Category Archives: Career Management

Half Of Us Lie To Get A Job – Can You Get Away With It?

Dying to move on? Then try lying. Don’t worry, you won’t be alone if you lie to get a job


By FGC/ Shutterstock

More than half of us confess to not telling the whole truth on our CVs and one in ten people have even managed to land a new role as a result. However, there are certain do’s and don’ts to take into consideration.

Embellishing experience

This is the most common untruth according to research from The University of Law, with nearly one in three confessing to lying about past experience on their CV – and that’s because it is easy to get away with a few exaggerations, provided what you are saying is based on facts.

Careful wording is key. So, “experience of leading a team” is fine even if you have only done this once or twice. “Experienced team leader”, however, is probably a step too far.

Avoid any claims that are easy to check. You can be vague on dates (for example, 2015 to 2016 – is a way to get around a very short time in a job that lasted just a few months from November to January), but listing your title as “Operations Director” when your LinkedIn profile/the company website clearly states “Manager” is asking to get caught out.

Giving your skills a boost

This is another aspect of our CVs where we are more likely to lie. Skills are easier to exaggerate than qualifications (which are easy to check) and as such you are more likely to get away with a few embellishments.

With many CVs now scanned electronically make sure you include the exact words listed in the job spec to ensure you get through to the interview stage. Most of us can give examples of when we have been “target driven” or have shown “great attention to detail” so think of how you have shown these skills (just in case you are asked to prove your claims).

Hyping your hobbies

This is often the most difficult part of a CV to write. If you own up about spending your free time in the pub playing pool and drinking pints, it doesn’t do you any favours. No wonder one in five say they would be most comfortable lying about their interests (but don’t forget to do your research – interviewers often ask about hobbies to break the ice).

Keeping quiet about things you want to hide

This is not exactly lying. Around one in ten of us feel pressure to lie about our age. Why bother? The Equalities Act makes age discrimination illegal. As such you are not required to put your date of birth on your CV and should not even be asked about your age. The same applies to marital status, religion, gender and sexuality. In fact, if you feel uncomfortable lying follow the “if in doubt, leave it out” approach.

If all else fails…. own your failings

If you don’t quite meet the job spec, don’t worry. Talent shortages mean that many employers are now looking for someone with potential rather than holding out of a candidate that can tick all the boxes. The world of work is changing so quickly, that the job you are doing today will inevitably change over the next five to ten years.

As such adaptability and reliance along with soft skills such as relationship building, communication and organisation skills are more important than experience for many hirers. So, don’t forget to add these to your CV.

But when it comes to tech… don’t blag it

You may be able to demonstrate your soft skills by giving a few examples, but one area you are likely to get caught is with tech. Some employers may even give you a skills test or ask you to give examples of how you have used a particular piece of software.

James, 35, a Project Manager from London, and one of those surveyed by the University of Law, shares this cautionary tale: “Earlier on in my career I applied for a job that was out of my reach in terms of experience, but the money was good, and the company was one I’d always wanted to work for, I thought, why not try my luck? To help me secure the role, I exaggerated on my previous roles and claimed to be able to use a software I hadn’t even heard of (how hard could it be to learn on the job, right?).

I landed an interview but didn’t expect them to go into a detailed discussion about the software, asking me how I’ve used it to help run my projects and report effectively. I tried to guess my way through it, but they definitely knew I had no idea what they were talking about. Safe to say they didn’t call me in for the second round.”

So better to be safe than sorry….and if you are going to lie, don’t lie about being able to do things you can’t.

Want to get your wheels turning towards a supply chain career one could only dream of? Then don’t miss our upcoming Career Boot Camp with IBM – a free 5-part podcast series with some of the very best of the best. Check it out here: https://www.procurious.com/career-boot-camp-2019

Is Category Management Still A Career Choice?

Far from the predictions of many, category management is alive and well, but it is changing. Elaine Porteous explores how…

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Contrary to some predictions in the last decade about the demise and imminent death of category management in procurement, it is alive and well, but evolving.  In truth, it is becoming more complicated as third-party spend in the 21st century does not easily fit into historical categories.  There is more overlap and intersection in I.T. services as it merges with telecommunications, marketing services now include internet and social media and packaging is concerned with sustainability.     

Category management’s aim is to segment its spending on third-party goods and services into groups depending on function and end use.  The difficulty in defining category groups has increased due to the overlap between commodities and the rapid innovation in technologies.  Category managers handle more than strategic sourcing. Their role includes creating a category plan, handling supplier relationships and providing continual oversight in the category. 

Specialise in your niche and own the category

It is generally understood that difficult and complex indirect categories pay more.  Indirect spend refers to goods or services that are not directly incorporated into a product or service delivered to a customer, e.g.  I.T., marketing, facilities and professional services.  Experienced category managers can earn £75 000 per annum.    

Why are some categories difficult?  Partly because stakeholders in these categories resist procurement efforts to influence their spend and are protective of their incumbent suppliers.  It can also be because procurement people may be seen to be lacking in the knowledge needed to lead the supplier selection and contracting process.  

