Tag Archives: procurement innovation

Big Ideas Summit 2017: Be Bold But Nice

The role of procurement is changing and evolving. Professionals have more influence than ever before and Deb Stanton wants them to use their position to be bold but nice!

At the Big Ideas Summit 2017, we once again challenged our thought leaders to share their Big Ideas for the future of procurement.

Our attendees spoke about everything from creativity to politics, from cognitive technology to workplace agility, current affairs, economics and the future. Whatever your industry and wherever you are in the world, there are some top tips to takeaway!

Procurement has elevated within organisations

Deb Stanton, Executive Managing Director at CAPS Research, believes that the procurement function has really elevated within our organisatons.  Data collected by CAPS research shows that 82 per cent of CPOs now report directly to their CEO or one level down.

Under these new circumstances, professionals will have to work differently with their business partners and in their procurement teams.

This is why, Deb believes,  being Bold But Nice, is a valuable mantra. Procurement needs to ask the challenging questions, go in search of new solutions and embrace ideas. Of course, professionals  need their organisation to to work with them, which is why it’s important to be amenable whilst driving new value to our companies. .

Want to find out more about Big Ideas 2017? Join the group on Procurious.

You’ll find all of the Big Ideas Summit 2017 videos in the learning section on Procurious. If you enjoyed this Big Idea  join Procurious for free today ( if you haven’t done so already).  Get connected with over 20,000 like-minded procurement professionals from across the world. 

How To Inspire Creativity With The Three Fs!

To achieve creative cultures  within our organisations and inspire creativity in individuals, we need to Fund, Foster and Fill!

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

James Bannerman, a creative change agent and author of Non-Fiction best-seller Genius! firmly believes that everyone has the capacity to be creative and innovative. He’ll be speaking at the Big Ideas Summit 2017 in London on 23rd February but we’ve picked his brains ahead of the event to find out his top tips for inspiring creativity and his plans for the future..

What is a creative change agent?

A creative change agent is essentially a ‘lateral thinking’ specialist. It’s someone who combines creativity with psychology to help businesses innovate and perform more effectively in a rapidly-changing world.

What’s one thing you know now, that you wish you’d known at the start of your career?

When I was younger I was a laid-back song-writer and did not fully appreciate how important it is, in business and life, to ‘make your own sunshine’. Over the years, however, and especially  when I wrote my books Genius! and Business Genius! I came to realise that books don’t write themselves; they ended up taking me far longer to write than I ever imagined, and involved far more hard work than I ever envisaged. However, fortunately the hard work paid-off – because they ended-up becoming best-sellers in the UK and then being translated into multiple languages from Chinese to Japanese, and Italian to Thai – and that taught me that ideas alone are not what makes the difference; it’s turning those ideas into reality that makes the difference.

What are your three top tips for inspiring creativity in organisations?

My three top tips for inspiring creativity in organisations would be what I call The 3 Fs: Fund, Foster, Fill.

Fund (i.e. invest in) ‘Creative Thinking’ training

Upskill people by teaching them ‘how’ to be more creative. Evidence suggests, for example, that virtually all of us were incredibly creative up until the age of about 5, but then this natural creativity was ‘schooled’ out of us by the double whammy of criticism and conformity. Effective ‘Creativity Thinking’ training can help to redress this situation by inspiring people to re-become creative.

Foster an atmosphere of Psychological Safety

Einstein once said that ‘a person who never made a mistake never tried anything new.’ With this in mind, if an organisation genuinely wants to inspire creativity, it needs to provide employees with enough ‘wriggle room’ to make the occasional ‘excusable’ mistake – rather than ‘inexcusable’ mistake (which is a very different matter).

Fill the well 

I’ve long believed that in order to inspire others we need to feel inspired ourselves. Psychologists refer to this as ‘mood contagion’. So, if an organisation wants to inspire creativity, it needs to keep ‘Filling the Well’ (as the author Sheila Davis describes it) by encouraging people to branch out and watch new films, read interesting books, travel to different places etc… After all, bang in the middle of the word ‘Innovation’ we find the word ‘Nova’ – which meant ‘new’ in Roman times – so a constant inpouring of fresh stimulus is likely to inspire a culture that goes beyond ‘what is’ to explore ‘what could be’.  

You’ve composed hit pop songs, written best-selling books and work as an innovation consultant. What’s next?

I’m currently working on a wide range of projects – linked to ‘Lateral Thinking’ in business and academia. However, longer-term, I’d love to take my Business Genius and ‘Lateral Thinking’ work to whole new level, and develop Lateral Thinking TV, movies, and animations etc…

How do latest technology developments influence the way you consult with organisations and drive innovation?

