Tag Archives: stakeholder management

Is Your Contract Rollout Turning Into A Psychodrama?

The critical moment between signing a contract and handing it over to the business seems like the perfect time to take the hands off the wheel and celebrate. But don’t pop that champagne just yet – this is a time for procurement pro’s to shine! Ensure you remain front and center for the contract roll out and implementation to make sure you deliver the value identified during the sourcing process!


You’ve gone through the pain of a long, drawn out sourcing and negotiation process. You’re exhausted. The business agrees that you’ve selected the right supplier to award the business to. After all, they signed off on the decision…right???  Oh no. The ink isn’t even dry on the contract when the backstabbing and psychodrama begins!

5 contract implementation pitfalls

Read on to find out the top 5 reasons contract implementations go wrong and what you can do to get it back on track.  

1. Lost your true north

The supplier is delivering the services in accordance with the new contract, but the reactions seem mixed.  Some people are happy and some people are not. Key stakeholders are offering completely different views of how successful this project implementation has been.

  • Pitfall: The problem definition or opportunity statement was not correctly nailed down. 
  • Resolution: Facilitate a group meeting about the purpose and scope of the contract. Reset expectations about what the supplier has been contracted to provide. You may be able to get the supplier to make minor adjustments to appease some of the requests.
  • Tip: Ensure the focus is on resetting stakeholders back to the shared outcome and not individual desires or opinions.

2. People don’t like change, get in front of this

New people have come out of the woodwork that suddenly have an opinion about how things should have been structured or worse – who you should have chosen and they’re kicking up a fuss. Drama!

  • Pitfall: The wrong people were involved or the right people weren’t in the room.
  • Resolution: Most big project changes or contracts need a reference group or project team to help the implementation phase bed in for the first 6 months to a year. Offer to bring these people into the project team and get them involved with future reviews. It’s hard to complain if you’re part of the group….right? 
  • Tip: Make sure there is a solid communications and change management plan taking people along the journey and communicating the major project steps. Try to think of ways to involve end users to gain maximum chances of buy in e.g. trialing new furniture for a fit out project or sampling coffee for a new catering contract.

3. You specified the how

Things aren’t quite right and you can’t really put your finger on it. Things aren’t happening like you planned. The issues aren’t disappearing. Your managers aren’t as wowed as they were expecting and they’re starting to ask questions.

  • Pitfall: You got what you asked for and that’s the problem. Buyers can sometimes feel the need to define not only what they need, but also how the supplier should solve this problem.
  • Resolution: The market will respond to what you put out, so be careful what you ask for. Leave as much room as possible for suppliers to make their mark and do what they do best, which is to know their stuff and their industry. Ensure you leave room for creative solutions, suitable alternatives and innovation.
  • Tip: If you’re trying to solve a problem have you nailed down the right root issue? Try the five whys concept to ensure you buy what you really need

4. Contract Management, what’s that?

The project team disappear once the contract is signed, they high five each other as they head back to their day jobs and slap the documentation on the contract manager’s desk. You check in one month later and the contract isn’t working – complaints are rolling in from all fronts.

  • Pitfall: Often the time investment of managing a contract particularly at the mobilisation phase is not properly scoped out and/or other priorities creep in. 
  • Resolution: Ensure the project team sticks around for the all important start-up and that the contract manager is in the sourcing project from the beginning. You’d be surprised how often this simple action is not undertaken.
  • Tip: Keep the regular project meetings for the first three months of the contract. Ensure you try to realistically gauge how much time this contract will take to manage and get the right cover.

5. Different supplier but same result, what happened?

This contract was meant to deliver real changes, but a year or two in, it’s just the same service and results the last supplier gave. What happened to the agreement of innovation, ideas, incentives for high KPI scores and phase 2 of implementing a new system?

  • Pitfall: There are a few things that could be going on here: either the process asked for a whole lot of things the buyer wasn’t ready for, or didn’t have the commercial readiness to be able to realistically achieve; The supplier hasn’t been managed or given any clear direction; Protracted contract negotiations stifled innovation, goodwill and squeezed margins.
  • Resolution: Time for an honest 360 feedback meeting. Be clear on what you want and what you are able to achieve.
  • Tip: It’s great to have thirst and hunger to do things differently, but be careful not to over scope what you need or what the organisation is ready for. If you aren’t going to portion risk evenly then don’t enter into a pain / gain share model (for example).

Next time you’re part of a large project team or leading a procurement process that will result in a new supplier, make sure you think ahead and mitigate these potential pitfalls to ensure your next contract implementation ain’t no drama llama.

