Tag Archives: roundtable

Is The Secret To Change And Successful Innovation A Matter Of Timing?

Innovation and change – we know we need to do it but taking the first step is always hard. However, waiting until change is forced upon us could lead to even more pain.


“Execution is all about timing – people don’t want to do things differently…until they have to”

James Varga, CEO – DirectID

Change. It runs against our very nature to accept and embrace it, even when we know it’s for the best. People will rail against it, undermine it, challenge it or be completely apathetic to it. That is until something forces them to accept it and the need to do something differently.

That’s exactly the issue facing global procurement professionals at this very moment. The COVID-19 pandemic has forced each one of us to reconsider the how our jobs are done and how we help our organisations. Fortunately, we have a group of leaders whose first thoughts on change are how they can make it happen, to rely upon.

Procurious is one of those organisations considering how to provide its service in the current climate. Faced with not being able to have CPO Roundtables in person, we grasped this opportunity to connect our leaders virtually, ensuring that our CPOs still had the chance to gather and share their ideas and experiences. Because at times like these, as Helen Keller once said, “Alone we can do so little, together we can do so much.”

Pragmatism over Pomposity

Although the Roundtable took place against the backdrop of COVID-19, the discussions on the day had a far greater focus on the future than the present. Procurement not only faces the challenges of global supply disruption while ensuring that employees can operate in a safe environment, but also ensuring that the profession is well prepared for what comes next.

Part of this preparation is bringing innovation back into the everyday conversation about how procurement looks, feels and operates. This is not innovation as a management buzzword, but as a practical concept that helps realise real change and sets procurement up to face any and all future challenges. As one of our speakers, Gareth Hughes, Director of Property and Procurement at Whistl noted, “We need pragmatic procurement, not pompous procurement terms”.

Innovation here is about finding the areas where change can make a lasting difference. It’s also about ensuring that, even though the timing may not seem quite right, having the tenacity to make ideas a reality is critical for procurement’s future success.

With that in mind, we’ve picked out our three key messages from the Roundtable for you to take back to your organisation.

1. Supplier Innovation – Fit for the Future

“We need to focus on the positives that have arisen from the COVID-19 experience.”

Ian Thomson – Regional Director UK and Nordics, Ivalua

Innovation is a fleeting concept. A brand new, imaginative and forward-thinking idea one day can quickly become obsolete before we even have a chance to do anything with it. The trick is to keep challenging the idea that things need to be done in a certain way and not to ignore the ‘hard’ challenges for fear of rejection.

This is the mantra of Ian Thomson of Ivalua, who chose to look for the positives for procurement in the challenges posed in the current global climate. What is striking, according to Ian, is how traditionally adversarial relationships – competing organisations; buyers and suppliers – are changing for the better as people pull together.

This not only provides an amazing opportunity to develop long-lasting leadership and trust, but also opens the doors to supplier-led innovation. This can be achieved by having greater pragmatism when it comes to new ideas, as well as increasing our appetite for risk to embed real change.

2. Volatility requires flexibility

“Businesses are operating in massively changed contexts. To use foresight, we need to develop multiple long-term strategies.”

Jessica Prendergast, Freelance Foresight Consultant at Future Insights

An organisation’s appetite for risk is one key to successful innovation. Being too risk averse can stop worthwhile ideas in their tracks but failing to fully plan for future risks can be just as bad. That’s why Jessica Prendergast, a freelance Foresight Consultant, believes that the one-dimensional continuity plans that most businesses have belong in one place – the bin!

According to Jessica, in order to innovate and predict the future, organisations need to develop multiple scenarios to cover all possible eventualities. ‘Foresighting’ is how the thought process for this starts, helps us to understand the role of automation and technology and how we can learn and apply today from these techniques.

Jessica used the example of our changing ways of working recently. At the beginning of the year, widespread Working from Home would have been unthinkable for most organisations. Now it is the ‘new normal’. Good leadership and community spirit have made these changes easier to implement, and has highlighted how organisational planning can be helped by taking a broader view.

3. Timing is everything

“An idea isn’t great until you prove it, an idea can be in the wrong place at the wrong time.”

