Tag Archives: procurement leaders

How To Train Your CEO To Get What The Business Needs

The majority of CPOs are still reporting three levels down from the CEO. Enrico Rizzon, Partner, Procurement & Analytics, A.T. Kearney Australia outlines how procurement can build a strong business case!

On 30th October, we’re bringing The Big Ideas Summit to Melbourne! Want to join us? Grab a ticket here to secure you seat! 

Procurement leaders in large corporations face a tough business environment. Facing low growth, disruption, increased competitive pressures from well-funded private equity firms and nimble technology-focused innovators, the demand for creative procurement services to deliver not only on cost improvements but also create new solutions that help the overall business strategy is growing.

However, more than 50 percent of procurement functions are still seen as a service rather than business functions with only a small proportion of CPOs reporting into CEOs – the majority still report three levels down.

The need for procurement leaders to be able to build strong business cases that proactively influence and challenge CEOs is greater than ever. The overall goal is to make the CEO understand that what you provide can help solve business challenges, not just the procurement issues.

To deliver on these business challenges there are three key skills that all CPOs must adopt if they’re to succeed.

Herding cats

 Herding cats is a challenging and vital skill when it comes to engaging the c-suite. Those with experience will understand that, at that level, there are individual agendas and incentives that drive different, and not always helpful, behaviours especially when the levers and areas being utilised to deliver value are less commonly associated with procurement. One needs to be politically aware, and know how to navigate this to ‘corral the cats’ and drive the change that is necessary to unlock the value for their businesses.

Speak their language

 The c-suite are not interested in what you want, but they are interested in what the business needs. A simple language change through framing conversations with the c-suite differently can have a dramatic impact.  Think of this as, ‘same, same but different’. To put this into practice, Chris Sullivan from CCA, who now reports directly to the CCA Group CEO, suggests structuring procurement’s role along dimensions that mater to the business and are clearly aligned with the business strategy. It is especially important to ensure that all in the procurement team understand and learn this.

 Build trust

One of the quickest ways to burn trust is to talk about procurement and not the business. Building trust is not easy and it takes time, but once achieved it will transform Procurement from a services function to a business partner whom the CEO relies on. This can only be built through delivery, and more importantly consistency of delivery. There is no point in over-delivering one year, only to not deliver the following year. This extends to numbers and metrics that Procurement use to report delivery. In a recent A.T. Kearney survey, CFOs consistently felt that metrics used by Procurement were less robust than other service functions. If what you report is not credible, then your trust will also quickly be eroded. Overhauling delivery metrics is a sure-fire step to building trust with the CEO.

Mastering these three skills will stand you in good stead to engage the c-suite to not only improve the overall Procurement function, but to truly impact the business so that it can grow and prosper.

My final piece of advice is to be bold.

As George Bernard Shaw famously said, ‘the reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore, all progress depends on the unreasonable man.’ In these times of low growth and disruption, being reasonable may not deliver the result for you or for the organisation you serve. So back yourself, be bold, help lead the change that the business needs.

Take the first step and you may be pleasantly surprised at what eventuates.

Want to hear more from Enrico Rizzon? He’ll be speaking  at The Big Ideas Summit Melbourne. Join us LIVE to discuss the big-ticket trends affecting procurement – grab a ticket here to secure your seat!

Can You Make Decisions Under Fire?

Are you struggling to lead or motivate your team through difficult times and under extreme pressure? We’ve got some top advice from someone who knows a thing or two about making decisions in extreme conditions…

Register now  as a digital delegate for The Big Ideas Summit Chicago!

“There are only two types of leadership.” begins Andy Stumpf “good (effective) and bad (ineffective).”

In today’s world, senior managers often struggle to effectively  respond and adapt to change. But the world is full of change and it’s crucial that our procurement leaders are flexible enoughto respond to the unexpected, to “read the tea leaves and meet the challenges of the real world.”

Andy  began his U.S. military career at the age of 17, transitioning from the position of an enlisted soldier, to an officer, and then,  in 2002,  he joined the most elite counter terrorism unit in the military; SEAL Team Six.

The unit, which is tasked with conducting the nation’s most critical missions, has become the inspiration for a number of Hollywood movies and books.