How To Create A Procurement Service Desk

How can you centralise disparate tools and requests to receive, triage and manage work across the source-to-pay process without replacing your applications? It’s not as impossible as it sounds.


Are your stakeholders frustrated with finding their way through the procurement maze? As a procurement practitioner are you overwhelmed with navigating your way through a variety of disparate tools and requests, such as procurement, accounting and reporting, to get your work done?

Many organisations are increasingly improving the efficiency of the procurement process by implementing a “Procurement Service Desk,” which is a single, centralised user portal for stakeholder requests, routing, communication and PR/PO status reporting.

One-stop shop for “all things procurement”

By using one portal instead of multiple systems, the Procurement Service Desk provides seamless engagement for procurement and its stakeholders, which helps procurement organisations receive, triage and manage work across the source-to-pay (S2P) process. The single portal improves the overall user experience and outcomes with procurement for stakeholders, including requestors, legal, finance and operations.

With a Procurement Service Desk, stakeholders no longer have to spend days trying to figure out where to go, who to call, and what information is required to engage procurement. The platform provides procurement stakeholders with a simple user experience to submit procurement requests. A dashboard provides full visibility to requests and statuses throughout the end-to-end procurement process. Stakeholders and procurement now collaborate directly in the centralised portal instead of through numerous emails, files and phone calls.

Procurement organisations typically realise these value-based outcomes after implementing a Procurement Service Desk:

  • Automated triage of work to appropriate practitioners through intelligent routing
  • Improved user experience for clients, supplier and S2P practitioners
  • Workflow data captured in a structured manner for utilisation to improve processes, deliver efficiencies and provide an improved experience
  • Enablement of metrics that matter
  • Intuitive, easy-to-use platform
  • E2E flow supported by a single platform

Shortening the process through intelligent triage

Through the Procurement Service Desk, stakeholders submit requests covering the full S2P process, including sourcing, contracts, supplier onboarding, purchase orders and invoices. By using standardised processes and forms, the Procurement Service Desk ensures compliance and gathers required data from stakeholders.

Requests are based on standardised processes and forms, ensuring compliance and that required data is received upfront from the stakeholders. Because procurement professionals don’t have to chase down additional information from stakeholders, the Procurement Service Desk enables a more efficient process and quick turnaround times.

When a request is submitted through the Procurement Service Desk, the platform triages the request through intelligent routing rules to the appropriate procurement practitioner for no-touch handling.

Triage rules based on commodity, request value, country and supplier match the request with the most appropriate procurement practitioner. This automated triage ensures work gets to the right team quicker and more accurately, improving stakeholder customer satisfaction.

The Procurement Service Desk provides procurement with full visibility to the types of requests coming into the organisation through an executive dashboard, helping managers measure and address workload balance and required skills. The platform also provides improved data-driven insights based on the volume and types of requests received from stakeholders.

Integrating processes and systems

Because the Procurement Service Desk sits on top of an integration layer, the intake request process connects with the back-end disparate tools and micro services. Procurement manages their full workload in a single platform regardless of the back-end transactional systems. By sharing data from the intake process bi-directionally with the back-end transactional applications, the Procurement Service Desk eliminates data re-entry, improving process efficiencies and analytics.

The Procurement Service Desk also easily connects to other services, such as Marketplace and Analytics, making them easily accessible. Previously disparate tools and services, they now easily scale and function as a fully integrated platform.

After making the decision to move to a services desk, procurement organisations should begin looking for a system platform to manage the Procurement Service Desk and integrate their key systems. By working with a company with specific procurement experience, organisations reduce business disruptions and speed up implementation.

Learn how IBM Procurement Services can help to reduce business costs and meet the challenges of complex global enterprises through effective data-driven source-to-pay operations by visiting www.ibm.com/services/procurement

How To Get Buy-In From Others

Ever had a great idea that’s fallen flat? You’ll need buy-in from your stakeholders before anything can properly get off the ground.

When was the last time you had a great idea that you felt went unheard? If it’s frequently you’re not alone. More often than not it doesn’t matter how good our ideas are – if we can’t get buy-in from the people that matter – then we’re wasting our time.

Whether you’re trying to influence stakeholders, speak compellingly in front of an audience, convince others of your ideas in a meeting – or even persuade your spouse or children to try something new, the ability to get ‘buy-in’ from those we are trying to influence is the difference between success and failure.

