Insights from 2 years of ArcBlue Capability Assessments in ... Events/NZ... · Insights from 2...

ArcBlue Consulting www.arcblue.com.au @PMMSgroup

Insights from 2 years of ArcBlue Capability Assessments

in Procurement

Pete FitnessRegional Executive Manager, ArcBlue Consulting

The Global Procurement Network © ArcBlue Consulting 2

Agenda

About ArcBlue

NZ Organisations

NZ Procurement Professionals

What does good look like?

Emerging Themes

Opportunities for Procurement in NZ


We are part of the global PMMS

procurement network

We have operated around the world for over

30 years.

About us

We deliver over 1,000 workshops annually to

10,000 people around the world

Our assessment tools have been used over

10,000 times around the world

Our consultants are professionally qualified in

procurement

100 consultants worldwide with expertise

across all aspects of procurement

We consistently deliver well in excess of a 5:1

return on investment on our projects

We have experience in working with over 500

public and private sector organisations


Procurement Excellence is all we do


NZ Organisations

vs

The Benchmarks


Dimensions of

Procurement Excellence


Procurement Effectiveness Reviews


NZ Procurement Professionals

vs

The Benchmarks


pQ Online Assessment

Global standard for assessing procurement and SRM professionals

Has been in place for more than a decade

Assesses technical procurement competence

Benchmarked against 15,000 professionals

Used in 1,000 organisations across 100 countries

Provides a range of external benchmarks

Provides insights into capability levels allowing targeted development plans


13 Procurement

Competencies


pQ (Individual Capability Assessments)


CIPS MER Capability Assessments


What does Good look like?


ArcBlue would expect to see:

A governance board that provides leadership to the procurement function.

A clear statement about what is expected of the procurement function and the procurement team.

An appropriate organisational structure that underpins and supports business goals.

Effective influence by procurement professionals across the organisation.

Effective strategic procurement planning that allows time for effective requirement development, market

approach, negotiation and development of robust supplier management plans.

Appropriate and well managed relationships with suppliers (strategic or tactical) that elicit value beyond the

goods and services being procured.

A professional development strategy under which everyone in the organisation receives an appropriate level

of commercial training.

An effective stakeholder management plan underpinned by a communications plan that sets expectations

both for and of the procurement team.

An effective procurement support tool that automates process (including P2P) and provides data that is

analysed to support strategic procurement planning.

Effective and easily accessible procedures and processes.

Comprehensive reports based upon relevant KPIs so that the governance board is aware of and managing

the performance of the procurement function.

The Gold Standard - Organisation


ArcBlue would expect to see someone who:

Is pro-active in seeking improved value for customers and stakeholders.

Understands stakeholder mapping and the use of communications plans.

Sets clear collaboratively established targets .

Sets out a clear strategy and vision that are determined by the needs of the business.

Understands market analysis tools and can use them effectively.

Understands how to identify and manage risks.

Knows the fundamentals of negotiation and able to use them successfully.

Fully understands each section of the procurement process and how they inter-relate.

Clearly understands the benefits of contract management and strategic supplier relationship management.

Is financially aware, is capable of compiling project and departmental budgets, and understands total cost of

ownership.

Understands supply chains, the associated risks and how to analyse them.

Understands how to develop individual staff and develop them into winning teams.

Understands the fundamentals of project management, from planning through to completion.

Has good business acumen.

Takes a pro-active approach to their own professional development.

The Gold Standard - Individual


Common Themes


Strengths

• Collaboration

• Communications

Weaknesses

• Influence

• Analysis (General and

financial)

Opportunities

• Improve overall capability

• Enhance influence

Threats

• Perceptions of:

- Reduced relevance

- Compliance hurdle

Common Themes


Opportunities for the Procurement

Profession in NZ

CAPABILITY DEVELOPMENT


Challenges of capability development

Not aligned

to job roles

Not tied to

performance

plans

Lack of

planning

Ad-hoc

Courses

Lack of

resources

Not based

on fact or

assessment

Training is

voluntary

Too many

options

Not re-measured

to understand

success

Employee retention

following the

training


Elements to Successfully Developing People

Competency Framework

Skills Assessment

Program Design

Implementation

70:20:10

Measurement of outcomes


Formal Training

Procurement

Essentials

Social

Procurement

Negotiation

Essentials

Sourcing

Essentials

Contract Management

Essentials

Category

ManagementContract Law

Essentials

Finance Skills for

Procurement

Advanced

Negotiation

Supply Market Analysis

Supplier Relationship

Management

Stakeholder

Management

Advanced Contract

Law

Specification Writing

TechniquesAdvanced Contract Management


Opportunities for the Procurement

Profession in NZ

INFLUENCE


Leadership is not about titles,

positions or flowcharts. It is

about one life influencing

another.-John C. Maxwell

Leadership is

influence.-John C. Maxwell


You do not lead by hitting people over the head

— that’s assault, not leadership.-Dwight D. Eisenhower


For the CPO it may mean:

• Making sure that there is a clear line of sight between you and the Executive Team.

• Make sure that the procurement function has a clear value proposition.

• Look ahead to see what is going on in the organisation.

• Tell your people what you want them to do.

• Create an environment in which they can do it well.

WHAT DOES LEADERSHIP MEAN FOR ME









For the Category Manager it may mean:

• Making sure that the people working your project know they are in a team.

• Make sure people in your cross-functional team know each other’s strengths, weaknesses and value proposition.

• Be pro-active – plan future requirements with the business.

• Although you focus on your role, keep an eye on the team’s progress.














For the Procurement Specialist it may

mean:

• Be an authority on your subject.

• Bring solutions rather than problems

• Let people know what they need to do to help you.

• Be pro-active.

• Work the commercial system for them.














For the Procurement Specialist it may

mean:

• Be an authority on your subject.

• Bring solutions rather than problems

• Let people know what they need to do to help you.

• Be pro-active.

• Work the commercial system for them.

For the Analyst it may mean:

• Anticipating people’s needs.

• Exceeding expectations.

• Offer market knowledge.

• Show people opportunities.


Take-aways

With leadership and capability one becomes an

authority on one’s subject - without necessarily

having any authority.

People will listen to you – you will influence!

Insights from 2 years of ArcBlue Capability Assessments in ... Events/NZ... · Insights from 2...

Documents

Transcript of Insights from 2 years of ArcBlue Capability Assessments in ... Events/NZ... · Insights from 2...