Sandy Hicks, CPPB Chair, NAEP Innovators Forum & Past President NAEP

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

NAEP Innovators Forum

Sandy Hicks, CPPBChair, NAEP Innovators Forum &Past President NAEPAVP & CPO University of Colorado

Doreen MurnerChief Executive OfficerNAEP

Sponsors: SciQuest & Huron Consulting Group


Anaheim, California2

The Path to the Innovators Forum

• Started planning for the Innovators Forum in 2010

• Recognized that the role of procurement has changed and is much more strategico “This decade (2000-2010) has witnessed first-hand

the broad transformation of the procurement function from a tactical back-office department to a strategic function that can deliver strategic value across a wide-range of areas and is worthy of a C-level leader.” Aberdeen Group, November 2009, The CFO’s View of Procurement



Why did we want to do this?

• Gain perspectives from different areas and functions of higher education

• Continue to learn from each other and exchange ideas

• Provide insight to key strategic issues so that other institutions can benefit

• Deliver key knowledge and insights back to NAEP members



Who was involved

• Procurement Professionalso John Mayes, Yale Universityo Bill Cooper, Stanford Universityo Tom Kaloupek, Virginia Techo Jim Hine, University of California San Franciscoo John Riley, Arizona State Universityo Carol Barnhill, Arkansas State Universityo Mike Hardiman, University of Wisconsino Rosey Murton, University of Illinoiso Bruce Cherrin, University of New Mexicoo Jack Zencheck, Yeshiva Universityo Joyce Haney, Penn State University



• Business Officero Trudy Pound Curtis, York University

• HRo Andy Brantley, CEO CUPA-HR

• APPAo Lander Medlin, CEO APPA

• AASCUo Dan Hurley, Policy Director, AASCU

• Huron Consulting Groupo Derek Smith & Scott Hess

• SciQuesto Max Leisten, Dan Traub, Kristen Hoffman



Our Purpose

NAEP Innovators ForumFebruary 22-23, 2012

Miami, FL

“The purpose of the forum is to engage in a

discussion and analysis of the major issues

impacting the educational institution and to better

inform institutional stakeholders on alternative ways

to approach these challenging issues.”



Objectives

• Engage a broad range of thought leaders in developing a better understanding of the challenges and intensity of change in higher education in the future

• Position our organizations with other associations in the higher education community as an invaluable contributor to the educational process

• Create a greater understanding of the educational marketplace, its future challenges and opportunities

• Establish a long term collaborative relationship with NAEP and its key volunteer officers

• Share the investment in intellectual capital



Objectives

• To identify and understand the key issues facing higher education today and over the next five years

• To document the magnitude of those issues and their impact across an institution

• To develop recommendations that provide institutions with information and a starting point for addressing these issues

• To gather our collective feedback and insight as a starting point for building a white paper that will be distributed through the NAEP



Shift Happens 2010



Critical Procurement Issues

• Purposeo To guide the conversations at your institutions o To provide a framework so you can impact your

institution’s strategy and response to these issues

• Questions for Considerationo What issues do you feel are the most important to

address?o Which issues will have the biggest impact on your

institution or higher education?o Prioritize and define critical procurement issues



Top 8 Critical Procurement Issues

• Communicating ROI and Procurement’s Value Propositiono Procurement must be managed like a businesso Use ROI to market procurement’s valueo Target messaging to customers

• Manage Cost Savings and Revenue Generationo Procurement to take credit for initiativeso Continue to find “new” revenue opportunities



• Leverage Technologyo Eliminate non-valueo Improve customer satisfactiono Utilization of spend analytics; generate metricso Continuous improvemento Understand change management

• Strategic Plano Institutional mission alignmento Demonstrate alignmento Scope of services


Anaheim, California

• Supply Chaino Manage supply chain & TCOo Institutionalize supplier diversityo Explore capital & operating projectso Knowledgeable about all sourcing spend

• Tactical to Strategico Establish institutional alignmento Develop clear roles & responsibilitieso Move from “what we do” to “what we add”o Spend management vs. transactional managemento Develop internal policy & priorities


Anaheim, California

• Engage Userso Lead the changeo Focus on the customero Relationship managemento Look outside of procurement

• Prepare Staffo Procurement needs skill set necessary to support “new”

normalo Expand skills to remain competitiveo Ongoing certifications, continuous learningo Engage HRo Become knowledge resource in other areas



What’s Next?

• What is happening next

o Develop draft of White Paper (Late April)o Review White Paper (May/June)o Finalize White Paper Editing (July/August)o Publish White Paper (end of 2012)

Sandy Hicks, CPPB Chair, NAEP Innovators Forum & Past President NAEP

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