Tag Archives: Keynote

Why Procurement Needs to Open the Door to Supplier Diversity

Procurement is under pressure to engage more in supplier diversity. But help is at hand from organisations who can help make connections.

open door supplier diversity

In May 2015, the Australian Government set out Indigenous company contract targets for federal departments and agencies. Starting from 0.5 per cent, the targets were set to rise to 3 per cent by 2019-20.

The joint message from the Minister for Indigenous Affairs and Minister for Finance claims, “the policy will ensure that Indigenous businesses have the chance to compete and showcase the products they have to offer.”

Supply Nation is the Australian leader in Indigenous supplier diversity. The organisation exists to connect Indigenous-owned businesses with the procurement teams of government and corporate organisations.

Supply Nation has worked closely with government to collaborate and influence the evolution of procurement policy that is now represented by the Indigenous Procurement Policy.

We sat down with Supply Nation’s CEO, Laura Berry, to talk more about the importance of this benchmark, and how organisations across Australia can strive to meet it. 

Why is engaging with Indigenous-owned businesses and suppliers so important for organisations across Australia?

Supply Nation strives to increase opportunities for Indigenous-owned businesses to supply their goods and services to large organisations. Supplier diversity puts under-represented businesses on a level playing field with other qualified suppliers when it comes to competing for the supply of quality goods and services.

One of the major benefits of opening the door to additional markets and engaging in supplier diversity, is that it facilitates the growth of Indigenous businesses. This results in increased economic activity and employment, and channels greater social value back to Indigenous communities.

In addition, data clearly shows that supplier diversity drives significant and measurable long-term business benefits, aside from the goods and services, which can ultimately provide a unique experience to customers. The addition of Indigenous-owned businesses can bring increased competitiveness, innovation and savings to the supply chain.

What qualities and capabilities have you built that supported you in achieving better procurement outcomes?

Creating an environment where our members and suppliers can connect, develop relationships and identify future procurement opportunities is integral to the work of Supply Nation.

Supply Nation assists our government and corporate members with tools and strategies to embed supplier diversity within their supply chain through a tailored account management model.

We also provide support for business matching, opportunity briefings, supplier promotions, external training opportunities and networking events.

What are the biggest challenges Supply Nation faces in procurement at the moment?

As a not-for-profit organisation, the procurement challenges facing Supply Nation itself are not significant. However, for our Indigenous suppliers, the challenges are the same as those faced by small businesses across Australia.

These include the difficulty in breaking into established supply chains and conventional procurement processes, or in developing relationships with buyers.

With the Federal Government’s Indigenous Procurement Policy, there’s more pressure for government buyers to find and engage with Indigenous-owned businesses. We see a real challenge – and a real opportunity – in facilitating the connection between the businesses and procurement professionals.

What’s the first step for organisations looking to alter their processes to meet new supplier diversity requirements around Indigenous suppliers?

Step 1 would be to become a member of Supply Nation (if you’re not already)!

Take the opportunity to search for goods or services through our directory, Indigenous Business Direct. You can engage with a Supply Nation Relationship Manager who can help you navigate the process.

We can help with changing internal policies and procedures, connecting with businesses that meet your requirements, and setting up established and sustainable supplier diversity practices that are modelled on world best practice.

How can attendees benefit from attending GovProcure 2016 (where Laura is speaking)?

We have some amazing, successful and diverse Indigenous-owned businesses that are growing fast and delivering incredible products and services. I’d recommend everyone comes along to understand how they can engage not only to hit their targets, but also to get some insight into the benefits these businesses can bring to your supply chain.

Among other Australian procurement leaders, the event will also feature Ian Rudgley, CPO for the City of Sydney, a council that despite not being subject to the federal targets, has award-winning engagement and mentorship of Indigenous suppliers.

For more details on the agenda please download the brochure.

Roll Out the Red Carpet – David Cameron to Deliver ISM2017 Keynote

The Institute for Supply Management (ISM) announces its most impressive keynote to date as registrations for ISM2017 open.

david-cameron

Former UK Prime Minister David Cameron will deliver the opening keynote at ISM2017, it has been announced today.

