Category Archives: Generation Procurement

Throwback Thursday – Is Your Personal Brand Picture Perfect?

Why do you need to keep your personal brand on social media up to scratch? Well, if you don’t your dream job might just pass you by.

Personal Brand

We’re looking back at some of Procurious’ most popular content from the past 12 months. Prompted by some discussions around Procurious HQ on social media profiles, we felt it was a good time to revisit this personal brand article from our founder, Tania Seary.

Your Personal Brand

Today, a staggering 90 per cent of UK employers use social media to find employees. As we all know, a large proportion of roles are never formally advertised, with employers preferring to rely on references and people they “know” to fill important roles.

An important secret you need to know from the recruitment industry is about ‘passive’ candidates. These are people who are not actually applying for jobs, but are seemingly happily engaged in their current roles, as opposed to those who have actively applied for the role. These passive candidates are actually the most valued candidates.

So, the question is how will these silent employers “know” you, if you aren’t out networking, connecting and promoting yourself on social media?

The Importance of Networking

I had the perfect example just this week when a headhunter called me for some recommendations for the Head of a Digital Procurement Marketplace. It was a very senior job, paying in the high $200,000s.

I have worked in this profession for more than 15 years and am very committed to networking. I am fortunate to have met thousands of procurement professionals, have more than 5,000 connections on LinkedIn, and am an active participant in the 16,000 strong Procurious community.

Now, when I was asked for recommendations, who do you think came to mind first? Someone I met ten years ago when eMarketplaces were all the rage? Or someone I saw sharing information on LinkedIn or Procurious earlier in the day? The latter, of course.

In order to help you understand the importance of your network and online profile in helping you get that next job, let me share how my mind worked when trying to think of some suitable candidates.

Standing Out

I started thinking through the thousands of events and meetings I had attended and personalities that had stood out – I came up with a few names.

Next, I started reviewing my online social networks. First I found people who had the right skill set and experience, then I started looking at people’s profiles in depth. This was quite a lengthy process, so I used some filters. This is who didn’t make the list:

  • Profiles with photos.
  • People with limited connections (sorry, to me, its hard to think how anyone in procurement could have fewer than 500+ connections).
  • Profiles with out of date or limited work.
  • People who, when I googled them, weren’t mentioned anywhere, hadn’t published anything, or spoken at an event.

If people met any of these filters, I wasn’t going to recommend them. I would imagine many other senior people like me would use the same process. I know recruiters definitely would…

Why? Because my personal brand is on the line when I recommend someone. I only want to recommend people who are “in the loop” and up to date with what is happening in the world. And those are the people who are building and using their networks.

‘Picture Perfect’ Personal Brand

For this reason, all your work history, successes and contact details are important to include on your social media profile. But I want to particularly stress the importance of an impressive profile picture.

Our mission at Procurious is to change the face of procurement. So many images of procurement out there today reinforce a very old, brown cardigan-clad image. We want to replace those images with fresh, global images of being “the smartest guys in the room”.

Make sure your headshot is just that, a headshot where people can clearly identify you as you. Make sure your attire and demeanour are professional and represent how you would look turning up for a job interview.

There should be no selfies, no wedding photos, no hazy screens, favourite cars, or children. You laugh, but we see a lot of crazy things on Procurious, which is why I’m making this point.

Take care to be consistent across your social media profiles. You want to be recognisable from network to network. You definitely don’t want two photos which look as though they have been taken a decade apart. Consistency sends a message that you are taking an interest in your personal brand.

Personally, I think of a shot of you speaking or in action in a professional setting can be powerful to promote you as a thought leader. These are tough photos to get, so a plain vanilla corporate headshot will also serve you well. Using the same photo across all social media can be powerful as your ‘personal brand’ is consistent and is reinforced each time someone sees you.

After all, a picture is worth a thousand words.

Throwback Thursday – 3 Easy Steps to Become a Procurement Networking Guru

Are you a procurement networking guru? If you need some tips to help up your networking game, this is the place for you.

Networking Guru

We’re looking back at some of Procurious’ most popular content from the past 12 months. This week, we revisit an article that speaks to the fundamental core of Procurious – effective networking.

Becoming a Networking Guru

The benefits of networking are many. However, many people still struggle with the concept and the motivation to get going.

At Procurious, we want to create one huge, global network of procurement professionals, all of whom have the opportunity to learn from one another. We want everyone to realise the benefits of networking, so I thought I would share my three easy steps to becoming a networking guru to help everyone get started.

1. Network from the heart

Why from the heart? Because networking has to be authentic, and you need to have the other person’s interest as your priority.

Firstly, your networking has to be based on absolute authenticity – that is, a real friendship or genuine interest in what someone else is doing.

As a networking guru, if you want to form a relationship with another person, you first need to show them how they’ll benefit. If you focus on how you can help others, more than how they can help you, you’ll always be approaching people with the best motivation.

A study from the University of Wisconsin-Madison found that workers who help others feel happier about their work than those who decide not to help. By asking someone for help, you give them the opportunity to display their skills and knowledge, and, at the same time, give their self-esteem a boost.

If the person asking the question wins, and the person answering the question wins, what’s stopping us from asking more questions. Despite all these  benefits, perhaps the fear of reaching out to someone and being rejected, is greater than the potential benefit.