James Varga, CEO – The ID co.

Planning multiple scenarios, being more accepting of risk and working more closely with suppliers to innovate is only half the battle. Getting people to accept an idea at the best of times will always prove tricky due to people’s natural aversity to change. Even the most innovative idea ever may struggle to gain traction if the timing is wrong.

However, there are ways to tips the scales in your favour. James was able to share his top three with the assembled group:

  • Be tenacious – make the most of issues facing the organisation to highlight innovation and make change happen;
  • Don’t assume – not everyone will think your idea is great, you’ll need to test and measure to prove its worth;
  • Accept a bit more risk – moving smaller suppliers and accept more risk in our new normal, you never know where it will lead.

The underlying key to these three points is removing the blockers to innovation by focusing on adoption of ideas. Then your focus can be coming up with one great idea and making it work, rather than lots of ideas that may ultimately deliver less for your organisation.

Collaboration is King

However, your organisation is approaching the current situation, it is always worth remembering that there will be life (and work) on the other side. Taking time to focus on the future at a point when many of us have the time to do this could make a critical difference to how procurement looks and operates at the forefront of public consciousness.

Not every problem can be solved. Sometimes it’s about mitigating the impact, which can be helped by planning out your multiple scenarios and accepting a bit more risk to be open to new ideas that can have a positive impact.

And, no matter what you do, it’s important to remember that you are not alone – there are thousands of procurement professionals tackling the same issues who are willing to share their thoughts and approaches. As the world changes the way we work, it’s time to collaborate as much as we can and become the leaders who are facing change head on.

If you’re interested in accessing market-leading industry insights and networking, express your interest in joining Procurious’ Roundtable Program here.

Redefining Corporate Purpose – Is It Time For Boards To Adopt ‘Total StakeHolder Value’?

Major challenges such as spiralling inequality and climate breakdown are putting corporations under pressure to rethink their very purpose. The Maturity Institute has developed a ‘responsible business model’ that puts people at the heart of business and produces best value for stakeholders as well as shareholders.

Is your company facing an existential crisis?

To provoke discussion at a recent Procurious CPO roundtable, I suggested that each participant was working for a company that was already in the midst of one.

Why did I say this? From the London Financial Times calling for a re-setting of capitalism to US CEOs shattering the prevailing paradigm of profit maximization, to investment firms in the City of London calling for a renewal of stakeholder-focused value creation, the purpose of corporations is under intense scrutiny – and facing pressure to change.

The questioning of corporate purpose is putting firms into a state of flux.

If shareholders (or owners) are no longer to be accorded primacy in setting strategies designed to deliver the best financial returns, then what else should be driving them? 

How, and for whom, a firm creates value has become a boardroom conundrum like no other.

Text Box: “This topic blew my mind…my question is now – which organizations are going to take the big leap forward on this?” 
Procurious CPO Roundtable participant, November 2019

A Host Of Challenges

Environmental and human problems arising from business and economic activity have continued to surface at an alarming rate. Poverty, human rights, slavery and growing inequality have become more acute.

Climate breakdown is now impacting all around us. Polluting plastic swirls around in our oceans, contaminating marine life, while toxic pesticides find their way into our bodies via food systems, and poisonous air may be undermining our health every day.

Customers, investors and workers are not just asking questions about their involvement with firms that do not seek to address and resolve these problems, they are increasingly avoiding them altogether.

Governments and regulators are also under growing pressure to restrict or revoke licenses where firms do not work to address such issues or fail to provide real benefit to local communities. 

So what should your own company do to meet these challenges?

It is evident that firms that understand how to simultaneously serve society and perform financially will be the ones that can survive and thrive.

Shareholders And Stakeholders: A Common Purpose

Since 2012, the Maturity Institute (MI) has been building a responsible business model that shows how companies can produce the very best stakeholder and shareholder value by putting people at their heart.

By aligning management systems to leverage and realize the potential value of all their human stakeholders, companies can competitively differentiate themselves from their peers.

For procurement heads, this specifically includes suppliers. This is an area in which value-based relationships (as opposed to those driven more by cost parameters), together with appropriate system design, should lead to superior outcomes.

