INSIGHTS: Transforming procurement teams into value accelerators
Over the past few years like many businesses we have come across the hurdle of procurement teams. Luckily over the years in driving ‘new ways to create’ we have been able to work with executive teams in changing the role of procurement, changing the focus from outputs to outcomes.
A simple truth is that procurement teams if operating efficiently and for the good of the business must be focusing on outcomes rather than outputs. Put differently a procurement team should be value enablers, and high performing procurement teams should become value accelerators and become an integral part of the delivery team.
Becoming a value enabler or a high performing value accelerator does not mean relaxing governance, cutting corners or making ill-considered decisions. Implementing an outcome based model increases governance and overall accountability across the entire proposition to delivery lifecycle, as all members of the business are focused on delivering and accountable for generating measurable value.
Importantly with such a framework the performance of the team can be assessed against these value outcomes, removing those corners of the building where it is possible to make decisions without recourse on whether it was the right or wrong decision.
Ian Wilding…‘When we have clients wanting to accelerate value creation we often touch all aspects of the delivery lifecycle. How a proposition is defined and broken down; how we de-risk and avoid wasteful activities; how we procure outcome based partnerships and team formation; and how we manage the conflict between ROI and Payback period. These are fundamental items to address. Any teams not openly discussing their approach to each is not operating to their potential and inevitably creating an environment where it is easy to side step accountability and ownership around decisions that fundamentally impact outcomes.
As part of our work addressing the procurement opportunity [yes it is an opportunity], we will be sharing a number of observations and insights which we hope can help to shape some of your thinking on how to change the way you create to generate accelerated value across your businesses.