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The Listen, Shape, Deliver Framework: How to Succeed in the First 100 Days as a CPO

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In today’s increasingly competitive economic climate in which so much more is delivered through suppliers, procurement has become a core business function. The role has grown from back-office purchasing to strategic sourcing to encompass executive-level strategy formulation and wealth creation across all spend. This development has further thrust the role of the chief procurement officer (CPO) into the spotlight, with companies now seeking to attract and develop the best talent to deliver this. Like all executive roles, CPOs have a very small window of opportunity in which to make their mark at a company, and are thus under immense pressure right from the start to fulfill business goals and further their organization’s growth agenda. In our experience, the average tenure of the CPO is less than four years. So for any new incumbent, the first hundred days in the role are particularly vital when it comes to enabling future success. Drawing on our extensive experience working closely with CPOs across various industries, we have compiled a comprehensive framework to set new senior leaders on a course for that success. In this white paper, we summarize that framework and provide three steps for CPOs to follow: namely, listen so as to understand the environment you are entering, shape a vision and plan, and deliver against expectations (see figure 1).   Step One: Listen—Understand Your Environment Before a new CPO starts making changes and implementing any new procurement functions, it is vital that you invest time in understanding the environment you are walking into. That means gaining a detailed picture … Continue reading →

Procurement Innovation Report 2020

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A world class procurement function delivers real value when it demonstrates that it can balance cost, supply performance, risk, innovation and ethical trading. All five aspects must be in concert to be delivering the sort of value that will truly impact – and at the same time force the business units to take notice. But this multi-faceted ambition requires procurement to join the real business conversation that includes revenue, growth and profit and not just the ‘cost out’ mission. Procurement needs to look beyond cost savings when it comes to KPIs and consider what it is that the business is focused on. In most businesses, procurement finds itself bogged down by a culture that tends to over-emphasise savings, reporting on little else. Procurement needs to help the business believe that they can be trusted to deliver more than savings orientated projects. Once that conversation changes, the creativity and business leadership available to those entering the profession will ensure that greater numbers of the right people enter the system. After hosting a series of think tanks, we have identified the four primary themes and 12 sub-topics that procurement leaders are focusing their efforts around to help drive the conversation in 2020 and beyond. THEME 1: STRATEGY Innovation The Procurement Value Proposition Early Involvement Supplier Relationship Management (SRM)   THEME 2: PEOPLE Acquiring, Retaining and Developing Talent Alignment to Business and Managing Stakeholders   THEME 3: TECHNOLOGY Automation, Optimisation, Simplification Data Procurement Tools   THEME 4: RISK, GOVERNANCE & SUSTAINABILITY Risk and Regulation Sustainability … Continue reading →

Procurement Think Tank Uncovers Hot Issues for 2020

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Procurement has the power to change the world. This is not a throw-away line, but rather the lofty ambition of the new-breed of commercially astute procurement professionals who find themselves responsible for much of their corporations’ spend. By unleashing their supply networks, procurement leaders can bring new models and disruptive products and services into sharp focus. In addition, they have the power to gear that spend towards indigenous providers, socially responsible suppliers, and partners with an environmental conscience. Procurement professionals are in a position to truly lead the charge for being the change they wish to see in their industry. This was the over-arching sentiment that arose from the series of think tanks run across Australia this November. Facilitated by Pete Huggins, Director at A.T. Kearney, the think tanks brought together over 50 procurement professionals to uncover the pain points, opportunities and best practices for transforming today’s procurement functions. The think tank discussion spanned a range of procurement hot topics such as attracting and retaining talent, supplier relationship management, and harnessing the power of big data and BI. Insightful takeaways from the think tanks will be captured in our annual Procurement Innovation Report (watch this space). Here’s our facilitator’s take on some key insights heard during the Sydney think tank. Soft skills still imperative but tech skills growing in importance The group was very passionate about attracting talent, Huggins observed. As one participant pointed out, when there is no formal qualification for procurement in Australia, many graduates are left wondering … Continue reading →

