Category Archives: Procurious News

Just When You Thought Our Ideas Couldn’t Get Any Bigger…

Spend 15 Minutes with five procurement power-players in our podcast series, Even Bigger Ideas, presented by State of Flux.

Register as an online delegate for the London Big Ideas Summit 2017 here.

As a Big Ideas Summit 2017 digital delegate, you’ll gain access to insightful discussions, connect with our procurement influencers, access video content from the event and have the chance to share your own big ideas with the Procurious community.

And, if that wasn’t enough, your digital experience just got that little bit richer and more intimate as we announce Even Bigger Ideas!, a 5-Part Podcast Series, which will be available exclusively to our Digital Delegates on Procurious.

Over five, bite-sized podcasts you will hear from some of the most intriguing thought-leaders on the trends disrupting business and the Big Ideas to benefit from them.

Without further ado, we’d like to introduce you to the stars of the show who’ll be helping you to think the unthinkable, nurture your big ideas in the biggest companies and unleash your creative genius.

James Bannerman – 15 Minutes to Unleash Your Creative Genius – Tuesday 21st February

Tuesday 21st February

Our podcast series kicks of with James Bannerman, Creative Change Agent and author of Non-Fiction best-seller Genius: Deceptively Simple Ways to Become Instantly Smarter. James believes that in a world where innovation is the new currency, procurement teams that fail to execute their ideas with originality just won’t cut it. He’ll be offering some top tips on how to unlock creativity in order to help us all achieve additional moments of pure genius.

Linda Yueh – Should Procurement Pros Be Concerned About Global Trade?

Wednesday 22nd February

Linda is a renowned economist and Adjunct Professor of Economics for London Business School. She was the BBC’s Chief Business Correspondent and host of “Talking Business with Linda Yueh”, as well as Economics Editor at Bloomberg TV.  She’s the go-to expert on issues relating to global trade, Brexit and Trump’s presidency. Concerned that a rise in protectionism might have a negative impact on your global supply chains? Linda’s  on hand to quell your fears and put your mind at ease.

Chris Lynch – Nurturing Big Ideas through Big Companies

Thursday 23rd February  

Chris Lynch, Chief Financial Officer at Rio Tinto, has had nearly 30 years’ experience in the mining and metals industry. He joined the Rio Tinto boards as a non-executive director in September 2011, and was appointed chief financial officer-elect, an executive board director and a member of the Executive Committee in March 2013. Chris has spoken extensively about the importance in fostering a culture of “intrapreneurship” within large organisations. He’ll explain how individuals will face more resistance, the bigger their idea is but, with the right nurturing and persistence, their is a chance of success!

Nik Gowing -Thinking the Unthinkable – The Update

Thursday 23th February

2016 Big Ideas Summit speaker, Nik Gowing is back to give us his latest update on Thinking the Unthinkable. Nik is a visiting Professor at King’s College & former BBC-Broadcaster with over 35 years analytical expertise in diplomacy, defence, international security. Last year, Nik explained that executive leaders are experiencing the very human sensations of feeling overwhelmed,  under pressure and unable to think unthinkables. What, if anything, has changed in the last 12 months?

Anders Sorman-Nilsson Seamless – Digital Adaptation and Human Transformation

Friday 24th February 

Anders is a Futurist and the Founder and Creative Director of Thinque, a strategy think tank that helps executives and leaders convert disruptive questions into proactive, future strategies. He’s an active member of TEDGlobal, has keynoted at TEDx and guest lectured at Sydney University and University of Technology Sydney Business School. Anders will help you prepare for a digital future lead you to question if your procurement team suffers from change fatigue!

Even Bigger Ideas is presented by State of Flux.  

No budget, no problem! Join the conversation and register as a digital delegate for Big Ideas 2017 now!

6 Top Tips For Starting A Law Firm Performance Management Process

Law firm performance is not managed very effectively in most organisations as shown here. Stacey Coote offers 6 top tips for starting a law firm performance management process.

I have seen millions of pounds in benefits delivered from good law firm supplier relationship management (SRM) processes despite the fact that they are not always managed very effectively. Below I have provided 2 case studies on why you should initiate an SRM process for law firms and 6 Top Tips on how to initiate a law firm SRM process:

Case Study 1

Background

Programme instigated at the end of the panel process saw the law firms and client meet once a month to go over feedback from the business and the law firm provided 360 performance feedback.

