Tag Archives: CPO

5 Global CPOs Answer Your Top 5 Procurement Questions

How did the CPOs at Barclays, Vodafone, The Co-operative group, AstraZeneca and Rio Tinto fare when we put them to the test in a round of quick-fire questions?

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Career Boot Camp 2017 launches on 4th September, featuring podcasts  with 5 global CPOs. Sign up here (It’s FREE!)

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

There’s just one week to go until we launch Career Boot Camp 2017, sponsored by Michael Page Procurement and Supply Chain and we can’t wait for you to hear all five podcasts!

Featuring tips, insights and guidance from the best in the business, each of our five  CPOs will dedicate next week to coaching you on becoming the best procurement leader you can be!

Can’t wait that long? We thought we’d give you an exclusive sneak peak of what’s to come. 

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

Day One: Ramsay Chu CPO Rio Tinto

There’s no question that Rio Tinto’s Ramsay Chu is passionate about procurement. He’s watched the profession evolve from a function that simply “saves money” to one that can transform and have a “scale impact” on the business: touching every employee in the organisation.

In his Career Boot Camp podcast Ramsay discloses what new skills he’s looking for in his hires and explains why technical skills are often of lesser importance.

And, if you’ve ever felt like a failure in your procurement career, Ramsay has some important words of comfort. Find out why failure is at the core of entrepreneurial spirit and how you can turn it to your advantage by “failing forward.” As he puts it “No one is an Olympic caliber downhill skier from the outset!”

Day Two: Ninian Wilson Global Supply Chain Director & CEO Vodafone Procurement

Vodafone CPO, Ninian Wilson, is a man with a lot on his plate. He manages a colossal spend of €22bn and oversees 1100 employees. But that’s not stopped his determination to innovate with new companies, new products and new services.

In his Career Boot Camp podcast Ninian explains why he strives so hard to foster this culture of innovation at Vodafone.

And if you’re wondering what Ninian is searching for in his new hires, it’s the “data rockstars!”

Ninian Wilson’s podcast will be available on Procurious from 5th September.

Day Three: Dapo Ajayi CPO AstraZeneca

It’s not a bad thing to forever shoot for the stars when it comes to innovating with your suppliers. But don’t be underestimating those smaller successes and achievements!

Dapo Ajayi is keen to remind procurement pros that the smaller ideas and innovations carry a lot of weight; building trust, improving collaboration and creating opportunities for greater change further down the line.

She also discusses what business acumen means to her in the context of procurement, how to better align procurement with business stakeholders and offers guidance on how to become a CPO

Dapo Ajayi’s podcast will be available on Procurious from 6th September.

Day Four: Fabienne Lesbros CPO Co-operative Group

Rigid processes can inhibit procurement’s ability to advance efficiently but there are ways to prevent them from getting in your way. Fabienne Lesbros has some welcome advice on the subject as she advises that procurement pros present the cake, rather than describe the recipe!

She also describes her vision for the future of procurement, the importance of continuous development and why we must resist using procurement jargon!

And, if you’ve ever assumed that today’s CPO’s followed a clear and well-crafted career plan, think again! Fabienne explains how her ascent to the top went a little differently!

Fabiene Lesbros’ podcast will be available on Procurious from 7th September.

Day Five: Al Williams Managing Director & CPO, Barclays

What are today’s CPOs looking out for in the high performing procurement leaders of tomorrow? For Barclays CPO, Al Williams, it’s all about embracing change. But he isn’t just looking for procurement pros that are simply able to tolerate, or adapt to, big changes. If you’re in the driver’s seat, you’ve got to take the wheel and drive the agenda!

Al also discusses how procurement can generate value, how the function should be positioned within an organisation and how he encourages his hires to think about positive change.

And, if you’re in the market for some new shining stars, find out what you can do to make procurement a preferred and enticing destination for the next generation of professionals!

Al Williams’ podcast will be available on Procurious from 8th September.

Career Boot Camp 2017 launches on 4th September, featuring podcasts  with 5 global CPOs. Sign up here (It’s FREE!)

Upgrade: Be Tomorrow’s CPO, Today

Five days. Five influential CPOs. Are you ready to upgrade your career  at Career Boot Camp 2017?

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Sign up to Procurious to access Career Boot Camp from 4th September. 

Do you dream of becoming the CPO of a top organisation somewhere in the distant future?

Are you putting in the hours today to make sure you’re prepared for tomorrow?

Procurement leaders of the future will need to be agile, focused and equipped to deal with all of the changes coming our way with the developments in cognitive technology and Workplace 4.0.

That’s where Career Boot Camp comes in. Our podcast series will help you to transform your career and your future. But only if you’re ready and willing to upgrade!

Five days. Five CPOs. Five fifteen-minute procurement podcasts – tomorrow can’t wait!

What Is Career Boot Camp? 

The Procurious Career Boot Camp, sponsored by Michael Page Procurement and Supply Chain, is a global professional development event for procurement and supply chain professionals. This series, featuring five, fifteen-minute podcasts, will be hosted right here on Procurious and has been designed to help the most ambitious professionals amongst you to upgrade your skill-set.

It’s an opportunity to hear from the brightest and the best in the industry in a format that is FREE and easily accessible; on the go or in the workplace, providing answers to the most common procurement questions you’re desperate to have answered!

20,000 procurement pros took part in Career Boot Camp in 2016. This year will be bigger and better!

Who’s involved in this year’s Career Boot Camp?