Cameron will speak about the geopolitical impact of policy and current events on global business. Over 2,500 assembled procurement and supply chain professionals will witness a riveting and eye-opening first-hand account of Cameron’s own experience during his tenure as UK Prime Minister.

With Brexit arguably being the defining moment of his career, Cameron will share his unique understanding of what the result means for US businesses and supply chains the world over, including its effect on globalisation.

Sharing Leadership Lessons

Cameron’s appearance continues a strong tradition of impressive keynote speakers at ISM’s annual conference. He follows in the footsteps of former President and CEO of Ford Alan Mulally, author and introversion expert Susan Cain, former Secretary of Commerce and professor of public policy, Susan Schwab, and former US Secretary of Defence, Robert Gates, as keynote speakers.

Learning and Networking in the Heart of Disney World

ISM2017 will be held at the Disney Coronado Springs Resort in Orlando, Florida, in the heart of Disney World. This surely makes the one annual conference where attendees will be sure to bring their families along! The conference will feature:

3 Learning Tracks – designed to help attendees deep-dive into three large themes over the conference:

  • Economic (Boom or Bust)
  • Business (Top Line and Bottom Line)
  • Professional (Inside and Outside)

As per previous years, all sessions are tagged with ISM Mastery Model experience levels, ranging from Fundamental through to Mastery.  

11 Signature sessions, including:

  • Unleash the magic of transformational supplier Relationships
  • Accelerating your career path with “insides” from procurement leaders
  • How to lead a successful transformation
  • Be a hero in boom times, not just in bust times
  • Shift the focus to change the results: Procurement’s opportunities to grow the top line

73 other conference sessions on overcoming shared challenges, featuring procurement and supply chain experts from around the world. 

Pre-conference training seminars and certifications, including the CPSM Exam 1 now offered onsite at ISM2017.

Presentation of three major awards

  • The R. Gene Richter Scholarship Program, providing scholarships to six students gaining an education in supply management or procurement.
  • The J. Shipman Gold Medal Award, presented to individuals whose unselfish, sincere and persistent efforts have aided the advancement of the supply management field.
  • ISM and ThomasNet’s 30 Under 30 Rising Supply Chain Stars program, recognising young procurement and supply management professionals for their passion, creativity and contributions to supply chain.

Finally, and perhaps most importantly, ISM2017 offers unparalleled face-to-face networking opportunities with thousands of peers from the profession.

Whether you attend ISM2017 to hear from thought-leaders, hone your skills, witness David Cameron’s keynote, network with peers or simply to have your kids meet Mickey Mouse at Disney World, be sure to share your experiences with the online community here on Procurious.

Registrations are now open for ISM2017. Find out more by visiting http://ism2017.org/

Why Some Supplier Relationships Are More Equal Than Others

All suppliers are equal, it’s just that some supplier relationships are more equal than others. It’s just one of the challenges facing procurement.

some supplier relationships more equal

Procurement in the public sector can provide its own set of unique challenges. Learning from the experts is one of the best ways that professionals can aim to overcome them.

Marea Getsios is the Coordinator of Procurement at Kogarah City Council in New South Wales, Australia. Marea has worked with both Local and State Government departments in Australia over the past 20 years.

This has given her an in-depth understanding of the procurement process from a strategic leadership perspective, as well as what it takes to drive procurement success.

Ahead of her appearance at the 3rd annual GovProcure 2016 conference, Marea highlighted some of the key challenges she faces in her current role, and the ways she has overcome them. She also shared some tips on the practical side of procurement, including best practice in supplier relationships and risk management.

What qualities and capabilities have you built that supported you in achieving better procurement outcomes?

I’ve used my sales and marketing background to communicate, and engage, with stakeholders more effectively, in order to achieve better procurement outcomes. It’s been important to educate stakeholders on the differences between a procurement and a purchasing role.

By communicating the procurement cycle, and discussing the importance of good procurement practice, it’s been much easier to achieve better governance and practice amongst my colleagues.