Results

£5M+ in benefits from:

– Two law firms recommended new market offerings, which resulted in £4M in revenue generation.

– A law firm highlighted that a number of business units (BU) were sending the same documents multiple times (leading to increased review costs) so a new policy was written to eradicate this behaviour.

Case Study 2 

Background

SRM programme instigated which saw law firms provide detailed performance management information (MI) and meetings were held quarterly with the client to discuss the same.

Results

£2M in benefits from:

– Law firms had numerous associates and partners attending weekly calls, delivering no value to client or law firm. Outside Council Guidelines changed so firms only attended calls / parts of calls they needed to and only associates / partners required attended the calls.

– Evidence found of firms consistently settling claims too early (to benefit from the low fixed fees agreed). Work moved to other panel firms who performed more in the client interests (NOTE: this was driven from good MI).

Below are my six top tips for starting a law firm performance management process:

Step 1 – Stakeholder Engagement

To be honest this might be the hardest step in the process. I was literally shouted at by a GC when I first tried to initiate an SRM process for her law firms – so it’s not an easy nut to crack!

However, the best bet (as I learnt from that experience – and other equally bad experiences!) is to meet with key stakeholders (e.g. key decision makers) and agree the key objectives (step 2) of an SRM programme.

NOTE 1: It’s likely an easier sell if you don’t refer to it as an SRM process – the typical response I have received to this terminology being ‘we are not monitoring a paper clip supplier here you know!’

NOTE 2: If you have a small amount of legal spend and only a few stakeholders it will likely be possible to engage all stakeholders. However, my approach above is based on companies where hundreds of individuals engage law firms daily for the organisation.

Step 2 – Agree Objectives

Once you have stakeholder engagement you then need to agree the objectives of the SRM process e.g. innovation, savings, better case management, better litigation outcomes, identifying key lawyers you work with and want to work with more and ones you think are poor and want removed from the account etc.

Whatever the objective is it needs to be agreed up-front with all stakeholders so that everyone participates actively to ensure the process delivers benefits.

Step 3 – Agree Ownership

You need to agree who will own what e.g. will Procurement work with the firms to improve performance or Legal Operations or the Legal COO etc.

I have seen organisations where procurement were not interested in running performance management processes so it was all managed by the Legal COO office. Equally I have seen procurement teams run the whole process.

Overall, I feel a team approach is the best approach and this is where the most benefits are delivered in my experience.

Step 4 – Agree Approach

It is then important to agree upon the approach and some areas to think about include:

  • What business units will be in scope
  • What support will the business units need to provide to ensure success
  • What firms will be in scope
  • What incentives will there be for the firms to participate (if any)

Step 5 – Agree Frequency

You also need to agree the frequency of the SRM process. For example – you might want to have monthly management information but a file audit is completed just once a year.

In my experience, less is more. Trying to do things too often means you lose momentum and you get poor engagement as people have too much to do already. Remember SRM is generally a bolt on to someone’s day to day job. Ideally you would have a team managing performance full time but it is unlikely you will have this luxury.

Step 6 – Agree what happens to results

Finally, once you have the results you need to decide what happens i.e. do you share with everyone, with the firms and key decision makers only, do you meet firms to go through results etc. and what actions are required plus associated timelines for remediation.

360 Feedback

One final point – I have found 360 feedback from firms the most valuable element so please don’t forget this component. It might tell you things you don’t want to hear and two quotes that spring to mind include:

‘You have us join calls we are not needed on, which is costing you money unnecessarily’

‘You are not paying us on time so we have to increase our rates to take account of being a free credit service provider for you’

However, sometimes firms have amazing ideas that can generate extra revenue (Case Study 1) so please do get their feedback on how you can be more effective as an organisation!

I wish you good luck in implementing an SRM programme!

Stacey Coote is a Legal Procurement Expert and a Partner at Coote O’Grady, a specialist Legal Procurement Consultancy.

How to Leverage Procurious to Boost Your Career in 2017

2017 is already a few days old – how are your resolutions coming along? Make Procurious one of yours this year, and boost your career!

2017

Halfway through the first week of 2017, and already the Procurious team are struggling with resolutions. But perseverance is the key, as is creating new habits to stay on track.