Professional services can be a bit of a minefield. Marketing, management consulting, legal and insurance are commodities that have unclear and convoluted pricing structures which take time to understand fully.   

Managing indirect categories requires behavioural skills as well as deep technical knowledge of the category. Aspiring category managers need persuasive skills, empathy and the ability to listen as well as to be decisive when the need arises.  They also need to act as change agents and diplomats.

Don’t try and change the supplier of food catering services without engaging with the users or there may be a riot.   

Information Technology

Sourcing and contracting I.T services is different from any other category. Without extensive experience or formal training, this category is going to be an uphill struggle. The advancements in artificial intelligence (AI), SaaS and blockchain will require constant study and awareness of how to apply new types of applications. Where the I.T. function is mission critical to the company operations, e.g. in banks and insurance companies, procurement and sourcing professionals need to be totally immersed in the category and its commodities which can include: software licences, hardware, peripherals, servers, data and telephony, 3D printing, warranties and maintenance.  Category managers are increasingly being hired from internal and external I.T. departments.

The organisational culture and landscape on the indirect side has many nuances that do not exist on the direct side. The procurement executive will therefore need to traverse the waters of indirect spend with unique strategies to ensure success.

Marketing services

This category requires focus, stamina and a long line in patience. The relationship between marketing and procurement works best when they meet to discuss and agree on sourcing and contracting strategy and when procurement takes over the pesky administrative details.   Traditionally advertising agencies have been the major recipients of marketing spend, some providing a one-stop service, maybe with no contract or service level agreement (SLA).  This is changing; the use of printed matter is diminishing, digital agencies are taking over so there is healthy competition for the overall spend.

See also  Is Marketing Procurement’s Blind Spot?

Legal services

Even though the legal services area is complex and services are expensive, it is possible to build credibility with the in-house legal team by finding out

  1. and understanding what their needs and issues are
  2. which areas have the potential for savings
  3. where better value can be achieved from external legal firms. 

The low-end, routine or commoditized legal services are the easiest to address. By learning the language of solicitors and attorneys you can express your sourcing ideas in words they can understand. Managing supplier relationships with law firms need to be focused on minimising bad behaviours and rewarding and incentivising those who provide accurate, transparent pricing and deliver excellent service and good advice.

Human Resources

HR has a wide remit in many large organizations with the main focus being on people management. Most HR professionals would agree that they don’t have an in-depth understanding of their suppliers’ cost drivers such as profit, overheads, risk and how these impact on return on investment (ROI).  They are beginning to realise the benefits of having their procurement counterparts with them around the negotiating table.  Procurement’s selling proposition to HR is to demonstrate its ability to deliver value by being a source of market intelligence and a guide to best practice. 

Depending on the industry sector you work in, some categories can take on greater or lesser importance. In fast-moving-consumer-goods, packaging, logistics and transport are vital to the success of all food, drink and healthcare companies. In insurance and banking, reliable technology is the key.  

Tips to help you succeed in difficult categories

  • Research the market by benchmarking the pricing of services to  establish the competitiveness of current suppliers
  • Develop a database for each type of service by evaluating current suppliers, their pricing structures and capabilities
  • Re-negotiate and improve the contractual terms and conditions, pricing models and rates on current agreements and/or go to market with a well-thought outsourcing strategy.  
  • Establish what deliverables and technical skills are needed for each type of service so that you can determine which suppliers can provide them
  • Identify incentives to improve relationships with your incumbent suppliers and aim to consolidate your base

There is a growing awareness of corporate social responsibility across most categories. Sustainability is becoming more than a consideration in categories that have the potential to have a detrimental impact on society and the environment. Job descriptions for category managers are already including responsibility for sustainability strategies. 

See also  Where Are All The Great Procurement Jobs?

How To Hire Someone With A Growth Mindset

Some people are on a journey of continuous improvement and, as a result, are more likely to achieve their goals. Here’s how you identify those with a growth mindset.

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The growth mindset theory was brought to prominence by Carol Dweck, a Stanford psychology professor, and in simple terms it suggests that “we can grow our brain’s capacity to learn and to solve problems”.

Rather than labeling people as smart or not, musical or not, good at math or not, talented or not, and so on, Dweck argues that with effort we can learn how to improve in every area.

After failing a biology exam, a student with a fixed mindset will muse that they aren’t good at biology, they aren’t a good student and they are a failure. The only logical conclusion from here is therefore to quit and the resultant emotion is likely to be self pity. This student is a hostage to their own perceived limitations. They have become the grade from their exam. They are a failure.

Conversely, a student with a growth mindset will conclude from the failure that they didn’t study enough or didn’t use the right study methods. They do not label themselves as a failure. Rather, they see the exam as a failed effort, learn from it and adapt, thus becoming stronger.

It’s not easy being the smartest person in the room your entire life and then one day failing. This is the critical juncture. Am I a failure? Or did I encounter a scenario where I didn’t work hard enough or well enough? Do I need to change my approach?

The first conclusion – I’m a failure – is disastrous because we believe that our ability is capped and it leads to despair. The second conclusion – I can improve – leads to hope.

