ArcBlue Consulting www.arcblue.com.au @PMMSgroup
Insights from 2 years of ArcBlue Capability Assessments
in Procurement
Pete FitnessRegional Executive Manager, ArcBlue Consulting
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Agenda
About ArcBlue
NZ Organisations
NZ Procurement Professionals
What does good look like?
Emerging Themes
Opportunities for Procurement in NZ
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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
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Procurement Excellence is all we do
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NZ Organisations
vs
The Benchmarks
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Dimensions of
Procurement Excellence
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Procurement Effectiveness Reviews
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NZ Procurement Professionals
vs
The Benchmarks
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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
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13 Procurement
Competencies
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pQ (Individual Capability Assessments)
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pQ (Individual Capability Assessments)
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CIPS MER Capability Assessments
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What does Good look like?
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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
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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
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Common Themes
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Strengths
• Collaboration
• Communications
Weaknesses
• Influence
• Analysis (General and
financial)
Opportunities
• Improve overall capability
• Enhance influence
Threats
• Perceptions of:
- Reduced relevance
- Compliance hurdle
Common Themes
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Opportunities for the Procurement
Profession in NZ
CAPABILITY DEVELOPMENT
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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
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Elements to Successfully Developing People
Competency Framework
Skills Assessment
Program Design
Implementation
70:20:10
Measurement of outcomes
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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
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Opportunities for the Procurement
Profession in NZ
INFLUENCE
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Leadership is not about titles,
positions or flowcharts. It is
about one life influencing
another.-John C. Maxwell
Leadership is
influence.-John C. Maxwell
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You do not lead by hitting people over the head
— that’s assault, not leadership.-Dwight D. Eisenhower
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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
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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.
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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.
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.
WHAT DOES LEADERSHIP MEAN FOR ME
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.
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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.
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.
WHAT DOES LEADERSHIP MEAN FOR ME
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.
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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!
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