We’re all about making those habits as easy as possible to keep. Especially when it comes to your procurement career.

2017 – New Year, New Procurious

2017 promises to be a huge year, not only for procurement, but also for Procurious. With events galore, cracking content, and more knowledge sharing than you know what to do with, you need to know how to put it all to good use.

So here are some easy steps to help you make the most of Procurious this year.

1. Complete your Profile

Yes, ok, we’ll admit it. We do keep going on about this one! However, we do this with good reason. A completed profile will gather much more interest than one with just the basic information. Take 5 minutes to fill in your location, industry and category, and write a bit about yourself.

We’re not talking an essay here, just a short paragraph telling people who you are, and what you’re up to.

And if you don’t already have one, add a great picture to your profile. It’s all about your personal brand on social media, so make sure it shows the image you want to portray.

2. Connect, Connect, Connect

Over the past 12 months, we’ve added nearly 10,000 new members to our community. That means there are over 19,000 other people you can connect, share, and chat with.

We’re not suggesting for a second that you connect with everyone. But why not use the filters on our ‘Build Your Network‘ page, and find the people in the same industry/category/country as you. It won’t take you long, but it will give you a rich network to help with all those new, complicated issues!

3. Download our App

Want to get Procurious on the go, wherever you are? Well, you can with our great App. We launched the App in August after requests from our community, and so far, people have loved it!

Unfortunately, we only have an iOS App currently, but we have big plans for Android in the near future. It’s got all the same functionality as the main site, so you’re never going to miss out!

You can find and download it in the Apple Store.

4. Join the Conversation

The Discussion forum is consistently one of the most popular areas on Procurious. New questions are being asked all the time, and community members are quick to share their knowledge.

To see some of the top discussions from 2016, take a look at Monday’s article. Is there a conversation you can add to? We’re sure we haven’t covered everything, so if you have a burning question, now’s the time to get involved.

5. Join a Group

We have an ever-expanding list of Groups on Procurious, catering to an array of categories, associations and causes. Can’t find one for you? Then create one and invite people to join it – it’s really easy, and a great way to create your own little community.

Want to help celebrate Women in Procurement? Join our dedicated group, Bravo.

Work access to great procurement policy templates? Join the Procurement Toolkit group.

Or maybe you want a say in what’s next for Procurious. Then the ‘Procurious – Make it Work for You!!!‘ Group is for you.

6. Elevate Your Skills, Boost Your Career

Start 2017 as you mean to go on, and learn something new every day. Procurious has great eLearning content for you to watch and listen to. And the best thing about it? It’s all completely free to our members!

From hearing what industry leaders consider as the Big Ideas for procurement’s future, to catching up with our ‘Career Boot Camp‘ podcasts, there’s a wealth of information at your disposal.

7. Get Involved on Social Media

Finally, we bring this all back to getting new, great habits in place. Make 2017 the year you really push your social media presence for procurement. It only takes 10-15 minutes per day to do this by sharing an article, listening to a podcast, or connecting with new people.

You can also follow Procurious on Twitter, LinkedIn, and Facebook, and get access to all our content there too.

That should keep you busy for the next few weeks! As ever, if you have any questions, comments, feedback, or issues, on the site, you can get in touch with the team. We’ll make sure that Procurious is working at full speed, to help you work to your full potential in 2017.

10 Must-Read Articles to Kick-Start Your New Year

Happy New Year! Looking for a way to ease yourself into 2017? Then check out our 10 must-read articles to help kick-start your brain.

must read new year

The bells are barely over, and the new year party is still fresh in your mind. But it’s time to get back to work, and we want to help you start 2017 right. We’ve selected some top articles from 2016 to ease you in, and sharpen your brain on your first day back.

The articles come from a variety of sources, and cover the array of topics that the Procurious Blog is becoming known for. From cognitive procurement, to procurement careers and more. This will also help to showcase some of the topics we’ll be covering in more detail this year.

1. Career Espresso – 5 Minutes a Day Fast-Track to Success

Tania Seary gets you in the best career shape of your life.

Feel like you need an espresso to get going today? Well how about a shot of career espresso to get on the success fast-track in the new year?

The only person responsible for your career success is you, so this year, make sure your not stuck in a rut. Get involved with online learning to help fire your personal and professional development. It doesn’t take long to get involved – no longer than it takes to drink an espresso. What’s stopping you?

