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Secrets of Global Spend Management Transformation -  Leslie Campbell, Chief Procurement Officer, Reed Elsevier
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Secrets of Global Spend Management Transformation - Leslie Campbell, Chief Procurement Officer, Reed Elsevier

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  • Spread over all divisions and many countriesOnly a couple of locations had more than one individual
  • 2008 and 2009 Key ChallengesSignificant and immediate ROI expectations set RE’s CEO (GP’s executive sponsor) retiresNot all senior mgmt. embraced potential value of a centre led Global Procurement organizationGP Mgmt. Team not fully built, leaving leadership gapsConsolidation of significant number of existing procurement personnel not fully completeProcurement had historic credibility gap with Finance and some Operational groups (e.g. Marketing)Procurement’s value not well understood, tracked, and/or reportedActivities primarily tactical, little strategic tractionObjectivesCash Flow and ProfitabilityOperational EfficiencyRisk MitigationInnovation
  • Foundation Building to Deliver ResultsAligned new and old resources to the Global Procurement visionImplemented spend analytics, sourcing, contract & supplier mgmt. processes / toolsBuilt cross division/country strategic category mgmt. programsEstablished common savings definition, tracking and benefits capture processesBuilt stakeholder relationships
  • Putting the Pieces TogetherBuilding Trust & Credibility by Consistently Delivering Measurable ResultsLeveraging Spend Analytics, eSourcing, Contract & Supplier Management SystemsOptimizing & Leveraging Existing Skills while Finding and Blending new Skills Listening and Incorporating Bottom up along with Top Down FeedbackBuilding/Deepening Relationships through Knowledge of the Business to Evolve from Reporting to Partnering
  • Plot thickens and the characters changeNew boss, new perspectiveWe don’t know what the future holds, but we DO know we’re well tooled and staffed, and agile enough to deal with itMaybe a spinoff or two
  • We should work on bullets and formatting of this. Maybe no bullets.TALKING POINTSWe don’t supply what WAS, we ask what COULD/SHOULD beWe’re a desired stop on many career paths

Secrets of Global Spend Management Transformation - Leslie Campbell, Chief Procurement Officer, Reed Elsevier Presentation Transcript