Explaining how to crank it up one notch at a time, why you need to lock up your data scientists and the art of failing forward, our career coaches in 2017 include:

  • Ramsay Chu, CPO Rio Tinto
  • Ninian Wilson, Global Supply Chain Director & CEO Vodafone Procurement
  • Fabienne Lesbros, CPO The Co-operative Group
  • Dapo Ajayi, CPO AstraZeneca
  • Matthew Friend, Associate Director, Michael Page Procurement and Supply Chain
  • Al Williams, Managing Director and CPO Barclays

How does it work?

The series will run for one working week with a daily podcast released on Procurious from 4th September.  You can access each new podcast, featuring tips, insights and guidance from the best in the business, via our eLearning area.

Each of our five CPOs will dedicate their week to coaching you on becoming the best procurement leader you can be! Matthew Friend, Associate Director, Michael Page Procurement and Supply Chain, will be providing his top takeaways at the end of each podcast.

Each daily podcast will also be accompanied by a blog article from our speakers and there will be vibrant group debates aplenty via our dicussions board.

How do I access Career Boot Camp?

If you’re already a member of Procurious sit tight until the 4th September. The podcasts will be  published in our eLearning area throughout this week.

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

You needn’t worry about the event slipping your mind either. We’ll be sending all of our members an email reminder the week before.

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

When is it?

Starting on the 4th September, Career Boot Camp will run for five days. The podcasts will be accompanied by daily blogs from our speakers. When the series is complete, all five podcasts will still be available via the Procurious learning area, FREE of charge.

Is it really free?

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

Are the podcasts available to everyone?

Anyone and everyone is welcome to partake in Career Boot Camp and it’s totally, 100 per cent free to do so- simply sign up to Procurious.

Why should I do Career Boot Camp every day?

More and more procurement professionals are opting to develop their key skills and gain knowledge through eLearning and other online channels. In a fast-paced, technology driven world, innovation, agility and forward planning are essential if procurement professionals are to succeed and be future leaders.

Dedicating fifteen minutes a day to developing and progressing your procurement career can make the difference between standing still, or moving quickly into more impactful roles. Hearing from the best in the business will give you a valuable head start on what’s required of tomorrow’s CPO. At Procurious, we firmly believe that daily procurement learning is essential for career advancement. And 2017’s Career Boot Camp will help you get into the habit!

Sign up to Procurious to access Career Boot Camp from 4th September. 

If you’re already a member you’ll be able to access the podcasts in our learning area from the 4th September 2017. 

Evergreen Wisdom for a Changing Profession

When was the last time you reached out to a Procurement Guru? Although the battleground is changing, those among us with scars have a lot of relevant insights to share.

We knew we’d be in for a treat when we locked in an interview with ISM board member Ann Oka. Ann is the former senior VP of supply management (CPO) for Sodexo, Inc. in North America where she was responsible for a whopping US$5.5 billion spend.

While working, Ann believed in contributing beyond her formal role, and served on the board of trustees for the A.T. Kearney Center for Strategic Supply Leadership at ISM, the board of the Sodexo Stop Hunger Foundation, and was a member of the executive committee of the GS1 Foodservice Initiative.  She retired in June of 2014, and other than the ISM board, now occupies her time with family and leisure.

Of course, she has a wealth of knowledge to draw from thanks to decades of procurement experience but, interestingly, she’s objective about its value to the next generation of procurement professionals. “Some things don’t change over time; motivating and leading people, looking at evolving tech and enlarging the sources of value. But, whilst there might be a lot of insights those of us with scars can give, the battleground is changing.”

The battleground may well be changing but surely that means Ann’s insights, as a seasoned pro, are all the more significant? As such, we were fascinated to learn how she has seen the profession develop over time and what she believes the future holds.

The evolution of procurement

Ann explains how drastically procurement’s role has changed over the years, both in terms of job responsibilities and external perceptions of the profession. “Where people were once identified as buyers or negotiators, they became category managers as the implementation of strategic sourcing evolved. These developments redefined the role of the average procurement person – they became professionals; their strategic impact increased and they had a broader scope.”

It’s a tricky and lengthy transition to lead any team through. “There’s a big task in the up-skilling of your people, particularly when you want to bring as many of them along with you as you can.”

Of course, some things don’t change. “The major evolution of procurement that we’re currently experiencing is comparable, in many ways, to what happened twenty years ago” Ann begins. “It was in the mid-90s when I first realised the importance of systems, technology and data. There was a tremendous amount of data available to procurement and category management, but harnessing it and getting it into the hands of the supply professionals was the challenge.”

What does the future hold?

Ann believes that the most competent procurement professionals will take the onslaught of Artificial Intelligence entirely in their stride. As she puts it, in a message to “The Change Resistant”:

“The train has come to the station. You have the choice of getting on it – and we’ll help you with the ticket – or you can be run over.”

The bottom line, she says, is that “people may well have been successful in the past, but the world is changing and you need to change with it, or it will pass you by.”

As far as procurement roles being totally displaced by AI, Ann is sceptical at best. “I don’t think the advent of new technology really changes a procurement role. Those with an ability to look at the long-term picture will be able to incorporate that into their strategies. Look at how the future is evolving and the possibilities it presents and work out how you’re going to work with the firm and with your supply base to extract the maximum value.”

Permission To Fail, Please!

It’s apparent that Ann rates a good procurement leader as much as, if not more than, someone who’s AI-ready.  “The harder thing for many organisations is having a management team that allows employees room to stretch and fail, that lets them try new things without instilling a fear of repercussions. There is such a thing as a successful failure. People are loath to say a project they’ve run hasn’t worked  out, fearing they will be judged on its success or failure. But occasionally  encountering a failure is a part of the journey to improvement.”