2. Can Introverts Really Thrive in Procurement?

Read Hugo Britt’s highlights from Susan Cain’s ISM2016 keynote.

Concerned that, as an introvert, you might be left behind in procurement? Worry no more, said Susan Cain, renowned author and speaker, at ISM2016.

There are huge benefits to an introverted personality in the procurement space. Cain argued that introverts make better leaders, and also can help organisations avoid potential ‘groupthink’. Procurement really does have opportunities for everyone.

3. Planning Procurement’s Response to the Millennial Generation

The Hackett Group’s Chris Sawchuk discusses how procurement can work with Millennials.

Talent management was a hot topic for 2016, and the focus on this will continue in 2017. So how can procurement make sure it engages with Millennials to ensure it hires the best talent?

Chris believes that there are a number of changes procurement needs to make to maximise its Millennial reach. One starting point is changing how training is offered with procurement organisations.

4. Working from Home – The Great Productivity Debate

Procurious Community & Content Manager, Euan Granger, shares tips for maximising working from home.

Another way to engage the Millennial generation is through flexible working practices. Working from home has become far more common in recent years. But does it come at the expense of innovation?

Offering tips to both organisations and individuals, Euan shares his experience in maintaining your work, and your sanity.

5. Women and Indirect Procurement – A Perfect Fit

Read about Pauline King’s journey in indirect procurement.

Indirect procurement is the perfect fit for women, and organisations who have women in indirect procurement can reap major benefits.

Roles in indirect procurement tend to focus on visibility and flexibility, and are results oriented. Pauline sees a definite match up in skill sets, plus a chance for women to break into senior management in a big way.

She also explains why more women should follow in her footsteps.

6. Is Indirect Procurement Really So Complex?

Talking of Indirect Procurement, is it really as complex as it seems

The way some solutions providers talk, you would be forgiven for thinking Indirect Procurement was akin to rocket science. However, it’s hard to argue against the complexities indirect sourcing can encounter.

So let the experts help shed some light on an often opaque topic. And you should see that, if your strategies are in place, it needn’t be as complex as it seems.

7. How to Solve the Extended Payment Term Problem

Ed Edwards discusses a particularly sticky procurement issue.

Extended payment terms – a huge burden on both parties, not to mention the negative press for procurement. So what’s to be done about this practice? And can we consign it to the past for good?

Audience Outreach Manager at THOMASNET, Ed Edwards, focuses not only on the negatives of extended payment, but also the potential solutions.

8. 12 Ethical Questions to Ask in Supplier Pre-Approval

How to ask the right questions to maintain a good reputation.

Extended payment terms might not be considered ethical by a wider audience. However, it’s definitely not the biggest ethical conundrum procurement can face. In the digital world, scrutiny on organisational practice is on the rise, as are expectations.

Procurement needs to be open, honest and transparent, says Alis Sindbjerg-Hemmingsen. In order to do this, we need to be asking the right questions of our suppliers? If you need some guidance, you can find some here.

9. Procurement Will Be ‘Cognitive’

There’s a cognitive revolution coming – will procurement be on board?

We couldn’t start the new year by just looking back. So now we look further into the procurement crystal ball and see an impending revolution.

Technology, and more specifically cognitive technology, stands to make a huge impact on procurement and supply chains. What does it mean for procurement? And what will the profession look like on the other side of the change? Nathalie Fekete of IBM shares her thoughts.

10. The Three Laws of Robotics Aren’t. So What Now?

Where does procurement stand in an automated world

Finally, we would be remiss to not talk about automation and robotics. Last year saw drones, robots and AI all play a major role in the supply chain. And if the experts are right, this change will continue to accelerate.

According to GEP’s Paul Blake, the sky is the limit for procurement when it comes to automation. Procurement can map out its own future – a future you can read more about right now.

Feel like you’ve kicked off your new year at work in the right way? Don’t forget you can also contribute to the Blog this year and share your knowledge with the Procurious community.

2016 Rewind – Top Discussions – You Asked, You Answered!

The Discussions page is one of the most popular on the site. We take a look back at the questions that got you sharing in 2016.

discussions

We’re continuously blown away by the generous nature of our community. Not only do you all connect so well, but you also are willing to share all your expertise. And that’s part of the reason that Procurious was formed in the first place.

