Strategic Procurement Planning An Introduction Presented by: Kenneth D. Hayslette, CPPO, C.P.M., CPCM
07/15/2015
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An Introduction
Strategic Procurement
Planning
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1.Strategic Planning Processes
2.Strategic Procurement Planning
3.Implementation
4.Evaluation & Adjustment
Outline
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o Has implemented an organization wide strategic plan.
o Has implemented organizational and procurement strategic plans.
o Has only implemented a procurement
strategic plan.o Does not have any strategic plans.
o Has no clue what strategic planning means.
Please complete this statement:My entity
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Strategic Procurement Planning An Introduction Presented by: Kenneth D. Hayslette, CPPO, C.P.M., CPCM
07/15/2015
Page 2 of 17
Strategy
“a high level plan to
achieve one or more
goals under conditions
of uncertainty … with
limited resources”
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Strategic Planning
“a deliberative,
disciplined, approach to
producing fundamental
decisions & actions that
shape & guide what an
organization is, what it
does, & why.”
Bryson
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I’m thinking of
getting into
the strategic
planning
game.
If I understand
the job
description, you
just basically
hallucinate
about the future
and then
something
different
happens.
You also
have to
pretend
it’s
useful.
Really?
That
sounds
hard!
12-17-14
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Strategic Procurement Planning An Introduction Presented by: Kenneth D. Hayslette, CPPO, C.P.M., CPCM
07/15/2015
Page 3 of 17
‘A Tale of Two Cities’
Stereotypical
City
Enchanted
City
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Mission
Goals
Objectives
Strategies
Plans
Actions / Tasks
V
M
G
O
S
P
A
VISION
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9
Vision
WHAT DO WE
(the organization)
WANT TO BE?
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Strategic Procurement Planning An Introduction Presented by: Kenneth D. Hayslette, CPPO, C.P.M., CPCM
07/15/2015
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Vision
Stereotypical
City
Enchanted
City
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Vision
“The vision for your
organization should
be aggressive, yet
attainable. … Your
organization will
never be greater than
the vision you create
in this process.”
Jason Piatt
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Mission
The primary
reason that the
organization
exists.
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Strategic Procurement Planning An Introduction Presented by: Kenneth D. Hayslette, CPPO, C.P.M., CPCM
07/15/2015
Page 5 of 17
Mission
Stereotypical
City
Enchanted
City
CHARTER
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Goals are WHAT
the organization
intends to
accomplish.
Goals
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Goals
Stereotypical
City
Enchanted
City
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Strategic Procurement Planning An Introduction Presented by: Kenneth D. Hayslette, CPPO, C.P.M., CPCM
07/15/2015
Page 6 of 17
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Plans are the
DOCUMENTED
processes to carry
out the strategy.
Plans
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Strategic Procurement Planning An Introduction Presented by: Kenneth D. Hayslette, CPPO, C.P.M., CPCM
07/15/2015
Page 7 of 17
Actions / Tasks are
discrete documented
steps in carrying out
each plan.
Actions / Tasks
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Based upon the previous descriptions, how would you describe your organization?
o I work for a definitely stereotypical organization.
o I work for a definitely enchanted organization.
o I work for an organization that is more
stereotypical than enchanted.
o I work for an organization that is more
enchanted than stereotypical.
o I haven’t decided.
o No comment.
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Strategic
Procurement
Planning
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Strategic Procurement Planning An Introduction Presented by: Kenneth D. Hayslette, CPPO, C.P.M., CPCM
07/15/2015
Page 8 of 17
Strategic Procurement
Planning establishes SETS
of strategic & tactical
GOALS & OBJECTIVES
that link resource
allocation decisions in a
priority-setting model.
Adapted from NIGP
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Strategic Procurement
Planning creates a dynamic
roadmap to guide the
procurement agency
through its fiscal periods,
aligning its actions with the
organization’s goals &
visions.
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Budget
Requests
Approval
Process
Implement
Budget
Purchase
Request
“Traditional Approach”
ContractsProcurement
Process
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Strategic Procurement Planning An Introduction Presented by: Kenneth D. Hayslette, CPPO, C.P.M., CPCM
07/15/2015
Page 9 of 17
Budget
Request
Approval
Process
Implement
Budget
Purchase
Request
“SP2 Approach”Org
Strategic
Plan
Procurement
Process
Contracts
Procurement
Team SP2
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Procurement
Stereotypical
City
Enchanted
City
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Introspection
Are we currently
ACHIEVING the
organization’s
strategic goals &
objectives?