The other area I focus on is the importance of planning your procurement program. It is important at the beginning of every project to sit down with key stakeholders and work out the key objectives and risks of the project.

It sounds like you are really harnessing your strengths and experience to minimise setbacks at your organisation!

What would you say the biggest challenges you and your organisation are facing in procurement at the moment? Do you feel that these challenges translate to local government at large and why?

At the moment the most challenging aspect of my role is amalgamating two very different frameworks into one. You have to methodically go through each process and work out which method is going to work best for the new entity going forward.

It’s a good opportunity to look at what has worked in the past for both organisations and decide what will be the most effective in the new framework going forward. Many Councils are presently going through this process, and its not any easy one.

In addition to trying to amalgamate the differing key procedures and policies, the most challenging factor is the culture, and trying to break down the silo mentalities of individuals who are adverse to change.

Interesting you mention the change adverse cultures that exist in business. We know that procurement operations within local government can have far-reaching, visible impacts on the community.

Can you tell us a bit more about the key procurement trends that might impact procurement and supplier relationships at the local level? How you can make the most of these challenges and opportunities?

Obviously we are embracing cloud-based networks to streamline ordering processes. We also have lots of new technological platforms that can automate certain procurement functions, including spend analysis, contract management, and saving trackers.

I don’t believe local government has embraced enough of these opportunities, but they are beginning to play in this space. There is opportunity now to start implementing some of these platforms and managing the workflow more effectively.

The other area I believe could also be embraced better is social media, especially where the engagement of both the community and suppliers is involved.

Procurement technology with built-in social collaboration tools can encourage innovation through improved collaboration with suppliers and other stakeholders. At the same time it can minimise risk, and enable effective decision making.

Moving outside your business to your external suppliers. Do you have any advice or key lessons learned from your supplier relationships and risk management strategies?

I believe if you are fair and transparent, and allow all suppliers and contractors the same opportunities, you will be successful in developing good supplier relationships and managing any potential risk to your organisation.

I try where possible to give suppliers the best insight to the business and our requirements in order to allow them to work out if the organisations requirements are a good fit for their business. This way they don’t waste their time or our time.

It’s important to be clear at the beginning of any relationship, and to set expectations at a realistic and achievable level. I have found that problems arise if suppliers feel they have entitlements, or are basing their livelihood on anticipated revenues.

As long as the communication is clear, it enables the supplier to work out whether they are able to service or supply your organisation accordingly. If they feel they are building their business fairly, then they will do whatever they can to grow their business and in turn provide a good service to your organisation.

It’s important not to treat suppliers and contractors with contempt, or as if they owe you. This can create issues and open up the organisation to unnecessary risk.

It’s been wonderful hearing from you, your insights are extremely useful and there are many thought starters here!

How can attendees benefit from your panel participation at the GovProcure 2016 conference?

The GovProcure conference is a good opportunity for procurement professionals to get access and exposure to a variety of principals and processes that operate across the three levels of government.

It’s interesting to see where there are alliances in the various government sectors and it’s a good opportunity to share ideas and network with other likeminded procurement professionals.

My contribution will have a strong Local government focus, but I also try and talk about how my sales and marketing background has helped me promote procurement in my sector. Much of my procurement practice focuses on the engagement of stakeholders, which I believe is the foundation for success in the procurement sector, and all other sectors for that matter!

Too find out more or to download a brochure, visit the event website.

Business Backwards – Putting the Customer at the Heart of Procurement

Everyone knows that the customer is always right. And it’s time for procurement to put them at the heart of their work.

customer at the heart

Procurious is at ProcureCon Europe this week. Stay up to date with what’s happening on Procurious.

They say every day is a school day. And today is no different for the 250 procurement and supply chain professionals in the room.

Far from focusing on the supplier relationships (though there is plenty of that too), one panel discussion got the assembled masses considering a relationship that doesn’t always get the focus in procurement.

The internal customer interactions have not traditionally treated procurement well. Blamed for late deliveries, for complicating processes, and for being a “roadblock”, the profession takes its fair share of flak.

