Category Archives: Procurious News

The Three Keys To Building More Influence

How are you letting perfection get in the way of offering an important (and influential) contribution?  

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Have you ever wondered why some people are able to lead and influence those around them while others are left out in the cold?

They may be less charismatic, a poor presenter or frightfully timid, yet they influenced the other party enough to move them through to a decision where perhaps you couldn’t?

In many cases, the element that stood them apart from the crowd was nothing more than trust – trust that that person was genuine, capable and had the integrity to stand by their word.

Confucius said: “Better a diamond with a flaw than a pebble without”. Voltaire wrote: “Perfect is the enemy of good”.

In decades past, huge fortunes were made by organisations that understood this. Companies like General Electric, Westinghouse and Ford Motor Company all dominated their respective fields through this principle.

Very little has changed since those days – despite the increasing sophistication of advertising and corporate shine. The Nielsen Global Online Consumer Survey claims that only 33% of people now trust brands, while 90% of people trust service or individual recommendations directly from people they ‘feel’ they know.

I want you to pay attention to that last part – ‘feel they know’. What does it take to feel you know someone?

In my world that’s called influence. It involves sharing enough of yourself so that I trust your intent. It involves stepping out and letting your voice be heard. Having the courage to leave the jargon behind – and share real insights, predictions and opportunities based on the hard yards of your experience.

Those who can build this level of connection – either online or in your organisation – generate more engagement, have a greater impact on decision-making, a more frequent seat at the table and face less opposition when it comes to implementing change.

So how do we do it?

More process, less perfect

If the average social media feed – or corporate presentation – were to be believed, just about every single one of us would look like we’re a) getting the perfect results b) enjoying an endless cycle of tropical beach holidays, or c) tucking into the world’s best meal in the fanciest restaurant in town.

If we’re looking to create real engagement, a ‘polished and perfect’ image just won’t cut it.

It takes courage to show vulnerability and let people know that our results and lives aren’t always perfect (and therefore we aren’t always perfect). And yet – here’s the irony. That’s exactly the most impactful thing we can reveal.

Show me a mistake you made – and I will know you have the courage to pick yourself back up when things go wrong – the curiosity to get to the bottom of what doesn’t work – and the tenacity to keep going until a better solution is found.

Tell me about a question you haven’t been able to answer yet – and I will feel invited to contribute – impressed by your determination to always get better – and connected in the shared vulnerability of not knowing it all.

Essentially – I will feel something. As opposed to the disconnection we are often left with when only someone’s ‘best moments’ are shared.

Be intentional and capable

While we don’t want to portray a picture-perfect image, that doesn’t mean that we should be showing up looking tired, unprofessional or underprepared either.

If our goal is to build trust and influence others then it’s far more effective to be intentional, and to reveal those intentions to our target audience, rather than flounder around without direction.

We need to show that we’re capable of handling the challenges that are thrown at us. We might make mistakes along the way, but we also need to make it crystal clear that we have a clear direction about how we will move forward despite setbacks.

Talking about what is important to us, the ideas behind our intentions, the experiences that led us to those ideas and our goals for the future – these are the traits of trusted leaders.

Take us on a journey

If you’ve been working on your project for weeks and had to scrap the whole concept and start again with a new approach, write about it!

Create a monthly update for your team or stakeholders. Start a blog. Let your audience know that you are there to out-contribute everyone else in your field. That you’re willing to share what you’ve learnt, and as a result the future trends, opportunities or challenges you see coming in your field.

They’ll appreciate the fact that you’re letting them follow your journey – and will value the end result infinitely more if they know your history and feel involved in the process along the way.

It also gives them more exposure to you as a person, and the longer they keep you in their lives, the more likely they are to trust you.

Many project managers make the mistake of keeping their project under wraps until it’s 100% complete – and ready to reveal to their organisation with a big fanfare.

The problem with that plan is that the audience hasn’t been taken along on the journey – so the end-product they’re presented with fails to get any attention. A little like watching the final five minutes of a movie and trying to care about the characters or plot!

So – what’s the bottom line?

I want you to take a step back from any place where perfection is currently holding you back. From engagement, from sharing your mastery, experience or insights. From essentially stepping out and actually being seen.