Real Buy-In? Thinking, Feeling, Believing

So let’s start with the most common myths – real buy-in has nothing to do with how loud you can be, how great your idea is, or even how confident you are of being right.

The key instead is to be crystal clear about one thing – what you want your audience to think, feel, believe or do different tomorrow than they did today.

And, to effectively do this, you’ll need to craft a message based on what your audience are currently thinking, feeling, believing or doing right now.  

How you go about this depends on who your audience is, however it is possible to get a good read on the think, feel, do, believe in any situation.

For example, as a procurement professional, you might want to invest in some research. Select a few key players within your organisation and ask them out for coffee. Then ask them some simple questions around what their biggest challenges, pain points or questions are in relation to your space.

What value do they currently think your department provides? Do they see opportunities to gain even more value from what you know? What would make the biggest difference to their ability to include you in other important conversations?

Once you’ve been through the exercise a few times, break it down: Right now, what are the perceptions about your space? What value do they believe it brings to their world? What’s the gap between what they are doing right now and the actions you want them to take?

Two Ears, One Mouth – For a Reason

When you know this information, it is much easier to craft an argument that will actually convince. Rather than target shooting in the dark and hoping something will land.

However here’s the key – you have to actually listen. By listening I don’t mean nodding in all the right places and waiting for your opportunity to speak. I mean asking questions, clarifying, staying curious and trying to fully place yourself in their world.

This is not only 100 per cent more likely to create a space in which the other person will open up and give you important information. It also leads to one of the key rules of ‘buy-in’ – that people support the ideas they helped to create.

When you listen to someone’s perspective – and then create an idea tailored to their needs – not only do you win their attention but also their trust. That person will then more than likely become and advocate for both you and your ideas in the future. This means the next time you walk into the room ready to present, you’ll have a hidden asset already sold on both your knowledge and commitment.


It doesn’t matter how good your ideas are, without stakeholder buy-in they won’t get any traction. Can you improve this? Check out this other article here.


Collaboration for Change

The truth is that if you take any form of influence – they all boil down to one thing. The attempt to change what another person thinks, feels, believes or does. However, as successful influencers, we first have to start by taking a step back. Understanding the points of view we are trying to change – and then collaborating on better solutions.

So the next time you have a great idea – at work or at home – before jumping to present it in all its glory, start first by listening. Then rather than opponents you need to convince, you’ll have an army of collaborators helping to push it across the line.

Julie Masters is a globally recognised expert in influence, authority and thought leadership. She is the CEO and Founder of Influence Nation and Founder of ODE Management – responsible for launching and managing the careers of some of the worlds most respected thought leaders. Julie is also the host of the soon to be launched weekly podcast Inside Influence. An exploration into what it takes to find and own your voice – and then use it to drive a conversation, an idea, an industry or a Nation. To subscribe check out iTunes or http://juliemasters.com/inside-influence/.

How to Get Stakeholder Buy-In

It doesn’t matter how good your ideas are, without stakeholder buy-in they won’t get any traction. Can you improve this?

buy-in
Photo by S O C I A L . C U T on Unsplash

True innovation comes from true influence. However, the painful reality is that it often doesn’t matter how good your ideas are. If you can’t get buy-in from other people, from the stakeholders in your organisation, then it will end up at the bottom of the pile.

Whether you are trying to implement a new program, in a difficult meeting at work, or attempting to convince your spouse or children of a different point of view, getting buy-in, or being able to influence others, is often the difference between success and failure.

Yet getting buy-in has nothing to do with how loud you are, how great your idea is, or even how confident you are of being right. So what does it involve?

Getting Crystal Clear

Like all important things the key to ‘influence’ is simple – but not easy. It means getting crystal clear on what you actually want your audience to ‘think’, ‘believe’ or ‘do’ differently.

However, in order to do this effectively, you need to craft a message based on what your audience are thinking, believing or doing right now.  

How you go about this depends on who your audience is, but it is possible to get a good read on the think, believe, do in any situation.

For example, as procurement professionals, you have a multitude of stakeholders. So you might want to start by investing in some market research. You might start by inviting some of those key people to lunch, then asking them what their biggest challenges, pain points or questions are in relation to your world.

Crafting the Message

Once you’ve been through that important exercise, break it down: Right now, what do they believe about your value? What are they thinking? What are they doing?

When you know this information, it is much easier to craft a message that speaks their language. However more importantly than that – a message with a clear and engaging path to action.

Once you become experienced in this process you can apply it to any topic. For example: What does marketing need to know right now in terms of procurement trends? Start there – ask the right person (or people) about what they are currently thinking, believing and doing in relation to the topic. Then use that language to bridge the gap between their current reality – and the reality you want to create.