When we face the fear of reaching out to someone else, we need to remember that networking is very much a two way street. Whether you’re at a face-to-face event, or on a social media platform, everyone is there for the same purpose – to network. So don’t be too self-conscious!

2. Be both social and formal

In the ‘old world’ getting to know someone and understand whether you had anything in common took a long time. You would meet someone at an event, follow-up via email and then organise a series of catch-ups to get to know them. You might have had to meet them quite a few times before you discovered the cross-over points.

In the world of social networking, the ‘getting to know you’ process is accelerated because you can see all this information on their profile. This fast-tracks the expansion of your network, because you can pre-qualify those people who you would like to join your network based on their experience.

Effective networking really involves a commitment of time, energy, and resources to produce meaningful results. Also remember that face-to-face meetings still play an important role in expanding your network.

You must also care for the network you’ve established (or are establishing). This includes personal contact through e-mails, telephone calls, scheduled meetings, or even a business lunch.

It’s only when we get to really know people through face-to-face contact, that we can understand both their motivations and their aspirations. You can then work out how you and other members of your network can help them achieve their goals. That’s when the magic starts to happen.

When you’re thinking about face-to-face networking, don’t just think formal meetings, corporate cocktail parties and conferences. A networking guru knows that you can literally network around the clock!

Just because you are “off duty”, doesn’t mean that you aren’t networking. Every interface you have is an opportunity to connect with interesting people who you can help, just as they can help you.

I once won a $1M contract from a wonderful woman I met at my son’s kindergarten parents’ evening. A few weeks back, I was at an Indian Ayurvedic Medicine discussion, and met a senior Facebook executive who has agreed to speak at one of our major events.

You always need to keep your mind and attitude open to these opportunities.

And once you have an established network, keep it active by using social media. The benefit to having an online network is that you can better maintain your network by keeping in touch much more easily.

By posting updates and information on your social media profiles, you are reminding people that you are still out there. Your posts also act as a prompt for them to reach out to you and connect. Or, even better, remind them to recommend you for a job!

3. Connect the dots

Once you have an established network, you need to understand the power of connecting the dots.

As Steve Jobs said, “You can’t connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future.

Many people equate having a good network with having a large database of contacts, or attending high-profile professional conferences and events. But they falter at the next step – actually doing something to make the connection real.

In other words, to create commercial advantage from your network, there’s no point in just being ‘connected’ with all these amazing people. You need to know what to do with the relationship.

Your network will live and thrive only when it is used. A good way to begin is to make a simple request, or take the initiative to connect two people who would benefit from meeting each other. Doing something, anything, gets the ball rolling and builds confidence that you do, in fact, have something to contribute.

Other actions to cement your network can include sending through articles or other things that might be relevant or of interest to a contact. Or, drill down even further and remember birthdays, acknowledge important achievements, or determine a contact’s favourite hobby or sports team, and use this information to build the relationship.

The fact that you’re thinking about a new contact can, and will, pay huge dividends.

Don’t Work in Isolation

Unfortunately many people don’t reach out to their network until they need something badly. A networking guru does exactly the opposite. They take every opportunity to give to, and receive from, the network, whether they need help or not.

For these reasons, and many more, I believe in the power of networking – for yourself, your contacts and the profession. That’s why we founded Procurious.

Apparently there are more than 2.5M procurement professionals in the world. But there are probably less than 500,000 who we can readily identify.

Many procurement professionals are working in isolation, unaware that there is a whole universe of knowledge and professionals available to help them do their jobs better, and learn more effectively.

There are so many problems we can solve together if we use the power of connection and leverage our network. If each and every procurement professional becomes a networking guru, there is very little that we can’t achieve!

Use Every Sales Trick in the Book: Procurement’s Guide to Business Partnering

Procurement professionals know just about every sales trick in the book. How can we turn these tricks to our advantage in business partnering?

Sales Trick Business Partnering

As a procurement pro, you’ve seen it all – the pitches, the gaffes, the strategies, the crash and burns. You also have your long list of personal success stories – the sales people, and sales strategies, you have personally unraveled and re-engineered to meet your company’s needs.

But then there have also been the spectacular defeats, where an absolute master of the sales spin has left you feeling like mere putty in their hands.

These negotiation experiences have, perhaps unknowingly, left us with a rich repertoire of successful sales techniques, which we really should be leveraging to master our own destiny.

We need to leverage these important sales learnings, and improve how we ‘sell’ our services into our own organisations, in order to master the art of ‘business partnering’.

Procurement Business Partnering

Fortunately, I am able to call on the collective thinking of a dozen of the world’s leading pharmaceutical companies as I ponder this question, because business partnering has been the hot topic at the last few Productivity in Pharma Think tank sessions.

The discussions have focused on what skills and characteristics lead to successful business partnering, and those skills that help the procurement function become a ‘connector’ inside and outside the company.

How to be Liked

But going back to my story, let’s look at what we have learned from the best salespeople we know, and how we can adapt this to our approach to business partnering.

Be a “playmaker” – Let’s face it, you have probably genuinely “liked” the salespeople who have been most successful in convincing you to buy from them.

So how do you go about getting your stakeholders to “like” you and “buy into” the service you are offering? Some global procurement teams are actually applying a bit of science to this challenge.