Then I want you to ask yourself these questions – what passionately imperfect contribution could I make here? How am I hiding behind technical language and not revealing the real story or opportunity? How can I invite others to contribute and engage with the outcome?

Do those things – and I promise you will significantly increase your influence (and results) in all the places where it counts. J

Will You Be Your Organisation’s First Chief Sustainability Officer?

For most organisations, there are far more risks and opportunities related to CSR and sustainability in their supply chain than there are within the “internal” business…

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What’s the biggest change in terms of the focus and priorities for procurement teams and leaders over the last decade or so? There are a few potential answers to that question, but my feeling is that the whole area of corporate social responsibility and sustainability is a strong candidate for that award.

It’s just over a decade since I last held a full-time CPO (Chief Procurement Officer) role, but I don’t remember issues such as modern slavery, carbon reduction, global warming, plastics or human rights featuring too much in my thinking as a CPO through the nineties and noughties.

But now, it is right up there on the agenda for most organisations, in terms of both procurement priorities and indeed overall business focus.  That’s been driven by consumer demand and a more aware population, with younger people taking the lead on issues such as climate change, as we’ve seen in the UK with major protests and the visit of Greta Thunberg in recent weeks. Firms have become aware of the risks if they mess up on these issues, and that has spread through to shareholder action and sensitivity – a sign that firms really do need to get to grips with this agenda.  

We’ve even seen some CPOs morphing into “Chief Sustainability Officers” in their organisations, or combining the two roles. That’s not surprising when you think about it. The fact is, for most organisations, there are far more risks and opportunities related to CSR and sustainability in their supply chain than there are within the “internal” business.

Certainly, an organisation can look at its own energy and water use, how plastics fit into its packaging strategy, and make sure it is behaving properly with regard to the human rights of its own staff. But if we consider the wider issues once we look at our suppliers, the scope is far greater. For larger organisations in particular, the impact they can have on hundreds or thousands of suppliers, all around the world, almost certainly outweighs anything they could do purely internally.

We can see another sign of how these issues have risen up the agenda with the announcement of SAP Ariba’s “Sustainability Summit” in June. It takes place on Tuesday June 4th, from 9 am to 12 noon, just before the opening of the SAP Ariba Live event in Barcelona that afternoon. There will no doubt be a certain amount of discussion around how SAP Ariba products can help in this area, but the morning is primarily designed to be a very interactive session, with expert panel discussions and small group sessions as well, so participants can pick up ideas from each other as well as from the experts involved.

And this isn’t just about “saving the world”, although there is nothing wrong with believing that we should all do our bit to make the world a better place. There are selfish reasons too for procurement organisations and leaders to position themselves in the foreground for their organisations’ sustainability efforts. From a functional standpoint, the vast majority of us look for purpose in our work, but as we said earlier, younger people are particularly concerned about these issues. So, if you want to attract the brightest and best to your team, it makes sense to show that you are concerned about sustainability and similar issues and that procurement in your organisation is deeply involved in worthwhile initiatives.

It is also clear that because sustainability is high on the corporate agenda, procurement can gain in terms of internal profile and reputation if we are seen to be taking a lead and driving the agenda through our supply chain. I’ve heard a number of procurement executives talking about how topics such as carbon reduction or supporting social enterprises have got them onto the Board agenda, in a manner that day-to-day procurement frankly just didn’t.

Back to the Summit: SAP Ariba Live is the largest procurement event in Europe, we suspect, and numbers for the Summit are limited. So if you are interested, don’t delay and do register now – please contact Miriam Kuritzkes to express interest and for further details.

Procure with Purpose

Procurious have partnered with SAP Ariba to create a global online group – Procure with Purpose.

Through Procure with Purpose, we’re shining a light on the biggest issues – from Modern Slavery; to Minority Owned Business; and from Social Enterprises; to Environmental Sustainability.

Click here to enroll and gain access to  all future Procure with Purpose events including exclusive content, online events and regular webinars.  

Procurement Across Borders – Looking Into The Cultural Mirror

A useful tool for developing cultural intelligence is the Cultural Mirror, which plots culture across nine dimensions…

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As part of our ongoing article series on Cultural intelligence (CQ) we are discussing each of the four individual components of CQ and how they can be applied to effectively work across cultures. In earlier articles we discussed what Cultural Intelligence is and CQ Drive, which is the motivation that individuals have in approaching and interacting with different cultures. Now we move onto the next component which is CQ Knowledge.