Illuminate a Path

One of my favourite interviews for my Inside Influence podcast was Nancy Duarte. Nancy is a global communication expert, CEO and bestselling author. While discussing her core advice for those looking to become compelling communicators or storytellers – she explained something I wanted to shout from the rooftops.

She said that if you want to create real engagement – rather than a short burst of attention – then turn that engagement into actual action – your primary role is to ‘illuminate a path’. What does she mean by that? She’s saying that it’s not enough to tell people what to do – you also need to give them a compelling enough ‘why’ – followed by a clear pathway to action.

A clear pathway to action doesn’t have to be huge. In fact, going for a ‘simple yes’ is far more likely to result in action that a complex plan of execution. It could be something as simple as: ‘If you want to talk more about some of the possible results we could get from this idea – let me know when you’re free for a brief phone call’. Or ‘In order to take full advantage of this procurement trend we would need to do three simple things…’

An Idea to So Much More

It’s a simple path to action (what you want them to think, believe or do differently) that takes our communication from being ‘just an idea’ to so much more.

So what’s next if you want to increase your buy-in – or influence – in any situation? First become a student of the world of your target audience. Ask the right questions, of the right people – and then use that language to illuminate a path to the promised land.

Julie Masters is a globally recognised expert in influence, authority and thought leadership. She is the CEO and Founder of Influence Nation and Founder of ODE Management – responsible for launching and managing the careers of some of the worlds most respected thought leaders. Julie is also the host of the soon to be launched weekly podcast Inside Influence. An exploration into what it takes to find and own your voice – and then use it to drive a conversation, an idea, an industry or a Nation. To subscribe check out iTunes or Julie’s website.

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.

What To Do When Stakeholder Management Gets Tough

Everyone has encountered difficult customers or stakeholders when running a procurement exercise. It’s how we choose to deal with them that can define success or failure for our tenders.

By zoff / Shutterstock

Recently I’ve been running a recruitment process at work, using the oft-derided and disliked ‘competency-based’ questions as part of the interviews. One question in particular got me thinking about my own experiences in procurement. That of dealing with a difficult stakeholder or customer relationship.

We’ve all had them, even if they didn’t necessarily feel like that at the time. Whether it’s the end user who keeps changing their mind about what they want, or the stakeholder who believes their opinion is more important than everyone else’s. And then there’s the supplier who believes they know better than you, that your process is flawed or you’re asking the wrong questions, and that they have the key to fixing it.

These aren’t necessarily difficult or challenging relationships all the time. Good stakeholder management encourages input from all sides, but there are times that opinions are unhelpful, unwelcome or downright wrong. And when this is the case, but the stakeholder remains convinced that they are correct, the relationship can prove to be make or break for the success of the exercise.

Path of Least Resistance

This brings me back to the original question that got me thinking in the first place. The question continues by looking for more detail on how the relationship was dealt with and what the outcome was. The aim of the question is to dig a little deeper into the competency of ‘influence’ and establish how the candidate managed the situation to a successful conclusion.

But as anyone who has encountered this issue in the past knows, success isn’t always a guarantee (more on this shortly). A good outcome may not necessarily be a bell-ringing, trumpeter-blowing success for the tender. Sometimes the best outcome is no outcome at all, a compromise, or a solution that follows the path of least resistance in order to preserve a much-needed relationship for the future.

And that is the tale that I want to tell now. Instead of focusing on the theory, I wanted to share a story from my own procurement experience where hard lessons were learned and gaining the realisation that not all relationships are destined to be easy.

Introducing: The Engineer

DISCLAIMER: The people in this story ARE actually real and any resemblance to anyone you know is because you have probably met someone just like this! I have, however, changed names and kept details deliberately vague to protect identities.

Picture this. A young graduate procurement trainee, a bit green, a bit wet behind the ears. New job, new suit, new city. Yes, you’ve guessed it – it’s me! If you’re picturing something similar to a parent’s photo of their children on their first day of school, that’s probably what I looked like to tell the truth.

I hadn’t been in procurement very long at all, having fallen into the profession while looking for graduate roles around the UK. It was all a bit new to me, but I’d delivered a couple of projects and was getting the hang of what was required. I’d started to build up a good foundation of knowledge and some solid, supportive relationships across the business.

That was until I met The Engineer. The Engineer had a reputation that preceded him – hard to pin down, hard to please, just generally hard to work with.

