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Articles in category: Leadership
For decades, certain health experts have turned stress into a public health enemy, yet new research suggests that stress may only be bad for you if you believe that to be the case. In other words, we are going back to what ancient wisdom has known for centuries, that stress is a matter of perception.(Read Full Article)
There are many skills required to bring about a consistent change in a function, but there are some qualities that leaders share.
In the latest article for our series The Financial CPO, BravoSolution’s Mickey North Rizza notes that reactive thinking is commonplace, but overcoming that and becoming strategic requires a change of mindset.
She writes: "To start this process, procurement must gain a solid understanding of the function’s performance to date, including self-assessment, and more importantly getting honest feedback from key internal and external stakeholders.
One of Procurement Leaders’ members is keen to learn more about supplier portals from the community and the scenario he posited gave insight into what can be a tricky area for functions.
He posed a question asking for advice from members about whether they are using a supplier portal and if so, whether it was custom built. He also wanted to know the best version of xml to use, and any advice about the Global Upstream Supplier Initiative (GUSI).
Whether the short term pain of introducing a specific new technology is outweighed in the longer term by cost and process ...(Read Full Article)
-->The most critical challenge we all face when managing poor performance, is preventing people from becoming demotivated. The idea behind performance management is to help employees ‘pull up their socks’ and put a spring back in their step but, sadly, the opposite often happens.(Read Full Article)
Impasse or deadlock in negotiations is a condition or issue that neither side seems to be able to agree on and it can bring the entire negotiation to a grinding halt.(Read Full Article)
-->There is a wealth of published information available about how to manage the commercial and technical content of supplier negotiations but little focus is given to how to handle the behavior of the participants, on both sides of the table.(Read Full Article)
A helicopter view of South Africa’s public-sector procurement system highlights not just its scale, scope and complexity, but also some of its key fragilities. Every year, departments and agencies across the three tiers of government spend more than R460-billion on procuring goods and services, ranging from automobiles for the police, to textbooks for schools and medication for hospitals.(Read Full Article)
There is a clear trend, both in terms of research and anecdotally, that companies are looking to centralise their procurement functions. Is this always the right path to follow?
We have recently published our research into Procurement Operating Models (you can access the executive summary here). One of the key questions of the study relates to impulse to centralise.
Clearly, this trend can be coupled with the dramatic rise of the procurement function. Even in established global brands, a dedicated purchasing department can be a relatively new emergence. The first remit of new CPOs, it seems, is to expand spend ...(Read Full Article)
Ten to 20 years ago, the supply chain leader in most companies held a title such as “vice president of logistics.” It was a largely functional role that relied on technical proficiency in discrete areas: knowledge of shipping routes, familiarity with warehousing equipment and distribution-center locations and footprints, and a solid grasp of freight rates and fuel costs. (S)he reported to the chief operating officer or chief financial officer, had few prospects of advancing further, and had no exposure to the executive committee. The way companies need to think of the modern supply chain executive has changed dramatically.(Read Full Article)
Despite her skiing injury, one meeting the German Chancellor, Angela Merkel, did attend was the first cabinet meeting of Germany’s new coalition government which took place in the second week of January.
An element of the government’s programme, which has been met with mixed reactions in Germany and beyond, is the issue of gender quotas on supervisory boards of publicly listed companies. The government’s decision to introduce mandatory 30% female representation is aligned with last November’s decision by the European Parliament to approve the implementation of mandatory quotas requiring 40% female representation for non-executive directorship positions ...
Early engagement is still an uphill battle: time-consuming and energy-sapping, with a high risk of no reward. Procurement isn’t invited to the party, it’s still waiting by the phone.
In this guest post, Procurement Leaders welcomes a call to action from Bill Young of Kestrel Ops - Procurement needs to get the attention of the business and it needs to think differently in order to do it, he argues.
Just 10 per cent of senior leadership roles in supply chain operations are held by women, according to research.
SCM World carried out a review of Fortune Global 500 firms with physical supply chains to arrive at the figure, and said the “time to break this problem down is now”.
The figure compares to other research that found 24 per cent of leadership roles across all business areas were occupied by women worldwide, with the most commonly held positions being chief finance officer, human resources director and corporate controller.