CQ Knowledge refers to your own personal knowledge and understanding of other cultures. Differences and similarities between cultures can be assessed in terms of core values, beliefs, norms and behaviour.

A useful tool for developing CQ Knowledge is the Cultural Mirror, which plots a culture on nine dimensions. These dimensions are based on the work of anthropologist Geert Hofstede, Fons Trompenaars and Asma Abdullah that I amalgamated. The Nine Dimensions of Culture provides us with a continuum of values and by exploring each of these and where a culture sits on the continuum, we are able to gain insight into the culture itself and how it operates. It is critical to firstly appreciate where you sit on the cultural mirror yourself.

Here is the Cultural mirror and the Nine dimensions:

We will look at the first three dimensions in this article and understand what they are, how they are applicable and provide some tips on how to navigate these cultural differences.

Dimension One: Relationships – Task

In some cultures around the world the focus in the early stages of interactions is on building the relationship. In these cultures, getting to know the people and establishing trust is much more important than simply achieving the task. Examples of countries on the relationship end of the continuum are Saudi Arabia and Brazil. In other cultures the initial priority is on getting the task done. This is not to say that the relationship is not important, however the focus is primarily on getting the task done before building the relationship. Examples of countries that are on this end of the continuum would be Australia, Germany and Finland. In both situations, the outcome is to get the task done but the approaches are different.

Tips for those coming from a relationship oriented culture working with a task oriented culture:

  • Be focused and clear on outcomes
  • Give clear instructions about the task

Tips for those coming from a task oriented culture working with a relationship oriented culture:

  • Spend time initially building the relationship
  • Invest in small talk to make people feel more comfortable

Dimension Two: Harmony – Control

This is the view of how humans deal with the environment, nature and with people around us. People from harmony based cultures believe we need to live in harmony with nature and have an external locus of control. They believe in concepts such as yin and yang, fate, destiny and karma. Countries which are more on the harmony end of the continuum include Pakistan and China. Conversely, people from control based cultures believe that you are the master of your own destiny. You are in control of your life and you need to control the environment. Countries more towardes the control  continuum  are the USA and Switzerland.

Tips for those coming from a Harmony based culture working with a Control Culture:

  • Be aware that rigorous debate maybe encouraged
  • Be conscious of delivering on timelines

Tips for those coming from a Control based culture working with a Harmony Culture:

  • Be mindful that open conflict is likely to be avoided
  • Learn how to disagree in a polite manner

Dimension Three: Shame – Guilt

 In shame orientated cultures, avoiding a ‘loss of face’ is important. Thus, what others think of you and how they judge you is a strong motivator. Examples of countries which are more on the shame end of the continuum are India and Japan. Conversely, in guilt based cultures, it is more about up to the individual to judge themselves on their conduct. Guilt based cultures include Italy and Argentina.

Tips for those coming from a shame based culture working with those from a Guilt Culture:

  • Allow time for experimentation and brainstorming of ideas
  • Appreciate that candour may be present and encouraged in discussions

Tips for those coming from a Guilt based culture working with a Shame Culture:

  • Encourage participation through group based tasks to remove attention from individuals which may cause “loss of face”.
  • Do not expect public or rigorous debate

For the three dimensions we have discussed, please consider where your cultural preferences are and how that influences your interactions with others from different cultures?

Is Employee Turnover Killing Your Profits?

It’s a good idea to get the bottom of why employee turnover happens and how to limit it.

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Employee turnover costs US businesses more than one Trillion (1,000 Billion) US dollars a year.  That represents about 10 per cent of all US corporate profits, so it is nothing to be sneezed at.  It is therefore probably a good idea to get the bottom of why it happens and how to limit it.

According to the latest statistics from the US Bureau of Labor Statistics, the average US business turned over 44 per cent of its employees in 2018 and in some industries it was significantly higher.  It was 87 per cent in the Arts and entertainment and 75 per cent in accommodation and food services. At just under 15 per cent, Federal government agencies experience the lowest turnover.

Gallup research suggests each employee loss costs the business 150 per cent of their salary.  Deloitte Consulting partner Josh Bersin says his research shows that, depending on the position,  it could be as high as 200 per cent by the time you account for hiring, on boarding, training, ramp time to peak productivity, the loss of engagement from others due to high turnover, higher business error rates, and general culture impacts.