Procurement leaders can effectively work as safety nets for their teams. They should allow enough flexibility but know when to pull the plug to avoid too much fallout.

“I was in my position at Sodexo for 11 years. It allowed us to do things like put in some industry-leading systems, change the way we worked with suppliers, and harvest a culture of continuous improvement. In this time the continuous improvement team came up with several far-fetched ideas and used the leadership  team as a sounding board. It’s useful to invite new ideas and to have an off-the-wall ways of looking at things.”

Of course, not everyone thinks in this way. The key is finding people who have strategic vision. “Leaders should be on the look out for hires who have an intellectual curiosity and the courage to tickle the edges of things that are scary.  Embracing functional diversity is important in achieving this – perhaps your next star will come from legal, or IT, or straight out of college?”

Once a CPO, always a CPO

She might be retired, but its clear to see Ann still lives and breathes procurement. “I have people from past roles who, surprisingly, come back and approach me for our old heart-to-hearts”. She holds­­ board positions and still mentors younger professionals.  Safe to say there’s a spot for her on our board any day!

We concluded the interview with a final piece of advice from Ann; “If you’re a CPO, think about how you best position your company for tomorrow. Keep an eye on emerging technologies and bring the conversation to the table.” In other words, don’t miss the train!­­

 

A CPO ’s “To-Do” List for the First 100 Days

100 days of being a CPO….What’s on your to-do list, where do you start and how do you develop your action plan to transform the procurement team? 

You’re hired!  After the jubilation of accepting a job wears off and you’re successfully on-boarded to your new company, you learn you have 100 days to develop a plan.  This plan that will begin a journey of procurement transformation that surpasses the expectations you shared during the new hire process.  The opportunity is ‘greenfield’: building out a procurement function where one didn’t previously exist or where the function never took hold for one reason or another.

You’ve been appointed CPO. You have 100 days to develop a plan.  What’s first? 

There are various approaches to transformation and the key is to find the right one for your project.  The approach I will share is based on my personal experiences building out the procurement function (source-to-settle) at a Fortune 50 company, at a hyper-growth entrepreneurial company, and (most recently) at an established, well-diversified healthcare company.

First course of business – assess the current state if you didn’t do so during the interview process.  Have a conversation with anyone willing to engage starting with your new team, executive leadership, and cross-functional stakeholders.  You need to understand your inherited brand firsthand – including the perspectives and opinions of your inherited procurement function.  These discussions are important on several fronts because they:

  • Baseline the present-day function and capture a snapshot of where you started your journey. This will be key as you look in the rearview mirror to see how far you’ve come;
  • Identify strengths, weaknesses, opportunities and threats across the categories of people, process, and technology;
  • Provide key insights on brand perceptions and the history behind them;
  • Help identify advocates, influencers, and distractors; and
  • Finally, provide insights to what ‘should’ be next and offer a semblance of preferred timing

I recommend partnering with a change management guru and a project manager to articulate the business requirements that will form your vision, set a definition of success, and develop a communication strategy and cadence.  Do not underestimate impact of change and the new behaviors that are required to effect better business outcomes.

At my current company, we took a slightly different approach to transformation based on our unique combination of vision, culture, and employee demographics.  Early on we reached out to Marketing to create a ‘drip campaign’ comprised of video vignettes, campus signage, and direct outreach. The whole effort centered on our mascot – Moolah, a big fury, purple creature that was accompanied by a tag line – ‘Spend It Like It’s Yours’ (loosely based on the acronym ‘SILIY’ – pronounced silly).

The objective was to have fun with the initiative, which is one of our values.  The result was celebrity status for Moolah and greater acceptance of the initiative.  Frankly, it was fun to see employees taking selfies of Moolah at all-hands-on-deck meetings.

Included below is a checklist based on my experiences to help develop your plan.  Again, model or pivot based on what you observe in front of you and the expectations of procurement.  There is no absolutely right answer.

Discovery

    1. The Initiative
      1. ‘Why’ is the initiative being undertaken and why now
      2. ‘Who’ – who is the advocate and what role to they play and their plans to stay active
      3. ‘What’ is the motivation, business reasons for the initiative
      4. ‘When’ – expected timing – launch for the initiative and drivers
      5. ‘Where’ what is the geographical, business reach for the initiative, i.e., domestic only, certain BUs only, etc.
      6. ‘WIFT/M’ – beneficiaries?
    2. Your company
      1. Culture
      2. Vision, Mission and Values
      3. Story – market, penetration, success, competitors, …
    3. Existing function and talent
      1. Who plays the role today within the business
      2. Partner with HR to run a title & role search across the company
      3. Ask the pre-existing talent to provide their CVs and interview them
    4. Needs of the organization from the perspective of the business
      1. Functions value
      2. Brand (good, indifferent and what needs to change)
      3. Successes and failures
    5. Identify partners and executive support to advocate for the initiative
    6. Subset – players
      1. Active vocal participants (supporters)
      2. Points of dissension (naysayers)
      3. Bandwagoneers – those on the sidelines waiting for results and uncommitted in the interim

