The Elements of Procurement Mastery – Leadership During Times of Crisis
The walls of the elite art museums around the world are covered with the works of the leading artists of their periods, literal masterpieces by artistic masters. Today’s Best-in-Class Chief Procurement Officers should be proud of their body of work. It stands out from the crowd and deserves recognition. This recognition has been earned through inspiration, perspiration, and dedication. While many of today’s procurement virtuosos can be viewed as masters of their craft, with perhaps a few exceptions, the organizations that they manage are not works of art, but rather works in progress, with enormous capacity for improvement. Composer, conductor, and curator in one, today’s CPO must write the procurement team’s “score,” hire and rehearse the orchestra, and then take center stage to lead it.
In procurement, organizational mastery remains an ideal for most. When asked to describe the keys to departmental mastery a few years ago (See the Figure below), CPOs listed agility (45%) as the most important element. As business and innovation accelerate, the ability to adapt to changing requirements and market dynamics will only become more important. Agility will define tomorrow’s procurement leaders. Next, CPOs believe that understanding the value of collaboration (41%) will drive procurement mastery. The unique nature of the procurement function provides its workers with unique access and broad exposure to different business and functional stakeholders. To excel, collaboration must be king. Procurement mastery also demands strong, visionary leadership that includes CPOs but also their lieutenants.
The Elements of Procurement Mastery
This holds true today where strong leadership will be required as CPOs navigate their teams through the second global financial crisis this century. The COVID-19 pandemic will have far-reaching implications that we still don’t know the full extent of, and this uncertain time demands strong leadership from within an organization. While some leaders may seem like they were naturally born that way, strong leadership skills can be learned.
As the legendary Chief Procurement Officer, Uldis Sipols recently discussed during his CPO Rising 2K20 Virtual Series session, CPO Leadership in Times of Crisis (click here to view the on-demand session), “You’re the shepherd of the supply base. You are responsible for the company’s supply in the broadest sense.” Good Leaders help motivate others, provide guidance, build morale, initiate action, and take responsibility and accountability. A strong leader is accountable for the team’s results (good or bad). By holding themselves and their team accountable for their actions, it creates a sense of responsibility within the team.
Being an effective procurement leader today is far different than it was 20 years ago. Today’s workplace has a fast pace of chance, and many more demands. It involves working with many different teams, sometimes across multiple time zones. While motivation and inspiration can make leaders strong people managers, it is a leader’s actions that will ultimately drive the most respect and trust needed to be effective. Procurement leadership teams, particularly those with globally dispersed operations, can function as direct extensions of the CPO and provide the field leadership that helps win the small battles and prepares the team for larger conflicts. The right CPO, leadership team, and staff together can “paint a perfect picture and bring to life a vision” (in one’s mind).
CPO RISING 2K20 Series Continues this Week
Instead of our typical related research section, we are inviting our readers to investigate our new virtual series, CPO Rising 2K20 – The Resiliency Imperative.
If you are interested in CPO-focused sessions and discussions, you are in luck! Click below to learn more and register.
CPO Rising: The State of Procurement in 2020 – 4/30
The CPO Rising 2K20 Virtual Summit – The Resiliency Imperative – 5/7
CPO Leadership in Times of Crisis – View On-Demand
A New World (of) Orders: Rethinking the Global Supply Chain – View On-Demand
CPO Strategies: Paving the Road to Recovery – View On-Demand
CPO Playbook: Leveraging Your Network To Ensure Supply in the Age of Corona – View On-Demand
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