Heads of Procurement know, like many other things in life, if you get the relationship right, everything else will follow.

Novartis, for example, uses a very sophisticated business partnering framework. The first step of this is “knowledge of self”, whereby each procurement executive completes a personality profile analysis. These profiles are then considered against the stakeholder to find the “perfect match” for the business partnering relationship.

Stakeholder engagement skills are also become an increasingly important part of the procurement recruitment process. Heads of Procurement are looking for a somewhat elusive set of skills that will orchestrate the supply network and create a vital link between the various functions in the company.

They are looking for executives who can create that all-important “bond” with their internal stakeholders, as well as their supply base.

Giles Breault of The Beyond Group says, “If you are going to write ‘business partnering’ on your CV then you must have these skills: the ability to engage and speak the language of your internal customer; the ability to lead projects as an equal partner; and intrapreneurial skills that help you operate like you are the CEO of your own business.”

Applying Sales Tricks

The “Play Maker” is a personality profile identified in the Game Changer Index (GC Index). This type of person is interested in people and relationships. They take the view that how well things get done in organisations will reflect the quality of relationships.

As the Game Changers would say, procurement teams wanting to improve their internal business engagement should look for people who “get a buzz” from the challenges of managing the process of influence, or those people who see themselves as a potent agent of change.

But once we have recruited the right skill set and matched up the personalities as best we can, we need to revert back to those all-important learnings from our sales friends on the other side of the table. Namely:

Remember why we have two ears and one mouth – The best salespeople listen more than they talk. Is your procurement team remembering this important 2:1 ratio when they interact with your stakeholders? I suspect that most procurement teams could benefit from listening more to their stakeholders and really understanding their business needs.

Fight the battle on the number of fronts – As we all know, the best salespeople have a multi-level account plan. They align the various levels of people within their team with the decision makers within their customer’s organisation.

They implement a consistent, tenacious plan and stay on message to achieve their goals. Does your procurement team have an account plan for your stakeholders? Do they stay “on message”? Are they focused on sticking to the plan?

Have single point accountability – This was a topic raised at a dinner hosted by Lucy Harding at executive recruiters, Odgers Berndtson, in London late last month. Most organisations can’t afford to have a separate role, or full time staff member, dedicated to business partnering.

Delighting the customer needs to be part of everyone’s role, but who is ultimately accountable for satisfying each internal customer needs to be made clear.

Have a story to tell – a USP – Procurement spends a huge amount of time listening to the unique selling proposition (USP) of its sales people and suppliers. We need to craft our own stories about our service, how we can help the business, and why we will drive value for stakeholders.

Ultimately, it’s about making our stakeholders, (who are really our customers), feel the love. As I wrote in a previous blog, building credibility, listening to our customers, and translating this into knowing what they do and don’t want, is critical for the process of business partnering. 

The Productivity in Pharma Think Tank brings together a conclave of senior procurement leaders from the Pharmaceutical industry, creating a unique, mini-MBA style environment, where the most pressing issues facing the function are explored in detail and, from which, key insights and applicable takeaways are derived.

You can find out more about this event at The Beyond Group website, and connect with the event hosts and facilitators Giles Breault (@GilesBreault) and Sammy Rashed (@RashedSammy) on social media.

Strategic Similarities of Football and Procurement

Understand your position and adapt to how the other player is performing – true of both football and procurement, says 30 Under 30 star, Logan Ferguson.

Football player

Logan Ferguson was one of the young professionals named in ISM and THOMASNET.com‘s ‘30 Under 30 Rising Supply Chain Stars‘ this year.

Procurious caught up with Logan to talk to him about his procurement career, what the award means to him, and his love for football (or soccer, for any non-Europeans…).

Logan Ferguson
THOMASNET.com and ISM 30 Under 30 Rising Star – Logan Ferguson
  • How did you come to choose procurement as your profession?

I have always been a strategic thinker, enjoying exciting opportunities to solve new problems. This passion led me into Operations Management in the Fisher College of Business at The Ohio State University.

I had the opportunity to work two enjoyable internships with Marathon Petroleum Company during my college years as a Global Procurement intern, which initially sparked my interest in procurement. The experience I gained during college propelled me on to my current career path.

  • You’re a keen football (soccer) player and fan – can you draw any parallels between playing the game and excelling in your career?

One of the main reasons I like soccer is due to the strategic nature of the game, and the fact that you have to be thinking and planning your next move at all times while you’re on the pitch.

The scenario is always changing, so you have to constantly adapt to what other players are doing. There are very similar elements that exist in procurement. When preparing for a negotiation, it is critical to understand your market position and develop your strategy for capturing the best contract pricing and terms accordingly.

Due to constant market changes, there is always an opportunity to find new ways to add value for the organisation. This constant change and the challenge it presents is exciting and keeps me on my toes.

  • Do you think procurement is an attractive career for millennials?

I think it is a great time to start a career in procurement. Many corporations now understand the value that can be delivered to their bottom line by developing a high performing sourcing organisation. This revelation has created new demand for talented problem solvers that can effectively fill these roles.

  • What’s your advice for young people entering the profession?

Learn as much as you possibly can in a wide variety of experiences.