Colleagues more experienced than I (this is where the warning signs should have come in that I was getting the dubious please of this particular contract!) told stories of a nice guy, but someone with very little time for procurement and procurement/tender activities. The department was a roadblock, the processes too cumbersome. He knew plenty of guys who could provide the goods quicker and cheaper. That was, after all, “what we’ve always done around here”.

A Challenging Time

My experience wasn’t any different to what I expected after these friendly warnings. Meetings came and meetings went and the only thing that changed was the date on the calendar. The Engineer was respectful and professional at all times in his demeanour towards me, but he seemed determined to shred the procurement process.

Specifications were blocked as too vague, or not meeting the needs of the department. There were complaints about opening this up to suppliers who had been used in the past as it was felt their products were inferior. In hindsight there are plenty things I could have done differently – brought in more senior team members (I didn’t want to compound my newness by seeming like I couldn’t handle this), or change tact to put it on him to drive it forward. But, as they say, hindsight is always 20:20.

Eventually we reached an unspoken agreement and understanding that gave us a resolution of sorts. We both realised that nothing was going to change, either in the product demands or the procurement process. The contract was eventually put in place with a good supplier and the goods were delivered in good time. It wasn’t the utopic procurement outcome I had envisioned, but it wasn’t too bad. And boy, did I learn a lot!

An Interview-Worthy Response?

No matter what you do or where you go, you’ll find relationships like this to deal with. It’s ultimately how you deal with them that you need to decide on. Each relationship will be different and your response to them will differ in line with this. It’s important to remember that no matter how hard the relationship, it still needs to be worked at, possibly even harder for the particularly challenging ones.

They may not provide you with a gold-plated, interview-worthy example, but these interactions can help you further down the line and it all helps with your personal development. Just remember, no matter how hard it is, don’t burn those bridges. They may be the ones you need to cross in the future.

I’d love to hear your thoughts on this article and the series of articles on the challenges facing public sector procurement in 2019. Leave your comments below, or get in touch directly, I’m always happy to chat!

Stakeholders Are Your Customers. Ignore Them At Your Peril

If you fail to meet the expectations of key influencers, projects will be delayed, will only be partially workable or at worst, doomed.

Stakeholders can and will influence the outcome of your project, especially if they are likely to be directly affected by it. If we fail to meet the expectations of key influencers, projects will be delayed, will only be partially workable or at worst, doomed.  

Who are your stakeholders?

Stakeholders are any of those individuals that can impact your activities by:

  • removing obstacles and championing  your goals
  • by slowing down or blocking your activities  
  • influencing others about your project –positively or negatively

Many of your stakeholders may not initially be obvious.   They can be:

  • End-users of the product or service
  • Line managers, executives and support staff
  • Procurement team members and co-opted subject matter experts 
  • Suppliers and their subcontractors
  • Government agencies and the media
  • Customers and society at large

Why is stakeholder management so difficult?

Stakeholders have conflicting priorities and often are not working towards the same goal. Personal ambitions may trump the company vision.  You may be the messenger bearing bad news or saying no to their proposals. Seasoned procurement people use their persuasive skills to win support from stakeholders.  This can be the difference between success and failure.

Because stakeholders will change over time, we need a systematic approach to identify and prioritize those influencers.  A stakeholder map is a simple analysis tool we can use to identify which key people have to be won over.

A simple shareholder map

This map provides a guideline on how to manage stakeholders based on their interest and their influence:

Figure 1   The stakeholder analysis grid

The Greens

Stakeholders with a high level of influence in your specific project and who also have a high level of commitment and support must attract the most focus.   They are usually easily identified and are easy to engage. They usually include line managers and end-users.  Ensure you continue to maintain their support through good communication and monitoring their needs. These people can be used to influence others.

The Oranges

This is an important group to manage and may include senior management, e.g. CEO or GM. Keep them satisfied.   Increasing their interest or commitment to your project through regular updates can be very helpful.

The Browns

These customers are your supporters. Keep them informed, their enthusiasm may be infectious and they may have more influence in the future.  Less time is needed to maintain this group. 

The Purples

External stakeholders such as the media and government may fall into this group so it is not necessary to spend too much time there. But keep them in the loop and monitor them as they may move into another group!

Identify all key stakeholders and plot them in the grid in Figure 1. 

