Is Your Procurement Team Fit, Valued and Leading? | Mickey North Rizza | LinkedIn
Or are you underachieving? Is your team perhaps not quite up to the leader status with average or laggard performance? While it may not be something you want to readily admit, the quicker you acknowledge lack of performance, the sooner you can start preparing for a better future and start contributing real value.
Does the word transformation conjure up a long, lengthy and expensive process and bring on a headache? Hopefully not, but if so, move beyond it and start embracing the concept. The quicker you embrace it, the easier it will be to transform. Need some help getting their quickly? Be sure to check out “Ten Steps to Unlock the Power of Procurement” for some ideas to start putting into practice.
Procurement leader have a higher level of performance, bring more savings, margin improvement, better working capital and contribute real value to the company. While cost savings are critical, leading companies recognize more focus on the supplier brings greater value to the business. Leaders are focused on the value derived from their outcomes that have made a difference in a societal and financial avenue. Collaboration and innovation are key contributors to the value leaders achieve.
Leaders listen to their stakeholders, customers and suppliers. Leaders optimize their resources of people, processes and technology to achieve the best performance. Leaders put a stake in the ground, make changes and continually transform their business to be better and better. Failure is not an option to the leading procurement organizations.
Leaders measure value in terms of:
Total Value Management or the Highest Value to Cost Ratio
Time to Value
Returns to Shareholders
Net Present Value of New Product Portfolio
Return on Investment of Innovation Projects
Improvements of Economic Value Add, Return on Invested Capital & Return on Assets
Move Forward NOW
If you are stagnant and just producing average or laggard procurement performance, move forward NOW and start planning your transformation strategy. Put a stake in the ground and get moving, plotting out the significant value you and your team can contribute to your business. If you don’t start transforming to a leadership status you face extinction and might want to start looking for a new career.