Moving from a ‘shareholder’ to a ‘stakeholder’ business system requires an understanding of what this entails across an organization’s whole system – including workers, customers, investors, suppliers and wider society.

It also requires engaging everyone in the pursuit of a common purpose.

Total Stakeholder Value

Our work is designed to act as a practical guide, to set out a way forward for boards, C-suites and managers to pursue a goal focused on creating healthy organizations through what we call Total Stakeholder Value (TSV).

This is not based on a theoretical perspective but on existing, exemplary ‘mature’ organizations.

At MI, we teach the invisible factors that have enabled organizations like Toyota, Handelsbanken and Mercadona to lead the world in a direction that is in everyone’s interests. These are companies that have a central purpose rooted in serving society.

Alongside financial outperformance, they have consistently delivered the best-quality products and customer service ahead of peers.

In achieving this, they have deliberately designed high-value management systems, including supplier relationships, and have also led others on managing out harm, in either environmental or human terms.

Organisational maturity

To help companies identify how these factors play out within their own organization, we deploy Organizational Maturity Ratings (OMR) to uncover the intrinsic value and risk arising from the company’s whole human ‘ecosystem’.

Our open-source OM30 diagnostic looks at 32 inter-related questions and is able to identify and predict the likelihood of material human value and risk arising from critical causal drivers, such as:

  • Formulating and articulating a corporate purpose of Total Stakeholder Value (TSV) maximization
  • Identifying whether an organization’s business strategy and operating model are predicated on reconciling its (market) value with changing societal values
  • Checking the extent of trust placed in the leadership and management team by customers, employees and other key stakeholders
  • Determining whether the organization is planning to maximize the value it generates from all of its human capital value (both internal and external, e.g. supply chain)
  • Considering the evidence of any never-ending, continuous improvement philosophy being operationalized.

By examining these factors across their whole system, companies can, at last, gauge a baseline of true corporate responsibility and how it affects total value generation.

Strategies For Transition

This also enables executives and managers to identify key strategies that will help the transition to a corporate purpose of TSV – one that drives financial, human and environmental performance that can also be measured and monitored.

For CPOs, the OM30 also has a specific additional application – in helping to assess the suitability of suppliers. Here it acts as a measure of alignment with parent-company culture and human systems, and can be used to determine levels of supplier responsibility and fit, above and beyond any compliance requirements.  

MI is using its methodology and building its evidence base by working with corporations, investment managers and academic institutions to help them understand the relationship between the OM30 and a range of value and risk outcomes.

Recent academic testing of our data has shown:

“…the benefits to shareholders and stakeholders are not mutually exclusive; in other words, the value to business, shareholders, stakeholders and society are aligned. A company can maximize profits and create wealth for shareholders mainly by establishing a mature institution that enhances well-being for all legitimate stakeholders as well as create positive externalities to the environment and the wider society. 

Cambridge Judge Business School, March, 2019 

We can all participate in encouraging, demanding, designing, building and facilitating the process of change that is now necessary; to help create many more mature, exemplary firms that can lead others.

MI is actively helping stakeholders to play their part.

Stuart Woollard is Council Member at the Maturity Institute. The Mature Corporation – A Model of Responsible Capitalism, co-authored with Paul Kearns, is available with a 20% discount using code Corporation20 from Cambridge Scholars Publishing https://www.cambridgescholars.com/the-mature-corporation.

Four Reasons Why Value Is the New Procurement Normal

We’re all talking about delivering value these days in procurement, aren’t we? But with so many definitions around, how do we maximise its impact?

value
Photo by Riccardo Annandale on Unsplash

We’re all talking about delivering value these days in procurement, aren’t we?  Value is now the new normal.  And everyone has their own take on what delivering value for the business really means.  There’s no single definition.

So Procurious were delighted when our November Roundtable sponsor Ivalua asked us to use value as our theme. Here are some of the great insights that speakers shared with attending CPOs on the day.

Stakeholder Value – an idea whose time has come?