We’ve seen it all during 2016, from how to start a procurement career, to the first three jobs you ever had. We also had questions on starting a new function, maverick spend, and social media.

So we’ve brought you the most popular discussions of the year right here.

Career Discussions

It stands to reason that as procurement grows as a career, so does the number of people wanting to join the profession. One question looked at whether to start in a procurement department, or a consultancy.

The consensus was that your procurement career would be better served starting out in a procurement department. Beyond the stigma frequently attached to consultants, it provided the opportunity to build a solid base of knowledge. Then, once experience had been gained, you could look to become a consultant.

Experience is big thing when it comes to procurement roles. However, few of us have procurement experience in our first three roles. Even as it’s less likely for people to ‘fall’ into procurement, the experience we have at the start of our careers is wide and varied.

Within the community, work experience included:

  • Waitress
  • Shelf Stacker
  • Car Washer
  • Sales Assistant
  • Fruit Picker
  • Paratrooper
  • Tele-marketer
  • And even one Santa!

And to tie the career discussions off, you got involved in a question about attracting young people to procurement. While there was definitely interest in the younger generation, a lack of knowledge stood in the way.

However, with more universities and colleges offering degrees linked to procurement this should change. What do you think? Does the profession need to seem more attractive? Or are we attractive enough, just bad at selling this career?

Getting Started & Automating

Does anyone have any advice about setting up a procurement function? This particular discussion got plenty of people sharing, and some great advice on starting from scratch.

The best starting point for a function was the business model – how it would be sold to the business. Within the model, procurement’s value was mapped out, and any blockers discovered. The model could then be built out with recognisable procurement concepts.

Other things to consider included processes and policies, and consideration of sustainability. Another critical item highlighted was engagement with stakeholders. After all, these are the people you’re going to be working with closest!

From the start, to the potential end, of procurement. If procurement were automated, would we need people in the function at all? Happily, most answers agreed that irrespective of automation, there would always be a role for people in procurement.

The consensus being that procurement processes could be automated, but relationships would still be vital. And no machine would be able to outperform a human on that. Yet…

Mavericks and Social Media

Our final trending discussions looked at one age-old problem, and one new one. First up, how to eradicate, or minimise, maverick purchasing.

Two themes ran through the answers – relationships and process. Root cause analysis usually came down to one or other (or both). Either processes were too complicated, or not followed, or people outside the function didn’t understand the value of procurement.

In all cases, listening to, engaging with, and educating stakeholders was a good step to take. It helps to showcase procurement’s role, and why processes need to be followed. And, if all else fails, there’s always a taser…only kidding! (Or are we…?)

Finally, as procurement and social media come closer together, there was the question of how connected the profession is. On the back of a provocative statement from Tania Seary, you discussed whether procurement leaders should have 500+ followers.

For many, it was a case of quality over quantity for connections. Despite there being a wealth of procurement connections on social media, many professionals only connect with people who they can strike up a meaningful relationship with.

Do you agree? Is 500 an arbitrary number? Or, as a leader, have you had enough time to build up this strength of network? You can still get involved in the discussion – all while building up your network on Procurious!

2016 Rewind – Best of eLearning – The True Cost of Supply Chains

For our final 2016 rewind, we’re looking at the year’s top eLearning modules. How can sustainability help limit the true cost of supply chains?

Fast fashion is the embodiment of unsustainable supply chains and consumerism. Why then does it still have such a following? And what can we as consumers do to change this.

Well, we could all start by watching ‘The True Cost‘ – a film documentary that highlights the very worst aspects of fast fashion. It’s an eye-opening, and at times harrowing, look at how consumer trends are impacting the lives of workers in developing countries.

Procurious were delighted to be able to host one of the film’s team, Lucy Siegle, to the Big Ideas Summit this year.

True Cost of Supply Chains

When it comes to Fast Fashion, Lucy is one of the UK’s primary experts. At the Big Ideas Summit, she delivered a message to the assembled procurement leaders – you are in a position to change this.

She believes that there needs to be a more holistic view of the supply chain. This can start with procurement, but needs to include consumers too.

Consumers can help develop sustainable clothing and fashion brands by investing in them. Instead of buying attractively cheap clothing, we need to consider the true cost of the garment. Your cheap t-shirt could be driving poor working conditions in another part of the world.