Using Blockchain to Track, Analyse and Improve Food Freshness

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Information is power. And when it comes to choosing the food we eat, we have a fairly good amount of power: ingredients, nutrition breakdown, and use-by dates. But what about the origin of that steak you’re about to buy? Do you have a good view of where it actually comes from? How fresh is it really? And are you sure it’s safe from contamination? Golden State Foods (GSF), one of the world’s largest diversified food service providers, is tackling this problem using the latest technology and innovative ideas. Guilda Javaheri, Chief Technology Officer at GSF presented their story at Procurement Innovation Festival 2019, a two-day event that celebrates the latest technology and ideas transforming procurement. Guilda outlined how they can potentially provide end-to-end view of their supply chain using blockchain, IoT and advanced analytics, to empower consumers to make the right choice about the food they eat. This initiative has recently been recognised in the Financial Times’ Intelligent Business Awards in the Supply Chain category. Addressing over 250 procurement professionals, she painted an inspiring vision for the future of supply chain. “Imagine being able to use your phone to scan the barcode of the product you’re about to buy. “You’d have all the information about the product from farm to fork. How powerful would that be?” Who is Golden State Foods? GSF services over 120,000 restaurants in over 40 countries, on five continents. If you’ve ever had a Latte or made a late-night KFC run, you’ve most likely tasted one … Continue reading →

How to Raise Procurement’s Brand in Your Organisation [Hint: It Starts With You]

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Globalisation has changed business as we know it. The world is smaller, and technology and connectivity has given us the sense that sourcing anything from anywhere is imminently possible. Despite this, procurement teams are often viewed as blockers to progress, slowing down customers in the name of process and compliance. The modern procurement function demands a more strategic professional with a unique skillset required to deliver value. Yet demonstrating this value to the rest of the business remains a challenge. Our research with Australian Procurement professionals revealed that building their brand within the business was a top challenge across the board.  Download the full Procurement Innovation Research Report to read more on the state of innovation in procurement. It’s clear that Procurement must keep evolving and proving their value, and this all starts on the individual level, says Chris Savage, a highly regarded brand and PR expert and the former COO Australia’s largest marketing and communications company. Chris gave the Keynote address at The Procurement Festival in Sydney, where he inspired us raise the profile of procurement within our organisations by building our own personal brand.  This article summarises his excellent presentation at the event – as he outlined 10 practical ways to elevate the status of procurement by building your own personal brand within your organisation. What Got You Here Won’t Get You There The simple fact is what got you to where you are in your career is a terrific platform, but it’s not going to carry you … Continue reading →

Raising Procurement’s Status, Emerging Tech, and Personal Mastery: Procurement Innovation Festival 2019

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As modern procurement functions continue to evolve, there is an increasing demand for professionals to deliver value from their networks by way of influencing, negotiating and tactically dealing with customers and suppliers within the supply chain. It’s clear that the skills to run a well-oiled procurement function are vast. Demonstrating this value to the rest of the business remains a bigger challenge. This idea of raising procurement’s brand within the business – from a cost centre to true value provider – was a key theme of the 2019 Procurement Innovation Festival. 250 eager professionals turned out in force for Australia’s newest procurement event at Sydney’s Luna Park, to hear from the brightest in procurement innovation. We also stepped outside of our ecosystem and heard from top negotiators, psychologists, PR experts and coaches on how to be better people and leaders. The two-day event, run in collaboration with industry powerhouse AT Kearney, explored the skills and knowledge needed to create a well-rounded procurement function: effective leadership, thoughtful strategy, and cutting-edge technology enabling the big innovative ideas needed to transform our organisations. Here are three key themes that underpinned the 30 insightful sessions at Procurement Innovation Festival 2019. Moving the Needle from Cost Centre to Value Provider The modern procurement function has come a long way from the days of supply and demand management. Made up of strategic professionals with a complex set of skills, teams are tasked with extracting value from their network by way of influencing, negotiating and working tactically with stakeholders within … Continue reading →