Baseline

  1. Performance to date
  2. People
    1. Skills and gaps
    2. Investments to date
    3. HIPOs (High Potential Employees)
    4. Investments and jettisons
  3.  Process/Policy
    1. Does one exist?
    2. Are there accountabilities?
    3. Spend authority
    4. Document signing authority
  4.  Technology
    1. What do you have?
    2. To what extent is it implemented?
      1. Vanilla
      2. Customizations
      3. Partials
    3. What is next and why?
  5. Quantify behaviors
    1. Buying behaviors of customer
    2. Willingness for change
      1. BUs
      2. Function
      3. Other Shared Services Centers
      4. Legal
      5. Execs

Initiative governance structure

  1. Agree roles/oversight for initiative, for example:
    1. Steering Committee
    2. Advocates within the business
  2. Other key constituents
    1. HR
    2. Legal
    3. Information Security
    4. Finance
  3. Develop RACI

Change Management strategy, approach, methodology

  1. Campaign
    1. Partner with Marketing on drip campaign (pre-planned, gradually released communications)
      1. Tagline
      2. Mascot
      3. Video vignette
  2. Change management leader
    1. Messaging
    2. Signage
    3. Cadence
  3.  Access
    1. Execs
    2. BUs
    3. Leadership
    4. Management
    5. IC’s

Business case to effectuate a different outcome

  1. Executive summary – overview of the initiative
  2. Detailed description of the initiative
  3. Why – what is it in for them/me – market analysis
  4. Organizational design
  5. Funding requirements
  6. ROI/IRR
  7. Anticipated outcomes
  8. Necessary executive support
  • Gain support for initiative
  • Execute
  • Reflect
  • Celebrate your successes

Appreciate that procurement transformation is a journey with a starting point that is unlikely to ever end.  You iterate, detour, and adapt to meet the needs of the organization.  Investment is required in the three buckets of people, process, and technology – and most importantly, the leadership team – to stay relevant.

You will encounter setbacks, and your ability to recover will test the team.  How they (and you) respond will determine the overall success of the initiative.  Most importantly – have fun if you are fortunate enough to have that as a key value at your company.

Greg Tennyson is the CPO at VSP Global.  This article was originally published on The Art of Procurement. 

Is P2P Keeping Us Stuck In The Mud?

Still debating maverick spend in your organisation, griping about tail spend or struggling to implement the right systems? Perhaps P2P is holding you back!

This article was written by Eva Milko. 

Is it me or has not much changed in the world of Purchase-to-Pay (P2P)? Twenty-five years have come and gone and yet we continue to discuss maverick spend, we gripe about tail spend and struggle with the right systems and the right processes to enable the simplest of transactions a company has in its portfolio: buying stuff.

In the meantime, those who realised that their value sits in higher areas of supply chain opportunity are doing wonders to automate, digitiSe, codify and outsource P2P work to those who have become transactional experts. Entrusting a part of your procurement house to others is not an easy task, many failing in the process, but I argue that it is somewhat necessary when the world is getting more complex, challenges more broad and opportunities often surpass the risks.

The CPO seat belongs to the one who carefully coordinates all aspects of the source to pay process with a keen eye on what can be standardised, outsourced, digitised, robotised and automated, balancing that with strategic decision making on where to place their precious human resources.

P2P buying systems remain a mystery. They are the most disliked, worked-around and challenged factor by employees in almost any company.  Our research found that only 36 per cent of stakeholders find procurement systems favourable and comfortable enough to engage with.  Our internal stakeholders are screaming “make it easy for us” and yet we continue to throw them into the bowels of twenty process steps, multiple buying channels and layers of authorisations. That’s not to mention lost time and corporate energy.

Procurement Prime

Molson Coors Procurement Office recently hosted an Executive Roundtable on this very subject and we challenged ourselves to envision a world of guided buying where the stakeholder is not exposed to procurement rigmarole but interacts with an intuitive and interactive set of buying steps. We called it Procurement Prime, taking our inspiration from the most admired ordering system in the world; Amazon Prime.

Many procurement executives and their friends in finance will say to me “but wait, we need to mitigate and monitor supplier risk” …..True, and it  is possible with a set of algorithms and predictive tools embedded into your P2P ordering process, alerting the requisitioner at the time of purchase of the supplier’s health status, including fulfillment capabilities, shipping disruptions, banking and payment alerts, further yet, providing alternative solutions.

If you can imagine it, you can plan it. If you can plan it, you can get it done.   Paying attention to how your corporate buyers embrace the P2P steps (or not), diving into their buying methods, listening and empathising will go a long way. Interestingly enough, we found that Procurement functions aligned to the Chief Supply Chain officer have much greater alignment in their organisations than those who report to the CFO. Is is time to change alliances?  Not so fast! Here are a few enablers to make such transformations possible.

Changing your functional and corporate mindset

Let’s start by recognising that your procurement value does not reside in chasing requisitions around the office and beating internal stakeholders into procurement policy submission.  Successful companies are taking a much more customer-centric approach, focusing on relieving the organisation of procurement jargon and building sophisticated systemised methods, especially for more repetitive buying.  Think Guided Buying and think Procurement Prime! This is your future and #tomorrowstartsnow

Changing your skill set

This is pivotal to opening up these conversations and imagining the possibilities.  In procurement, we do not hire enough creative people who are empowered to challenge the status quo and bring forth cool solutions.  We need more inventors, technology savvy, stakeholder centric entrepreneurs who are bold, persuasive and get things done! Yes – these transformations take money, take energy and take skilled resources to get it done, but thinking long term possibilities versus short term barriers will unshackle the organisation from procurement processes horrors and free up resources to address much more interesting issues.