To be honest, although technology developments have influenced the way I consult with organisations and drive innovation – eg. by making it far easier for me to communicate with clients around the world without always having to ‘be there’ in person – technology itself does not influence me as much as it helps other innovation consultants I know.  I tend to focus more on ‘innovativeness’ than ‘innovation.’ In other words, I focus more on the people-side of innovation – the psychology side.

It’s easy to think that our modern age is infinitely more ‘innovative’ than any other with its amazing advances in technology. Without a doubt the ‘pace’ of change does keep getting faster and faster, which academics label ‘accelerated evolution.’ However, just look at the Edwardian Age. Within ten years along came the Car, the Plane, the Radio and the TV. Each one of them radically transformed the world we live in, far more than the latest XI78 or X189, that will soon end up somewhere in a design museum like the DVD or the first Blackberry.

I work with the ESA,  European Space Agency, who are putting 3-D printers on Space Stations. In fact, there are even 3-D printers now that can make 3-D printers ! We must not lose sight, however, of how technology is driven by ‘people’, and inspired by ‘people’.  The human factors that make innovation happen can also ‘stop’ innovation from happening if they are not addressed and resolved.

Do you ever get tired of thinking up ideas?

Yes and no. I personally get a buzz from ‘divergent thinking’ – i.e. thinking outwards towards multiple possibilities – more than ‘convergent thinking’ – i.e. analysing and dissecting data.

However, when I’m working with groups on Idea Generation, I fully appreciate that ‘thinking up ideas’ can be deceptively tiring for some people. Especially those who have a strong preference for sequence and structure.

Tony Buzan,  the inventor of mind-maps, is a great inspiration of mine. I spoke with him a few years ago and  was struck by how well he manages to fuse the two. Mind-maps, for example, can energise people by stimulating ‘radiant thinking’. They also make it easier for them to think up new ideas, yet at the same its ‘systematic’ approach can also give people a flexible structure to prevent them feeling overwhelmed and swamped by imaginative solutions.

It’s important to remember that everybody has an imagination. We continually ‘think up ideas’ whether we see ourselves as creative or not. In fact, one of the biggest buzzes I get in business is helping people to realise that they are a lot more creative than they give themselves credit for…

Join the conversation and register as a digital delegate for Big Ideas 2017 in London. 

Procurement Leaders: Don’t Be A Creativity Killer

Everyone is born with a lot of creative potential. So what’s been holding us back all this time from releasing our inner creative genius?

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

Last week, we introduced James Bannerman as one of our Big Ideas speakers.  A creative change agent and author of Non-Fiction best-seller Genius: Deceptively Simple Ways to Become Instantly Smarter, James  firmly believes that everyone has the capacity to be creative and innovative.

To start unlocking creative genius within our procurement teams it’s important to first understand the reasons that creativity is often so lacking. What happens between childhood and adulthood that means the average person is so deterred from expressing their creative genius in the workplace? James has a good idea about what’s holding us all back and it often comes down to three things…

Labels

It’s all too easy to get categorized by managers, colleagues and even our own self-doubt. Perhaps someone has identified you as having a particular type of creative talent but written you off in other aspects. Maybe you’ve been discounted as a creative genius altogether! Everyone has different strengths, weaknesses and areas to which they are more suited but in pigeon holing people, we are also limiting them. James believes that by labeling ourselves we are stifling our imaginations and he points out that often the best ideas come when we least expect them and from the people we least expect them from!

Organisational Structures

We’ve all had that one boss who greets every new idea with a perplexed look, a raised eyebrow or complete disinterest. Sometimes, it’s the age-old story of senior management wanting to keep things simple, avoid too much risk and a reluctance to alter the status quo.

Even within organisations who are sincere about wanting to innovate, it’s easy to discourage employees without even realising it, leaving a team of budding intrapreneurs fearful of getting it wrong or what their colleagues might say and too embarrassed to express their best and wackiest ideas. Organisations must create an environment of psychological safety that allows employees to feel comfortable to be creative even in the highly regulated environment of a workplace.

Time

Bannerman is keen to affirm that miraculous and fully-formed ideas won’t simply land at your feet. Instead, he recommends a technique called deliberate creativity:

“ If people had all the time in the world they could patiently wait for genius ideas to fall from the sky. In the real world of business, however, most people are time-poor and don’t have that luxury. That is why Edward de Bono – the author of Lateral Thinking – championed ‘deliberate creativity’.

De Bono showed us how we can use provocative mindtools to jolt the patterns of the mind, as and when required. Look at the highly-innovative organisation Pixar, for example, who appear to make great use of the Oppositions tool. If the rules of superheroes are that they have to be ‘young, fit and athletic’, for example, what do they do? They create ‘The Incredibles’.