So what’s procurement’s role in this? Well, as the key stakeholder in ensuring supply chain transparency, procurement can ensure suppliers are adhering to proper procedure. The profession also has the chance to change fast fashion trends by supporting truly ethical suppliers. Only then can we break the cycle.

You can read more about Lucy’s work on the Procurious Blog. You can also catch up with all the thought leadership from the Big Ideas Summit 2016 on the eLearning Hub. And there’s a whole lot more there to keep you interested too! Happy viewing!

2016 Rewind – Procurement KPIs – Measuring the Unmeasurable

Our final rewind article for 2016 is on one of the hot topics of the year – procurement KPIs. More specifically, how do you go about measuring the unmeasurable? 

Procurement KPIs

Is it time to develop new procurement KPIs? As the profession delivers more value, we need to consider measuring the ‘unmeasurable’.

How on earth do you put a KPI against innovation in procurement? How about risk management? Or talent? It’s time for the profession to come together and quantify the value we deliver beyond cost savings.

For me, a revelation that came out of the discussion at The Beyond Group’s “Productivity in Pharma” (PiP) Think Tank in Basel last month, was that there is an urgent need to create procurement KPIs that fully reflect the broader value our profession delivers.

Unfortunately, we will never escape the requirement to track savings (and nor should we; we’re good at it!), but it’s time to define the value-addition areas of what we deliver – productivity, innovation and risk management – in hard dollar terms so that we can quantify our value delivery in these areas.

In my previous post, I shared five rules of thumb for good procurement KPIs. To recap, each KPI should be:

  • clearly linked to an overall business objective,
  • uncomplicated and measurable in hard-dollar terms,
  • based on outcomes, not inputs,
  • not too long nor too many (five to six KPIs at a maximum),
  • achievable and inspirational.

Taking these rules as a starting point, let’s look at five value-addition areas that every procurement professional should be measured against:

  1. Productivity

I know there are a lot of CPOs out there who are tired of the old ‘cost savings’ metric.  And I understand it. But the reality is that cost savings is at least ONE thing that clearly defines our contribution. If we walk away from this, then we have lost an important anchor.

However, we do need to ensure that the broader business audience understands procurement is about so much more than savings, and that we can clearly define value in other areas as well.

One important point I would make (an opinion also shared by ISM CEO Tom Derry at the Procurious Big Ideas Summit) is around cost avoidance. Don’t insult yourself, or your CFO, by reporting on this metric. Costs that have been avoided simply don’t count.

  1. Efficiency

There are so many ways CPOs can deliver efficiency gains that result in bottom-line value for their organisations. In the pharmaceutical world, I imagine this would be measured in terms of speed to market (or “speed to patient”, as one clever pharma Procurement Head put it), faster clinical trials or even the good old basics like reducing inventory.

There are so many ways that procurement can free up cash in the business, but the hard dollar value of this needs to be quantified – which is not impossible.

Business cases are always based on the time value of money. Net Present Value (NPV) is a fundamental financial measurement for businesses. So, before you embark on one of these efficiency projects, work with your finance team to agree on a calculation for the hard dollar value of the efficiency gain, then deliver it, and stick to the agreed value!

  1. Innovation

Procurement rock-star and former CPO of Deutsche Telecom, Eva Wimmers, talked last year about incentivising procurement-driven innovation by creating a suite of relevant KPIs, including cost and time savings achieved as a direct result of innovative improvements.

Innovation KPIs can be process-centric, behavioural or customer-focused (such as service and net promoter scores). What’s important is that every KPI is measurable in its own right and clearly connected to overall corporate objectives. 

  1. Risk management

This is a powerful measurement that will capture the attention of your CEO and other executives. You see, the challenge with risk management (like safety) is that the ultimate success is when nothing goes wrong!

Procurement and other parts of the organisation can spend a lot of time and energy securing supply relationships and carefully managing contingencies, which result in absolutely nothing happening (which is a good thing!). At the C-level it is, therefore, quite easy to take risk management for granted and be tempted to reduce funding and resources in this area.

Actually, safety is a very powerful metaphor for the role procurement plays in managing risk. Nothing captures an executive’s interest more than safety. The language and methodology of safety measurement is well known to executives, most of whom are rewarded on safety metrics.

So, rather than re-invent the wheel with a whole new set of measurements around risk, simply reframe risk in a safety context.  Work with your safety department to understand their metrics, explain what you are measuring and get their advice on how they would construct metrics for risk management in procurement.