If you ever needed a man who knows how to plan for and adapt to change, Andy Stumpf is your guy! He’s strategised and executed hundreds of combat operations throughout the world in support of the Global War on Terror.

At Procurious’ Chicago Big Ideas Summit, Andy will draw on his wealth of leadership experience to talk about the intersections between business and combat, decision-making and empowering procurement teams.

Building the greatest leaders

“Business and combat are defined by their similarities, not differences and the theories of successful military leadership and successful business leadership are identical” Andy believes. It’s possible to apply the same principles and philosophy to your procurement teams because it’s really only the arena that differs.

“60 per cent of the time, organisations want me to talk about leadership. In fact, the definition is always the same. What can change is the way in which you approach leadership.”

So, how do the military build strong and competent leaders?

“Leadership is about empowering your people. From day one in the military we are taught, and it is enforced, that in the absence of leadership you must stand up and take control.

“Instead of creating individuals that think reactively in nature, we instead create individuals that think proactively.  You don’t have to be in a leadership position now to think two or three steps ahead.  In doing so, when a decision presents itself you’ll already have an answer for it.”

Does Andy believe these skills can be taught or are natural leaders exactly that?

“neither successful teams or leaders occur by accident, these are skills that must be learned, practiced, and refined. Navy SEALs are successful because of how we select, train, and lead our teams.

“Nothing in that process happens accidentally, everything is calculated. We demand leadership and accountability from each individual starting from the first day of training. We prioritise the individuals to our left and right, and the goal of our team over personal success. This philosophy is diametrically opposed to what is often found in society, and requires a structured approach and prioritisation from leaders to be successful.”

And Andy has some strong words of advice for any over-confident leaders out there. “The 1st leadership principle within the SEAL Team is ego; if you have a massive ego you’re more concerned that your ideas and strategy is being used as opposed to striving for success of the team. You can’t meet the challenges of the real world this way!”

Plan, plan and plan some more!

“We plan for everthing in the navy. We often say that if you want to shut down the military, you simply need to shut down powerpoint!

“Every stage of a plan gets one slide and there might be between five and seven slides on the ‘what-ifs’, the contingencies. Where will we land this helicopter? Where is the nearest location for medical treatment and what alternate options do we have?” When, as Andy points out, precisely 0 per cent of planning goes as expected, contingencies are everything!

“You make primary, secondary and tertiary plans because you don’t want to have make snap decisions in a crisis. You need to be able to fall back on stable procedures”

And of course, it can’t hurt that contingency planning makes you look like something of a genius! “It’s really hard to make difficult decisions in a crisis because you’re in a time compressed environment and you may have people’s lives depending on you.  We plan for 24 -72 hours and there are 5 phases per plan. Each phase has 5-7 ‘what if‘ contingency plans because, at the end of the day, you don’t want to make decisions in a crisis, you want to be able to draw on a branch diagram.

“It’s the contingency planning especially in the SEAL teams that makes the difference between success and failure in moments of crisis.”

What can our procurement teams learn from this? Spend a lot more time planning, for starters! But Andy also reinforces the value in having baseline standards to fall back upon. “Businesses should always fall back on standard procedures so people can come together, with a clear knowledge of the protocol. This is especially crucial when you’re working under restrictive time constraints.”

Andy’s final words of advice? “Don’t get attached to your plan -get attached to success!”

Want to hear more from Andy Stumpf or submit your questions for him? On 28th September, Procurious is bringing The Big Ideas Summit to Chicago.  Register now  (It’s FREE!) as a digital delegate to gain access to all of the day’s action and LIVE video from our speakers and attendees. 

Women in Leadership: Don’t Make The Mistake Of Behaving Like A Man

Women in leadership: Have you ever had to “behave like a man” to get ahead in the workplace? As part of the Bravo campaign, Procurious will be hearing from a number of high-profile procurement leaders on the topics of diversity, equality and women in procurement.

This week, Procurious caught up with M.L. Peck, Chief Content & Engagement Officer at the Institute for Supply Management (ISM), who is concerned that even in the modern workplace, many women still feel they have to behave like a man to succeed.