Besides those obvious cost cascades there are some less obvious, but no less important costs.  The significant direct costs put real time pressure on an organisation to hire a replacement and get them trained, settled and productive quickly.  The pressured hiring process can often lead to the new hire not being a good fit for the job and leaving (or being let go) within a year, thus compounding the costs.

The Harvard Business Review says that as much as 80 per cent of employee turnover is due to bad hiring decisions.  Similarly Leadership IQ’s Global Management Survey reported that 46 per cent of new employees turn out to be a bad hire within 18 months and only 19 per cent will turn out to be an unequivocal success.  When it came to teasing out the factors behind the failure they found  a lack of technical skills explains only 11 per cent of new hire failures, whereas coach-ability (the ability to accept feedback from bosses) accounted for 26 per cent of failures. 

Employee turnover is very real and very costly, so doing anything at all about it, no matter how small the impact, is likely to be a good investment.  The research suggests that there are some especially important factors that are key to retaining employees (that you want to retain).

Obviously the first rule is don’t rush.  It is important to ease a potential new hire into a job.  Ensure they have a good sense of who they will be working with and what the expectations are well before they are signed on.  This means going beyond the standard probation period clause and pro-actively ensuring compatibility with your culture and team preferably before they start.  Throwing a new hire in the deep end and hoping for the best is likely to be a bad idea.

Pay is also obviously a factor but the research shows that if the only thing you do is throw money at them, you are unlikely to be able to stop a valued employee leaving. While being paid too little for the role will definitely motivate churn, overpaying will not make up for an unhappy workplace.  A workplace survey by Equifax for example found that 44 per cent of workers who leave within a year take a pay cut. They want to get out so bad, the pay is not enough to keep them there. 

Pay does have an effect but it is relatively small. According to Glassdoor surveys, every 10 per cent increase in pay only reduces the likelihood of an employee leaving by 1.5 per cent.  So if you double their pay they are still 85 percent likely to leave. 

On the other hand opportunities for advancement and training are significant factors in employee retention.  Humans like to feel they are getting somewhere. Research repeated shows that role stagnation leads to turnover.  Glassdoor have even put a number on this, saying that every 10 months at an unchanged role increases the likelihood of an employee leaving by 1 per cent. 

According to exit surveys conducted by Gallup, more than half of all exiting managers say that in the 3 months before they left, no one in the organisation spoke to them about how they were feeling about their job or their future with the organisation.  If no-one is talking about your future with the company, it’s easy to come to the conclusion you don’t have one.

Gallup recommend proactive engagement about an employee’s opportunities for growth are key to retaining valuable employees.  They suggest you know the employee’s long term personal goals, allow them opportunities in roles bigger than their past experience and help them to acquire new skills to advance their careers.  In short, treat them as you yourself would like to be treated.  Let’s call that the Golden Rule for Employee Retention.  You could so a lot worse than applying it in your business.


Supply Chain Pros: Could AI Save Your Day Job?

Supply chain leaders know AI is a game-changer, a technology that will allow them to optimise their supply chain for competitive advantage. But just how much will it impact your profession?

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Today, business leaders are looking to their supply chains to create differentiation and they recognise that data is a key driver. Having said that, only a small fraction of supply chain data is effectively used, and most companies are virtually blind to data that is unstructured – for instance, from social, weather and IoT sources. With limited visibility it’s difficult to optimize supply chain operations, leaving the business exposed to unnecessary disruptions, delays and risks, as well as increased costs. In fact, 87 per cent of Chief Supply Chain Officers say it is extremely difficult to predict and manage disruptions.

Supply chain leaders know AI is a game-changer, a technology that will allow them to optimise their supply chain for competitive advantage. They understand and have relied on descriptive analytics – using massive volumes of data within the enterprise to understand better what has happened in the past and what is happening today. They’re now ready to explore how to use AI to see beyond the four walls of their business; understand how potential disruptions in the environment could impact the supply chain; and act quickly to seize opportunities or mitigate risk.