Or if the rules are that ‘children are afraid of monsters’, what do they do ? They create ‘Monsters Inc’ where it is the monsters who are afraid of the children. Or if the last thing a chef wants in their kitchen is a rat, what do they do ? They make the rat the chef and create ‘Ratatouille’.

So if you’re looking for innovative solutions for your Procurement team or your organisational Supply Chain Management, ask yourself what might happen if you creatively questioned the habitual ‘rules’ ? The rules of cereal, for example, used to be that they were always eaten in a bowl with milk and a spoon. Questioning these rules, however, helped to inspire the invention of the ‘cereal bar’. Similarly, as Kelley of IDEO points out, for years high-jumpers used to jump forwards, but then – at the 1968 Mexico Olympics – Fosbury wondered what might happen if he deliberately jolted this pattern and jumped backwards, and now the ‘Fosbury Flop’ has become adopted around the globe.”

Join the conversation and register as a digital delegate for Big Ideas 2017 now!

Big Ideas Summit 2016: Big Idea #27 – Mastering Digital Information

The wealth of digital information available to procurement is a game changer. But only if it can make sense of it in the first place.

At the Big Ideas Summit 2016, we challenged our thought leaders to share their Big Ideas for the future of procurement.

From ideas that have the potential to change the very nature of the procurement profession, to ones that got the assembled minds thinking about the profession’s impact outside of the organisation, the response we received was amazing.

Digital Innovation & Agility

There are three major themes confronting procurement leaders and organisations – digitalisation, innovation and agility. The management of this wealth of digital information will be key in securing procurement’s future.

Giles Breault, Principal and co-Founder at The Beyond Group, discusses why procurement needs to both be more agile in this modern environment. The profession will also need make sense of big data in order to understand how it will change the management of supply chain.

Catch up with all the delegates’ Big Ideas from the 2016 Summit at the Procurious Learning Hub.

Want to find out more about Big Ideas 2016? And maybe what we have planned for 2017? You can visit our dedicated website!

If you like this (and you haven’t done so already) join Procurious for free today. Get connected with over 18,500 like-minded procurement professionals from across the world.

Procurement Isn’t Done Innovating

Changing the close-minded nature of a stakeholder to the value of procurement is a big challenge. But procurement isn’t beaten yet.

stakeholder management

Have you just started following this series of posts? Don’t miss the first two! I’ve been sharing my perspective on procurement productivity and efficiency from over four decades worth of experience in the field. Catch up here on Part 1 and Part 2.

If you’ve ever met me, you’ll know it is in my nature to look forward. I’m always trying to figure out what is likely to come next for a profession that has already seen so much change.

Although most of the time we consider savings as the primary procurement performance metric, our core focus should actually be on spend and what it can accomplish.

In my first post, I suggested that the total number of annual procurement hours is a fixed resource that must be maximised if we are going to approach our full potential. The same is true of spend.

A company’s total annual (or budgeted) spend is fixed. Simply shrinking it is a limited view of procurement’s impact, and one that has gotten us in trouble in the past for being overly cost-conscious.

Expanding View of Spend Management

In order to really influence spend under management, we need to back up or expand our view of the spend management process. Starting with eSourcing and moving forward is too late. By then, a significant opportunity to impact the category has already been passed.

The supplier discovery process – as reimagined by the team at tealbook, for instance – contains all of the value potential uncovered in downstream processes. While it might seem like more work to broaden the pool of prospective suppliers, it’s actually procurement’s best change to affect results by more than a shade or two at a time.

All measurements (savings, spend under management, etc.) need to drive meaningful improvements in results. They can’t just capture activity, and no measurement exists for its own sake. Because of the seemingly contradictory nature of the metrics in play, procurement is sometimes in the position of having to reconcile long term strategic value creation with short term business requirements.

In the face of this challenge, we have to make working the ‘right way’ so easy and intuitive that people don’t have an incentive to fall back on their old habits.

Importance of the Right Price

Procurement has successfully overcome a savings-driven mindset. It is time for us to help our internal stakeholders overcome a status-quo mindset. I have been in situations when an internal stakeholder tells me something along the lines of, “This is an area where we aren’t really concerned about what we pay.”

And while we need to be careful not to alienate someone by beating the ‘savings drums,’ this is a prime opportunity to educate, and to explain why it is important to get the right price regardless of what is being bought.

Each dollar spent has the potential to create varying levels of value. Not being worried about what you spend in a particular category or on a specific product is one thing. But what if you could accomplish more with that same dollar? Maybe there is a more innovative supplier or a next generation product available?