She’s the man 

Remember Twelfth Night? Shakespeare’s comedy featured a shipwrecked woman (Viola) who disguises herself as her lost twin brother (Sebastian) to find work in the service of Duke Orsino. If you’re not a Shakespeare fan, you may have seen the 2006 adaptation She’s The Man (starring Amanda Bynes), where teenager Viola Hastings disguises herself as a boy in order to play on the all-male soccer team. Both Violas have to learn how to behave like a man, with their accidental lapses into femininity providing many of the plot’s gags.

Don’t change

“Women shouldn’t have to change who they are in order to be taken seriously. Nobody should”, says M.L. “What we absolutely don’t want is to create a mold of how to be strong leader. Our differences are what make us an asset to the teams we work in.

“I’ve had the fortune to work with women who brought an inherent, feminine ability to collaborate, empathise, multitask and problem-solve to their teams. These qualities are often overlooked and under-represented in the workplace, where we expect our leaders to be hierarchical and dictatorial in approach. In procurement, particularly, collaboration is key. The characteristics attributed to women are the ones that all of our future leaders will need – you can bet that millennials and generation Z won’t want to work in a male-dominated environment.”

But what does “behaving like a man” actually mean? Stereotypical male qualities might include strength, dominance, bullish confidence and as little display of emotion as possible. M.L. comments that when women find themselves in a male-dominated workplace, “We can make the mistake of trying to behave like a man by adopting the characteristics typically associated with men.”

Workplaces still have a long way to come in accepting that people, and leaders in particular, are able to display emotion. Men and women are taught that leaders must be “strong”, which means emotions such as compassion and empathy are redundant. “We’ve still got some of these issues in 2017”, says M.L. “Men who show empathy are thought of as weak, while empathetic women get labeled as emotional. If you choose to lead a team without resorting to an authoritarian style, it doesn’t mean you won’t be able to add enormous value in your own way”.

This, in a nutshell, is the power of diversity in our organisations. Building a diverse team of people from different genders, backgrounds and experiences will add new perspectives and insights, which ultimately leads to a better decision-making process.

Working twice as hard to be thought of as half as good

M.L. remembers her mother’s experience in the workplace, citing her as one of her inspirations. “My mum was a pipefitter and really lived in a man’s world. She was the first female on the refinery fire-fighting team. I was raised with my mum’s understanding that women needed to work twice as hard to be thought of as half as good.

“In this scenario, it’s easy to feel victimised; to think ‘I’m different, and people are perceiving me that way’. This makes it all the more tempting to conform to certain workplace behaviours, but my mum always retained her own identity.”

3 ways to encourage more women into procurement leadership roles

  • Initiatives that advocate for diversity are vital, particularly in supply management where there aren’t nearly enough women in leadership positions. Procurious’ Bravo campaign is a great example, as is ISM and THOMASNET’s 30 under 30 Rising Supply Chain Stars award, along with ISM’s annual Diversity conference.
  • Providing access to female role models and mentors will help organisations attract and retain women from entry-level through to senior positions. Organisations that want to attract top female talent need to have a diverse and inspiring leadership team.
  • Shout about what you’re doing to address gender disparity in the workplace. Companies that hold special events for women or minority groups really do see a difference – events give people an opportunity to build their networks, and provide direct access to the C-Suite who make the important decisions about diversity and inclusion.

Get involved with the Bravo campaign via our Women in Procurement group. Join M.L. Peck and other members of the ISM Leadership team at ISM2017.

Throwback Thursday – #suckit – The Art of Speechmaking

There’s an art to great speechmaking, and we can all take note how to improve. But could it also be the key to finding great talent?

I’ve just woken up in Los Angeles and am still in awe of Cate Blanchett’s amazing acceptance speech at last night’s Oscars.

No – I wasn’t in the audience (maybe next year!), but watching with a group of friends in our Art Deco hangout in Santa Monica. It felt a bit like watching the AFL Grand Final from an apartment in East Melbourne. The action was only metres away, but there you were, watching it on television like the rest of the world.

Cate’s speech was the demonstration of a well educated, articulate, thoughtful, and endearing individual. She came across as a true professional who was both confident and competent – a rare combination.

As far as I’m concerned, her speech ticked all the boxes. She used this once in a lifetime opportunity to talk to the world about the wealth of Australian talent, the important role of women in business, and her number one passion, the Sydney Theatre Company.

