leadership in procurement and supply management
TRANSCRIPT
Brad Holcomb, CPSM, CPSDSVP & CPO, Dean Foods
Every CEO should demand the highest level of
performance and contribution that the Procurement
and Supply Management profession can deliver.
The Leadership Opportunity
The Portrait of an Effective Leader
Applications for Supply Management
Professionals to be Leaders
Leadership Skills:
What they are and How to Obtain Them
Traditional Procurement is viewed as:• Back room activity
• Operating outside view of the CEO
Modern Procurement is viewed as:• Innovative and forward thinking
• Working with suppliers to create value for the company
• Sharing expertise
• Reducing costs
• Creating true supply advantage
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Most companies view Procurement as somewhere in between Traditional and Modern.
Procurement’s full potential has yet to be realized.
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How can we unlock the value that Procurement can bring to the Organization?
Change how the Organization views
Procurement through Leadership.
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$1 Savings = $1 EBIT Impact
Investment Drives Cost Reduction
$1 Sales = $.05-$.10 EBIT Impact
Investment Drives Sales
Customers
Best of the best
Buying/Selling
TCS*
* TCS = Total Customer
Satisfaction
Buying/Selling
Best of the best
TCS*
SuppliersMy
Company
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It is our duty as Supply Management professionals to elevate awareness of the value that Procurement can bring through effective Leadership.
To
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y
To
mo
rro
w
Leadership
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Effective Leadership is about:
• Getting out in front
• Demonstrating what needs to be done and why
• Commanding a voluntarily following
Effective Leadership is grounded in Personal Values:
• Integrity
• Character
• Trustworthiness
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I know that my company
needs effective leadership to
help Procurement realize its
full potential.
What does this effective leader look
like?
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The Leadership Opportunity
The Portrait of an Effective Leader
Applications for Supply Management
Professionals to be Leaders
Leadership Skills:
What they are and How to Obtain Them
A Leader is customer focused
Companies are in business to
serve customers.
It is our duty to serve them better
than any competitor can or will.
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A Leader is Proactive
A Leader takes charge of the situation
+
Develop solutions to problems
=
Positive Results
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A Leader has Vision and is Goal Oriented
Every activity should be
geared towards reaching the
set goals and vision.
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A Leader is Current
In this ever changing world,
a Leader must be able to
adapt quickly.
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A Leader is Open and Flexible
“Even if you are right, you are
wrong” when you don’t involve
others.
It is important that a Leader be
open and actively seek other’s
ideas and be flexible to changes in
the environment.
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A Leader is a Change Agent
Today’s right may not be right
for tomorrow.
A Leader must continuously
define what is right.
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A Leader is Broad-Based
Supply Management affects every
part of the organization.
A Leader must be able to consider
this when making decisions.
Ops R&D
SalesMarketing
Supply Management
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A Leader is Approachable
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A Leader must be approachable
and open at all times.
This creates a stronger bond
between the Team and its Leader.
A Leader applies Positive Force
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Positive Force is used by a Leader
to help lift people up and
encourage them to do great things.
Most importantly, it allows people
the opportunity to succeed.
A Leader is an Effective Communicator.
Effective communication is key to
creating a vision and setting broad
strategic direction.
A Leader must be an effective
communicator to relay the
message to internal and external
customers.
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A Leader can adapt to the New Economy Requirements
Today’s business environment is
changing due to technology,
increased competition, and
various trends.
A Leader must be equipped with
e-Leadership skills to deal with
these changes.
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A Leader must be Well-Rounded
Leadership is not grounded in
specific education or a specific
professional background.
A Leader must be well-rounded as
they will need to bring value to the
entire organization.
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To become an Effective Leader, one must make a personal commitment to develop these attributes
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Put your goals in writing.
Draft a personal development plan
to learn and strengthen your skills.
Test them in real world situations.
Leadership is not a destination
but a lifelong process.