The world is not necessarily divided into people with fixed and growth mindsets. Even the most frequent adopters of a growth mindset can find themselves in a fixed mindset sometimes. But some people consistently approach life’s challenges with a growth mindset.

Such people are on a journey of continuous improvement and, as a result, are more likely to achieve their goals. In fact, they are likely to move the goalposts altogether. They won’t give up as easily, they will find a way to solve complex problems, they will teach themselves new methods and they will value effort, determination and improvement over any talents they perceive to have been born with.

They will find a way to win rather than believing that they are simply a winner or a loser.

Here’s four ways to hire someone with a growth mindset:

Going to the Next Level

Professor Dweck worked with a baseball team to identify draftees with a growth mindset. Prospective draftees were asked what they would have to change in order to be successful at the top level.

Recruiters were looking for people who acknowledged that they’d need to improve most of their skills because this demonstrates an understanding that abilities can be developed.


This question can easily be modified to suit a company setting.  Just ask candidates what they would need to do to be successful in a role that is one level up from their current role.

Dealing with Failure

Ask candidates about a time when they didn’t get an outcome they wanted. It doesn’t have to be linked to their careers – it can be anything like a grade at school, an application that was refused or a poor showing in a sporting competition, to name a few. Then ask what their conclusion was. Why did they fail? What did they learn? What did they do next? Look for attempts at improvement based on greater effort or a change of approach.

The Musician Test


Ask candidates what it would take for them to become really good saxophonists. This should be a multiple choice question. One answer should be along the lines of “a good teacher and lots of practice” and another should be something like “hell to freeze over, it will never happen”. The idea is to determine whether candidates think they can develop skills in an area that they previously had none.

Labelling


Give candidates a number of scenarios and for each one ask them to choose between two phrases that describe how they feel about the outcome. For example, if the scenario is “you came fourth out of eight in a race” then the two phrases could be “too slow” and “need to speed up”. If the scenario is “you got 58 is the biology exam and 83 in the literature exam” the two phrases could be “better at literature” and “didn’t study effectively for biology”.

The first phrase in both scenarios effectively labels the candidate as a success or a failure, as good or bad at something. This implies a fixed mindset. Conversely, the second phrase in both scenarios implies a belief in the ability to improve.

Hire for Growth 

Hiring people with a growth mindset means that, instead of hiring fixed talent, you are hiring people who will become more and more talented over time. Improvement in your company will therefore be continuous. Once you know what to look for, hiring people with a growth mindset is not necessarily difficult.

This article, written by Omer Molad, was originally published on Vervoe.

Is The Ageing Workforce Blocking Career Progression?

Younger workers are worried that an ageing workforce makes it more difficult for them to get a job – but just how much truth is there behind their concerns? 

By Kaspars Grinvalds / Shutterstock

The speaker of the United States House of Representatives, Nancy Pelosi, now aged 78, was once asked by an NBC reporter whether her decision to stay in the job blocks a new generation of Democratic leaders. Offensive though it is, the question makes sense to a lot of younger workers.  If Pelosi keeps working, a younger person doesn’t get a go at the job. And there are many workplaces where that question is playing on the minds of workers.  But intuitive as it sounds, the evidence says it’s a load of bollocks.

More of us are working to an older age than ever before.  In Australia for example the chance that a 55 to 59 year old is still working has jumped from 60 to 75 per cent since the turn of the century.  The likelihood that a person aged 60 to 64 is still working has similarly leapt from 34 to 57 per cent.  And the story is repeated across the globe.  Eighty three per cent of 60 to 64 year olds in Iceland still work, as do 76% in New Zealand, 68 per cent in Sweden and 66 per cent in Japan. 

This is trend that is likely to continue to accelerate with the United Nations projecting that by 2050 the number of people aged over 60 will more than double, to approximately 2 billion, representing around a fifth of the world’s population.  Better healthcare have contributed to longer average lifespans. This combined with declining real spending power for employees has resulted in strong economic and social imperatives for people to stay at work longer.

Perhaps unsurprisingly, younger workers are worried that the presence of older workers makes it more difficult for them to get a job and to progress if they do get one.  Surveys like the one carried out by Canada Life Insurance group reveal that two in five employees believe the ageing workforce will make it harder for younger employees to get a start. 

Employees under thirty are the most concerned with almost of half in agreement with the proposition that older members of staff should retire so that younger workers could have a genuine chance of promotion.  Just 29 per cent of workers aged over 50, agree.  There’s only so many jobs at any given level, young workers reason, and if people are staying in work longer then their chances of progressing are significantly decreased. Only one in five workers felt that older workers should be retained so that they could benefit from their experience.

And while that logic sounds intuitively correct, there isn’t a shred of evidence to support it.  The “lump of labour” theory, as it is known by economists has been around since 1851, when a British economist argued that cutting the number of hours employees worked would eliminate unemployment.  It has been used in policy debates to justify all manner of sexist, anti-immigrant or ageist employment or retirement legislation.  In essence it maintains that any big ‘lump of labour’ suddenly hitting the workforce, such as from immigrants, women, returning veterans or, in this case, older people, reduces the employment prospects of new entrants.