However, a change of thinking, to put the customer at the heart of the relationship, could change all this.

Don’t Stray too Far from the Customer

Titled ‘5 Changes to Make to Your Procurement Teams to Transform to a Higher-Performing Organisation’, the discussion showcased some great ideas about how procurement could change its focus.

The panel, chaired by Richard Beaumont, former CPO at Prudential Digital Services, consisted of:

  • Antonia Wanner – Director Global Commodities Procurement at Nestlé
  • Axel Horst – Operational & Commercial Excellence Manager at Shell Global Solutions
  • Celia Sanchez San Juan – Director Group Procurement at Adidas

The overwhelming message from all three procurement leaders was that there needed to be a greater focus on the customer. According to Sanchez San Juan, the right business plan should put customers at the centre. If procurement is too far from its customers, then it’s too far from the core of the business.

Antonia Wanner gave an example of the focus that Nestlé gives to its customers in procurement. In the past, the organisation had used 10 types of topping for its chocolate ice cream (competitors used 2).

However, procurement established that its customers were more interested in having natural vanilla in the ice cream, than the chocolate toppings. By reducing the number of chocolate toppings, it allowed Nestlé to procure the natural vanilla, ultimately meeting an important customer requirement.

Business Backwards

Axel Horst then shared the strategy that Shell are using the help drive a customer focus – “Business Backwards”. The strategy takes the traditional top-down process model, and turns it on its head, starting with the customer requirements.

Once these are known, strategies can be defined as to how to deliver this, and then finally, leaders know what they need to do to make the strategy a reality. And it’s not just in process that Shell are demonstrating the drive for serving the customer.

Each Shell employee, including the procurement function, is required to work one full day each quarter on the retail site. According to Horst, this helps each employee understand the customer more, and, for procurement, what they need to consider when buying for the retail side of the business.

Advice from the Future

Beaumont finished the panel by asking the three leaders what advice they would give to their past selves. Though they focused on the key to current success, all three showed that customers were still at the forefront of their thinking.

Wanner highlighted the constant innovation required to stay ahead of the game, with the key being to “try, fail, and learn fast”. Horst built on this by saying that if you were going to fail, fail fast, so that innovation wouldn’t be held up.

Finally Sanchez San Juan said that she would tell herself to push harder for what she really believed in, which was key to driving great innovation across the business.

Will customer-centric procurement really take hold? Or will we be looking back in three years at an opportunity lost? Sadly, without a crystal ball, only time will tell.

ProcureCon Europe, now in its 17th year, is Europe’s most strategic procurement conference for CPOs and senior procurement executives. See the full range of topic and speakers at the event here.

The Big (and Alarming) Procurement Disconnect

Chris Sawchuk reveals an alarming disconnect between the most pressing issues for Procurement, and our ability to address them.

Big Disconnect

The number one priority for Procurement leaders this year? “Reducing Costs,” says Chris Sawchuk, Principal and Global Procurement Advisory Practice Director of The Hackett Group.

Before you stifle a yawn and declare this a no-brainer, it’s actually the first time since the depths of the Global Financial Crisis that Cost Reduction has been back at top of the heap in The Hackett Group’s annual Key Issues Survey.

“For some years now procurement’s top priorities have been about growing the top line, increasing influence and becoming a trusted advisor to the business,” explains Chris. He notes a clear shift in 2016. “It’s back to basics and the enterprise needs help to remain cost competitive in an ever volatile world.”

Speaking at SciQuest Next Level 2016, Chris doesn’t find it surprising to see Cost Reduction back at the top of the list. Particularly when more than half (55 per cent) of companies have a major enterprise cost reduction initiative planned this year.

However, Chris is quick to note the second highest priority for procurement leaders is driving top line growth. This is also consistent with the fact that nearly half of all enterprises have a major sales and marketing strategy optimisation initiative planned for the coming year.

Within The Hackett Group’s top priorities, the big mover is tapping supplier innovation. This has taken a significant leap up the list of ‘must-dos’ for procurement leaders this year.