Steps to follow to ensure success of any initiative:

  • Concentrate your time on working with key stakeholders who can make or break the initiative. Make sure every stakeholder has an appropriate way to participate and offer input.
  • Understand and manage their expectations. Identify any potential adversaries early in the process and manage them directly by allocating key tasks to them. Persuade those people who may not be immediately supportive. 
  • Under-promise and over-deliver.  Think like a salesperson.
  • Keep everyone well-informed and build strong relationships with the people who support the project.  Recognise and reward positive behaviours to preserve the relationship and buy continued support. 

Dealing with difficult stakeholders

The first step is to clearly identify those stakeholders and work out what motivates them and what is causing their resistance. Ignoring difficult stakeholder behaviour is not recommended; take time to immediately identify the cause of their objections and the underlying issues. People want to feel understood and feel that their opinions matter.

Engage directly with the person directly without others present. This leads to more clear and calm conversations. Actively listen to what they have to say and don’t close communication channels because you don’t like what you hear.   Remain fair, objective, and professional, and remember to keep the project objectives within focus. Try to find common ground by asking open-ended questions.  

Why projects fail: communication is the key

Lack of frequent and accurate communication to and from stakeholders is probably one of the main reasons for the failure of projects.   Another is not listening to the needs and concerns of the key stakeholders, both internal and external. 

When to communicate with stakeholders

  • before the launch of a project to get buy-in. Early engagement is important.
  • at regular progress meetings held to keep everyone updated. Report back on progress (or lack of it) and milestones achieved.
  • before implementation to ensure alignment with the process and the proposed solution
  • at the end of a project to establish lessons learned

Stakeholder management is the process that we use to identify key stakeholders and win their support.  We use the analysis grid to prioritize them by influence and commitment. Understanding what motivates them is the first step to getting them on board.    

It’s Procurement’s Own Fault That The Business Thinks We’re Only About Price

If you’re forever complaining that all your stakeholders want from procurement is cost reduction, consider this: maybe it’s your fault. Here’s how to fix it.  

Over the years I have seen and agreed with a tendency in the area of procurement and supply management about the movement to become a broader function; one that goes beyond comparing prices only, and becomes a business strategist.

At the day-to-day level, the organisation has goals that when cascaded to Procurement could be understood as “only” about cost reduction. One consequence of this is that Procurement’s work and recommendation revolve much of the time around pricing. And this makes sense, as it is the most intuitive strategy to bring benefits to the company, and it is also the easiest way to measure impact (at least to the eyes of our stakeholders).

Considering that we as a function are trying to evolve, a consequence is that we feel that we get classified as professionals that can only talk about the prices from suppliers. This situation puts a glass ceiling on what Procurement can do, making it harder to gain relevance in the wider organisation.

But, which came first? The chicken or the egg?

It’s our fault

My theory is: could it be caused by us? Could it be that we ourselves are continuously reinforcing the cycle in which we always talk about price and then the organization talks with us only about price as well?

Competitive pricing does not appear from thin air, especially in organisations with mature procurement functions. These organisations require that the Procurement Manager (the agent that needs to make two different organisations “talk and function together”), make use of levers such as strategy tools, supply chain tools and people tools (mainly) to achieve what is regularly expected: a lower cost.

And how many of those levers are about price only?

If Procurement wants to become more relevant in the organisation, it needs to build over time the tone of the conversation, steadily broadening the decision analysis and variables and incorporating into the recommendation more business broad perspectives: create a competitive advantage, consider impact to society and environment, supply chain efficiencies, changing the category structure, and so on.

To understand if you are a Procurement professional who is capable of growth in the organisation and who will one day become a business strategist, growing at the same time the value of Procurement as function, take the first step: make a self-assessment.

Looking beyond price

Take your most successful procurement recommendation, and delete all the components that are price specific, or are directly linked to price (e.g. spend levels, price savings, price structure, price benchmarks, etc.). How much is there left?

If there is not much left, it means you have work to do to steer your business conversations into broader business impact topics. I present below a couple of ideas that could be used to initiate and maintain the transition to procurement contributions with strategic added value to the business:

  • The first one is not an actual recommendation because it is playbook: do the procurement homework. Create the procurement framework for your category including supply market strategic analysis, decision/evaluation matrix, category analysis and positioning, and all relevant topics that revolve around a strategic process. To change the game, you need to be aware of how is currently played.
  • During your competitive procurement processes, conduct a negotiation round (or at least a supplier meeting) without talking about the price (or similar); challenge yourself to identify the differences between suppliers and to identify the value buckets that are hidden behind the price tag. By simply broadening the topics in conversation, the chances for a successful negotiation increase (as you may increase the negotiation topics). As a result your procurement mindset will kick in and will guide you to new and better strategies.
  • When making presentations, ensure the information you present relates directly to your strategy: it clutters your work if you present supplier total revenue, number of employees or location, if these are not directly related to a component of your strategy. At the same time, use graphics to build momentum to present your recommendation; if the intention is to present which supplier is bigger (assuming that the aim is to communicate that bigger is a proxy for better), then presenting a code or a ranking of the “bigger supplier” could suffice to communicate your idea (details could always go to annex).
  • Show others how you expect the variables of your presentation to play out in one years’ time. This means: Do you expect the same supplier to still be the most competitive at contract exportation?  What level of technology compared to peers do you expect the supplier to own at contract expiration? Would the supplier be better prepared to collaborate with the organisation? Which supplier may have a change of ownership or acquire new assets?

Business mindfulness is created over time. By initiating an own process of “thinking  business” instead of “thinking price” while producing our daily procurement outputs, not only are we capable to implement more resilient and value adding solutions, but we enhance the mutual benefit relationship of our function with the business, moving away from that “price manager” tag that Procurement may have, and eventually opening up the space to create more opportunity for procurement professionals.

To give Procurement a seat on the table we also need to be leaders that develop people. It is important to say that these ideas of “talking about everything except price” is a technique that should be used not only with self, but with suppliers and with junior team members. Giving them the challenges as proposed here becomes a tool for their development, challenging suppliers to be better, and help your people become more rounded business professionals.

We should embed in our mindset that every Procurement project is an opportunity to improve as a business professional for the benefit of the business. I expect the ideas shared on this piece to trigger the process of transition from price managers to business strategists.

5 Reasons Business Partnering is Procurement’s Secret Weapon

Unlocking the benefits of business partnering won’t happen overnight, but if you can get it right, partnering can supercharge relationships between procurement, your stakeholders – and your suppliers.

“For me, business partnering is about building trust,” says Keith Bird, Managing Director of The Faculty. “It’s also a marker of the maturity of your procurement function.”

Bird is speaking at the Asia-Pacific CPO Forum in Melbourne, where he is facilitating a panel of procurement leaders from some of the region’s biggest organisations. They’re talking about how procurement can reap the benefits of business partnering, and the challenges therein. The panel raises five key reasons that business partnering is an incredibly effective way to uncover a new level of value in your organisation.

1. Business partnering is a sign of procurement maturity

We often discuss where organisations sit on the procurement maturity curve. Markers include how the function is organised (decentralised, centralised or centre-led), a focus beyond cost, and the existence of programs such as supplier relationship management (SRM) and the deployment of advanced tech including AI and cognitive procurement.

Business partnering is another such marker. Its existence suggests that the procurement team has moved beyond the traditional stakeholder engagement model to extract further value from customer relationships. Panelist Zelda Pretorius-Kovacs, Head of Category Management at Woolworths Ltd, says that business partnering is an essential part of moving from cost reduction to value creation. “It’s a way of securing the future of procurement in your organisation”, she says. “We looked at our relationships with fresh eyes. Anybody can map internal stakeholder relationships, but we wanted to take a new approach to how we partnered with the business.” Pretorius-Kovacs comments that while her wider organisation was focusing on winning the trust of external customers (shoppers), the procurement team mirrored this journey with a parallel focus on winning the trust of internal customers.

2. Business partnering builds relationships

Andre Harvey, General Manager of Procurement and Supply at Stanwell, says that the way you approach internal customers in your organisation is crucial. “We walk in with curiosity”, he says. “We look for problems that stakeholders have that we can help solve. Fundamentally, procurement has to be like water – it has to find the cracks; find the crevices, and fill them.” This means that when Harvey built up his procurement team, he’s sought to hire a group of problem-solvers and entrepreneurs that will embrace this challenge.

Pretorius-Kovacs adds that an unexpected benefit of business partnering was that the procurement team broke down its own internal silos and began working together more effectively. The team undertook the Game Changer Index to discover their unique attributes before being partnered with the right people to get the best outcomes. Her team has also improved engagement with partners by shifting the conversation to business targets, rather than procurement targets.

3. Business partnering builds trust

Stephen Jhangiani, Senior VP and Head of Supplier Relationship Management at Singapore’s DBS Bank, comments that procurement has worked hard to get internal business partners to work with them and trust procurement. “We’ve focused on being accountable back to the business”, he said. Similarly, Pretorius-Kovacs notes that business partnering is not only an opportunity to develop trust, it’s a chance to mend some bridges along the way.