A new era of AI in the supply chain

Already, AI capabilities in IBM Watson Supply Chain Solutions are moving from descriptive analytics to predictive insights. We’re helping clients look ahead of supply chain events and see likely delays, demand spikes, supply changes and stockouts with new capabilities, such as anomaly detection in supply chain processes and leveraging conversational analytics for response management. Going even further, we are showing clients the power of prescriptive analytics, where Watson evaluates several dynamic parameters associated with a supply chain scenario and in near real time suggests the best actions and can even automatically create supply chain playbooks.

But this is not the end of the journey. We are also creating a plan where Watson adapts on its own, learning what matters to you and developing the capability to show you where to focus your attention to mitigate disruptions and take advantage of opportunities.

Here are some new capabilities available today (and some that are still to come!) :

  • Expanding data sources for Watson – IBM Supply Chain Insights allows us to add new data sources specific to each client’s challenges in as little as five weeks, accelerating the content that Watson draws from to gain intelligence, from basic ontology and supply chain terminology to weather and now many more external data sources. 
  • Anomaly detection – This new capability in IBM Business Transaction Intelligence for Supply Chain Business Network tracks supply chain transactions, spots anomalies and provides early warning signals so you can discover potential problems and take corrective action sooner. 
  • Optimising order and response management – IBM Order Management software uses AI to select the best location to fulfill an order, adjust availability promises and safety stock levels, and empower customer service reps to make more informed decisions and answer questions with greater accuracy and speed.
  • What’s next for AI – In the future, Watson Supply Chain capabilities will include predicting supply chain cycle times, to new frontiers where Watson adapts to your supply chain and users and learns about trends, issues, actions and behaviors to make recommendations. 

Could AI save your day job?

On 30th April I’ll be taking part in a new Procurious webinar: “How AI Saved My Day Job – Confessions from a Supply Chain Pro.” We’ll be exploring the real-life applications of AI in workplaces today and the problems it can solve for supply chain professionals.

How AI Saved My Day Job – Confessions from a Supply Chain Pro will go-live on 30th April 2019. Sign up here (it’s free) to join the Supply Chain Pros group on Procurious and gain access to this webinar.

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


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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.

7 Tips On Mentoring Your Reports In The Art Of Negotiation

We spoke to seven procurement experts to hear their advice on mentoring junior professionals on the art of negotiation…

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For any junior buyer, going head to head with an experienced negotiator can be especially intimidating. In many cases they are thrown into the deep end without enough preparation and guidance by their colleagues and superiors. For this piece, Giuseppe Conti, Founder and Managing Partner of Conti Advanced Business Learning interviewed seven procurement experts and leaders in their respective industries to find out their advice on teaching direct reports the art of negotiation.

1. Access to training and development programs

Over the 35-years that I have been in the procurement and supply function, I have found the following three approaches in coaching for the preparation of negotiations to be critical in order to become a respected and effective functional leader and a consistently successful negotiator:

The first is to coach “win-win” outcomes in business negotiations, aiming for partnerships with suppliers instead of taking the “arm’s length” approach to relationships that are so common. Secondly, to provide access to training and development programs that genuinely help individuals to strengthen their potential for success in negotiations; not just from a functional or technical perspective, but equally in soft skills. Lastly, to mentor and encourage the development of emotional intelligence (EQ) in how we are perceived in our professional engagements and how this can be leveraged or disable our ability to deliver successful negotiation outcomes. 

Les Ball, Chief Procurement Officer, ABB Motors and Generators

2. Exposure to more complex negotiations lead by experienced sourcing professionals

I use a three-faceted approach when mentoring direct reports to negotiate. Firstly, I make sure that all ‘on-the-job’ elements of negotiation preparation are available, this includes understanding market forces, supplier/buyer strengths and weaknesses, leverage tool kit, leading post negotiation assessments to name a few. Secondly, I want to ensure my more junior direct reports are exposed to more complex negotiations led by experienced sourcing professionals and over time, provide more opportunities in real negotiations to improve their skills in the field. Finally, it is a must to provide high-quality external training to keep learning new negotiation techniques and strategies.

Elodie Cramer, Associate Director of Biogen

3. Negotiating together

I believe in learning by doing. The best way to help and improve the negotiation skills of direct reports is to undertake a negotiation together. Use these opportunities to provide feedback and reflect on what went well and what didn’t. I also believe that after any important negotiation you should have a post-mortem review. Younger negotiators need to have an internal, or external, coach to guide them in preparing and delivering a negotiation. This includes a rehearsal before a big negotiation, which is not often done by buyers.