“Increasing spend influence is always fairly close to the top, but more and more innovation is being looked on as an enabler for driving top line growth – as well as cost competitiveness,” says Sawchuk.

The Big Disconnect

So far its been a compelling whirlwind of data points, but it’s Chris’ next slide that has me concerned. This is where the disconnect lies.

It shows those priorities Procurement leaders think are most important to address, mapped against those which we also think will be most difficult to do.

These are the priorities that alarmingly fall into Chris’ ‘Red Zone’ – that dangerous, “Important, but rather tricky to do” box:

  • Tap supplier innovation
  • Improve agility
  • Increase spend influence
  • Elevate role of procurement as trusted advisor

Undoubtedly these are tough issues to address, not only for their complexity, but because they require Procurement to look well beyond it’s traditional value lens. They demand more than the ‘bread and butter’ cost-analysis and sourcing skills for which procurement is renowned.

So with a deep breath and a can-do attitude, Chris walks us through how Procurement leaders can get a handle on these important ‘Red Zone’ priorities.

Chris Sawchuk
Chris Sawchuk

Enough buzz words! What does it take to be a Trusted Advisor?

First up, Chris addresses what it actually means to be a ‘trusted advisor’. According to The Hackett Group’s annual survey, the top criteria determining what makes a trusted advisor are:

  • Consistently deliver on the basics (77 per cent)
  • Hire and retain high caliber staff (64 per cent)
  • Increase agility (61 per cent)

The main point to note here is there has to be consistency to this. “Procurement needs to do what it says it’s going to do,” says Chris. “Building trust takes time.”

When it comes to identifying high calibre staff, Chris doesn’t so much see a problem with the depth of the talent pool, but more with how we engage and retain top talent.

Chris also linked back to a concept discussed during Sigi Osagie’s earlier SciQuest keynote. Putting people at the centre of your strategy, really engaging them and helping create an environment where people thrive, is the real challenge.

Improve Agility  

Next up, agility. This has been a key thought leadership theme for Chris and The Hackett team over the past 12 months. “Procurement can’t be a hammer going about looking for a nail, we need to listen to our customers. What do they need? And if what they need is outside our portfolio, find out what we can build to help them.”

Again, drawing on Sigi’s presentation, Chris reminds us it’s all about ‘delighting the customer’.

Undoubtedly future leaders must be able to deal with ambiguity, provide differentiating intelligence to the business, make and implement decisions quickly and forecast and plan continuously to mitigate future risks.

“We need to think about how we weave agility into every aspect of what we deliver back to the business,” challenges Chris.

Hear more from Chris about Making Agility Core to all procurement activities.

Increase Spend Influence

Chris keeps this point brief. “As Procurement leaders, we cannot continue to fish in the same pond,” he explains. “We need to find new ways to source of value.”

A classic case of diminishing returns, if you will. To this he adds that we also need to improve the quality of our influence, not just the quantity.

Tap Supplier Innovation

As the biggest mover on the list of procurement priorities, Chris believes that the best way to encourage innovation is to make it part of the job and reward contributions.

Finding ways to support and encourage intrapreneurs – those people inside your business who can drive innovation and lead change – is how the most successful businesses of the future will steal a march on their competition.

Naturally Chris also advises that Procurement leaders need to be aware and up-to-date with innovations and trends occurring in the market place. “Get knowledgeable about big data, robotics, cognitive computing, mobility, cloud and social media, if you want to get ahead.”

Like anything that’s new, it’s going to require courageous leaders to address this gap between procurement priorities and preparedness. Chris suggests a good place to start, “Ask yourself, are these things we’re focused on? Should they be? And if not, why not?”

SciQuest Next Level takes place from August 21 – 24 2016. For more information on agility and the big procurement disconnect, visit www.sciquest.com or Tweet SciQuest via @SciQuest.

Lisa Malone, General Manager Procurious, is reporting live from SciQuest Next Level 2016 this week.