Get Gritty to Be Future-Fit

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There’s the one habit that will keep each of us relevant and valuable during times of rapid change. Do you have it? It’s the worst of times, and the best of times. Our worlds are transforming – and fast. Now artificial intelligence is at the centre of a new wave of change. But change is our friend, says brand and PR expert Chris Savage. He’ll be sharing his insights on How to Build Procurements’ Brand Across the Business at The Procurement Festival 2019. Here, he shares his ideas on building a key skill that all future-fit procurement professionals should have. The Future-Fit Executive’s Secret Weapon Here is what we have that will save us. The ability to persuade, influence, counsel. The ability to SELL. Key in the future-fit executive’s’ toolkit is the ability to sell. The art of persuasion is a human skill. Being able to get your customers to say ‘yes’ to our ideas and thinking is at the core of our differentiation and value proposition. But ‘selling’ is difficult. It requires evolving and lifting your skills. You need to build your credibility, become a powerful storyteller, an adept negotiator, a savvy manager of ‘key moments’ along the path. No-one is born a great salesperson. You need to learn these skills. Here’s the good news. Small steps of improvement in selling capabilities will make a massive, fast difference to your effectiveness and results. When you are converting your sales efforts, it’s an amazing, energising feeling. Celebrate and savour those … Continue reading →

Innovation in Procurement: Research Report 2019

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The procurement space is currently ripe for disruption. With the spotlight shining brightly on sustainable procurement, tougher regulations around modern slavery, and an increased focus on the bottom line for businesses globally, the procurement function is uniquely positioned to drive this disruption. The need for fresh, innovative solutions, going wide in thinking and borrowing ideas from outside functions, industries and geographies, has never been more imperative. If we focus on the areas that matter, then we are well positioned to fuel business growth over the next 10 years through procurement. The role of the procurement function is changing at an unprecedented pace and leaders across Australia are excited to be driving strategic change within their organisations. We spoke to more than 80 procurement professionals from 43 organisations across Australia who shared stories straight from the front-line of innovation and technology integration in procurement strategy. The Procurement Innovation Report 2019 distills these discussions to provide detailed insights into the challenges and opportunities facing procurement practitioners in using technology as a driver of organisational change. Key Themes for 2019: People, Talent & Capability Sustainable Procurement & Culture Selling the Value of Procurement Supply Chain Risk and Compliance Procurement Systems & Data Stakeholder Engagement Supplier Relationship Management Process Efficiency Distributing Control Macro-Economic Factors Future Technology   The findings of this research report will inform the program for the 2019 Procurement Innovation Festival. The two-day event will demonstrate how innovation and process improvement is being enabled by technology through a combination of case studies, … Continue reading →

Identifying Pain Points & Opportunities for Procurement Professionals

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As a Program Director, I often get asked how I decide on what goes into The Procurement Festival program each year. While finding the people and organisations with the best stories is an important part of putting the event together, what many people don’t realise is that the research process starts long before the event planning even begins – usually 6 months out from the conference – when we get the community together in a series of roundtable discussion groups. It’s in these groups that we uncover and unpack the most pressing issues that are facing the Procurement community. The challenges that keep them up at night as well as the opportunities for using technology as a driver of change. Each roundtable discussion group involves around 20 people who sit around a… well… a round table! These people are real practitioners in the industry – Chief Procurement Officers, Sourcing & Contract Managers, CFOs, and Policy & Compliance Managers –  we want to speak to the people in the thick of it who are managing teams, driving strategic thinking, leading transformation projects and living the complexities that come with that every day. Getting to the Core of the Problem Our discussion groups are facilitated by a subject matter expert who draws out and interprets the pain points people are experiencing by asking probing questions and capturing the ideas that come out. The process works like this: Participants break out into small groups to talk about their main pain points which they capture to share … Continue reading →