But when economists went looking for proof that this actually happens, they have consistently come up dry.  One recent example is a major review of US labor statistics covering the period 1977 to 2011.  It found that the increased number of older workers in that period had not reduced employment of younger workers, reduced the wages paid to younger workers or reduced the number of hours of work available for younger workers.  Indeed the data suggested that the greater employment of older people had lead to better outcomes for younger workers in that period.

Global analysis by the US National Bureau of Economic Research says that the macroeconomic reality is very different from what intuition tells us.  From an economy-wide perspective, the presence of older workers means more people working rather than collecting pensions and being otherwise dependent on the productivity of younger workers.  This in turn drives greater and faster economic growth which in turn spurs the creation of more jobs.  The pool of available jobs is not static say economists.  It is a rapidly expanding pool that is driven by economic activity and technological innovation. 

If your plan for career progression begins and ends with waiting for your boss to retire or die in harness, then yes, the ageing workforce is going to be a bit of a problem for you.  But if you are open to lateral movement, reskilling in new technologies and embracing the new opportunities that an expanding economy presents then older workers are no threat to you.  And more than that by the time you get to be part of that cohort, you will probably be very grateful for the healthcare and lifestyle benefits they have forced employers to adopt to support an older workforce.

Become The Translator for Your Procurement Network

You may have thousands of contacts in your professional network, but how many of them are you actually influencing?  

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In the age of big data, “vanity metrics” are a plague that affect every profession. Anyone who has a website, for example, will know that page views and “likes” may make you feel good, but are very difficult to link with key business drivers.

Vanity metrics to watch out for in procurement might include measuring team activity, counting your total POs, your number of suppliers, or number of projects without actually measuring the value that they’re delivering. A team member who brags that they’ve had 100 meetings with key suppliers in the past six months is talking about a vanity metric, but if that same person provides numbers around the savings and other value flowing from those meetings, then we’re talking about real value. 

Online networking is another area rife with vanity metrics. No matter whether you have 500, 5000 or 10,000 connections across LinkedIn, Procurious and other platforms, your network risks being nothing more than a dormant asset unless you contribute. By “contribute”, I don’t mean that you “like” something they wrote or share photos of your holiday – I mean that you share your mastery, your insights and your experience. For the majority of us, it’s rare that we contribute meaningfully to our networks.    

Remove the collection addiction

I believe we have a collection addiction in the business world. In previous years we collected piles of business cards wrapped in rubber bands – which often (if you’re anything like me) ended up gathering dust on a forgotten corner of the desk. These days it’s about racking up the number of connections either online or within our databases.

Both these situations have the same outcome – a massive potential network and no influence. I would rather you have 50 people who are highly engaged in everything that you do – commenting, joining the conversation and sharing your insights among their own networks – than 5000 people on a list that have never been touched.

In other words, popularity is the wrong metric – focus instead on influence. Focus on having people engaged enough with what you’re doing – so much so that they would happily share your ideas, insights and achievements with everybody that they know. In other words influence is the ability to say ‘look over there’ and have people engaged enough to look. Your responsibility then becomes making sure that what you point them towards, what you contribute, is and valuable as possible.

Engage rather than collect

While collecting contacts is a vanity metric, engaging with contacts is a value-driving activity. The best way I know how to engage with others online is to become the ‘primary translator’ of your space.

A translator is someone who goes out into the areas where others don’t have the time, nor the bandwidth, nor the experience to go, and bring relevant information back for their network in a language they understand. If you want to stand out and build your influence, you need to become the translator of valuable information for your target audience. What does that look like? The best place to start is to make a list of the top questions the people you are wanting to influence are asking in relation to your area of expertise. If you’re not sure – ask! Then systematically go through that list and find the best way to contribute the answers. It might be in the form of articles, videos, internal presentations, checklists, how to guides, insight reports or even preparing in advance in order to contribute more actively in meetings.

Another good exercise is to take a moment to think about the translators that you follow. Whose work do you consistently follow or read? Now think about what they translate for you; the value they bring, and how they go about it – do they present the information in essay-length blog articles, or bite-sized posts? If you consistently give them your valuable attention – I guarantee you they effectively translate something important to your world.

Speak the language of the business

You’ll notice I mentioned that the first step in becoming the translator – is getting to know what questions are important to the people you’re trying to reach. For procurement professionals this means understanding what questions your business stakeholders are asking. What are their challenges? What are their opportunities? That they may or may not have seen? Then it’s up to you to access your own expertise and bring that information back to them – not in procurement technical language, but in their language – in the language they already speak.

Translators know that they need to be able to speak the language of the business, and also understand that a multitude of languages exist within every organisation. This is often referred to as ‘charismatic language’. Every group and community of people has one. Your finance function, for example, will speak a very different language – use very different and specific words – than your stakeholders in marketing. What they do have in common, however, is that neither group of stakeholders will want to hear you talk about RFPs, RFXs, or tenders.

Become the trusted authority

Take time to revisit your network of stakeholder (both online and in the office) and think about what subjects you can translate for them – within your area of expertise. Doing so will capture their attention and help build their perception of you as an influential subject matter expert. However – much larger than that. They will know that you care about – and have real value to share in relation to – the issues that are important to them.