Changing your focus

In our recent study, we found that 84 per cent of procurement organisations remain firmly rooted in functional effectiveness and cross functional collaboration buckets. What goes with that are correlating trends of declining year on year cost savings, the most admired and used procurement metric on the planet.  Enhanced value, total shareholder return, enhanced recognition, awesome jobs and great pay will not come from these areas.

Getting rid of the important but non-essential procurement work and entrusting it to someone much more capable is part of the transformational focus that all CPOs need to consider embracing.  Successful partnerships are built on a shared long term vision, shared values and a solid long term plan.

In our research, we found that that introducing robust supplier collaboration, supplier enabled innovation and total value chain coordination is where procurement can truly make a difference for the organisation.  Some organisations have made the leap but many struggle to make ends meet.

My prediction for these organisations is bold:  transform or die – become de-prioritised, outsourced or automated. #tomorrowstartsnow

This article, by Eva Milko, was originally published on LinkedIn. Eva is Managing Director at Procurement Leaders. 

The Struggle is Real: Building Effective Procurement Teams

The struggle might be real but, according to VSP’s CPO, the solutions are many when it comes to building the most effective procurement teams! 

The conversation around talent shortages in the procurement space has been going on for five or ten years now. I’ve come to realize that the real problem is not the lack of ready-to-go procurement talent, it is hiring managers’ inability to see a future procurement pro in a law student, a finance professional, an engineer or yes even a sales person.

An investment is required to grow non-traditional sources of talent into procurement professionals, but the end result is often a better rounded team. A procurement team should be comprised of diverse talent by design in order to speak the language of the business.   A homogeneous team will have its own inherent challenges – one being that innovation is harder.

How you build your team depends on the market conditions you are in and the skills or talent profile you are hiring for. Depending on the availability of qualified candidates, you may allow someone to work virtually or look to other disciplines to bring a new resource in and then round them out. But to simply say ‘there’s a talent shortage’ and do nothing about it is a naysayer’s approach. Get creative.

Cross-Functional Procurement Talent

At my prior company, I had an engineer playing a procurement role. I had somebody in finance on the team. I had attorneys on the team. If you restrict yourself to an artificially small portion of the talent pool by insisting upon a fixed skill set you’re naturally going to have hiring challenges. Just keep an open mind.

My philosophy, regardless of the skill set in question, is to hire the best resource you can find, train them, and invest in them. If they stay, they will become successful procurement professionals and if they leave they will be well informed enough to serve as advocates for procurement.

But thinking differently is not just about where we source talent, it affects the skills we are focused on. Procurement will quickly loose relevance if we don’t proactively prioritize soft skills in our hiring practices. Look at the traditional competencies for a procurement professional: the ability to negotiate successful outcomes, the ability to read and redline a contract, the ability to build relationships. In my opinion, soft skills are now more important in procurement than some of the technical skills we have emphasized in the past.

Taking Risks to Incorporate High Performers

All good managers want to put people into roles that will challenge them in a healthy way. I’ve put people in roles that I knew would be hard for them, and I was authentic enough to say, ‘This is going to be a make it or break it situation for you. Grab the opportunity, and I’ll invest in you. If you are successful, wonderful, if not I’ll be your best reference.’ The reality of the situation is that you have to release people if they aren’t a good fit, even when it is a tough decision. But that is not a reason not to make an effort to bring non-traditional backgrounds and approaches into procurement.

In my experience, there is more than one kind of high performing professional. Some lack engagement and become a challenge, but that is not hard to handle. Complacency is a bigger problem. Having a pep talk with people that are no longer motivated is challenging. You have to educate people on what the opportunities are for them. By understanding what’s important to them (work life balance, career development, etc.) you can sort out what motivates them.

The same approach works for building relationships with internal stakeholders. Sit with the business, understand what their challenges are, look at the opportunity from their perspective. I think demonstrating that appreciation makes you more effective. Each of us needs to appreciate the culture we are in and operate within that culture: the culture of procurement, of the company, and of the industry as a whole.

Human behavior is interesting. If somebody has confidence in their ability to do something they’ll gravitate towards it. A lot of individuals are focused on transactions; they are tactical. You can’t just go in and anoint somebody and say, ‘Now you’re strategic.’ You must develop their capabilities and create the expectation that they are no longer in their former role. Otherwise, a week, a year, two years into the process they will gravitate back towards those transactional responsibilities. Being a leader in the procurement space requires us to adapt and be flexible.

What’s Next for Procurement?

I’ve watched procurement gradually shift away from a focus on tactical or technical capabilities to more strategic responsibilities and the development of soft skills. I’ve seen it, and I’ve lived it. The organizations that have not gotten on that bandwagon of their own accord are no longer relevant. That shift has occurred, and technology has been a key enabler in making that happen. When people talk about applying robotic process automation (RPA) or AI within the procurement space, the first steps have already been taken, and we’re trying to figure out how we can further leverage it. Perhaps, through sourcing tools and decentralized buying, procurement’s next incarnation will be as an overseer of technology and broad business outcomes.  Procurement’s role will be centered on value creation in a consultative, advisory role and less about compliance and transactions.

Greg Tennyson is the CPO at VSP Global.  This article was originally published on The Art of Procurement. 

Best of the Blog: You Appointed WHO As The New CPO?!

Increasingly, companies are appointing CPOs from outside of the supply management profession. What does this tell us about C-level expectations of procurement, and why are supply management professionals missing out?

Everyone loves a good throwback article, which is why we’re hopping in our time machine to bring you back some of the biggest and best Procurious blogs. If you missed any of the golden oldies, look no further!