  • 1. Secrets of Global SpendManagement TransformationLeslie CampbellReed Elsevier, Chief Procurement Officer
  • 2. SECRETS OF SECRETS OF GLOBAL SPEND GLOBAL SPEND Dedicated to MANAGEMENT MANAGEMENT The Reed Elsevier Global Procurement Team, TRANSFORMATION TRANSFORMATION in recognition of their extraordinary contributionswhich successfully transformed the - BOOK ONE - procurement function
  • 3. Prologue: 2008 SECRETS OF  130 decentralized resources GLOBAL SPEND Dedicated to  28 procurement locations globally  NoMANAGEMENT tools global policies, processes or The Reed Elsevier Global Procurement Team,  TRANSFORMATION Disparate Accounts Payable systems and data sources in recognition of  Multiple Charts of Accounts their extraordinary contributions  No centralized contracts databasewhich successfully transformed the  - BOOK ONE - < 20 projects annually procurement function  $12m unvalidated savings pipeline
  • 4. Epilogue: 2012 Prologue: 2008 ~$100m validated annual cash savings  130 decentralized resources covered 90% of total procurement spend two years running by Spend Vis  28 procurement locations globally $384m validated P&L savings in 4 yrs  Auctions in 2011 up +112% over 2009 1300 completed projects (400+  No global policies, processes or tools >12k contracts managed electronically project/year)  Disparate Accounts Payable systems DocuSign eSignatures launched (50% of 110 staff (-15%) in 21 locations (-25%) and data sources documents fully executed in 24 hours) Lower operating budget (-14%)  e-invoicing launched Multiple Charts of Accounts Improved Employee Satisfaction scores  No centralized contracts database Best Procurement (Net Promoter Score doubled)  < 20 projects annually Team 2011 (Procurement  $12m unvalidated savings pipeline Leaders Network)
  • 5. Epilogue: 2012 ~$100m validated annual cash savings  Chapter One covered 90% of total procurement spend two years running by Spend Vis $384m validated P&L savings in 4 yrs  Auctions in 2011 up +112% over 2009 1300 completed projects (400+  >12k contracts managed electronically project/year)  DocuSign eSignatures of our (50% of The Winter launched 110 staff (-15%) in 21 locations (-25%) documents fully executed in 24 hours) Discontent* Lower operating budget (-14%)  e-invoicing launched Improved Employee Satisfaction scores Best Procurement (Net Promoter Score doubled) (*…or, adjusting to climate change) Team 2011 (Procurement Leaders Network)
  • 6. Chapter One Key Learnings Chapter One Expect to be surprised  Familiarity does NOT breed (It’s less surprising that way) contempt The Winter of our (It breeds familiarity) Discontent* Knowledge is power (But listening is more powerful than talking) (*…or, adjusting to climate change)
  • 7. Chapter One Spend Mgmt. Maturity Curve Delivered Savings Value Key Learnings Dispersed Tactical Buying Focus on Costs $m USD • Exceeded increased savings target • Leveraged enhanced spend visibility 2013 Expect to be surprised  Familiarity does NOT breed • Achieved financial interlock (It’s less surprising that way) contemptMaturity (It breeds familiarity) • Formed Mgmt. Team • Consolidated resources Knowledge is power • Set key initiatives (But listening isImplemented first tools • more powerful than talking) Target Actual Target Actual 2008 2009 2010 2011 2012 2008 2009 2010 2011 Forecast Actual
  • 8. Spend Mgmt. Maturity Curve Delivered Savings Value Chapter Two Dispersed Tactical Buying Focus on Costs $m USD • Exceeded increased savings target Smart Speed • Leveraged enhanced spend visibility 2013 • Achieved financial interlock andMaturity • Formed Mgmt. Team Other Lessons in • Consolidated resources • Set key initiatives Navigation* • Implemented first tools (* …or, changing course, and learning Target Actual Target Actual 2008 2009 2010 2011 2012 the most from our greatest critics) 2011 2008 2009 2010 Forecast Actual
  • 9. Chapter Two Key Learnings Chapter Two Smart Speed They just might have  Smart Speed has a point many gears and (It would be a shame to miss it) (Learn not Lessons in Other to grind them) Navigation* Can I leave this with you? (Sharing works better without (* …or, changing course, and learning expectations) the most from our greatest critics)
  • 10. Chapter Two Spend Mgmt. Maturity Curve Delivered Savings Value Key Learnings Coordinated Buying & Sourcing • Savings growth in all Focus on Cost & Value $m USD categories and in all divisions They just might have  Smart Speed has a point many gearsMaturity (It would be •aImplemented add’l tools shame to miss it) (Learn not to grind them) • Deepened relationships with Finance/Operations • Completed major Can I leave this with you?procurement reorganization (Sharing works better without Target Actual Target Actual Target Actual expectations) 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 Forecast Actual
  • 11. Spend Mgmt. Maturity Curve Delivered Savings Value Chapter Three Coordinated Buying & Sourcing • Savings growth in all Focus on Cost & Value $m USD categories and in all divisions Unusual Suspects, Plain Brown Wrappers,Maturity • Implemented add’l tools • Deepened relationships with Finance/Operations and a Good Melon * • Completed major procurement reorganization (*…or, findingActual Target Actual where Target Actual Target magnificence 2009 2010 2011 2012 2013 you least expect it) 2009 2010 2011 2008 2008 Forecast Actual
  • 12. Chapter Three Key Learnings Chapter Three Unusual Suspects, Diversity works  Trust your gut (But it can be HARD work) Plain Brown Wrappers, (You know a good melon) and a Good Melon * Look beyond the surface (Do you care most about what is, (*…or, finding magnificence where or what CAN be?) you least expect it)
  • 13. Chapter Three Spend Mgmt. Maturity Curve Delivered Savings Value Key Learnings • Increased productivity Strategic Sourcing • Deepened trust and Focus on Value $m USD partnership with the business Diversity works  Trust your gut (But it can be HARD work) (You know a good melon)Maturity • Leveraging Tools, Processes and Look beyond the surface Relationships • Broadening reach (Do you care most about what is, or what CAN be?) Target Actual Target Actual Target Actual Target Actual 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 Forecast Actual
  • 14. Spend Mgmt. Maturity Curve Delivering BusinessValue Delivered Savings ValueStrategic Spend Management  Compliance & Demand Management • Increased productivity Strategic SourcingFocus on Strategic Business Value • Deepened trust and  M&A/Divestment Support Focus on Value $m USD partnership with the business  Product Development with the business  Working Capital Mgmt. with Treasury  Independent Contractor Risk MitigationMaturity • Expanding with Legal • Leveraging Tools, Procurement’s Processes and  Revenue Generation via Balance of Trade Traditional Role Relationships  Software Asset Management with • Broadening reach Technology Services  Target Actual TargetOffshoring and Outsourcing Expansion of Actual Target Actual Target Actual Centre of Excellence 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011  Supplier Relationship & Risk Mgmt. Forecast Actual
  • 15. Spend Mgmt. Maturity Curve Book Two Delivering Business ValueStrategic Spend Management  Coming Soon Compliance & Demand ManagementFocus on Strategic Business Value  M&A/Divestment Support  Product Development with the business  Working Capital Mgmt. with Treasury END OF Maturity (Due out… Independent Contractor Risk Mitigation with Legal BOOK ONE • Expanding Procurement’s  Revenueany day via Balance of Trade Generation now) Traditional Role  Software Asset Management with Technology Services  Expansion of Offshoring and Outsourcing Centre of Excellence 2008 2009 2010 2011 2012 2013  Supplier Relationship & Risk Mgmt. Forecast Actual
  • 16. Book Two Book Two Preview Coming Soon Our centralization is  We step back a little more philosophical, – Unwind some END OF – Information accessed less structural (Due out… by many, not few BOOK ONE any day now) We continue to evolve  We step forward a lot – From data to insight – From structure to innovation – From supporter to partner
  • 17. Book Two Preview About the Author Reed Elsevier is a world-leading Our centralization is provider of professional information We step back a little Leslie Campbell – Unwind Science, Medical, solutions in thesome more philosophical, – Chief Procurement Officer – Information accessed Risk, Legal and Business sectors less structural – Leslie.campbell@reedelsevier.com by many, not few We continue to evolve  We step forward a lot – From data to insight - Legal & Professional – From structure to innovation – From supporter Solutions - Risk to partner