Guillaume Leopold, Procurement Advisory Partner, Ernst & Young

4. Scenario planning

Scenario planning and role playing can really help accelerate a person’s ability to negotiate. Do they know who is coming and what their expectations are? How are they going to open the negotiation and present their needs? Have they considered what the responses may be to their arguments and how to counter them? Additionally, coaching in other facets such as learning to actively listen and what topics or words not to say are just as important as rehearsing the key arguments. 

Jon Hatfield, Director Global Supply Management, PPG

5. Joint preparation

Spending time with them during the preparation phase gives direct reports more assurance. This is especially evident for complex negotiations, for instance when suppliers may also be customers. Consequently, collaboration becomes an absolute necessity.  As a group, we organise simulations and role plays in order to practice, exchange, discuss, review the negotiations and our performance in them. This team element ensures that they can learn from me and I can learn from them.

Christophe Schmitt, Head of Strategic Supplies, Omya

6. Sharing of current negotiations as a team

I like to set up regular physical meetings with all my direct reports to share and think collectively in a secure environment. By creating a friendly and open-minded atmosphere, we can share our current negotiations, the techniques we used and the challenges we faced. We would discuss the approaches, the outcomes and brainstorm on any alternative ways.

Olivier Cachat Chief Procurement Officer, IWG

7. Role playing acting as the supplier

Role playing is my favourite method. Specifically, I would ask my buyer to brief me on their strategy then, when we role play, I take the role of the buyer and get my colleague to experience how the supplier may feel and react to their argument and proposals.

Giuseppe Conti, Founder and Managing Partner, Conti Advanced Business Learning

The following answers were collected by Giuseppe Conti, Founder and Managing Partner of Conti Advanced Business Learning (www.cabl.ch), a consulting firm that specialises in negotiation & influencing. This article is part of a series aimed at collecting real-life negotiation experiences from Procurement executives.

Check out the other articles in this series:

Part One – Seven Negotiation Fails We’ve All Experienced

Part Two – Seven Negotiation Tricks Procurement Procurement Professionals Must Know

5 Reasons Your Organisation’s Travel Spend is Out Of Control

Procurement travel managers have a whole host of issues they need to take into account – from cost, efficiency and payment processing to data security, service reliability and employee safety.

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Today, corporate ground travel, both locally and globally, is remarkably complex with worsening traffic and congestion charges adding to the challenge of running a low cost, efficient operation. Meanwhile, employees, who are accustomed to the ease and efficiency of the technology they use outside of work, expect a better travel experience than ever before.

Procurement travel managers have a whole host of issues they need to take into account – from cost, efficiency and payment processing to data security, service reliability and employee safety. However, according to UK Taxi Expenses Review 2017 55 per cent of companies don’t even have a defined travel policy.

24 per cent of financial decision makers rank travel as one of the most difficult operating expenses to control. Here are five factors  that are contributing to the problem…  

1. Wasted time

Think about how many people are involved in each travel expense that an employee submits. Firstly they need to fill out the expense form, which 60 per cent of employees fill out during working hours, spending up to an hour per month on bureaucracy. In 90 per cent of cases, the claim requires approval from a senior employee before it is finally sent to another party to be processed.

2. Cost inefficiencies

That’s only half of it though. Over 50 per cent of employees round their claim up by an average of 25 per cent while a third admit to forgetting the fare before they have made a note of the charge. The subsequent expense claim discrepancies can lead to significant losses.

A number of other factors can also lead to financial losses that are hard to track, such as lack of employee punctuality that causes the overall fare to spike or unreliable travel service providers, which leads to lost business opportunities.

3. Lack of data

Only 31 per cent of companies feel that they have control over their data. This means that the vast majority believe their businesses are in the dark about their travel expenses. This can have a critical impact on productivity, costs and data security.

According to JP Morgan, for 39 per cent of travel managers travel data is necessary to enable successful negotiation with vendors. There are multiple reasons why travel information is vital, but if you don’t have an advanced mechanism that lets you know who is travelling, when and where then it is virtually impossible to manage your travel expenses. In a modern, dynamic business real time data is required to know all of this information and more, including which projects or time periods are travel intensive so you can adjust your travel policy accordingly.