It’s this decision – to become your organisations primary translator and contribute your mastery in a format that resonates – that will quickly accelerate you to the role of trusted authority.

Now that’s the metric of real influence.

Procurement Outsourcing – What To Watch Out For

The advantages of procurement outsourcing have been well-documented, the disadvantages – less so. In this article Elaine Porteous outlines how the trend has evolved and minimising the risks associated.

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The outsourcing of procurement tasks started off a couple of decades ago when companies found ways to process orders and invoices more efficiently. It grew and got labelled as procure-to-pay (P2P) and is still a popular solution for managing volumes of repetitive transactions. Tactical procurement, where low-cost/high volume commodities are being sourced is the next favourite area for outsourcing. Lately, procurement outsourcing has expanded into a wider range of activities, even moving into areas such as strategic category management, supplier selection and contract negotiation. Non-core services are the most likely candidates for outsourcing:  HR services, I.T. support, facilities management and logistics. 

According to CIPS’ definition of procurement outsourcing, it can also include “the provision of procurement services and processes within an operation which may involve the transfer of people and/or assets to another company.  Procurement service providers (PSPs) may have a full-service offering taking over the entire procurement function of an organisation.  Other smaller PSPs may manage only one element of a procurement function such as spend analysis or contract management.

According to McKinsey, to make strategic procurement outsourcing a success, companies need to take a highly systematic approach with three basic steps:

  1. They outsource strategic buying only in categories where doing so offers clear value.
  2. They have a precise understanding of the sources of that value and how to unlock it.  
  3. They choose outsourcing partners that have the capabilities to address those sources of value, then define and implement agreements that maximise the chance of capturing potential savings

The choice of a PSP depends on its capabilities, the size and complexity of the supply market and the buying organisation’s relative influence in that market; the expertise and availability of resources will affect the decision.   Outsourcing works best when the ability to manage a strategic category in-house is low.

Trends in outsourcing

There is a growing interest within procurement about outsourcing data-heavy activities such as spend analysis, supplier performance management and tender evaluations.  Tracking of realised savings has always been a headache and a topic of disagreement due to varying methods of calculation – by outsourcing this to specialists there is less room for debate. 

Governance, regulation and compliance is an area that is increasingly becoming onerous for companies, especially in the banking and healthcare sectors and is, therefore, a candidate for outsourcing.  

The outsourcing agreement 

When a decision has been made on what can be successfully outsourced a PSP must be selected in line with in-house procurement policy. This should include normal supplier due diligence to establish the company’s capabilities, including reviewing the supplier’s financial statements to ensure that the business is profitable and the supplier is not at risk of failure.  Next, the basis on which the partnership will work must be negotiated and confirmed.  The relationship needs to be formalised in a comprehensive contract with an enforceable service level agreement (SLA) that defines the rules of the game. Key performance indicators (KPIs) need to be clearly defined. These are the metrics used to measure performance and the calculation of bonuses.   

In the SLA, risks can be minimised by defining:  

  • Minimum acceptable service levels with penalties/incentives  
  • What happens when the PSP fails to deliver? Contingency plans
  • Who owns the data?
  • The PSPs responsibility for data security and confidentiality
  • Who owns the work developed during the contract?
  • What happens when there is a change in ownership of the PSP?

Managing the outsource partner

You have a contract in place and an SLA, what next?   The PSP is like all other key suppliers, it needs to be managed through the entire contract period.  Implementation is often the stage at which the outsourcing project fails. Stakeholders, if not consulted, can be obstructive and delay the process.  The manager’s role is to deliver the service to users, monitor the PSP’s performance, ensuring delivery against the pre-set KPIs.

Advantages and disadvantages of outsourcing

The advantages have been well-documented by the PSPs themselves, the disadvantages, less so.  Among the leading full-service PSPs are Accenture, Capgemini, Infosys and IBM.  The advantages are

  • Lower costs due to PSPs’ economies of scale by aggregating customers’ requirements  
  • Outsourcing low value/high volume purchases frees up internal expensive resources
  • Access to global expertise and market knowledge in categories where there is little in-house capacity or experience
  • Time-consuming negotiations and contracting are managed by specialists

Because outsourcing involves handing over direct control to a third-party it comes with challenges.  These may be service delivery issues, a lack of flexibility and unforeseen management crises at the PSP.  Open lines of communication at all levels are vital to the success of the contract.  Whatever the function being outsourced, the aim is to create a long term partnership that is designed to achieve more than just cost-cutting.  

3 KPIs for Digitally Transforming Your Business Spend: How Do You Measure Up?

If CEO predictions are any indicator of what’s to come in the business world, buckle up, because we may be in for a bumpy ride. Here are three of the most influential KPIs for purchasing, invoicing, and expenses. 

By Aaron Amat/ Shutterstock

If CEO predictions are any indicator of what’s to come in the business world, buckle up, because we may be in for a bumpy ride. According to PwC’s annual CEO Survey, there’s been a 436 per cent increase in the number of CEOs saying they expect global economic growth to decline this year. Just 35 per cent said they are “very confident” about revenue prospects for the next year.