Saying “Yes” to a lot of diverse opportunities not only gives you a greater breadth of knowledge but also builds your credibility in multiple areas of the organisation.

  • What does it mean to you to be part of the 30 Under 30 this year? And what will it mean for your future?

It is such an honour to be a part of the 30 Under 30 program. I’m extremely grateful for the recognition, and it wouldn’t have been possible without such a great support structure around me to recognise my accomplishments, and take action to nominate me.

The award is a testament to the opportunities I have had the privilege to be a part of so far, but I think the best part about the experience was getting to meet so many other successful young professionals through the program.

The greatest benefit the nomination has for my future is being a part of a network of high achievers, who I can contact to discuss work challenges and new, innovative ideas.

Why Indirect Procurement Fails to Deliver Savings to the Bottom Line: Fear

Fear of numbers, and using the language of finance is holding back indirect procurement teams from delivering real value and bottom line savings.

Fear

This article was first published on LinkedIn.

One thing you hear at every procurement event is how hard it is to really achieve indirect savings and bring them to the bottom line. Then the discussion inevitably moves to how finance and business heads just don’t understand the real value impact of the procurement team.

If you could fix this, all would be solved. However, this completely misses changes that procurement itself needs to address first.

While leading a major transformation of a large global indirect team, I was completely surprised by two blockers of a talented and motivated team. While they loved tough, numbers-focused supplier negotiations, there were two hidden fears about numbers that jeopardised their capturing savings.

1. Fear of Using the Language of Finance

The team’s comfort zone for numbers was in spend analysis, supplier pricing, total cost of ownership and benefits from a given negotiation. However, many had bad experiences with finance and business heads who were not interested in cost avoidance and best-negotiated prices, making the procurement group feel unappreciated, misunderstood and not part of the team.

There was immense cost pressure, and through the CFO and other senior leaders, this translated into a drive for year-over-year savings that could be translated into budget reductions. As the leader, I thought this was reasonable and went back to the team explaining that the measure of our performance from now on would be hard savings.

But two issues became clear immediately:

  • The team’s lack of basic financial acumen and the ability to understand and speak about numbers in the same way as the finance colleagues.
  • Their resulting discomfort and fear of not looking knowledgeable.

The journey to addressing this gap started with working together with finance to define the company’s accepted savings definitions. This handbook became the bible for all of the savings and budget reductions. It was also:

  • A training tool for procurement, finance and the business clients.
  • A way to take out the emotion and bad feelings via clear rules and definitions.

Learning by doing was a key part of the change process for the team. With regular and granular numbers reviews, the team had day-to-day opportunities to become familiar with the calculations and fluent in financial language and concepts.

This led to greater confidence in speaking with colleagues and became the new common language of how procurement contributed to the bottom line.

2. Fear of Committing to Accurate Numbers

Although procurement people will tell you that they like being measured on the numbers, what they also often say is ‘it’s better to under commit and over-deliver’. Unfortunately, what this really means is, ‘I can’t predict my performance so I will low-ball my guesstimate’.

This fear of not meeting targets was going to be even more problematic with the sharper focus on year-over-year targets. But it had to be urgently addressed:

  • As savings were being directly linked to and partly taken out of budget up front, being very accurate was an imperative.
  • While it is less bad than under-delivering, over-delivering in November usually means the money has already been spent on something else.

Over optimistically, I thought it was just a matter of explaining why accuracy was so important, and using a sales pipeline approach to enable it all. But as we got into the details, a few things became clear:

  • There was a lack of understanding (back to the topic of financial language) of how to organise projects at a ‘material’ level.
  • The team wasn’t used to thinking about their projects in terms of a pipeline over a longer horizon.
Addressing the Gap

The key to addressing the gap was again to improve the collaboration with finance as well as commit to senior management to deliver against the planned pipeline of projects. In turn, team and individual targets were set accordingly and we got two benefits from this effort.

  • Creating the pipeline got procurement involved in the business discussions much earlier than previously
  • The team learned how to set up a clear and material set of projects which reinforced their new financial knowledge

At the end of the first year, and for the very first time, the team got recognition from all sides. They felt new confidence in speaking about numbers and the increase in visibility from ‘real’ savings based on the clear pipeline. They couldn’t conceive of going back to the days of estimated benefits, fuzzy savings calculations and unclear targets.

Implementing both the formal processes between procurement and finance as well as the needed change management for the procurement team need to be fit for purpose to how the company really works. It might be as simple as agreeing the basic savings definitions or as complex as introducing a full workflow supported process.

Conquering these fears is worth the financial results!

Pauline King is the founder of Rapid Results Procurement focused on working with a company’s existing team to deliver tangible financial results. She is a recognised expert in indirect procurement with deep operational experience in procurement transformation. Pauline also works closely with The Beyond Group AG where she heads up the Indirect Procurement Practice.

Peer-to-Peer Learning – The Evolution of Professional Development

Learning is no longer confined to a classroom. Peer-to-peer learning is fast becoming the primary avenue for professional development.

peer-to-peer learning

The labour market is tightening, which means the need to engage, retain and up-skill your existing resources is growing. However, individuals and organisations are moving away from traditional approaches to learning and development, such as classroom-based learning, due to rising costs and geographically dispersed teams.

