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What Makes a Great

Procurement Leader?

Craig Lardner FCIPS

Former global CPO | The BOC Group

2013-14 Global CIPS President

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Agenda: The procurement leader has changed …and is changing some more…are you keeping

up?

The Universe of professional procurement …The profession-on-a-page.

Unpacking the animal with SQECs…What is SQEC’s?

What does the DNA of the modern procurement professional show?

The ‘relationship’ chromosome …also known as the S-Curve

Discovering the characteristics of ‘Professionalism in procurement’ …all 48 of them

Procurement Advisory Services Pty Ltd

What makes a great procurement leader

The universe of the procurement profession …on a page

A leading practice model addressing all core end-to-end Procurement related activities

STRATEGY

Procurement Strategy Sourcing Strategy Procurement Capability

Planning

AoP , 3yr Plan and

Target Setting

Strategic Supplier

Management

GOVERNANCE

Compliance Strategy Balanced Scorecard Risk Management Process, Policies &

Standards setting

Roles &

Responsibilities

INTERNAL CUSTOMER MANAGEMENT Internal Customer

Engagement

Project Procurement

Management

Long Term Demand

Planning

CATEGORY MANAGEMENT

Supply Market

Analysis

Category Strategy Spend Analysis Demand Management

Supplier Relationship

Management

Supply Market

Development

COMPLIANCE MGMT

Internal customer

support and

administration

Compliance

monitoring

SOURCING MGMT

Needs analysis

RFX Creation

Supplier Selection

Contract Negotiation

RFX analysis and Recommendation

Contract Preparation

Contract Execution

CONTRACTS MGMT Supplier contract

compliance

Company contract

compliance

SUPPLIER MGMT

Contract cycle

/monitoring

Supplier on-boarding

Supplier development

TRANSACTIONAL SUPPORT & REPORTING

Order

placement Receiving

Supplier

Payment

Benefits

Tracking &

Realisation

Contract

admin

Operational

Reporting

T’s & C’s

Contract

Review

Str

ate

gic

O

pe

rati

on

al

Tech

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logy

Ena

blem

ent –

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ools

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espo

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ntab

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SPM Supplier

performance management

and SLA

Supplier segmentation

Internal customer

satisfaction

Right P Communications Plan and execution …using a structured professional approach to target audience and message needed

Ta

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Agenda: The procurement leader has changed …and is changing some more…are you keeping up? The Universe of professional procurement …The profession-on-a-page. What is SQEC’s? What does the DNA of the modern procurement professional show? The ‘relationship’ chromosome …also known as the S-Curve Discovering the characteristics of ‘Professionalism in procurement’ …all 48 of them

Skills:

You have learnt how to do something. You perform the task using that skill. You are ‘technically’ correct.

Qualifications:

You have a qualification, or certification, or accreditation or license to operate. You passed a capability test.

Experience:

The length of time you have been doing it. The breadth of what you have done over time.

Competencies: Your behavior when you do a task. How you conduct yourself when you…execute your skill, use your experience ,with your qualification


Enterprise wide view

Customer orientation

Grow talent

Continuous Improvement

Inspires Trust

Strategy

The Chemistry (DNA) of the 2016 ‘New Horizon’ Procurement professional

Living values

Personal growth

Achievement

Dif

fere

nti

atin

g

Leadership

Passion

Responsibility

Integrity

Drive

Empathy

Learning orientation

Manages self

Interpersonal skills

Listens

Optimistic

Deliver results

Technical functional excellence

Innovate

Action orientation

Be accountable


The ‘S Curve’ – a supplier relationship Philosophy …

…..new level professionalism

Supplier

Optimisation

Standardisation/

Simplification

Joint Product/

Service Dev.