This week, we’re revisiting an article which featured some exclusive insights from Deb Stanton, Executive Director of Research and Benchmarking at CAPS Research and former Global CPO of MasterCard. Deb highlights how company expectations for CPO’s are evolving and what this means  for the security of your future jobs!

This is the moment you’ve been waiting for. Years of hard work and a brilliant career in supply management has brought you to within a hair’s breadth of fulfilling your dream – to become the Chief Procurement Officer of your company. Starting at the most junior level, you’ve worked your way up the ladder to your present position as second-in-charge of the procurement function. Your boss announced his retirement last week, and you’re quietly confident your turn has come – after all, there’s absolutely nothing about the organisation’s supply chain that you don’t know.

You step into the meeting room where the out-going CPO and two other executives are seated around a table. Disconcertingly, they stop talking when you walk in and look at you guiltily. Getting straight to the point, they tell you they’re excited to announce the new Chief Procurement Officer is … Jennifer from Marketing.

Is Procurement Being Usurped?

Has this happened in your organisation? There’s every chance that when it comes time to choose a new CPO, the C-Suite will appoint someone from a non-supply background. This means that a colleague of yours in a completely different department may one day swoop in to steal the job that you’ve been working towards for years.

While CEO-level expectations of the CPO continue to blur and broaden, the skill-set required to meet those expectations can now potentially be found in any department. The fact that supply managers are still reporting difficulty in educating their businesses on the value procurement can bring to an organisation doesn’t help the situation. If a CEO (wrongly) believes that a supply manager has spent his or her career focused solely on cost, then they are likely to look elsewhere for candidates for the top job.

Deb Stanton, Executive Director of Research and Benchmarking organisation CAPS Research and former Global CPO of MasterCard, has observed the trend of CPO appointments from outside of the profession. CEOs are no longer as interested in appointing CPOs who possess the traditional skill set that is earnt over years working in supply chain. A savvy marketing professional, or a cost-conscious operations manager who understands how supply management works, makes a very attractive candidate for CPO.

So, what does this mean?

1. CEOs are looking for a different set of skills for the next CPO

The CPO of the future may have little idea how a tender is run, but they must:

  • Be business-savvy and understand the organisation as a whole
  • Know how procurement works from a customer’s perspective
  • Be completely aligned to overall business strategy (not just the supply management strategy)
  • Have a strong knowledge of the business’ finance function
  • Be focused on the core customer and external audiences
  • Embrace changing technology and external disruptive forces
  • Be an influencer and relationship management expert.

Deb referred to CAPS Research’s “Futures Study 2020”, which projects the skills required to manage a procurement function into the future.

2. The CPO doesn’t necessarily need supply management expertise

The complex and varied skill-set picked up through a career in supply management may no longer be enough to satisfy the requirements for the job of CPO. CEOs may even regard procurement’s traditional audience of stakeholders, end-users and suppliers to be too focused.

That being said, technical procurement skills do matter, and are still vital for any procurement team’s success. In the example above, the disappointed candidate who missed out on the top job can still play a vital role in educating and supporting the outsider CPO with their supply management knowledge.

What’s the solution? If you believe the CPO role rightfully belongs to you, rather than someone from a completely different department, then make sure you broaden (rather than narrow) your focus as you move upwards in your organisation. This means familiarising yourself on a macro level with the whole business, bringing the core customer into every decision you make, and being known as an influencer who can clearly articulate the value you, and your function, brings to the business.

As Deb points out, procurement professionals are in a unique position to overlook an entire business. They’ve got every chance of seeing where the opportunities are so let’s use it and not lose it!

Trailblazing CPO Commercialises Procurement

Broadspectrum CPO Crowned Asia-Pacific’s CPO of The Year

Flipping the old perception of Procurement as a back-room entity on its head, Broadspectrum CPO Kevin McCafferty has been recognised for introducing a value-based approach to procurement and dramatically transforming the function into a customer-oriented, bottom-line focused team.

McCafferty’s achievements in consistently achieving both financial and operational objectives were celebrated at last night’s CPO Forum Gala awards, hosted by leading procurement consultancy The Faculty.

Overseeing a procurement spend of $1.8 billion, Executive General Manager, Procurement Australia and New Zealand, Kevin McCafferty won the 2017 CPO of the Year award, after significantly increasing spend under management and delivering over $50 million EDITDA benefits, against an initial target of $30 million.

Broadspectrum CFO Vince Nicoletti, said: “Since joining two years ago, Kevin has made a significant difference to the procurement function within Broadspectrum. His strong transformational change leadership has seen the area move to a more strategic function within the business, which is now delivering bottom-line results and benefits.

“Most importantly, he has up-skilled and lifted capability across his team and enforced process discipline by implementing appropriate technology and system solutions.

“Kevin and team have also driven commercialisation of procurement and supply chain services into Broadspectrum’s contracts with clients.”

60 Seconds With Kevin McCafferty

Procurious managed to steal 60 seconds with CPO of the Year Winner, Kevin McCafferty, who discussed the number one skill for CPOs of the future.

CPO of Year Winner, Kevin McCafferty : “The key to our success is being recognised at the highest levels of the organisation as a team that creates shareholder value.

“What I discovered when I first started this role was that the approach to procurement was very inward-facing, while the rest of the organisation was focused primarily on the customer. This difference in our focus represented a lack of alignment, so my priority has been to change the thinking across the three teams under Procurement’s umbrella.”

The CPO of the Year award highlights the importance of the CPO role in organisations by recognising a remarkable commercial leader who is making a demonstrable difference to business results, having regard to the circumstances of different industries, budgets and the diversity of procurement team size and experience.