So, what’s a business leader to do? The most popular answer seems to be “look inside-out for profitability and growth.” Faced with economic uncertainty, finance and procurement executives are increasingly challenged to not only uncover and deliver savings opportunities, but also to reduce risk, support innovation agendas, and create levers for growth.

3 Digitisation KPIs to Measure Your Procurement and Expense Process Maturity

It’s important to set measurable goals to assess the maturity of your procurement and expenses processes. By analysing the largest accessible source of business spend data (the nearly US$1 trillion that flows through the Coupa platform), Coupa Business Spend Management (BSM) experts have identified 12 Key Performance Indicators to help you gain insight into and advance your organisation’s maturity across the spectrum of BSM processes, from sourcing to procurement to payments.

Here are three of the most influential KPIs for Purchasing, Invoicing, and Expenses and how companies with digitally mature processes are performing in these areas:

1. Purchasing KPI: Percentage of Electronic PO Processing: 89.7 per cent

What it is: The percentage of POs processed digitally measures the success of eProcurement initiatives designed to reduce PO processing time and employee and supplier frustration.

Why it matters: A high rate of digital POs often means that procurement teams have time to focus on strategic initiatives, like lowering risk and optimising productivity, instead of chasing lost orders.

2. Invoicing KPI: Invoice Approval Cycle Time: 30.7 hours

What it is: The average time, in hours, from the time of invoice submission to the time of final approval measures the efficiency of the entire approvals process.

Why it matters: A short invoice approval cycle time assures that there are no unnecessary project delays due to payment delays. It also enables early payment discounts and fewer status inquiries while decreasing the risk of late payment penalties.

3. Expenses KPI: Percentage of Manual Expense Audit: 6 per cent

What it is: The percentage of expense reports that go through human audit reflects the precision and accuracy of existing controls and compliance throughout the expenses management processes.

Why it matters: A low percentage of manual auditing implies that expense policies and automated audits are effectively ensuring compliance. Large numbers of manual audits place a costly administrative burden on AP teams.

Learn More About How to Use Benchmarking Data to Drive Success

Want to find out what the other nine KPIs are and find out how your organisation measures up? Read Coupa’s 2019 Benchmark Report to learn more about how focusing on improving these critical KPIs can help you improve profitability, streamline operations, and achieve efficient growth.

For extra credit, join us at Coupa’s next webinar! We’d love to see you at our discussion about Building A Strategic Procurement & Finance Alliance to Enable Growth with Levvel Research and Coupa CFO Todd Ford to explore how business leaders can use KPIs and benchmark data to reduce silos in the back office. We’ll also take a look at:

  • New data on the state of procurement and finance collaboration
  • Procurement and finance efficiency benchmarks of high-performing organisations
  • Strategies for reducing departmental silos and creating spend management visibility

Reserve your spot today. We can’t wait to see you!

Procurement Across Borders: Do You Have The Drive?

Do you have the drive, interest, motivation and confidence to adapt to a multicultural situation?


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In the last article in this series we discussed what cultural intelligence (CQ) is and how it is an important tool in working effectively across distance, culture and time. I described the four main components of CQ, which are CQ Drive, CQ Knowledge, CQ strategy and CQ Action. In this article I will be focusing on CQ Drive.

CQ Drive is the interest, motivation and confidence to adapt to a multicultural situation. There are three main areas of CQ Drive, these being:  

  • Intrinsic drive which is what motivates some people to have interactions with other cultures.  People with intrinsic drive have a deep, personal interest in different cultures and want to understand or experience the different foods, languages and cultural practices of others
  • Extrinsic drive describes those people that may want to gain experience interacting across cultures to improve their credentials, gain experience or gain a promotion in their organisation. People with extrinsic drive are more motivated by the ways in which having interactions with other cultures can benefit them
  • Self efficacy refers to having the confidence to deal with intercultural situations should they arise, especially when you are not in a position to know the best course of action. Often this entails navigating the cues you are receiving and interpreting them to the best of your ability

To further exemplify CQ drive in action I would like to share a story about a client. I was engaged recently to work with a scientist who is on a one year assignment in Australia from Germany. He works for a Biopharmaceutical organisation that has operations in both Australia and Germany. Apart from the technical side of his role, his brief is also to help bridge the different operational styles in the laboratory between the two countries.

 In terms of his intrinsic motivation, he really wants his assignment to be a successful one, has an interest in being of service and helping the organisation to grow through gaining experience in Australia and understanding how the business can operate optimally in a different context.

His extrinsic motivation is through knowing that having this experience will help him further his career and gain recognition and promotion in the future. This international exposure will be an essential component of his ambition to become a global leader.

He has also shown a high degree of self efficacy. Upon arriving in Australia, the organisation provided him with an apartment in a high rise development located in downtown Melbourne. He found over the first few weeks that he was quite lonely and had few people to talk to. Having had previous experience travelling through Europe, he decided to register himself at a Youth Hostel to enable him to meet other travellers and increase his friendship circle.