+5% +10 - 20% +15 - 35%

• local SM Solution

• conventional• leveraging what

currently exists

• reduction of suppliers• success is ‘savings

driven’

• purchasing in isolationof businesses process

• commodity not

account management • thinking ‘price not

cost’

• proactive not reactive

• cross-business teams• longer terms

arrangements

• focus on ‘total costof ownership

• to share & develop

joint process ownership mentality

• shared learning

• shared outcomes• suppliers begin to see

incremental benefit

from the arrangements

• full ‘partnership’

• long term• shared vision • shared risks &

rewards in agreements• lowest total cost• capitalising on core

competencies• mutually agreed

performance matrix

• security of supply• mutually beneficial• integrated systems &

business processes

Change inBehaviours

Required

Incremental Benefit

Stage 1

When you are buying…are you

buying in stage 1, 2 or 3?

Is the supplier selling in stage

1,2or 3?

You don’t know?

…then you are guessing

(Not recommended)

Stage 2 Stage 3


Qualifications Skills

Experience Competencies

15

The work place

The 48 Characteristics of a Procurement professional + The 10 characteristics of an ideal work

environment = The 58 Characteristics of ‘procurement today’

4

23

6

10


Discovering the characteristics of ‘Professionalism in procurement’ …all 48 of them

260 years of experience….International…multi-country…multi-leaders…just last month

Skills

1. Listening

2. Communication

3. Specific Category expertise, e.g. Electricity, construction, facilities management, IT hardware, software

4. Time and Resource Management

5. Facilitation

6. Planning

7. Analysis

8. Interpersonal

9. Legal

10.Negotiation

11.Strategic Thinking

12.Risk Management

13.Dispute Resolution

14.Problem Solving

15.Business & Organisational knowledge

Specific priority characteristics

The new ones!

• Strategic Thinking

• Facilitation

• Risk Management

• Dispute Resolution

• Problem Solving

• Business & Organisational knowledge


Qualifications

1. Professional and Relevant Certification, diploma, degree.

2. Licence to Operate (where available in-country)

3. Documented Continuing Professional Development (CPD)

4. Business specific certification e.g., Cultural Sensitivity training, in-house

health, safety and wellbeing training.

Guidance note: All of the above must be:

• Authentic (and current)

• Sufficiently comprehensive, appropriate for the role and not to narrow


The new ones!

• Licence to operate

• CPD

• Business specific certification


Experiences

1. Depth and Breadth of experience

2. Relevant Task and Processes

3. Diverse commercial business experiences

4. Crisis exposure

5. Demonstration of disaster recovery

6. Has learning's from failure


The new ones!

• Crisis exposure

• Diverse commercial business experience

• Demonstration of disaster recovery

• Has learning’s from failure


Competency 1. Courteous

2. Attentive

3. Attentive

4. Empathy

5. Patience

6. Open & Transparent

7. Clarity

8. Generous

9. Fair

10.Confident

11.Credible

12.Outcome and Purpose Oriented

13.Agile

14.Calm under Pressure

15.Flexible

16.Effective

17.Integrity

18.Strong Professional Networks

19.Consistent

20.Innovative

21.Foundation of Principles & Values

22.Learning oriented

23.Passion


The new ones!

• Courteous

• Open and transparent

• Empathy

• Fair

• Agile

• Calm under pressure

• Strong professional networks

• Innovative


The Work

Environment 1. Collaborative Team

2. Top Down and Bottom Up Support

3. Empowered to make decisions

4. Delivery Focussed

5. Prepared to Challenge

6. Recognition, Compensation and Incentives

7. Inclusive

8. Trusted and Safe environment

9. Resourced

10.Work / Life Balance


The new ones!

• Collaborative

• Empowered

• Delivery focussed

• Inclusive


So…what do we know about the new procurement leader: The procurement leader has changed …from ‘Buyer’ to ‘Business savvy’ and ‘Enterprise-wide'

The Universe of professional procurement …overseeing 50 specialities.

Unpacking the animal with SQECs…’behaviour’ is the key

What does the DNA of the modern procurement professional show? …21 chromosomes

The ‘relationship’ chromosome …also known as the S-Curve …Level 3 is where all the value is

If that’s what it is…how do we build that?

…….in the ‘Building leadership’ break-out this afternoon


Questions

Craig Lardner FCIPS Procurement Advisory Services Pty Ltd

[email protected] +61 (0) 2 9523 3704 +61 (0)406 429 668

mailto:[email protected]

mailto:[email protected]

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