By: ProcurementIQ Staff Writer, Ashley McKay
“…More than 50 percent of procurement functions are still seen as a service rather than business functions with only a small proportion of CPOs reporting into CEOs, ” states Enrico Rizzon, Vice President and Partner at A.T. Kearney, in an article published on Procurious.
It is no secret that establishing credibility and building relationships with internal customers is a difficult task. This often makes it even more challenging for procurement to showcase the actual value they can bring to the entire business. Yes, it is important for procurement teams to meet their own departmental goals, but they can also help achieve organizational goals – as all departments within an organization should strive to do.
In his article, Enrico highlights 3 skills that CPOs must adopt to address these challenges:
- Herding cats. You will need to get all c-suite stakeholders on the same page. However, this presents a challenge within itself. “Those with experience will understand that, at that level, there are individual agendas and incentives that drive different, and not always helpful, behaviours.”
- Speak their language. Like in most relationships, communication is key! Procurement will have to learn to listen. While you may want to let your stakeholders how great your department is and what you’ve achieved, let them talk first. Find out their business needs and goals, and then communicate how procurement, as a department, can help them achieve those things. “The c-suite are not interested in what you want, but they are interested in what the business needs.“
To find out the third skill that Enrico highlights and read his full article “How to Train Your CEO to Get What the Business Needs,” click here.