Uber: The Great, Untold Procurement Story

Addressing 800+ delegates at SciQuest Next Level 2016, Stephen Wiehe’s enthusiasm for design, disruption and innovation is infectious.

Overcrowded Uber

Stephen Wiehe, CEO at SciQuest, is clearly a man who likes to ‘make stuff’. A tinkerer, a designer, an ideas-man, maybe a little bit of a tech-head.

Opening Next Level 2016 with a take on ‘Procurement’s Future in the Era of Disruption’, Stephen starts with some alarming, if increasingly familiar, facts and stats:

  • We are experiencing the fastest technological change the world has seen
  • Interest rates are at their lowest since records began
  • Market volatility has doubled
  • We are seeing unprecedented, rising geo-political instability
  • 40 per cent of companies will be extinct in 10 years

It’s not long, however, before he pivots towards his passion for design, innovation and customer connectivity.

Stephen points to GE’s First Build R&D facility as an example of how businesses are going straight to the customer for their next great innovation.

A darling of the corporate crowdsourcing movement, First Build aims to invent new home appliances by creating a community of home enthusiasts, designers, engineers, and makers who share ideas, try them out, and build real products.

“Once upon a time, R&D facilities were hidden and process driven,” says Stephen, “Today, GE have flung open their doors to anyone who has a good idea. Customers with an idea can quite literally walk-in, use the machines and GE will help you build it.”

No Industry is Immune to Disruption

As a London local and 4.8 star rated Uber user, it still comes as a surprise when I meet someone who has never used this global phenomenon before. For me, Uber has transformed the way I move about the city, track payments, and even the amount of cash I need for a night out.

So when Stephen flicked up a slide of yellow taxi cabs, I must admit my first thought was, “Ok, here we go, Uber. Heard this before.”

But Stephen takes the analogy much further: “Uber is not a technology story, it’s a procurement story.

“The whole process of getting an Uber is really a procurement process. First you request an Uber – not dissimilar to filling out a requisition form. Next, there’s a sourcing event – Uber drivers, armed with your passenger rating, your location and destination, bid to win the job.

“Then, the passenger accepts the job, confirming they are happy with the driver’s rating and location. A contract is formed – we accept the job and the mode of payment is agreed. And finally the AP process occurs seamlessly and conveniently with your stored credit card details.”

Uber in a Traditional Procurement Lens?

Uber even provides a handy Spend Management Tool allowing the user to see their complete driving, payment and ‘performance’ history. Particularly handy for parents of teenagers, as Stephen points out!

The penny drops. I’ve not thought of Uber in this way before – a fully automated Source-to-Settle process.

But Stephen pushes us to go one step further. “Imagine if Uber had approached their business from a traditional procurement lens.  We’d have the lowest vehicles, more passengers per vehicle and cheaper drivers.”

True – Uber’s open network has flipped the transport industry on its head. Stephen explains that Uber looked at the cab industry from the customers’ perspective and wondered what total transparency, real time data, and an open and connected network could deliver.

And I for one am thankful they did.

disruption
Stephen Wiehe – CEO, SciQuest

The Disappearance of the Back-Office

Just like Uber, which has automated the entire administration process of booking and paying for cabs, Stephen predicts the concept of procurement administration will disappear in coming years.

The issue for most businesses is that they are trying to do the same things over and over, and (not surprisingly) seeing only incremental value delivery.

Stephen told delegates that businesses will only see a step change when they start to simultaneously use procurement automation, collaboration and insights to drive decision making.

When it comes to procurement, our customers want a simple, straight forward way to connect with suppliers, get what they need, and make a payment. Fairly or not, Procurement is all too often accused of being slow, cumbersome and hard to deal with. Not the ideal adjectives for a ‘Business Partner’.

Maybe Stephen is right. Maybe the key to unlocking innovation and value will come from the customer. Just like Uber and GE, is it time to put sourcing in the hands of the customers and people who need the products? It’s certainly time to think differently.

SciQuest Next Level takes place from August 21 – 24 2016. For more information on procurement and disruption please visit www.sciquest.com or Tweet SciQuest via @SciQuest.