So, this is an example of someone with high CQ drive in all aspects. I encourage you to reflect on your own levels of CQ Drive in terms of intrinsic motivation, extrinsic motivation and self-efficacy. In my article next month, I will share some tips and techniques on how you can improve your CQ Drive and the kind of outcomes this can bring.

When Did Podcasting Become So Cool?

50 per cent of the population can’t be wrong, right? But just why is podcasting so popular and why do we keep listening?

By Syda Productions/ Shutterstock

In 2017, when I received a call from Colin Beattie, one of the best leadership and cultural transformation architects I know, I had no idea at all about podcasts. So when Colin told me that he had an idea for an innovative podcast format exploring leadership dilemmas, and asked if I wanted to be one of his executive speakers, it was more my enthusiasm at having a chance to work with Colin again that had me saying yes. Two great conversations facilitated by Colin with the wonderful Simone Carroll, some improvisation from the talented Rik Brown and Amanda Buckley, and two more episodes of the podcast series LeaderShip of Fools were created. From my end, I was a convert.

With the advent of digital technology, the way we work, socialise and engage has changed dramatically. So it’s no surprise therefore that the way we consume information, listen and learn has also changed. What may however be a surprise is that what we now commonly refer to as podcasting, has its origins in the 1980s. For those of us who were around at the time, we may remember it referred to as audioblogging (among other names). For its time, it was a ground-breaking way of recording and communicating information and messages. It wasn’t until the early 2000s and the introduction of the Apple iPod however, that momentum started to build around this digital platform. With a diverse library of 000’s of recordings being made available via the iPod, digital recordings became that much easier to access and started being more consistently being referred to as podcasts.

In this age of digital where only some things really stick and embed, and others join a cycle of hype before finding oblivion, what is it about podcasting that has not only endured but thrived? Nielsen estimates that in 2017, 44 per cent of Americans have listened to a podcast, with 80 per cent or more listening to one podcast each week.  If you think that sounds only vaguely interesting, and it’s simply a US-inspired phenomena, think again. According to Statista The State of Podcasting, would you have guessed that South Korea is firmly at the top of list of countries? With 58 per cent of people having listened to podcast in the last month, they are followed by Spain with 40 per cent. We Australians aren’t doing too poorly at 33 per cent, matching the US in percentage, if not in population numbers.  So irrespective of the range and location of listeners, it seems that podcasts are global and they are here to stay. Which raises the question of why exactly are we listening?

  1. Our need for connection. There does seem to be an irony here that I am very aware of. Does that really make sense? How can podcasting, a digital format helps us connect?  With over 600,000 podcasts out there, there are many topics and formats, as a well as a diversity of content. Done well, a podcast captures a conversation and invites us to be part of it. It can allow us to feel that we are listening and learning as active participants, even though we have not been there at the time. The authenticity of an open conversation, different perspectives from what we may otherwise be exposed to, and discussion that could confirm or challenge what we think we know, is a unique experience. Importantly, the challenge is non-confrontational and we give speakers a chance to explain themselves (unless we decide to pause them, or even more drastically, delete them from our library). They provoke our curiosity, and hopefully our admiration. Many times, and this has happened to me, they also provoke disbelief and ire. What? or Are you kidding me? is something I know I have said out loud while listening to more than one podcast.
  2. Interested in politics, starting a business, functional expertise, marketing, popular culture, music, crime, gardening, a discussion of your favourite TV show (yes, even if it is from the 90s and a guilty pleasure and therefore destined to remain unnamed)?  Well, you get the idea. Almost every, and any topic is likely to have a podcast associated with it. Note to readers: I have included “almost” to qualify my comment given that I am sure there will be someone out there who will be able to find a gap in the podcast market for a subject of interest. Applying a digital lens, podcasts have become a highly personalised way for us to choose what we want to consume, and how we want to consume it.  The breadth of content is extraordinary and the access to expertise so great. As someone navigating the business world whether in your own start up or in a large organisation, where else would you be able to hear about the challenges of entrepreneurship, digital transformation, leadership and customer engagement from those who have innovated, succeeded, and failed at scale? Similarly, where else would you be able to access the breadth of experiences and insights of people who are influencing the agenda on science, social justice, politics, economics and the environment be it locally, nationally or globally?
  3. If digital is redefining the idea of anywhere, anytime, then podcasting exemplifies this. Just as the options for content are endless, as a listener, I have the choice as to when and how, I listen. There are a multiplicity of listening platforms and devices; desktop, smartphone via iTunes, Spotify, Podbean. Something to suit everyone. Choices can be based on location, the time that is available and what is of interest at that particular day, week, or even moment. You can choose to be educated, entertained, moved, or inspired. Sometimes, a great podcast can achieve all of those things. There are many times that I have found myself laughing out loud as I listen to a podcast while I am walking. So a note to those who are new to podcasting; it does take a special type of confidence to walk down the street and not be disturbed by the curious looks of other pedestrians as you smile or laugh out loud. If you aren’t quite there yet, there are many other locations and time options for you to think about and get started with.

My podcast library is highly versatile depending on what I am interested in learning more about. A few current favourites from me that I am talking to friends about: npr’s Hidden Brain, Freakonomics Radio, HBR Ideacast, and of course, LeaderShip of Fools.