In the latest evolution of professional and personal development, there is a greater emphasis is now being placed on social media and peer-to-peer learning. And while, in the past, quality of content was seen as a major issue in using e-Learning, more high-profile organisations are realising the benefits of both creating and sharing their own content.

Peer-to-Peer Benefits

The nature of social media is inherently suited to peer-to-peer learning:

  • It is a highly effective method of sharing information – people can learn real-life, applicable lessons from subject matter experts from all around the world.
  • The e-Learning resources are very accessible – they can be accessed from multiple devices, at a time and place that is convenient for the learner (and their organisation too).
  • Perhaps most importantly, it’s a very cost effective way to learn – savings are made on travel, employee time, and residential courses, and the vast majority of e-Learning is totally free.

Take global mining organisation, Rio Tinto, as an example. The organisation has a very widely dispersed employee based, with over 35,000 people spread around the world. Realising the cost of bringing employees together for classroom-based training, Rio launched their own learning academy in 2014.

Employees have access to relevant, and high-quality, materials wherever they are, and can study at their own pace, at a time that suits them.

Procurement Podcasts

Across social media there are a number of portals and platforms that support peer-to-peer learning, offering free, downloadable e-Learning content in the field of procurement. One of these is SoundCloud – a free, online sharing platform for audio and visual content.

Soundcloud Podcasts

A simple search for ‘procurement’ on the platform provides over 500 podcasts from over 100 contributors, including the BBC and Buyers’ Meeting Point. The platform is easy to access via a web browser or its app, enabling users to listen to the podcasts on the go.

You can also find quality, procurement-related podcasts from a huge range of other sources. Here are just a few we have selected:

  • AT Kearney Procurement & Analytics Solutions – the renowned ‘Wave of the Futurepodcast series covers key topics for procurement leaders through interviewing subject matter experts and thought leaders.
  • Art of Procurement – hosted by Philip Ideson, the AoP Show invites procurement professionals and experts to share their views on the hot topics impacting the profession.
  • My Purchasing Centre – this podcast series has its finger on the pulse of the profession, sharing information and thought leadership on major topics and events.
  • Institute of Supply Management – ISM offers an ever-expanding library of audio podcasts covering a broad spectrum of supply management and general business topics.

Procurement Videos

If videos are more of your thing, you can find plenty available on YouTube (just don’t get lost with all the other videos you can inevitably lose an hour or more with…!).

One of our recent finds are videos from The Procurement Man (better known in real life as Neil Hudson). Neil has a selection of videos sharing his experiences and knowledge from a career in procurement. You can find his videos here, and see an example of one below:

And finally, you can of course find plenty of procurement and supply chain related videos right here on Procurious. Take your pick from procurement training, thought leadership and business research from a variety of experts from around the world.

However you choose to learn, and however you do your professional development, there is a good chance that peer-to-peer learning will be able to support your goals. Just find the right platform for you, and get stuck in!

Are You One of Procurement’s Game Changers?

As disruption is increasingly recognised as a strategic business skill, being one of the game changers is a highly coveted role.

Game Changers

In a world increasingly recognising ‘disruption’ as a strategic business skill, where an army of highly talented and ambitious professionals are fighting their way to the front line in the war for talent, the idea of being identified as a ‘game changer’ is quite coveted.

After all, we all want to get named on the high potential talent list, don’t we?

Game Changers – A Bad Thing?

That was the premise that started the procurement talent discussion at the Productivity in Pharma Think Tank in London. But then there was a revelation.

Despite media hype and discussions at high brow HR think tanks about these ‘unicorns’ – game changing individuals – it turns out that being a game changer isn’t necessarily a good thing.

You see, what most large organisations actually want are executives who can execute the strategy and implement. In other words – get stuff done. What has been discovered is that game changers can sometimes lack EQ, and have the potential to bulldozer their way through an organisation, eventually proving themselves to actually be too disruptive.

Those organisations who actually do need a disruptive or transformative force are now separating out these individuals from the rest of the pack, and placing them in “garages”, “incubators” and “shark tanks”, to use their unique skill sets for good, not evil.

Increasing Collaboration

In fact, well known procurement search and interim consultants, Langley, put forward a case that procurement should actually be the “great integrators”.

“Today’s procurement professionals need to integrate the link between company, suppliers and the environment. They need to be able to bring the outside, in,” said the Managing Director of Langley, Cristina Langley.

In talking about the talent he is trying to attract to his organisation, Tyson Popp, CPO at Mallinckrodt Pharmaceuticals, further reinforced this need for an increasingly collaborative style. Popp mentions that he is looking for talent with “an intellectual curiosity and a need to connect across the organisation”.

The Science Bit

The good news is there is some science behind this debate. The Game Changer Index (GC Index®) has been created by eg.1’s CEO Nathan Ott, and Chief Psychologist Dr John Mervyn-Smith, in collaboration with Professor Adrian Furnham at UCL.

The Index was developed in response to client demand for a more useful way of identifying people who could implement transformation. It was born from a frustration with the way that traditional tools, such as Belbin and Myers-Briggs, neglected this special group of talent.

The team believed that Game Changers were fundamentally different from ‘High Potentials’ and ‘Traditional Leaders’, and would not be identified by existing, antiquated assessment tools. This was an issue for businesses searching for individuals who could drive transformational change.