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Strategic Procurement Planning An Introduction Presented by: Kenneth D. Hayslette, CPPO, C.P.M., CPCM
07/15/2015
Page 10 of 17
Introspection
Are we CAPABLE of
achieving the org’s
strategic goals &
objectives?
Why / Why not?
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Introspection
What MUST be changed?
What do we WANT to
change?
What CAN be changed?
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Strategic Procurement Planning An Introduction Presented by: Kenneth D. Hayslette, CPPO, C.P.M., CPCM
07/15/2015
Page 11 of 17
AQ &
THANKS FOR LISTENING
WE’LL BE ANSWERING QUESTIONS NOW
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A well developed strategic
plan is like a well written
symphony.
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Implementing a strategic
plan is like conducting the
orchestra.
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Strategic Procurement Planning An Introduction Presented by: Kenneth D. Hayslette, CPPO, C.P.M., CPCM
07/15/2015
Page 12 of 17
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ORGANIZATIONAL
CULTURE
Resource
Allocation Process
(budget cycle)
Implementation Challenges
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TIME
Commitment
Status Quo
Misunderstanding
“Strategy”
Inadequate training
Implementation Challenges
Horwath
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Strategic Procurement Planning An Introduction Presented by: Kenneth D. Hayslette, CPPO, C.P.M., CPCM
07/15/2015
Page 13 of 17
2 Key SP2 Planning Questions
1. How will Procurement be
evaluated for its successes?
2. How to define objective
measurements relative to
organizational success?
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Which of the following is your biggest challenge to implementing a Strategic Procurement Plan?
o Timeo Commitment o Status quoo Misunderstanding “strategy”o Inadequate training
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Strategic Procurement Planning An Introduction Presented by: Kenneth D. Hayslette, CPPO, C.P.M., CPCM
07/15/2015
Page 14 of 17
40
Test of an Effective Strategic Plan
“[W]hether management actually
commits resources to activities
which will bring results in the future
... the best plan is only a plan, i.e.,
good intentions, unless it
degenerates into work - with
assigned roles, accountabilities,
deadlines, and measurement of
results”
Adapted from Peter F. Drucker, Management: Tasks, Responsibilities, Practices, 1985
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Key Outcomes of SUCCESSFUL
Strategic Planning Process
1. Strategic Thinking
2. Strategic Acting
3. Strategic Learning
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“The creation and
application of insights
and opportunities with
the objective of
achieving competitive
advantage.”
Strategic Thinking
Wikipedia
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Strategic Procurement Planning An Introduction Presented by: Kenneth D. Hayslette, CPPO, C.P.M., CPCM
07/15/2015
Page 15 of 17
Implementing the
strategic decisions that
are made to advance the
goals and objectives of
organization and people.
Strategic Acting
Adapted from The Academy.com
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The evaluation process
to help the organization
or group learn quickly
from its work so it can
learn from and adapt
strategies.
Strategic Learning
Adapted from The Center for Evaluation Innovation.
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Conclusion
Strategic planning is a set of
concepts, processes, and
techniques that help an
organization assess where it
is, decide where it wants to
go, and determine the best
way to get there.
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Strategic Procurement Planning An Introduction Presented by: Kenneth D. Hayslette, CPPO, C.P.M., CPCM
07/15/2015
Page 16 of 17
Jane T. Jones
Contracting Officer
1962 – 2015
SHE WOULDA DONE SOME
REALLY COOL STUFF
BUT …
HER BOSS WOULDN’T LET
HER!
Your Epitaph?
Adapted from Tom Peters
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AQ &
THANKS FOR LISTENING
WE’LL BE ANSWERING QUESTIONS NOW
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For More Information or Questions, please contact me.
Kenneth D. Hayslette
386.734.8056
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Strategic Procurement Planning An Introduction Presented by: Kenneth D. Hayslette, CPPO, C.P.M., CPCM
07/15/2015
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