Great things happen when we seize the opportunity to be curious. If you haven’t become a podcast listener yet, it’s not too late to make a start. And if you have and lost some momentum, tune in to one on a topic of interest and reignite your learning and inspiration.

Teamwork Makes the Dream Work

Like the Breakfast Club banding together to overcome Assistant Principal Vernon, life is much easier when we collaborate. And procurement should be no different.

By Natalya Rozhkova/ Shutterstock

This year will be the year of collaboration in public sector procurement – you heard it here first! In the past, collaboration may have proved to be a step too far for some for various reasons. However, the challenge the public sector now faces is the need to use collaboration and collaborative procurement to share resources and find new, more efficient ways of working.

Procurement professionals are stretched thin. On one hand, we’re trying to keep a handle on all the transactional tasks required to facilitate procurement. On the other, we’re trying to influence and input to strategic decisions that could shape the professions future. So it’s critical that we are using our time wisely and using all the tools at our disposal.

Collaboration can take many forms, but one thing is for sure – the public sector could be much better at it! Go back and look at your projects, tenders and contracts from 2018. How many of them did you start from scratch? Did you have, and maybe reject, the opportunity to work with other procurement teams? Did you approach other authorities or public sector institutions to see if you could get a copy of their documents?

The Breakfast Club started out the same way. They all considered that they were too different to get along, that they had nothing in common. They all approached the detention task as something to be done in isolation (or not done at all). It wasn’t until they started talking (collaborating) that they realised that they could work better together. And in the end produced one assignment for all of them that did the same job.

Let’s Get Collaborating

Collaboration should be both an internal and external activity. From the outset of any project or procurement exercise, procurement should be involved and working closely with their internal stakeholders to define requirements. Once these requirements are known, it’s time to open up the field to the wider audience and see who has done this already.

Public sector procurement, as we have already said, spends a lot of valuable time and resources creating new documents that someone may, and probably has, created in the past. This is where the real benefit of a framework lies. Frameworks, Dynamic Purchasing Systems and other collaborative procurement opportunities can help reduce the time spent on administrative (read: non-strategic) tasks, saving money and freeing up resources.

This is the same even if you happen to be the Authority or public sector body setting up the framework itself. As with many of these things, putting the time and work in at the start can help to create savings and benefits further down the line.

Time vs. Inflexibility

A framework provides a list of pre-qualified suppliers, usually against a Lot with a specific scope of requirements, from which procurement can run mini competitions, create call off contracts or even direct award business.

From a buyer’s point of view, there’s no requirement to advertise opportunities under the framework, even if they are above OJEU values, on top of potential economies of scale and less time spent between identifying a need and fulfilling it. For suppliers it reduces the burden and costs of applying for tenders and potentially increases the possibility of winning business by focusing in on a smaller market.

However, this is not to say that frameworks aren’t without their drawbacks. For buyers, the main issue is that once the framework is in place, it’s not flexible in response to changes in the market. Neither new suppliers to the market nor previously unsuccessful supplier can access the framework and tender opportunities. This means buyers could be missing out on new solutions or have a framework whose scope is lagging behind new developments.

Suppliers face the possibility of spending significant time and money getting on the framework to not get any returns. Although they are on the framework, contracts may be awarded without competition, or not placed through the framework at all.

The Players

None of these drawbacks should put you off looking at using frameworks if your procurement needs can be met with them. There are a few big players in the public sector when it comes to collaborative frameworks all of whom are worth a look at.

  • Crown Commercial Service (CCS) – essentially the procurement arm of the Cabinet Office, helping UK-wide authorities and public sector bodies procure a huge range of requirements. With spend of £13 billion in FY2017-18, CCS states that its frameworks have delivered over £600 million worth of savings for its users.
  • Scotland Excel – owned and funding by the 32 Local Authorities in Scotland, Scotland Excel has the same aims as CCS, but works to focus on the requirements of Scottish members and public sector institutions. However, they work increasingly with CCS to ensure access for all public sector to the widest range of frameworks available.
  • Yorkshire Purchasing Organisation (YPO) – owned by 13 English Local Authorities, YPO has around 100 frameworks and 30,000 products, covering everything from Utilities to furniture.
  • Eastern Shires Purchasing Organisation (ESPO) – jointly owned by 6 English Local Authorities, ESPO offers a range of UK and EU compliant frameworks (worth £1.7 billion spend in 2017-18), as well as an extensive product catalogue.

These are just a few of the names you will inevitably come across when looking for a public sector collaborative procurement framework. The beauty of these organisations is that, despite crossover in the types of frameworks, they collectively cover pretty much anything you might want to buy. All the frameworks are easily accessible and open up a corner of the supply market for whatever your requirement is.

Shop around, see which framework suits you and your organisation the best and go from there. And if all else fails, look and see if you can set up something yourself. You may even be able to help your fellow public sector professionals (or work with them) to collectively meet your requirements.

I’d love to hear your thoughts on this article and the series of articles on the challenges facing public sector procurement in 2019. Leave your comments below, or get in touch directly, I’m always happy to chat!