4. Hidden costs

To further complicate matters hidden costs are abound, which complicates a company’s abilities to calculate expenses. This is most evident when employees are abroad. In an unfamiliar environment, employees are far more likely to hail a ride at a taxi rank, which is on average 40 per cent more expensive than doing so on the street or by calling a local service. Equally, ground travel costs are frequently folded into per diem payments so there is no clear data on travel expenses. On a local level, tips can vary widely and impact the bottom line. For example, in London, employees tip an average of 19 per cent and elsewhere, approximately 13 per cent.

5. Inadequate Security

While cost efficiency is an essential aspect of any company’s travel policy, employee safety is also a vital concern. It’s important to provide the highest standards of care to ensure the welfare of your employees. Can you guarantee they are having a consistent and comfortable travel experience? If they are abroad, can you still ensure their security and that they experience the same standards of driver safety, reliability and professionalism.

Clearly, travel can entail an array of unforeseen risks and costs and a lot of companies don’t have a tight enough grasp of what is happening in the business.

What can you do about it?

You need to identify the where and how of your company travel and to achieve this you must think about your current travel needs. The following questions are a great way to get the ball rolling.

  1. Have your needs evolved over time and are you keeping up?
  2. Do you have a defined, company-wide travel policy?
  3. How many of your employees travel and for what purpose?
  4. Do your employees just travel with the city, between cities or also globally?
  5. How are you ensuring the safety of your employees when they travel?
  6. How closely can you track your travel activities and expenditure?
  7. What reporting mechanisms do you have?
  8. Which specific projects, business units or individuals are responsible for peak spend?
  9. How many different service providers are you using and how reliable are they?
  10. How much of your expenditure is accounted for with your current reporting system?  

New Webinar: Rush Hour: High Risk, Hidden Costs and Unexpected Travel Spend

To start getting your corporate travel under control, register (it’s free) for a new procurement webinar,  which covers every aspect of how to manage the the total cost of ownership: Rush Hour: High Risk, Hidden Costs and Unexpected Travel Spend

The webinar will take place at 11am BST on 16th AprilSimply sign up via this form. You will then be added to the webinar mailing list, with details on how to access the webinar before it goes live.

If you can’t catch the live stream, you can sign up at any time and catch the recorded version later via the Procurious site.

Answering Your Burning Procurement Questions

We put some of procurement’s top thought leaders on the spot to find out the answers to your burning procurement questions.

By Kzenon/ Shutterstock

What’s the one word you’d like to ban in procurement?

What’s the most important soft skill?

If you had to choose between experienced hire and upskilling talent, which would you choose?

What’s the least important skill for procurement pros?

How do you successfully negotiate a payrise?

We put some of procurement’s top thought leaders on the spot to find out the answers to these questions. Check out the video interviews below.

Justin Sadler Smith Head of UK and Ireland, Procurement and Supply Chain – SAP Ariba Speaking at Big Ideas London 2019

Quick-fire questions with Justin Sadler Smith

What’s the one word you’d like to ban in procurement? : Procurement!

What’s the most important soft skill? : Stakeholder management and being able to communicate effectively.

Julie Brignac,Corporate Senior Vice President Client Services and Delivery, WNS Denali
Speaking at Big Ideas London 2019 

Quick-fire questions with Julie Brignac

What’s the one word you’d like to ban in procurement? : Transformation

If you had to choose between experienced hire and upskilling talent, which would you choose? : It’s dependant on the talent market. we are currently in a market when the talent is extraordinary, lots of access to procurement and supply chain professionals. Because of that it’s important to hire for experience as opposed to raw talent.

Vishal Patel, Vice President of Product Marketing – Ivalua
Speaking at Big Ideas London 2019

Quick-fire questions with Vishal Patel

What’s the best way to negotiate a payrise? : Going beyond talking about cost savings and show the value of all the things that have been done with suppliers, with innovation and with risk.

What’s the least important skill for procurement professionals? : Tactical operational skills – basic things like approving purchase requisitions. Procurement should focus on other things

Carl Tomaszek, Sales Director – Icertis
Speaking at Big Ideas London 2019

Quick-fire questions with Carl Tomaszek

What’s the one word you’d like to ban in procurement? : Transformation

What’s the best way to negotiate a payrise? : Demonstrate success in terms of what you’ve done to benefit the organisation’s bottom line

Check out more content from Big Ideas London 2019 here.