There will be many
opportunities to develop these
attributes along the way.
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The Leadership Opportunity
The Portrait of an Effective Leader
Applications for Supply Management Professionals to be Leaders
Leadership Skills:
What they are and How to Obtain Them
The sphere of influence for
Supply Managers is growing
larger throughout the
organization.
This allows a greater
opportunity to show leadership
through many different facets.
Influence
Cross-Functional Teams
“Destination” Job
Building “Key Supplier” Relationships
Working with Internal Customers
Communicating with the CEO
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Cross-Functional Teams
Procurement professionals can use these teams to demonstrate leadership that will directly impact the bottom line.
This is done through:– Ability to sell vision throughout corporation.
– Constructing buy-in from other departments.
– Getting Management support for committed resources dedicated to project.
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Communicating with the CEO
In order to achieve the highest potential for value creation, it is necessary to gain the support and trust of the CEO.
This can be done by effectively answering the CEO’s question “How can you help me?”
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Creating a “Destination” Job
Elevating the stature and reputation of Supply Management is a great way of demonstrating leadership.
As Upper Management focuses on the successes of Procurement, people will naturally want to become part of the “Winning” team.
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Building “Key Supplier” Relationships
Creating a “Win-Win” relationship with key suppliers is one of the most enjoyable leadership roles a Procurement professional can have.
This type of approach generates an environment that creates synergies for both parties and a win-win scenario for both organizations.
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There are many opportunities
to apply Leadership.
Now we need to fill-up our
“basket” with these
Leadership skills.
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The Leadership Opportunity
The Portrait of an Effective Leader
Applications for Supply Management Professionals to be Leaders
Leadership Skills:
What they are and How to Obtain Them
The skill set list for becoming a World Class Supply Manager
1. Interpersonal Communication Skills
2. Team and Facilitation Skills
3. Analytical Problem-Solving Skills
4. Technical Knowledge
5. Computer Literacy
6. Negotiation Skills
7. Education and Professionalism
8. Continual Learning
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20%
10%
10%10%
10%
15%
15%
15%
Interpersonal Communication skills
Supply Management
Professionals must be able to
communicate well internally
and externally.
Communication is like a bridge.
Traffic must flow smoothly in
and out for it to work.
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Team and Facilitation skills
Cross-functional teams are a way
of life in the business world.
Supply Management professionals
must learn to play different roles
on different teams - from member
to advisor.
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Analytical Problem-Solving Skills
Supplier selection criteria has to
be precise as business relationships
become closer.
Supply management professionals
must know the industry and
translate that knowledge into total
cost evaluation.
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Technical Knowledge
A technical understanding of the organization’s
business is required.
As contracts become longer, supply management
must understand the supplier’s processes and
scheduling systems to make improvements.
IMPROVED OUTCOMES FOR ORGANIZATIONS
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Computer Literacy
The use of computers, software, and
e-tools can help eliminate
redundant and non-value activities.
The ability to use computers,
various software, and e-tools allows
managers to organize and analyze
data more quickly and efficiently.
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Negotiation Skills
Supply management professionals
must be able to be strong
negotiators for their company.
Strategic negotiations strategies
can lead to a satisfying win-win
relationship for both the supplier
and the organization.
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Education and Professionalism
Self-improvement as well as a
formal education is a necessity for
a supply management position.
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Continual Learning
Learning should always be on the
agenda as requirements are
constantly shifting.
Supply Management professionals
should be in a constant state of
learning to prepare for the ever
changing business environment.
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The best way to become an effective leader is to seek opportunities
to practice these leadership skills.
So go create a vision and plan and then get out front and Lead!
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Now is the time to experience even
greater enjoyment and achievement in
your career as you create new
momentum and results!
• A powerful personal brand
• Unrivaled achievement
• Extraordinary relationships
• Unstoppable vitality
• Outstanding fulfillment
• A game plan for your career
and…….your life!