The Faculty’s Founding Chairman, Tania Seary, said: “This significant change projects undertaken by our new CPO of the Year, Kevin McCafferty, highlights how modern procurement teams are driving business innovation by putting the end-customer and shareholder value first.”

“By enabling procurement leaders to drive cultural change internally, Broadspectrum has achieved both bottom-line company benefits, as well as delivering true business and commercial partnering, in a remarkably short period of time.”

About The CPO of the Year Award

The CPO of the Year Award is a flagship initiative of The Faculty, created in 2012 to recognise and celebrate the achievements of procurement professionals across Asia Pacific.

For the past 5 years the Award has celebrated someone who has been assessed as an outstanding leader, a prominent contributor to their business and the broader profession, leading delivery of high ROI, and exceeding performance expectations. The Award is a measure of executive presence, commercial insight, people leadership abilities, innovation, professional advocacy, technical ability and integrity.

The 2017 Judging Panel comprised Ms Sharyn Scriven, Group Manager, Metering Dynamics; Michelle Loader, Chief Executive Officer, Chandler Macleod Group and Matt Perfect, Founder Impact Spender. The meeting was chaired by Tony Megally, General Manager, The Source.

For more information on CPO of the Year click here.

About The Faculty

The Faculty is Asia Pacific’s leading procurement advocates, highlighting the integral role procurement has to play in protecting margins, brand and growth for over thirteen years. Through consulting, professional development and creating knowledge networks for CPOs to share best practice learnings, The Faculty helps business to accelerate and optimise their procurement investment.

For more information on The Faculty click here.

Have You Got The Grit Required To Be A CPO?

When your supply chain is in daily danger of being rocked by disruptive events, it takes grit, determination and resilience to remain proactive. 

 

Procurious asked straight-talking Zimmer Biomet VP of Global Sourcing & Instruments, Howard Levy, for his thoughts on the top three attributes required by the CPO of the future. His answer? Resilience, results-orientation and flexibility.

Remain calm and set an example

“Being a CPO isn’t for everybody. Sometimes, people spend time in a sourcing leadership role and decide it simply isn’t worth the stress. Resilience can be the factor that separates the people who really want to be a leader from the rest.” Levy points to the increasing “churn” of CPOs in a number of major global companies as evidence of the pressures of the role.

How do CPOs cope when things go wrong? “Resilience is the key. There are always going to be challenges and supply chain issues coming up. CPOs need to be very confident in their ability to manage risks globally, and put in place proactive strategies that will reduce the overall risk, such as compliance and single source risk reduction initiatives.”

“Dealing with tsunami-type issues on a day-to-day basis requires a high-level ability to remain calm and at the same time urgently drive progress.  It is like running a marathon, but not knowing what is around the next corner.  So the leadership team must have the right expertise, customer service orientation and set the right tone by demonstrating results orientation, flexibility and resilience.”

Levy comments that the procurement team has an opportunity to set the example of remaining calm and moving forward, even when unpredictable events come up across your global supply chain. “It is challenging to stay proactive and productive. Ask yourself if you and your team have the right level of grit and the right systematic tools to do so.”

Be flexible

Levy notes that today, everyone expects things immediately. That’s true on an individual level where people expect instant responses to phone calls and emails, but always for large organisations that need supply chain agility to be successful. “Companies are requiring a level of flexibility and responsiveness that would have been unthinkable 10 years ago”, he says.

“Companies need someone who has flexibility in their mindset and can work strategically across their supply chain and business partners to discover what’s best for the business – not just what’s best for strategic sourcing. Flexibility is critical, given the dynamics of globalisation and the imperative to more effectively engage our suppliers in meeting the business units’ strategic needs.”

Deliver the bacon

“The days of symbolic figureheads who spend their time on the golf course are over”, says Levy. “We’ve all met some who is ‘all talk’, but talk will only take you so far. If you don’t deliver the bacon, ultimately they’ll find a new CPO who actually has the capability to deliver results.”

What’s the bacon? “Anything that enables the business to grow – adding value, generating innovation from suppliers or reducing costs. The CPO’s contribution will be a critical element of any business of the future.”

Howard Levy is a member of the ISM2017 Conference Leadership Committee, where he is responsible for the “Outside” learning track. He recommends delegates catch the following sessions:

Planning to attend ISM2017? Don’t miss out on Procurious Founder and CEO Tania Seary’s top tips on how to Network Your Way To The Top on Tuesday May 23rd, 3.45pm.

Image: True Grit (Paramount 2010)

 

Can Procurement See Past The End Of Its Nose?

Procurement must learn to think the unthinkable, predict the world weather forecast and look further than the end of it’s own nose when it comes to technology in order to remain relevant!

luckyraccoon/Shutterstock.com

The Procurious London Roundtable was sponsored by Basware

Procurement 4.0, Cognitive Procurement and Thinking the Unthinkable were among the hot topics canvassed at last week’s inaugural meeting of the Procurious London Roundtable.

Packed with leading-edge speakers, a ready supply of valuable expertise, peer-led market intelligence, and networking, CPOs were unanimous that a reimagined Procurement must be the business’ source of market intelligence on these issues – if it is to secure and maintain a “seat at the table”.

Speakers addressed everything from global politics to AI and making it ito the C-Suite. If you’re intrigued to hear what they had to say, look no further; we’ve managed to pack the finer points into one, handy article!