5 Critical Factors for Improving Employee Retention

It’s normal for businesses to experience some personnel loss each year. However, the goal of retention is to keep that loss at a minimum.

By Samo Trebizan / Shutterstock

Employee retention refers to an organisation’s ability to keep, or retain, its employees and reduce turnover. It’s usually measured as a percentage of the employees who were present from the beginning to the end of the year. It’s normal for businesses to experience some personnel loss each year. However, the goal of retention is to keep that loss at a minimum.

Why is employee retention important?

One of the first, and arguably most important, reasons to put effort into retention is to create happier employees who will work harder, produce better results and ultimately, earn more money for the company. Happier employees are also more likely to feel a sense of loyalty to their organisations and recommend it to others for employment.

Contented employees are vital to a successful business, but retention is also important because of turnover costs. According to a CAP study, the average cost of replacing an employee can be up to 230 per cent of their annual salary for high-level executives, and 16 to 20 per cent of annual salary for low- to mid-tier employees. An executive making $200,000 a year could cost up to $416,000 to replace.

However, this figure doesn’t even include the “soft costs” associated with losing an employee, which can encompass productivity, engagement, training and cultural impacts. Focusing efforts on retention can keep employees happier and save organisations up to hundreds of thousands of dollars per person.

1. Start with onboarding

It may seem counterintuitive to start working to keep employees on their first day or before they’re even hired. However, studies have shown companies lose 25 per cent of employees within their first year, and as much as 20 per cent of that turnover happens in the first 45 days of employment.

Employees get their first glimpse of a company in the onboarding phase. Standardised onboarding processes have proven to result in greater productivity from new employees and 18 per cent higher rates of goal achievement. According to tech leader Mark Hurd, companies must make it easy for new hires to assimilate, especially when it comes to the simplest tasks, like getting an ID card and tools for their jobs, or even knowing where the restrooms are. “All of this stuff sounds so rudimentary, but it was taking weeks for some of this stuff to get done,” Hurd noted, “And in the meantime, the employee is unmotivated and doesn’t understand where the resources are.”

2. Demonstrate opportunities for growth

It’s important for employees to see a clear path for growth within their job right from the get-go. This can start during the recruitment process by highlighting to potential employees some of their prospective colleagues who have already moved up in the organisation. This can show them some potential directions they can take with their own career paths.

A Glassdoor and Harvard Business Review survey found employees who remain in a job for a long period of time without promotion are significantly more likely to seek out other companies for the next step in their career. Conversely, employees who see a clear trajectory for upward mobility have a much higher likelihood of staying with an organisation to work toward their end goal.

3, Offer flexible work arrangements

Flexible work arrangements are one of the most important perks job seekers look for right now. However, providing this benefit can do more than bring a company plenty of applications. It can also result in more satisfied, higher performing employees in the long run.

Offering flex time or a work-from-home policy shows employees their employer is cognizant of their time and is dedicated to creating a positive work-life balance. It also demonstrates a level of trust in each worker’s ability to do their job correctly without in-person supervision.

4. Provide consistent learning opportunities

A Consumer Technology Association (CTA) survey found special skills trainings or professional development programs to be one of the most important factors for retaining employees. Kevin Griffin, an IT advisor at Falco Enterprises, noted, “a commitment to training is seen by employees as an investment in their worth and a powerful incentive to stay at the company.”

By providing ample learning opportunities, companies allow employees to feel like they’re always making progress in their careers. Giving employees the opportunity to attend conferences, or providing regular in-office trainings, can act as major motivators for employees to remain with their employer. However, these activities should be counted as part of the workday rather than something undertaken on the employees’ own time, to prove the business is dedicated to educating their workers.

5. Implement open lines of communication

More employees leave their employers because of poor managerial relationships than for any other reason. Management should pay close attention to how they communicate with subordinates. Managers and supervisors should remain open to feedback and keep open lines of communication at all times.

Workers should feel comfortable and encouraged to speak up during meetings to offer their opinions without fear of backlash. Open channels of communication make employees feel valued, safe, and heard.

Companies that put effort into employee retention will have happier and more motivated employees, which will in turn save money over the long run.