 

And, I’m sorry, I have always tried to avoid writing negative comments about specific individuals, but Cate provided a VERY stark contrast to the best male actor who…quite frankly…in his acceptance speech reinforced a lot of stereotypes about the acting world and Hollywood. Enough said!

Don’t Get Sticky Fingers

Now, I know there will probably be social media furore over her comment, “Julia, #suckit.” The background to which Blanchett is staying close-lipped.

It would seem Cate’s has proved correct an earlier, very clever quote from Julia Roberts regarding social media: “It’s like cotton candy. It looks so appealing, but then you just end up with sticky fingers”.

Wow!  What a great analogy – sticky fingers.  Really made me rethink my little personal journey on twitter, which you can read about in “Who gives a tweet?”.

Anyway, back to great speechmaking. While scrolling through my Twitter timeline to learn more about Cate’s big win, I stumbled across AFL Boss Andrew Demetriou’s 11 minute resignation speech.

OK, so it’s not everyday someone draws a link between Andrew Demetriou and Cate Blanchett! But in a matter of 24 hours, both these Australians made great leadership speeches that will help define their respective legacies.

Both speeches had the following in common –

  • Paid respect to their respective “codes”
  • Showed humility and empathy
  • Recognised where they had come from and those who had supported their journey
  • Sent a clear message about their passions/key communication points
  • Thanked their family

Because of their statesman-like, intelligent and heartfelt comments, they left their audience thinking even more highly of their respective professions.

Your Speechmaking Checklist

It’s not everyday that we mere mortals are called on to make landmark speeches, but the checklist above certainly gives us some good reminders as we walk through our professional lives.

So when that day arrives, and you’re in front of the camera, audience, or friends, will you be able to deliver a compelling summary of your contribution?

Here’s some thought starters:

  • As we interact with our team, do we show gratitude?
  • Are we investing our energy in those people who will be part of the winning team?
  • Will we have contributed in a material way to the development of our “code” or profession?
  • Have we supported our family as much as they have supported us?
  • Do we have a view, an opinion, or a passion that we are actively promoting to others as we interact daily?
  • Are we living and working by our values?
  • Are we showing empathy and humility?
  • And what about our team and others we have dealt with along the way?  Will they be our greatest advocates?

Speechmaking – The Key to Finding Talent?

But the importance of oration goes even further than our own ability to present professionally it would seem. It could just be the key to finding great young talent.

I’m always looking for great talent to help build my three businesses – The Faculty, The Source and Procurious. So, when I came across advice in Forbes on “how to find the Millennials who will lead your company,” I really took notice.

The author, Robert Sher, advised us to be on the lookout for Millennials (born between 1980 and 2000) who have had experience in speechmaking and debating.

He highlights that the world needs business executives that have a deep understanding of how to persuade, how to present clearly, and how to connect with an audience.

Sher notes that many professionals, “fall short when it comes to speaking and communications skills. Many are good at making Power Point slides, and some are good at presenting facts clearly—even recommendations clearly.

“But few practice, or are aware of the techniques behind moving the emotions of audiences; whether they be in a meeting, or in an all-hands gathering of hundreds of people. We all know that people spring to action based on emotions, then simply justify it with logic.”

Here is the truth about students who compete in speech and debate. They’ve spent hundreds of hours perfecting their speaking skills.  Many have done intensive research to write their speeches.

All have endured the pressure that competition brings. They have performed well intellectually under such pressure, and they’ve made connections and friendships with other high performing peers. All of these behaviours are excellent predictors of success on any leadership team.

Here’s Why IT Procurement Leaders Are CPOs of the Future

The fourth industrial revolution is here. Change-resistant CPOs who see it as a threat will inevitably see themselves consigned to the scrap-heap.

The CPO of the Future, on the other hand, will seize every opportunity Industry 4.0 presents. And the profession is looking to IT procurement experts for leadership.

CPOs of the future

The procurement function is at a digital tipping point. To quote James Gregson’s analysis of Deloitte’s 2016 Global CPO Survey, “digital disruption will either reinvigorate or replace procurement’s value proposition”. In other words, if you’re not disrupting, you’re being disrupted.

Industry 4.0 marks the convergence of physical and digital manufacturing capabilities, where increasing automation and computerisation allow us to create smart workplaces.

