Significant procurement transformation is hard. If you are like most procurement leaders, you’ve already started a strategic sourcing effort to get quick savings, but you’re finding it hard to figure out what to do next. Do I improve my IT systems to gain efficiency and reduce errors? What if I focus on cleaning up my master data to better understand and control my spend? Should I modify my processes to align them with those I know to be highly effective? Do I focus on changing my organization and improving my staff capability? By now, you’ve probably concluded that you will need to do all of this and more, but you’re struggling to prioritize your efforts.
A procurement transformation effort can reduce your costs significantly. For a typical implementation, you will see annual cost savings of 4 to 9% on your services and indirect materials spend. You will also capture fixed cost savings of 20 to 30%. With normal program execution costs equal to 1 to 2% of one year of spend, depending on your organizations size and current capabilities, most procurement organizations will break even during the third year of program execution.
Ross Harvison, Intuitivum Group Managing Partner and President of ISM-Houston, participated in a panel discussion on “Creating an Open Environment for Change” at the 15th Annual Shell Hispanic Employee Network (SHEN) Conference held recently in Houston. Other panelists included Michael Beckwith, Managing Counsel for Global Litigation at Shell, and Manuel Prieto, Associate Principal at McKinsey & Company.
You can find Ross’ prepared responses to questions by clicking here.
Like most business leaders that are looking to create a major change, you recognize the need to build strong processes, systems and organizations to deliver much greater value over the long term. Unfortunately, as a procurement leader with out of date strategic sourcing processes, your biggest concern is shoring up this effort to quickly capture available savings. We understand both of these needs and will help you deliver value near term, and rapidly build business and operations excellence.
Like most business leaders that are looking to create a major change, you recognize the need to build strong processes, systems and organizations to deliver much greater value over the long term. You may also be concerned that your current activities need to be shored up to quickly capture available savings. We at the Intuitivum Group understand both of these needs and will help you deliver value near term, and rapidly build business and operations excellence.
Executives looking for new talent tell us that in the current human resource rich environment they pick only the best candidates to interview and hire. They can afford to heavily filter the applicant pool and only speak with the best professionals before they make their decisions. How do you get on this list? Is it your resume or you’re your social media profile? Is it about your overall marketing plan or how much time you put into the effort? Or, is it about who you know? It’s all of these things, but in this market, it’s mostly about how you make the right contacts, network effectively and sell yourself.
ISM-Houston provides seminars and on line training materials to help people in transition learn the basic skills of the job search and, more importantly, give you experience developing the interaction skills that you need to engage and sell yourself.
If you are looking for a new opportunity, go to the ISM-Houston Job Search Page for more information and tools to help you in your efforts.
Have you ever wondered why some professionals develop more rapidly than others? There has been a huge amount of research in this area and it appears that there is a relatively simple answer. It’s not intellect or innate ability. It is more about an individual’s power to understand their capabilities and aggressively pursue improvement. True high performance comes through a continuous, well thought out review of your capabilities and a focused effort to change.