This was the foundation for the development of The GC Index. The tool, through several phases of research, highlighted the ways in which individuals differed in terms of Imagination and Obsession. Those high on both emerged as the Game Changers.

Applications in Procurement

Despite me having given game changers a bad rap earlier in this story, and given that my personal mission is to change the face of procurement globally, I really do hope we have a lot of CPOs out there who are game changers. That is, transformational leaders who can deliver paradigm-shifting change. The real issue is how best to enable them to succeed in a structured environment.

The GC Index® identifies these dynamic individuals, but has evolved to also assess four other profiles, which are equally valuable and are necessary to ensure genuine, long term, game-changing transformation.

These profiles could apply to anyone within your procurement team. However, I thought for demonstration purposes I would share my thoughts on what the generic procurement roles for these profiles could be:

  • The Strategist – This could be Category Leaders. They have an ability to analyse patterns and trends. They will be most comfortable leading by giving a focus to action, through direction and purpose.
  • The Implementer – This profile could best be characterised as sourcing professionals and transactional (P2P, etc.) executives.  They are essentially task-focused individuals, driven by a need for tangible achievements. These are the leaders who will be in the ‘thick of the action’, and get on with things.
  • The Polisher These people lead through setting standards, and could therefore be best characterised by our Compliance and Procurement Process Excellence leaders. They are demanding of themselves and others. Their mantra will be, “If a job’s worth doing, it’s worth doing well”. They instil belief in people in action, and in the possibility of a better world. This definitely sounds like our best practice procurement leaders!
  • The Play Maker – This probably epitomises the poster-child version of the modern-day procurement professional. Perfectly placed right in the intersection of all four profiles, this individual is interested in people and relationships. They are, therefore, best equipped to take on the all-important task of stakeholder engagement, but also managing upwards (C-level) and outwards (supply markets). Play Makers at their best will lead through building productive relationships and helping others to do the same.

Apparently Richard Branson is a playmaker – not only driving outcomes, but making sure the whole experience is enjoyable, even potentially playful! (Heaven forbid in procurement!)

Making a Contribution

So the real question is, how do you develop your skills to maximise your success in this new corporate reality?

The good news from eg.1 is that you don’t necessarily fit into one box. Their data shows that while some individuals have a dominant profile, they also have an ability to ‘flex’, moving, for example, from being a Strategist, when the situation demands it, to being an Implementer.

The other good news is that just about all leadership styles can work. You just need to understand what your style is and play to your strengths. And as Nathan Ott commented at this year’s Big Ideas Summit:

“Not everyone can be a Game Changer, but everyone can make a Game Changing contribution.”

The Productivity in Pharma Think Tank brings together a conclave of senior procurement leaders from the Pharmaceutical industry, creating a unique, mini-MBA style environment, where the most pressing issues facing the function are explored in detail and, from which, key insights and applicable takeaways are derived.

You can find out more about this event at The Beyond Group website, and connect with the event hosts and facilitators Giles Breault (@GilesBreault) and Sammy Rashed (@RashedSammy) on social media.

A Seat at the Table, or Procurement to Go?

‘Procurement to Go’ is about building a fast, reliable and flexible function that’s always one step ahead of changing business needs.

Procurement to go

In her recent article, PASA’s Jeni Christensen shared her concern about the region’s “shocking” lack of Professional Procurement. The target, Christensen writes, is to have a CPO at every boardroom table, and she shares a series of very valid steps about how to get there. New-York based Justin Hughes (PA Consulting Group) has also recently written an article about how a seat at the top table is “something procurement has to earn”.

But is board membership really the answer? I’d like to present an alternative view.

You don’t need a seat at the table if you have the right level of influence

Let’s face it – getting a seat at the boardroom table has been a recurring theme amongst procurement professionals for nearly a decade now. It’s a consequence of procurement’s historical back-room role, and a perceived fix for a host of procurement frustrations, including organisational compliance.

Chris Lynch, Global CFO of Rio Tinto, told delegates at the 2015 Asia-Pacific CPO Forum that the focus on board representation wasn’t the answer: “Forget reporting lines – just put procurement in the ‘winners’ circle’”.

Getting into the winners’ circle is all about influence. According to The Faculty Roundtable member, and leading CPO, David Henchliffe, “Business leaders need to get the value good procurement practises can deliver, and be strong advocates for the function. It’s our job to make sure they get it.”

In Henchliffe’s opinion, the preoccupation with board or senior leadership team membership is misguided. Deliver value to the business and CPOs will be invited to join in broader business-level planning and decision making.

The situation may not be as dire as PASA and Christensen suggest. Procurement has made enormous progress from its formerly transactional, back-office position, to become strategic partners in the business, predominantly through strong performance and better communication of the value it brings to organisations.

According to The Faculty’s recent Benchmarking Review, procurement’s influence continues to grow, with managed spend at an average of 72 per cent this year, up from 68 per cent in the previous review. CPOs are regarded as “highly influential” by surveyed procurement teams, stakeholders and suppliers, again pointing to improved communication and articulation of value to the C-Level.

How to ensure board members and senior leadership team members “get” procurement

Relevance through flexibility and agility is key. Henchliffe has seen his own organisation shift dramatically from an emphasis on growth and delivery to a critical focus on reducing the total cost of the business.  Procurement’s role, therefore, is to always be in step with the business’s requirements and to make sure the function can rapidly respond to the constantly changing business environment.