In August, Business Roundtable CEOs made the announcement that value is about more than just shareholders. It’s this idea that we should be focusing on going forward.

And they were clear that value, rather than maximising return to shareholders, is now “the essential role corporations can play in improving our society when CEOs are truly committed to meeting the needs of all stakeholders.” 

But what does this mean in practice for procurement? And how can we demonstrate stakeholder value? Stuart Woollard has been at the forefront of pioneering work in this field for many years, assessing the measurement of factors beyond cost. 

Stuart had a warning for the CPOs too that, “being purpose driven is not enough”. He urged a move away from a focus solely on output metrics, and encouraged them to take a balanced multi-faceted approach. 

Stuart and his organisation, The Maturity Institute, has a tool that they’ve been using to achieve this balance for many years. But just because there’s a method of measuring value doesn’t mean this shift will be easy.

Finally, Stuart reminded the CPOs that, “Without support from the CEO and your Board, you may not achieve the shift to value that you need”, bringing home the point that buy-in is needed across the leadership team and beyond, in order to ensure success.

The value in your supply chain comes from people

If changing to a value-based model will require a mindset change at the top is there anything CPOs and their teams can do right now?

Nadia Youds, from UK retailer John Lewis & Partners, told our CPOs that an approach targeting employees is a great way to deliver value back to the business. “Job design in our supply chain is as much about the business relationships procurement has put in place as it is about the suppliers themselves.”

Nadia is clear about the connection between the buying organisation and the way employees in the supply chain are treated, and the work they’re expected to deliver. 

Although Nadia and her team have developed an assessment process that moves away from the standard suppler audit, she was keen to stress that the process needs to move away from compliance as a ‘tick box exercise’.

Using an approach that focuses on people and jobs, particularly in the manufacturing industry, can help suppliers develop and retain their workforce. This will lead to them ultimately being more competitive in the market.

Winning the war for talent – could value be the key?

Many CPOs are facing huge challenges in talent recruitment and retention. Procurement is still keen to learn from the best. And so a chance to see what the Tech industry does to source and retain the right people was an eagerly anticipated agenda item. Andrew MacAskill, from Career Jump and Finlay James was the person for the job (as it were!).

“We’ve still got a long way to go to attract the brightest minds in the industry,” Andrew mused. He reminded CPOs we can learn a lot from the Tech industry where “talent has become the customer”.

One tactic Andrew urged CPOs to consider is to build their own online personal brand. Many of his candidates select roles based on a leader, not a brand. “They’re asking themselves the question – do I trust this person to take my career forward?”

The issue of whether the talent wants to work for us led Andrew to suggest a reverse interview process:

  1. Sell your vision to the candidate – why should they want to work for you;
  2. Conduct a balanced interview – make sure the process and discussion is equal between recruiter and candidate;
  3. Open up the floor – give the candidate the chance to sell themselves to you.

Andrew shared that testing for the candidate’s attitude, cognitive aptitude and habits is the norm in tech recruitment processes. He urged CPOs to consider this when they’re recruiting team members to help them deliver their vision for value.

Value remains the same throughout history

Looking back through history shows that data gives procurement a head start when it comes to delivering value. Ivalua’s Stephen Carter has studied the impact from medieval times right up to the present day.

“There’s a lot we can learn from history about how we can exceed our stakeholder expectations” explained Stephen, “and a good overview of your data can provide the key.”

Even in the late 17th Century, procurement used data to provide insight into what their stakeholders needed. Looking at past spending trends, conditions and requirements, military campaigns were won due to the foresight of procurement in providing equipment not in the client’s original scope of requirements.

From history to the modern day, the value that procurement can deliver comes from insights that organisational data provides. It’s clear that whether our focus is strategic or operational, within our team or in our supply chains, delivering value is fully embedded as the new procurement normal. 

And as we set ourselves a new target to deliver value, there are no better words than those of the final speaker on the day, adventurer George Bullard.

“Research your goal, make sure you are prepared and fix a time to start.” Words to live and work by.

In 2020, we will be holding CPO Roundtable events in London and Edinburgh. If you are interested in attending one of these events, please contact Laura Hine by clicking here.

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]