SCM World also conducted a poll of 150 global supply chain ...(Read Full Article)
2013’s biggest stories with the most impact on - or which hold the most potential for - procurement.
Virtually every business publication at this time of year reports on what the editors think were the biggest stories of the year. So, why shouldn’t bloggers and columnists do the same? Hearing no objections, here is my take on the two biggest stories with the most impact on - or hold the most potential for - procurement.
Developing and exhibiting an accomplished range of inter-personal skills has always been one of the key requirements of a leader, particularly so if you are a Chief Procurement Officer (CPO).(Read Full Article)
Procurement’s numbers have to make sense to finance, otherwise it’s hard to make an argument about adding value.
In the never-ending and always-necessary conversation about aligning procurement goals with corporate goals we almost always talk about what procurement should do to get closer to finance, which is arguably the first among equals in any organization. There’s a case to be made that procurement is where the money is.
The function’s first task in aligning with finance is to learn finance’s language and be able to speak with confidence about earnings per share (EPS), return on ...
Procurement processes have stayed the same for years (or even decades, in some cases) because change is hard, especially when it involves new technology, leadership or training.
As part of The Financial CPO campaign, focusing on procurement’s ability to develop and deliver to financial metrics, Procurement Leaders invites BravoSolution’s Mickey North Rizza to look at the barriers that can stand in the way of a successful procurement transformation.
The former chief of the FBI Crisis Negotiation Unit talks to Procurement Leaders about the right approach to negotiating and what procurement teams might learn.
Gary Noesner, former chief of the FBI Crisis Negotiation Unit speaks to Procurement Leaders ahead of his speaker slot at the Americas Congress on March 5-6 in Miami, Florida. His book, Stalling For Time: My Life As An FBI Hostage Negotiator looks at stories from his time as a hostage negotiator, instructor and investigator.
In 1981, Peter Drucker delivered a lecture at New York University titled “Managing the Increasing Complexity of Large Organizations.” Drawing on lessons from the auto industry, banking and beyond, he offered provocative prescriptions for coping in a world in which “the real challenge is to decide what you are doing” in the face of tremendous “technological change or market change.”(Read Full Article)
A study carried out by Wax Digital found the average age at which a buyer became a CPO at FTSE 350 companies was 42, but some had reached the position seven years earlier. The oldest to reach the position was 53, while the average age of all CPOs was 46, compared to the average age of 58 of a general FTSE 350 director.
The research, involving telephone interviews and LinkedIn profile analysis of 138 CPOs, found buyers had spent an average of three years in each of their previous roles, “suggesting the traditional image of procurement people in the same ...(Read Full Article)
So what are the ‘global themes’ of procurement fraud?
- No clear definition of procurement
The reason a central definition is so important is because it identifies the different areas of the procurement cycle that may be exposed to the risk of collusion or manipulation. The first stage is ‘identification of needs’, for example is there a requirement for this product or service in the first place?
- Lack of board importance
Procurement fraud is not on the boardroom agenda and there is often no anti-fraud strategy in procurement initiated across the organisation.(Read Full Article)
Here’s a suggestion for any CPO trying to figure out how to lure bright young new talent into his or her organization: Emphasize the importance of, and the opportunity to use, technology.
It was technology in the form of spend analysis, reverse auctions, and other applications that helped revolutionize procurement and put it on the path to being a strategic function rather than a mere back-office bureaucracy. And, it’s technology that will be a principal enabler for the functions to prove its value and deliver value to the organization in the years ahead. Where does that fit in ...
In the first presentation in the Procurement Forum in Zurich, Wolfgang Rauch, CPO of Novartis Pharma explained how his organisation sought to provide more value to the business. “Procurement is the best networked function in any industry,” Rauch maintained. “So the question is: how do we position ourselves to leverage that network?”
Novatis Pharma has launched a programme to push the function to the next level of performance and drive savings and productivity enhancements. The key to this is managing internal business requirements and managing the supply chains to service these needs.
Deciding what projects to tackle, and when to tackle them, will always feature as a daily task for most of us. We all have a variety of jobs to perform with goals to achieve, and each job will have its own timescale and deadline. This is why it is important for each of us to develop the ability to prioritise. In essence, this is the ability to focus on what is important and then to manage the task effectively in the face of the demands on our time that inevitably crop up every day.(Read Full Article)