When ‘selling in’ your risk management KPI to senior management, don’t underestimate the power of good storytelling. It is critical to illustrate your business case with rich examples of how much market share and stock market value has been lost by competitors and peers when supply chain risk is not properly managed.

Disaster Protection

Traditionally, we have valued this in terms of potential legal costs, but today it is so much more than that. Social media now ensures that your end customers (and the press) quickly become aware of supply chain issues, and these are amplified to such a point that they result in loss of market share and ultimately share price value.

Supply chain disruptions can have catastrophic impacts on corporate brand and equity value. Procurement, however, can play a huge part in protecting the company from this type of disaster, and I believe this is one of the most valuable roles we can play today. Risk management must therefore be highlighted and reported upon in our procurement KPIs.

As you will see at the close of this story, my bold recommended KPI for risk management is number of days supply chain disruption reported in media (with the objective of keeping this at zero!).

As a side point, research in the US has shown that companies who have invested in appropriate social procurement (projects that aligned and complement your brand) will bounce back faster after a market ‘shock’ event.

  1. People

Call people what you will – ‘assets’, ‘human capital’, or even ‘resources’ – but I prefer to use the word ‘talent’. People are frequently regarded as an enabler metric, but I think it should be much more than that.

We should position procurement as a source of leadership talent for the business. Particularly if we believe what we say (and I do!) that procurement provides some of the best commercial training of any function.

Procurement offers its team members the opportunity to work across the business internally, as well as externally. So let’s put our money (and our KPIs) where our mouth is! Develop a metric that measures procurement’s contribution to developing leadership talent. Once again, this is something to which senior leadership is very committed in the best organisations. 

So, to be provocative – here are six procurement KPIs that I would put forward as a CPO today:

  1. Cost savings – $ saved in financial year
  2. Productivity – $ released through working capital initiatives
  3. Innovation – Projected $ value delivered through procurement-negotiated supplier-led innovation.
  4. Risk management: Number of days supply chain disruption reported in media.
  5. Talent: Number of employees who have worked in procurement and are now on the enterprise leadership development program.

Procurement KPIs are a hot topic for everyone, and I’m sure you won’t agree with all my points. So…what are your thoughts?

2016 Rewind – Best of eLearning – Disrupting the Status Quo

We’re counting down to the new year by looking back at some great eLearning content from 2016. Here, we learn how technology can help procurement disrupt the status quo.

disrupting status quo

“If you’re not disrupting, them you’re being disrupted.”

This was one of the key learning points we heard regarding procurement technology this year. And when it comes to technology, you always need to ask the experts. That’s exactly what we did in a webinar in early November.

We invited representatives from Oracle and Enrich to Procurious HQ to talk about the way procurement can leverage technology in key areas.

Status Quo No More

The current pace of change around the world is unprecedented. Procurement and the wider organisation are quickly recognising that maintaining the status quo will not suffice in staying ahead of the pack.

This is only a small sample of the webinar, but you can download the rest here.

While many organisations talk the talk about technology, few actually walk the walk. And for many, the status quo is still how they go about their business. But as times change, organisations are recognising that they need to as well.

During the course of the webinar, we heard:

  • Why the challenge for business is to be able to adapt and apply new solutions for innovation and competitive advantage;
  • Why many organisations are still grappling with getting data into a structured and accurate form that they can use for predictive analytics;
  • That people tend to underestimate the complexity of stitching together the myriad vendor solutions as they aim for a more B2C-type interface; and
  • That change management is vital in technology implementation, or people will revert to old habits.

So make sure that your technology implementations in 2017 go smoothly by learning the lessons of the past. If you want next year to be the one where your procurement team leaps forward, you’ll need to ensure your technology is working for you, not against you.

You can read more about how technology can help boost procurement on the Procurious Blog. You can also catch up with other thought leadership from our community on the eLearning Hub. And there’s a whole lot more there to keep you interested too! Happy viewing!

2016 Rewind – Only 24 Hours in a Day – Manage Your Time Wisely

Our second rewind article for 2016 might be one you can put to use early in January. We all could manage our day better, and here are some top tips for you.

time day management

Time. The one thing we could all do with more of, but relentlessly slips past. Are you spending your day wisely?