4. Business partnering enables procurement to connect the dots

Through business partnering, procurement is granted access to a new level of information and visibility of the issues facing their internal customers, which often reveals ways that we can help. Pretorius-Kovacs notes that partnering is an ideal way to build a bridge between the procurement function, the business and its suppliers. “It’s a way to connect all the dots and bring innovation to our organisation in a way that other departments simply cannot.”

5. Internal business partnering will help you rethink your supplier partnerships

“If you can’t have a conversation with internal business customers, without the skepticism, how on earth are you going to have a conversation with the external market?” asks Bird. Getting your internal relationships into the best-possible shape is an important step to take before undertaking effective external supplier engagement. McSweeney notes that open and transparent conversations with customers and suppliers are key. “We want to know where we rank with them, why they’re interested in working with us – we need that level of transparency and candour.”

Delegates at the CPO Forum were polled on the concerns that their organisations had about external business partnering, with the following results.

Interested in learning more about how your organisation can unlock the benefits of business partnering? Contact The Faculty Managing Director Keith Bird via [email protected] to discuss our tailored workshops and training solutions.  

Social Currency In Procurement: Do You Know Enough To Be Dangerous?

In recognition of how central social currency is, procurement pros are using their social networks to build, influence, and deliver results. The question is: do you know enough to be dangerous?

Connectivity is central to how we live and work in 2017. When something exciting or unexpected happens, many people immediately share the news, and a picture, on social-media. We read the updates shared by others and offer up our own. We like a post or status update to indicate support or show we are ‘in the know’ and watching important influencers. This constant sharing and consumption of information has become a global phenomenon.

Over time, these exchanges add up to a wealth of knowledge and connections that improve our decisions and elevate the weight given to our preferences – much like the exchange of ‘social currency.’

Social currency in procurement

A similar trend has begun in procurement and supply chain – perhaps in recognition of how central social currency is to us on an individual level. Procurement professionals have talked about supply intelligence for a long time, but now they are increasingly aware of how important their own social networks are to their ability to build, influence, and deliver results.

Professional social currency includes, for example, the recommendations, endorsements and likes that we assign as we go about our business online.  When combined, they create a level of trust, and contribute to organisational reputations of both buy and sell side organisations. When buyers trust that a supplier will be able meet their business needs, or when a supplier trusts that a customer is a good fit for their capabilities in both demand and culture, transaction costs are decreased and the total value potential increases.

The fact that both sales and procurement are investing in their social currency creates a unique opportunity for them to come together and leverage their collective knowledge for the benefit of both organisations.

Being Reactive Vs Pro-active

One of the strengths of social media is its timeliness. Trust is not just about the source or location where information is stored. The more real time information is, the more confidence it gives to decision makers. Having real-time access to information allows procurement to meet the businesses’ needs faster. Timeliness is also at the top of the stakeholders’ priority list when deciding whether or not to engage procurement. When procurement can provide information proactively in real time, identifying which suppliers stakeholders should look at or having the pulse of specific industries, it goes a long way towards demonstrating their value – and adding to social currency.

Having instant access to trusted information alters the range of project options available to a procurement professional. They are no longer in the position of having to be reactive, where the business comes to procurement and says, “We have these new suppliers that we would like to engage – NOW” forcing procurement to scramble, trying to vet them. When procurement has access to real time information, they can readily identify potential suppliers and quickly access industry peer endorsements on those suppliers.

Do you know enough to be dangerous?

Procurement professionals need to know enough to be ‘dangerous’. They should have a foundational understanding of the category or commodity they are supporting, and be able to translate business needs into procurement best practices. This way when they get a seat at the table with stakeholders, they are able to engage in intelligent discussions around what stakeholders are trying to do and what is happening in the industry. Having access to intelligence allows procurement to be the engine driving category or commodity strategy to achieve sustainable value for an organisation.

Today, people call or email each other for supplier recommendations. This manual way of accessing trusted “social currency” is not scalable or visible to the rest of the organisation. The procurement technology user experience has come a long way. With collaborative or social technologies, the data becomes smarter and benefits everyone today and in the future.

The concept of trusted data is not new… the same instant knowledge that allows people to prioritise news shared by their circle of friends or pick a restaurant that has been highly recommended by people with similar preferences… today, decisions are made faster and the outcome is often more successful as a result of social currency.

The insights in this article comprise one of the main takeaways of a supplier intelligence-focused Executive Roundtable Series hosted by tealbook which brought together over 40 forward-thinking procurement leaders from across the country.