If a company’s doesn’t open their mind to what is possible, and investigate qualified alternatives, they condemn their potential to the bounds of the past.

tealbook allows companies to pursue inquiries like these without holding up the project timeline. In fact, an internal stakeholder can search the suppliers themselves if they like. They may even uncover new potential sources of supply that match their definition of desired value.

Shifting the Stakeholder Mindset

This mindset-shift is a challenge that the procurement community as a whole can stand up and address together.

Procurement pros are notoriously conservative in their sharing habits. While this makes a lot of sense in specific cases, any opportunity to contribute to, or benefit from, aggregate industry intelligence may be just the cure we need to closed-minded stakeholders and the frustration they create.

I have been around a lot of different procurement and purchasing groups, and they get all worn down. I’ve seen unbridled energy and excitement degrade to the point of becoming a lack of professional engagement.

When we don’t set up the true mission of procurement right – maximising the value of every dollar spent – it’s not a fun place to work. But hope is not lost. Procurement is not done innovating.

Catering to business clients is a big role for procurement. We need to draw those clients into the process and make it easy for them to understand the real meaning behind differentials in cost. Not just in terms of savings, but also in terms of what the spend can accomplish for the company. Ultimately, this will carry procurement forward to the next phase of our development.

And that is something I can hardly wait to see play out.

Gregg Brandyberry is a recognised pioneer in procurement and sourcing technology. He has over 40 years experience in industries such as automotive, textile, manufactured goods, electronics and healthcare.

He is the former Vice President of Procurement – Global Systems and Operations for GlaxoSmithKline, and a Senior Advisor for A.T. Kearney’s Procurement and Analytic Solutions organisation.

Procurement Turns to Supplier Relationships for Innovation

As procurement seeks to increased its involvement in innovation, it’s turning to its supplier relationships to drive change.

Supplier Relationships

This article was written by Daniel Ball, Director at Wax Digital.

Wax Digital’s Procurement Innovation Pathway research is based on 100 interviews with the UK’s senior procurement professionals, to canvass their opinions of the key topics in the profession.

Previously, we highlighted that procurement wants to be more involved in innovation. However it is the risk averse nature of procurement that appears to be holding it back.

In this article, we assess the importance of good supplier relationships.

Mutually Beneficial Relationships

Achieving effective, mutually beneficial relationships with suppliers can be a great way for procurement to drive positive change. That’s just one reason, according to new research, why procurement professionals are prioritising suppliers in their quest to innovate.

In fact, Wax Digital’s research showed that procurement’s top two innovation areas relate to working with suppliers.

In first place, 57 per cent cited supplier relationship management as an area that can aid innovation. Sourcing suppliers for product innovation came in second, with 49 per cent. Reducing supply-chain risks also scored highly.

Turning to Supplier Relationships

Compared to lower scoring areas, like automating processes to save time/resource, and improving spend management by empowering people, the supplier is clearly where procurement is turning its attention to innovate.

New ways of engaging with suppliers, through self-service portals for instance, and ensuring supplier compliance through automated contract management, are key priorities.

But it’s equally about what suppliers can do for procurement. There’s a desire to find partners who can be a catalyst for innovation at the core of the organisation’s products and delivery.

Technological Investment

These priorities remain the focus into 2017 too. This means the future could see an even more supplier-focused innovation mind-set in the procurement function.

Adding weight to this, the two most commonly used procurement technologies are also heavily supplier-focused. 51 per cent of organisations favour supplier information management, while 49 er cent are looking to contract management systems.

And the most common technology investment planned for the coming 12 months is supplier relationship management (SRM) tools. Procurement is clearly doing more than talking the talk on supplier innovation.

Challenge of Involvement

The future looks promising in this regard but there are challenges ahead. Procurement sees the value of supplier focused innovation but it is not always in control of it.

84 per cent of respondents said they were currently involved in innovations around supply chain collaboration. However, less than half of these, 40 per cent, said that they were leading it. Although this figure rises to 50 per cent in the future, there’s still some way to go before procurement fully takes the reins of innovation.

Now that many procurement professionals have already achieved some of the more transactional and process based quick wins, it’s natural that we see more and more looking to strategic supplier management as the next frontier to conquer.

Building better relationships with the right suppliers, whether existing or new, is clearly uppermost in their thinking.

The Innovation 2016 research was conducted by Morar Consulting. The research involved 100 interviews to canvass the opinions of UK senior procurement professionals, working in small to large UK enterprises.

You can find out more about the research, and download the report, by visiting the Wax Digital website.