To flesh out the “table” metaphor, the boardroom/senior leadership team menu itself never remains static. Procurement needs to position itself as an ultra-flexible function that’s always ready to deliver – at top speed – anything that is required. Think of it as ‘Procurement to Go’ – fast, reliable, flexible, and a world away from the old, glacial speed of delivery.

Ron Brown, a highly experienced CPO across the Resource and FMCG sectors, says that the importance of nurturing capability cannot be underestimated if you want to stay relevant. “Hiring for and building capability around flexibility, driving value and managing risks is now integral”, Brown says. “If you want procurement to remain relevant, focus on capability and relationship building to ensure you’re a key part of the business strategy and performance”.

In summary, CPOs should focus on staying relevant by offering the business ‘Procurement to Go’ through flexibility, adaptability and concentrating on ensuring board members “get” procurement. Once this is achieved, CPOs can use this influence to achieve their goals and enable the profession as a whole to move on from the unhelpful fixation on boardroom representation.

The Faculty Roundtable is an influential group of Australian procurement leaders, who gather to share their experiences and insights. In May, The Faculty will be hosting their ninth Asia-Pacific CPO Forum, the region’s premier procurement event dedicated to accelerating commercial leadership at the highest level.

For more information on The Faculty Roundtable or CPO Forum, contact Program Manager, Belinda Toohey.

5 Career Lessons From a 75-Year-Old London Cabbie

Inspiration can often come from an unusual source. And you should never be too closed off to learn career lessons from a wide variety of people!

Cab Career Lessons

On my way to the Productivity in Pharma meeting in London yesterday, as is often the case, my cab got stuck in traffic.

As we edged our way across Westminster Bridge, I got chatting to my taxi driver, and discovered that I was going to be his very last customer after a 45-year career as a London taxi driver.  His plan was to drop me off, return his cab to the depot, and catch a bus and train combination back to his wife in Surrey.

Not one to miss an opportunity to learn, I quickly thought through what this wonderful man’s life and career lessons could mean for procurement professionals.

A Quick Side Note!

But before I share my learnings, let me tell you how much I love London cabs! I’ve always wanted the opportunity to share my love in one of my blog articles, so I’m very happy to now have the chance! These unique, purpose-made vehicles can turn on a dime, and accommodate five passengers, as well as luggage. Amazing.

According to Wikipedia, many black cabs have a turning circle of only 25ft (8m). One reason for this is the configuration of the famed Savoy Hotel. The hotel entrance’s small roundabout meant that vehicles needed a small turning circle in order to navigate it.

That requirement became the legally required turning circle for all London cabs. Also, the custom of passengers sitting on the right, behind the driver, provided a reason for the right-hand traffic in Savoy Court, allowing hotel patrons to board and alight from the driver’s side. I love these types of London stories!

Back to Career Lessons

Anyway, back to the career lessons learned from my septuagenarian chauffeur.  Here’s what came to mind –

1. Don’t sweat a couple of hiccups early on in your career

Don’t worry if you have to go over a couple of speed bumps early in your career – my cabbie got fired twice early in his.

He had a lot of fun in his very first job, which was being the doorman at the very exclusive Dorchester Hotel. A highlight he shared was when Zsa Zsa Gabor dropped her towel and exposed herself as he made a delivery to the room. His photo also blessed the Daily Mail, when the famous Hollywood actress Jayne Mansfield rewarded his good work with a kiss. Maybe as a result of these heady experiences, one day he fell asleep on the job and was summarily dismissed.

He tried couple of other jobs, including being a bus conductor, but when he threw his supervisor off the bus, he realised he wasn’t really meant to work for others. Despite these small set-backs, this gentleman still enjoyed a 45-year career.

Which brings me to my next point…

2. Your career is a marathon, not a sprint

I know that during the first decade or two of my career, I was convinced that the faster and harder I worked, the faster my career would progress. To a certain degree, this may have been the case.  Even now, I am probably working at a slightly unsustainable pace, but I am learning that sometimes you have to slow down in order to go faster.

While chatting as we edged our way along, it dawned on me that this gent was someone who was in extremely good shape.  At 75 years of age, he still had a full head of hair, was highly animated and spoke lovingly about his children, grandchildren and wife of 52 years (“who kept him young”).

He was obviously a man who enjoyed good health and had a positive life. As much as we feed our self-esteem through career success, we need to remember that our health, happiness and support of our family and friends are really what will sustain us on the long haul.

3. Do what you love

People who have been successful in their career often say things like “I’ve been very lucky”. But what you normally find is that they have worked hard at a job they love.

Make sure you are passionate about what your career – it will reflect in everything you do and will help buoy your success. Being in procurement is a great head start, because you’re working in the most exciting profession in the world…right?!

4. Know your stuff

One of the defining characteristics of the London taxi drivers is their in-depth knowledge of London’s streets and their ability to navigate their way to the desired destination through the congestion and chaos London is so well known for! All without the help of a sat nav.