From office printers that automatically order their own ink cartridges, to fully-robotised factories, the scale of change has been compared to the industrial revolutions of the 18th and 19th centuries.

Procurement, far from allowing itself to be left behind, must ride the wave of technological advancement to stay ahead. We’ve even seen the emergence of a new term – Procurement 4.0 – to encapsulate the changes that Industry 4.0 is making in the supply chain.

The vocabulary of CPOs is changing, too. The usual chatter around traditional practices such as sourcing, contracts and requisition-to-pay is fading away to make room for cutting-edge concepts like cognitive analytics, crowd sourcing, digital reporting, artificial intelligence and machine learning.

If you’re already in IT Procurement, then let me be the first to congratulate you! IT Buyers are going to be the CPOs of the future. Here are five reasons why.

  1. You already control an important chunk of the strategic spend

Global IT spending, according to Gartner, is expected to reach $3.5 trillion in 2017. As the future of business lies in the Cloud and with digital technology, it’s easy to predict that those professionals who are buying this future are best-positioned to lead the profession.

Arguably, no category of spend touches all areas of the business as much as IT. It’s a highly-specialised, big-ticket category where the buyer regularly deals with tier-one vendors.

Salary ranges, according to The Source General Manager Tony Megally, reflect the high-level impact of IT buying roles. “Generally, IT procurement managers’ salaries are 15 per cent higher than other specialisations. They are, without doubt, one of the best-paid categories in the profession.”

  1. Soon everything we buy will include an element of technology

Direct or indirect, goods or services, in the new world of Industry 4.0 just about everything we buy will have some element of technology. IT Buyers have the opportunity to add some runs to their career scorecard by seeking out innovative technology that solves previously “unsolvable” problems.

Take for example the decades-old safety concern around the fatigue levels of operators of heavy machinery. Mining truck drivers now have wearable technology (essentially baseball caps) that regularly conduct electroencephalogram (EEG) tests on the wearer.

The SmartCap knows when you’re approaching a micro-sleep even before you do. It then sounds an alarm in the truck cabin that alerts the wearer. The alarm can be routed to a remote monitor, who will stop the truck and remove fatigued driver from duty.

For the IT procurement manager, it’s important to understand the technology to manage it commercially. Which companies currently produce these caps? The earliest adopters are in the mining sector – what other sectors could benefit from this product?

What will it mean for safety standards across every industry where operator fatigue is a concern? Could your organisation be accused of negligence if you’re slow to implement this technology?

  1. You know how to drive change

Introducing new technology to an organisation is a major change process. More than anyone, IT procurement buyers are very aware of this fact, many having fought and overcome end-user resistance to new processes or systems.

Here at the threshold of Industry 4.0, the experience gained by battle-scarred IT change-management veterans will be invaluable as the pace of transformational change continues to accelerate.

  1. You’re an innovation scout

IT Procurement professionals have witnessed a huge amount of change in their search for the ultimate technology solutions over the past 20 years.

Take, for example, the evolution of the laptop. These have developed from bulky, suitcase-like machines in the 1980s, to sleek thin-screened notebooks in the early 2000s. However, the devices were effectively (and dramatically) made obsolete in 2010 when Apple released its first-generation iPad.

As technology increasingly becomes the product, we must keep options open to take advantage of the frenetic pace of change. This means shorter contracts, built-in optionality, and smaller, more agile suppliers who will drive innovation.

CPOs of the future will essentially be “innovation scouts”, with a major focus on finding, and profiting from, the next big thing in IT.

Organisations are also increasingly looking to supplier innovation to boost top-line revenue. This means the skill-set required to source from technology providers is fast becoming invaluable.

  1. You understand cyber security

88 per cent of U.S. CEOs are somewhat or extremely concerned about cyber threats. These CEOs are looking for technology savvy leaders across their business to protect them from cyber breaches.

Again, IT Procurement managers are ideally positioned to become experts in the cybersecurity challenges associated with the coming IoT wave, which will bring a rapid expansion of potential entry points for malicious software.

Whether you’re a problem-solver, change-management veteran, innovation scout, cyber-security expert, or all of the above, IT Buyers are already in possession of the ideal skill-set that will be needed by Procurement 4.0’s CPOs of the Future.

Procurious is at ProcureCon IT in Amsterdam this week. Stay up to date with what’s happening on Procurious, and by following us on Twitter.