Lisa Malone, General Manager Procurious, is reporting live from SciQuest Next Level 2016 this week.

How Procurement Will Get Its Mojo Back At Next Level

Today’s procurement space is rapidly changing, yet something is amiss. Join us as Next Level keynote speaker Sigi Osagie describes how Procurement will get its mojo back.

Sigi Osagie

Procurement is rapidly evolving from what was once a manual laden process, to one where technology is enabling practitioners to deliver enhanced value contribution to overall business success.

Becoming a value creation function involves change. So how does Procurement manage change successfully and gain a better reputation across the wider enterprise?

To answer this question, SciQuest selected leading procurement effectiveness expert and writer, Sigi Osagie, for one of the keynote sessions at Next Level 2016.

Sigi knows a thing or two about procurement success. He wrote ‘Procurement Mojo – Strengthening the Function and Raising Its Profile, where he shows how to get a Procurement function firing on all cylinders.

Roberta Patterson checked in with Sigi to get a preview of what he will be talking about during his presentation.

I love the name of your book, Procurement Mojo. Has Procurement lost its mojo?

From the perspective of Procurement’s positioning in the enterprise way back when a move into the “Purchasing Department” was, in effect, a relegation to the backwoods of organisational existence, you’d have to say Procurement has come a long way.

Today, some Procurement functions are doing a fantastic job supporting the profitability and strategic goals of their organisations.

But if I aggregate my experience with clients, discussions with Procurement people in different regions and insights from trade articles, online forums, blogs, etc., it’s clear that many Procurement functions are still struggling.

Quite often the difficulties that hinder their success are “soft” issues – organisational challenges like senior executives who just don’t “get it,” territorial stakeholders, or ineffectiveness within the Procurement function itself.

Such Procurement functions lack a credible “Procurement brand.” Unless they change their approach, their Procurement mojo will remain a mirage.

During your Next Level session, you are going to speak about change management. That seems like a tall order. Do you have any tips on how a Procurement department should start?

The most fundamental requirement is effectiveness; which is more important than efficiency. You can be very efficient at the wrong things. A bit like the guy who’s very fast at climbing up a ladder, only to get to the top and discover that the ladder is leaning against the wrong wall.

Focusing on Procurement effectiveness forces us to think about what the department wants to achieve and the requisite actions to attain those end-goals.

Getting from where you are today to where you want to be is where change management comes in. Many of us in Procurement are versed in the technical aspects of the job but often lack change management know-how.

Our ability to navigate our way through change, against a backdrop of the organisational dynamics I mentioned earlier, is crucial for Procurement’s success and reputation in the wider enterprise.

So Procurement functions must centre their efforts on effectiveness and leverage robust change management. It’s impossible to do this without sound leadership. A fish rots from the head down; so having an effective Procurement leader is key – leadership is the glue that binds everything else together.

How do you build a Procurement brand?

In Procurement Mojo I use real-life examples to explain the four foundational actions Procurement functions must take. The first is building an effective organisation. It’s paramount, because people are the fundamental creators or destroyers of performance success.

The other key actions are deploying enablers (processes, systems and tools) that are fit for purpose, managing the supply base robustly, and applying an appropriate performance management framework. Everything we get right in these four areas helps nurture our Procurement brand.

Additionally, it is imperative to foster positive perceptions of Procurement in stakeholders’ consciousness, through effective communications, good (internal) customer relationship management, and smart PR.

Combining the four foundational actions with these stakeholder management approaches is how we build and sustain a great Procurement brand.

What are your suggestions for making the case for technology investment and getting executive buy-in?

Sigi MojoA solid business case is vital, but it’s not just about data and facts. It’s really about selling, and being organisationally savvy. You’ve got to read the organisational landscape and identify the right “hooks” that will resonate with executives.

Getting executive buy-in is part of good change management, thus getting your Procurement mojo back! I’m looking forward to sharing more about this at Next Level 2016.

Sigi Osagie is a featured speaker appearing on Monday, August 22 at Next Level. Follow him on Twitter!