Learning To Talk Across The  Lily-Pads

Nik Gowing, BBC Broadcaster,  Visiting Professor at King’s College and Big Ideas Summit 2016 Speaker,  joined the roundtable to provide an update on Thinking The Unthinkable.  Unthinkables are critical events that are not being considered or prepared for by organisations or by our governments around the world.

From Brexit to the election of President Trump;  from Putin’s invasion of Crimea to upcoming European elections, unthinkables have been occurring frequently over the last few years and they’re not letting up! In fact, if anything, unthinkable events are happening more rapidly than ever before.

Nik firmly believes that, in a world of social-media, time-scales for unthinkables which were once 20 years could now be 20 months, 20 days or as little as 20 minutes!

Take the infamous United Airlines (UA) flight as an example. Last month,  a passenger was violently dragged off a plane, the incident was filmed and then instantly shared around the globe. In a matter of minutes, UA’s reputation was destroyed and has perhaps threatened  the way airlines will operate in the future.

Nic’s advice for preparing for the future? Instead of destroying mavericks within our organisations, we need to turn them into visionaries and harness a culture where they can thrive. Nic has likened the current situation to frogs on lily pads – everyone is sitting in the same pond but not talking to one another – we need to find a way to come together and talk.

Grab An Umbrella And Face The Future

Justin Crump, CEO Sibylline, shared Nic’s concerns for the future and expressed his desire for organisations to address the current void of awareness about, and study of, the corporate security intelligence environment.

An intelligence-led approach to managing risk and predicting disruptions to your business  is absolutely the  way to go. It allows you to work out when you might be forced to take risks and when it’s worth taking them!

But how do you go about doing this? It all starts with reading your morning paper with purpose! Justin suggests you ask yourself why you’re reading it  and how and why it’s relevant or interesting to you. Consider where your clients work and where your supply-chain  is based. If missiles started flying over a particular country, would it be critically damaging to your business?

It’s possible, and preferable, to turn reading the news into a data-collection process by collating information and highlighting the important areas to disseminate to people within your organisation.

If in doubt, implement the ADAM model:

ASSESS – Understand your business and your world and what these interactions mean to you

DECIDE – Derive actions to help mitigate risks and refine into an achievable plan

ACT – Implement planned actions

MONITOR  – Use ongoing world risk register outputs to understand what is changing in your world. This will help you predict the world weather forecast and figure out when you’ll be needing an umbrella!

Looking Further Than The End of Your Nose

Eric Wilson, head of Basware‘s Purchase-to-Pay business for the Americas and APAC, discussed the critical actions CPOs can take today in order to safeguard against technology obsolescence. When 90 per cent of technology is about to become irrelevant can procurement implement a watertight process that evolves with industry trends?

Eric asked our roundtable attendees to consider the following scenario:

A new CPO comes into an organisation and instantly sees that there is  a problem with procure-to-pay and maverick spend.  They know they can save a whole load of money for the business. They challenge their employees to develop a business case, which a cross functional team evaluates and a score-card of criteria is developed.  Whilst this might sound like a totally reasonable approach there is a one major problem. Eric explained that the challenge with this process is that it focuses five inches in front of the CPO’s face; they’ve seen a problem and they’ve fixed it.

Remember Siebel? Not so long ago it was the best CRM system you could possibly use and was responsible for shifting the entire workplace environment into customer relationship management. Anyone who hadn’t bought Siebel already was about to and huge investments were made.

But, almost overnight, it became completely obsolete thanks to arrival of the Cloud. Siebel went bust, many a CMO lost their job and money was wasted, all because no-body looked further ahead.

Eric explained that the next wave of procurement technology is not just about the traditional goals of visibility, control and savings.  Harnessing the value of the transactional data running through the system will be key.

Given the way tech is trending, particularly AI, within three years 90 per cent of procurement tech will be obsolete.  People will not raise requisitions – robots will! And procurement must prepare for that.

What’s Holding Up Cognitive?

Pascal d’Arc, former GM of Cognitive Scale, talked us through the journey to cognitive and what some of the practical applications are in today’s world. Is cognitive really all the fuss it’s hyped up to be?

Judging by some of the fascinating examples Pascal gave us, absolutely! One such example was a cognitive system that had been given the ability to experiment with building a drone. The resulting machine had a frame shape which was modelled on the pelvis of a flying squirrel, representing something very close to nature.

But why is the progress of advancing and using cognitive tech so slow, what’s holding us back in procurement? According to Pascal it comes down to a number of things:

  1. The technology so far has been very experimental. There has been a sense of frustration towards IBM but they are still experimenting
  2. Expectations are huge. We are often missing the low hanging fruit when it comes to deciding what to tackle
  3. Procurement isn’t a key investment area…yet! Fintech and healthcare are the current priorities

Aiming For The C-Suite

Damian Walsh, Partner at Heidrick & Struggles,  gave our CPOs some top tips on what it takes to get to the very top. How do you successfully move on to a bigger CPO role, step up to CEO or take on a non-executive role.

  • Whatever it is you want to do, tailor your approach accordingly
  • Be clear about what you want and position yourself for it
  • Be clear about what you have to offer – think in terms of business solutions. There is no such thing as a “transport”company any more
  • Get your CV in order and make sure it’s accurate- so many people don’t!
  • Manage the search firms – be selective and understanding and clear about what you’re looking for
  • Work on your personal brand- thought leadership, speaking engagements etc.
  • Work your business and personal networks

The Procurious London Roundtable was sponsored by Basware

If you’d like to secure your seat for our second London Roundtable on 11th October 2017, please register your interest with Olga via [email protected]