This is because London taxi drivers go through stringent training to obtain their licence. They need to pass “The Knowledge”, a test which is among the hardest to pass in the world. The drivers need to memorise every possible route through the 25,000 city streets, and know all 20,000 landmarks. Apparently, it takes the average person between 2 to 4 years to learn the knowledge. And it shows – these guys really know their stuff!

So no more complaining about studying for your MCIPS or ISM qualification! Knowledge will give you the credibility you need to achieve your career success.

5. Trust the universe

Amazingly, in his long career (which must have included literally tens of thousands of customer trips), he only had a handful of people not pay their fare. To me, this really reinforced that the universe is actually quite a good place.

There are more good people than bad and in the large majority of cases, people are honest and do the right thing. A cause for us all to remain optimistic!

Safe travels!

The Productivity in Pharma Think Tank brings together a conclave of senior procurement leaders from the Pharmaceutical industry, creating a unique, mini-MBA style environment, where the most pressing issues facing the function are explored in detail and, from which, key insights and applicable takeaways are derived.

You can find out more about this event at The Beyond Group website, and connect with the event hosts and facilitators Giles Breault (@GilesBreault) and Sammy Rashed (@RashedSammy) on social media.

Smashing through the bamboo ceiling

You’ve heard of the glass ceiling – the male privilege which has historically prevented women from rising to the top of their organisations. Less well-known, however, is the concept of the “bamboo ceiling”.

Bamboo ceilingIt refers to the processes and barriers that serve to exclude Asians or people of Asian descent from executive positions in Western-run organisations. The term was coined by Jane Hyun in her book focusing on Asians in American workplaces, Breaking the Bamboo Ceiling: Career Strategies for Asians.

We’ve recently witnessed a cultural shift in our most progressive organisations wherein gender equality in the workplace is now firmly on the agenda. There are a host of agencies such as Catalyst and the Workplace Gender Equality Agency that are working to address the imbalance, although there is a long way to go.

The difference between the glass and bamboo ceilings, however, lies in the fact that while a company may admit to historic gender bias and pro-actively work to address the problem, racial bias remains in the shadows. Cultural diversity quotas and programs do exist, but the statistics at the executive level are particularly damning. In the US, for example, Asian-Americans hold only 1% of board seats. Australia shares this problem: a recent report by Diversity Council Australia revealed that while 9.3% of the Australian labour force is Asian-born, only 4.9% make it to the senior executive level. Similarly, only 1.9% of ASX 200 senior executives are Asian born, despite 84% of surveyed Asian talent saying they plan to advance to very senior roles. There’s a huge disconnect here – if you are Asian in Australia, chances are very slim that you will make it to the top, no matter how ambitious you are.

The consequences are alarming. 30% of Asian talent have said they were likely, or very likely, to leave their organisation within the next year. For one in four, negative cultural diversity factors significantly influenced their decision.

Tony Megally, General Manager of specialist procurement recruitment and search firm The Source, says that while Australian organisations are hiring more Asian-born talent than ever before, there are still significant cultural barriers to overcome.

“We’re seeing a trend where talented Asian professionals feel they have to change, or Westernise, their names in order to make sure their resumes aren’t passed over”, Megally says. “This shows that there’s still significant cultural bias in Australian organisations, although no recruiter would be willing to admit they passed over a candidate due to a hard-to-pronounce name.”

Bias holding back Asians in business – even in Asia
Even more alarming is the existence of the bamboo ceiling in Asia itself. According to an investigation by the Wall Street Journal, locals rise only so far at Western firms, with multinationals still relying on ex-pats to fill top jobs decades after expanding into the region. Tellingly, 40% more Westerners are placed in CEO-type roles in the region compared with other roles.

Dr Tom Verghese, author and founder of Cultural Synergies, says there’s a real lack of Asian leaders in the top echelons of business. “I’ve been working on developing Asian leaders in the market for 12 years”, says Verghese, “but multinationals do have some understandable reasons for using expatriates in Asia. All global companies inevitably have their organisational culture rooted to their country of origin. There is something in having a person familiar with your language and culture as that link with head office. A very human tendency that we need to be conscious of is our sense of comfort – or bias – that ‘same is safe, and different is dangerous’. Companies want one of their own ‘guarding the store’, and there can be advantages to having an outsider in the top job because they can make changes that an insider would hesitate to make.”

Bad for business
Having less diversity at the top can be bad for business. Companies need to reign in their use of ex-pats, in part because they are expensive hires, and having white-majority executives means a lack of understanding of consumer needs, trends, purchasing power and brand positioning. In short, organisations are excluding the very people who know Asia best.

Multinational organisations in Asia need to focus on the following ways to shatter the bamboo ceiling:

  • phasing out the reliance on expatriates for top roles
  • actively developing and grooming local talent for leadership positions
  • training local talent to fill perceived capability gaps rather than looking elsewhere
  • seeking out talent that knows the local market and understands cultural hierarchies
  • setting quotas for local representation in executive teams
  • understanding the difference in what a good leader looks like across different cultures.

“Multinationals need to embrace cultural intelligence and develop a much broader context around what global leadership looks like”, says Verghese. “A facilitative leadership style may be effective in Australia, for example, but a directive style works better in Asia”.

The Faculty Asia Roundtable hosts quarterly meetings in Singapore, where CPOs from the region’s leading organisation meet to share learnings and best-practice. Please contact [email protected] for more information.