Building SRM Capabilities in Your Organization and Yourself

©2016 IACCM

Envisioning Commercial and SRM Success

IACCM research shows:

9.15% profit improvement can be captured through improved contracting and commercial

relationships

©2016 IACCM

Recurring Challenges: The Ten Pitfalls of Contracting

Lack of clarity

on scope and

goals

1

Result: Cause of

claims/disputes

3Failure to

engage

stakeholders

Result: Misaligned

interests and future

opposition

Negotiations focus

on the wrong

terms and risks

Result: Performance

management dominated by

blame/fault

7Contracts

difficult to use

or understand

Result: Users see contract

as irrelevant to business

needs

9Limited use of

contract

technology

Result: Inefficiency and

loss of quality in

performance and analysis

Average value

erosion 9.15%Legal/contract

team not

involved early

enough

2

Result: Wrong form

of contract &

extended lead time

4Protracted

negotiations

Result: Competitive

exposure & delayed

revenues

6Contracts lack

flexibility.

Insufficient

focus on

governance

8Poor handover

from deal team

to

implementation

teamResult: commitment &

obligations missed &

misunderstood

10Poor post

award

processes and

governance

Result: Repetitive issues

and errors causing value

loss

Result: Loss of

economic benefit;

contract a weapon

5

©2016 IACCM

From Goods to Services

©2016 IACCM

Contracts and Relationships Need to be Integrated

New skills are needed

©2016 IACCM

Positioning on the Collaborative Value Curve

©2016 IACCM

Contracts and Relationships Need to be Segmented

Segmentation is central – requiring new skills

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The Skills Development Journey

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Envisioning SRM Success

What roles can the SRM professional embrace?

• Capture and ensure the purpose of the contract

• Identify and promote the roles of those involved

• Ensure the expectations of the parties are met

• Fulfill the mission, vision and values of the joint enterprise

• Serve as a conduit to connect the commercial parties

©2016 IACCM

Envisioning SRM Success

The function that seeks to develop successful, collaborative relationships with key suppliers for the delivery of significant tangible business benefits for both parties.

©2016 IACCM

Skills focus – the Skills Needed for IR 4.0

In 2020:1. Complex Problem Solving2. Critical Thinking 3. Creativity4. People Management5. Coordinating with Others6. Emotional Intelligence7. Judgment and Decision Making8. Service Orientation9. Negotiation10. Cognitive Flexibility

In 2016:1. Complex Problem Solving2. Coordinating with Others3. People Management4. Critical Thinking 5. Negotiation6. Quality Control7. Service Orientation8. Judgment and Decision Making9. Active Listening10. Creativity

Source: World Economic Forum

©2016 IACCM

Transformation of Approaches

Key approaches for improved impacts on contracted relationship outcomes:• Risk allocation• Problem solving• No-blame culture• Joint working• Communication• Gain and pain sharing• Mutual objectives• Performance measurement• Continuous improvement

©2016 IACCM

Overview of SRM Certification Program

• Assessment, content and examinations• Presentations, written resources and message

boards

14© 2016 State of Flux Ltd

:

IACCM provides a comprehensive SRM Training and Certification learning program


Program Benefits

FOR EMPLOYERS

✓Confirm and benchmark employee

credentials.

✓Make visible commitment to

employee growth and excellence.

✓Provide positive benefit for new

hires and support employee

retention.

✓Achieve a compelling return on

investment from improved

performance.

✓Enhance functional status and

influence through unique reporting

and competitive insight.

✓ Achieve world recognised

accreditation.

✓Gain detailed knowledge of leading

SRM practices and apply it on a

real supplier relationship.

✓Raise personal status and career

path opportunities.

✓Join one of the fastest growing

global communities.

✓Demonstrate your commitment to

excellence and world-class

standards.

FOR INDIVIDUALS


What will I learn? - PractitionerP1 Introduction:Two introductory e-learning modules:

Introduction to SRM

Defining SRM and its value

P2 Principles of SRMFive e-learning modules focused on the

core principles of SRM:

Sourcing options

Who are your suppliers

Segmentation models

Creating the agreement

Understanding the base principles for

delivery of your SRM program.

P3 Building and Deploying SRMFive e-learning modules focused on the

business case and deployment:

Benchmarking

The business case for SRM

Stakeholder management

Implementing your SRM program

Communications management

P4 Managing SRMFive e-learning modules focused on

operational aspect of SRM:

Measuring success

Balanced scorecard

Governance

Personal attributes of a supplier

relationship manager

Culture and ethics

P5 SRM and Contract ManagementFive e-learning modules focused on the

link between contract management and

SRM:

The supplier view of SRM

Claims and disputes

Contract change management

Exit strategy

Bringing it all together


What will I learn? – Advanced Practitioner

AP1 The Lifecycle approach to supplier managementExamines the total lifecycle from supplier on-boarding, management through the life of the

contract and exit and the how value is optimised in each phase.

AP2 Cross-business stakeholder engagementStakeholder mapping that encompasses the key interests on both the buy and sell side of the

relationship; Building the relationship plan.

Leading cross-functional cross business teams and the dealing with influence without

authority;

AP3 Contract and performance managementContracts as a basis for performance management. The role of SLAs. KPIs for driving

continuous improvement through balanced (two way) scorecards.

AP4 Risk Management in the supplier management contextIdentifying and calibrating supplier risks. Transforming inherent risk into actioned and residual

risk; Risk reporting and using key risk indicators in managing the supplier relationship.


What will I learn? – Advanced Practitioner

AP5 Driving collaboration through joint account planningUnderstanding the objectives of the key account manager and account planning. Evaluating

how you are being account managed. Identifying where to collaborate (and where not) in joint

account planning scenarios.

AP6 Implementing value release programsIdentifying and leveraging buy-side and sell-side value drivers and benefits. Creating a

quantified value release plan.

AP7 Influence, trust and communications skillsStakeholder dialogue methods – structuring communications for influence and persuasion in a

conversational, presentation and written communications context.

Building trust and collaboration.

AP8 Stimulating and managing supplier innovationThe key elements needed to manage a pipeline of ideas and keep suppliers engaged. Building

an idea screening process. The key elements of a joint business case.


Timescales and learner commitment by level

ELAPSED TIMELEARNER INVESTMENT

1 to 3 hours per week per module

4 to 12 months (depending on individual

circumstances)

Minimum of 24 hours

12 months (can be

shortened if done in-house)

Case study and coaching driven - no prescribed timings

12 months

©2016 IACCM

Thank you!

How does the SRM program differ from the CCM program?

What is the value to go through the SRM program?

Building SRM Capabilities in Your Organization and Yourself · business case and deployment:...

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