Big Ideas Summit 2016: Innovation Without Boundaries

The global conversation begins now! Register for the Big Ideas Summit on April 21st on Procurious and join procurement leaders as they share their insights.

Big Ideas Summit 2016 Logo

From drones to social networking, what new technologies and trends will transform procurement/supply management, and how can today’s leaders harness them to drive innovation?

Virtual Think-Tank

On April 21st 2016, 50 of the world’s most influential procurement and supply chain thinkers will tackle these questions and more during the annual Big Ideas Summit, the world’s first digital forum focused on procurement, powered by Procurious.

Through this virtual, think-tank event, Procurious’ 12,000+ members will have the chance to interact with these senior executives, thought leaders and CPOs, and gain insights into the future of procurement. All are invited to participate by registering on Procurious, the leading free online business network for procurement and supply chain professionals, and then joining the Big Ideas Summit group on the platform.

“Our goal is to inspire a new generation of business intrapreneurs—people who can think outside the box — who will lead change even in times of ambiguity,” said Tania Seary, Founding Chairman, Procurious. “By giving the global procurement community a place to connect, discuss and learn together, we hope to seed an innovation movement that knows no boundaries.”

New Era for Procurement

Sponsored by the Institute for Supply Management (ISM), The Hackett Group, IBM and Coupa, the Summit will feature several provocative sessions on the trends that will take procurement into a new era:

  • Thinking the Unthinkable: How the global business environment is changing, how to spot trends and disruptions, and the “unthinkables” that organisations are already preparing to handle.
  • Rethinking the Possible: What is the “true cost” of doing business in the fashion industry? How are drones and 3D printing morphing the way we work? Presenters will address today’s mega-trends, from ethical supply chains to the Internet of Things.
  • The Conversation Century: With social media breaking all boundaries for collaboration and influence, the profession must master new “rules of engagement.” Learn how to use this channel to attract and retain the best and brightest talent, and to maintain a career edge.
  • Procurement’s Blind Spots: Benefit from real-life examples of how procurement is applying key agile capabilities in everything from leadership to information-driven performance. Then be part of a CPO debate about procurement’s blind spots, and how risk mitigation will prepare the profession for the future.

Thoughts Leaders and Experts from a range of high-profile, global organisations, taking part in these discussions include:

  • Tom Derry, CEO, Institute for Supply Management
  • Christopher Sawchuk, Principal & Global Procurement Advisory Practice Leader, The Hackett Group
  • Gabe Perez, Vice President of strategy and market development, Coupa
  • Elizabeth Linder, Politics & Government Specialist, Facebook EMEA
  • Lucy Siegle, Journalist and broadcaster, The Observer
  • Peter Holbrook, CBE, Chief Executive, Social Enterprise
  • Dapo Ajayi, Chief Procurement Officer, AstraZeneca

Get Involved

The Summit is more than a one-day event – the conversation has already begun. Members of Procurious are being invited to challenge the speakers – and each other – with hard questions, contribute to Discussions on the event’s key themes and topics, submit their own Big Ideas for consideration by their peers, and read exclusive, advance insights from keynote speakers and influencers.

It doesn’t matter where you are in the world, Procurious wants the global procurement profession to help shape the agenda. On April 21st, members will be able to exchange ideas about the proceedings, shared by video, and get involved in real time via social media, on Twitter, LinkedIn or Facebook, using the hashtag #BigIdeas2016. Members will also be able to access more rich content in the days and weeks after this gathering.

The first annual Big Ideas Summit, which debuted in 2015, brought 5,000 virtual delegates together, and generated more than one million tweets. Join the global movement now. Visit bigideassummit.com and register today.

Tweet this: Join the global conversation with your Big Ideas for #procurement at the @procurious_ #BigIdeas2016 Summit, April 21 www.bigideassummit.com

About Procurious

Procurious is the world’s first online business community dedicated to procurement and supply chain professionals. It’s a hub to advance your career, develop your skills and expand your global professional network. With 12,000+ members across the globe, Procurious aims to empower procurement leaders to connect, collaborate and take a more innovative professional outlook.

Think of Procurious as a professional network, news and knowledge hub, learning and career center, all in one place. Join now at www.procurious.com – it’s free to register and participate.