documents/webcontent/tg_ian_005543.pdf

iii Convention on the Privileges and Immunities of the United Nations (the “Convention”), adopted by the General Assembly of the United Nations February 13, 1946, and which set out specific privileges and immunities for the UN and its staff subject to waiver only by the Secretary General in certain situations.

iv U.S. implemented changes to Cuba sanctions rules announced officially November 8, 2017 and taking effect on November 9, 2017, see U.S. Treasury Press Release https://www.treasury.gov/press-center/press- releases/Pages/sm0209.aspx

v See Supra note 3