Top Banner
Avoiding Ugly Surprises Ronald C. Vandermyde, CPM, FInstIB CEO, Premiere Management Associates, Inc. 1
39

Avoiding Ugly Surprises

Feb 23, 2016

Download

Documents

mahola

Avoiding Ugly Surprises. Ronald C. Vandermyde, CPM, FInstIB CEO, Premiere Management Associates, Inc. Overview. Just a few concepts to set the stage. Options for avoiding ugly surprises. Get burned enough times that you naturally know what to do - PowerPoint PPT Presentation
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: Avoiding Ugly Surprises

Avoiding Ugly Surprises

Ronald C. Vandermyde, CPM, FInstIBCEO, Premiere Management

Associates, Inc.

1

Page 2: Avoiding Ugly Surprises

OverviewJust a few concepts to set the stage

2

Page 3: Avoiding Ugly Surprises

Options for avoiding ugly surprises

3

• Get burned enough times that you naturally know what to do

• Wing it long enough that you learn you shouldn’t do that

Page 4: Avoiding Ugly Surprises

Options for avoiding ugly surprises

4

Or…• Develop and hone your key skills proactively

• Learn to think strategically

• Learn the value of effective preparation

Page 5: Avoiding Ugly Surprises

First, a little about…

5

Key things that impact the purchasing process – looking

through the management lens

Page 6: Avoiding Ugly Surprises

Purchasing is often a mixture of:

6

• Routine supplies

• Special orders

• Custom orders

• Project-related purchases

Page 7: Avoiding Ugly Surprises

One•Conceptualization

Two•Strategy

Three

•Design-build

Four• Execution

7

Page 8: Avoiding Ugly Surprises

Detail Scope / Outcomes

Define and sequence

Create Action Plan

Estimate Costs

Execute Pilot

Refine Full rollout

Tracking / Metrics

Stabilize

8

Page 9: Avoiding Ugly Surprises

Scope and Outcomes

• First, start with outcomes. Outcome-related questions are:

• What results do we want when finished?• What will success look like?• When the project is finished, what should be

different?

9

Page 10: Avoiding Ugly Surprises

Stakeholders

• Identify all direct stakeholders in the project• Identify indirect stakeholders in the project• Determine foreseeable consequences to each

stakeholder• Determine possible unintended consequences• Develop ideas for inclusion of key stakeholders

at the beginning of the project (DISCUSS WHY)

10

Page 11: Avoiding Ugly Surprises

Change Management

• Change management is the “people side” of projects (this is critical, but usually ignored)

• What plans do you have to:– involve the people who will be victimized by your

planning or project?– help them to fully succeed with the project– make changes/needed adaptations

11

Page 12: Avoiding Ugly Surprises

Strategic Thinking

12

It’s more than just strategy

Page 13: Avoiding Ugly Surprises

Strategic Thinking

• Two levels of strategy must be considered by every person in the agency. They are:

–Agency Level–Customer Level

–And in your case, a third: Vendor Level

13

Page 14: Avoiding Ugly Surprises

Management 20 years ago• The core values are still the same:

HonestyIntegrity

Organizational SkillsTime Management

Fiscal ResponsibilityEffective Communication Skills

Time ManagementProfessional Skills

Interpersonal Skills

14

Page 15: Avoiding Ugly Surprises

Management today• In addition to the core skills of 20 years ago, managers today must have:

Computer skillsInternet skills

Social networking awareness and skillEnvironmental responsibility

Emotional intelligenceCultural intelligence

Understanding of real leadership dynamicsOrganizational development skills

Team skillsKeen awareness of risk management

15

Page 16: Avoiding Ugly Surprises

Discussion – the world is changing

• In light of the core skills just presented, how does this impact you?

• What skills do you most need to focus on in the next 5 years to be current and effective as a purchasing agent?

16

Page 17: Avoiding Ugly Surprises

Effective Leadership

17

Page 18: Avoiding Ugly Surprises

CommunicationThe most neglected important skill we have

18

Page 19: Avoiding Ugly Surprises

19

Page 20: Avoiding Ugly Surprises

20

Discuss Chip Theory

Page 21: Avoiding Ugly Surprises

21

Discuss Emotional Intelligence

Page 22: Avoiding Ugly Surprises

22

Discuss Cultural Intelligence

Page 23: Avoiding Ugly Surprises

Discussion

23

• Where are you on the spectrum from poor to great communication ability?

• What signs point to your need to improve?

• What do you most need to do to improve your ability to communicate effectively?

Page 24: Avoiding Ugly Surprises

RFPThe crucial link between your agency and your vendors

24

Page 25: Avoiding Ugly Surprises

Mistakes I most often see in the RFP process:

25

• Failure to consider the perspective of the bidder

• Discuss this: What elements of a bidder or vendor’s perspective are important to consider? What is the impact?

Page 26: Avoiding Ugly Surprises

Mistakes I most often see in the RFP process:

26

• Failure to understand the use and importance of the goods and services involved

• It’s a matter of ripples… (Trona Plant)

Page 27: Avoiding Ugly Surprises

Mistakes I most often see in the RFP process:

27

• Failure to create an effective Q&A process for the vendors/bidders.

• What is the consequence if questions can’t be easily satisfied?

Page 28: Avoiding Ugly Surprises

Mistakes I most often see in the RFP process:

28

• Failure to understand the full consequence of grammar and syntax in the language of the RFP

• My experience: U.S. Corps of Engineers

Page 29: Avoiding Ugly Surprises

Contract NegotiationImportant considerations

29

Page 30: Avoiding Ugly Surprises

Ponder this…

30

What is the value of a

great vendor?

Page 31: Avoiding Ugly Surprises

31

Reactive negotiating vs. Proactive Negotiation

– Reactive: take full advantage of my opponent• Posturing and manipulation is primary• Often is short-term in focus

– Proactive: seeks win/win• Tactics are less important than outcomes• Seeks to preserve long-term relationships• People-building, not people-manipulating skills

Page 32: Avoiding Ugly Surprises

What is the objective of negotiation?

32

• To gain PERFORMANCE on an agreement

Page 33: Avoiding Ugly Surprises

Discussion

33

• If I understand that it is not just about getting a signed contract, but gaining excellent performance on the contract, how does that change our approach to RFP’s, contracts and negotiation?

Page 34: Avoiding Ugly Surprises

Follow UpHow do you know you are doing a great job?

34

Page 35: Avoiding Ugly Surprises

Measuring YOUR performance

35

Strive for customer ASTONISHMENT

Page 36: Avoiding Ugly Surprises

How do you know?

36

• Should you care about the level of service you provide?

• If so, how do you know what level of service you provide?

Page 37: Avoiding Ugly Surprises

The only measurement that matters:

37

Your service as seen through the eyes of your CUSTOMERS

Discuss customers; value in measuring your performance periodically

Page 38: Avoiding Ugly Surprises

Measuring Performance

38

• Do you have a method in place for doing this?

• If so, please share how, and what impact it has

Page 39: Avoiding Ugly Surprises

39

Q & A