Tick, tock, tick, tock. The seconds tick past, even while you’re reading this article on using your day efficiently. Have you allowed for some personal development in your day? Or are there more important things you need to be doing?

There are 24 hours in a day, but it never seems to be enough for busy people. To achieve what we want to in a day, we have to become better at managing our time. It is possible to find more time in a day, or even in an hour, if you put in place some simple strategies.

Here are 7 tips for getting more done in your working day.

  1. Work to your full potential

Do you notice how you accomplish more in a few days before you’re due to head off on annual leave than what you do in the weeks prior?

This is because you’re driven to complete the tasks in time. You’re fully engaged and focused on the tasks at hand. Putting the same energy into your work every day will achieve a major boost to your productivity.

To do this, forget time-wasting activities like checking your emails and social media accounts constantly throughout the day. Turn off your phone, where possible. Scheduling large chunks of the day to the major tasks you have to complete and eliminating distractions will enable you to fully concentrate on the job at hand.

You’re more likely to finish the work in far less time than it usually takes.

  1. Complete your most important task first

Sounds simple but we can easily fall into the trap of putting off the most crucial task of the entire day. As more emails, phone messages and issues crop up, it becomes even more difficult to tackle that important task.

Instead, make it your top priority. Put it first and complete it. That way, you’ll accomplish an important task each and every day. You’ll never have an unproductive day again.

  1. Plan your work day

Keep a diary or to-do list, either on paper or in digital form such as an app, which allows you to map out your work day.

Prioritise your tasks for the day and schedule the time it will take you to complete them. Schedule in a time slot to get on top of your emails and messages and stick to it. Disconnect from emails and phone calls at all other times.

This way, you won’t be letting emails and phone calls cut into the time you’ve allocated for the work that you want to complete. Keep your to-do list up-to-date – cross off your tasks as you complete them and add new tasks as they arise. You’ll be able to see progress in your productivity and remain organised.

  1. Delegate

Delegating tasks is not a sign of weakness. The reality is that one person cannot achieve everything. Consider where you can use your employees’ capabilities and skills to your advantage. Delegate more and you’ll be able to focus your attention on other important goals.

  1. Leave time for yourself

You’ll be far more effective in your work if you also schedule in time for yourself on a regular basis – whether it’s going out for coffee or lunch or ensuring that you get to an exercise class or another personal commitment.

Block out that personal time as if it were a business appointment. The productivity of your business depends on it.

  1. Have an accountability buddy

Someone you check in with who is able to ask the hard questions on whether you’re meeting your own targets can be hugely useful. This could be an executive coach or someone you work with, for example.

  1. Use a time tracking tool

It’s easy to lose track of time when you’re swamped with work. Consider using a time tracking tool, which can ensure you know exactly how long you spend on a task.

Check out Toggl, for example. But don’t fall victim to irony in this respect and spend too much time marking how long you’re spending on things. It’s a guide, not a military operation.

2016 Rewind – Best of eLearning – Incubate Your Big Ideas

As part of our 2016 rewind, we’re taking a look at the top eLearning modules added this year. Our first looks at how to incubate your big ideas for success.

So you’ve got a big idea for your organisation. But how are you going to get support to help make it a reality? And how are you going to grow it into a successful project?

That was the thinking behind one of our most popular podcasts from September’s Career Boot Camp. Gabe Perez, Vice President – Strategy and Market Development at Coupa Software, discussed how to incubate an idea on the job, and ultimately grow it for success.

Incubate, Grow, Succeed

How can you incubate your big idea on the job? Gabe’s top tip was to forget about the size of the idea and focus on execution. Without execution, an idea is worth nothing.

Gabe expands on all of this during his podcast.

In order to get the best from your idea, you need support from senior people. And in order to get this support, you need to understand, and then convey, the value this idea will bring to the organisation. After all, it’s not worth incubating an idea unless value can be derived from it.

Gabe also argues that the problem with big ideas is that they are often difficult to execute. But if you can focus on the outcome, then you can drive support, and get people on board. Ultimately, this can help build your, and procurement’s credibility, and make it easier in the future to execute other big ideas.

You can read more from Gabe on the Procurious Blog. Also, if you missed Career Boot Camp, you can catch up with all the podcasts on the eLearning Hub. And there’s a whole lot more there to keep you interested too! Happy viewing!