Paul Vincent - CPG Event 10th November - The Knowledgeable Buyer

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Paul Vincent - CPG Event 10th November - The Knowledgeable Buyer

  1. 1. Slide 1 IBC Consultancy Purchasing Group Event 10th November 2010 The ‘Knowledgeable’ Buyer Paul Vincent
  2. 2. Slide 2 The ‘Knowledgeable’ Buyer – Paul Vincent [10th November 2010] Consultancy Purchasing Group Event "Attitude is a little thing that makes a big difference" Winston Churchill
  3. 3. Slide 3 The ‘Knowledgeable’ Buyer – Paul Vincent [10th November 2010] Consultancy Purchasing Group Event I encounter a common image of procurement... Windows on the World
  4. 4. Slide 4 The ‘Knowledgeable’ Buyer – Paul Vincent [10th November 2010] Consultancy Purchasing Group Event • Procurement don’t have a say in the operational budget • Procurement don’t understand the business need • Procurement don’t know what ‘good looks like’ • Procurement might give the work to someone else • Procurement only care about price ...and some corresponding core beliefs Windows on the World Best to leave engagement with procurement until it is unavoidable !
  5. 5. Slide 5 The ‘Knowledgeable’ Buyer – Paul Vincent [10th November 2010] Consultancy Purchasing Group Event Perceived Role of Procurement = Windows on the World
  6. 6. Slide 6 The ‘Knowledgeable’ Buyer – Paul Vincent [10th November 2010] Consultancy Purchasing Group Event Traditional Procurement Flow Internal Client Specification Supply Market Negotiation/Contract Procurement Sourcing Exercise Understanding the order of things Typical Consultancy Procurement Flow Consulting Firm Great Idea Internal Client Need/Cost Internal Client Need/Budget Consulting Firm Proposition/Cost Procurement Formalise Deal/Contract The Role of Procurement
  7. 7. Slide 7 The ‘Knowledgeable’ Buyer – Paul Vincent [10th November 2010] Consultancy Purchasing Group Event The key challenges in managing this category • Becoming an integral part of the end to end buying process • Ensuring procurement are involved at the right time • Relating most appropriately to the supply market Inclusion • Delivering real business value to internal stakeholders Contribution The Role of Procurement • Adequately protecting corporate terms and conditions • Ensuring the business achieves ‘best value for money’ • Implementing effective processes not unnecessary bureaucracy Approach
  8. 8. Slide 8 The ‘Knowledgeable’ Buyer – Paul Vincent [10th November 2010] Consultancy Purchasing Group Event Internal Client Need/Cost Consulting Firm Proposition/Cost Consulting Firm Great Idea Internal Client Need/Budget Procurement Facilitate Discussion/Selection & Contract Terms The ‘Knowledgeable’ Procurement Flow The Role of Procurement A ‘knowledgeable’ buyer will focus their involvement and influence in achieving successful engagement outcomes This approach will guarantee best value for money
  9. 9. Slide 9 The ‘Knowledgeable’ Buyer – Paul Vincent [10th November 2010] Consultancy Purchasing Group Event “Quality means doing it right when no-one is looking" Henry Ford
  10. 10. Slide 10 The ‘Knowledgeable’ Buyer – Paul Vincent [10th November 2010] Consultancy Purchasing Group Event Instinctively ‘anticipates’ business needs • Business improvement needs will rarely feature in a category strategy • Predict where needs may emerge during the year ahead – identify the parts of your organisation who face the biggest challenges • Leverage your management chain to learn about emerging ‘problems’ or ‘pressure points’ • Track the organisational movements of ‘key’ executives – especially at certain times of the financial year A Knowledgeable Buyer – Business Improvement Services
  11. 11. Slide 11 The ‘Knowledgeable’ Buyer – Paul Vincent [10th November 2010] Consultancy Purchasing Group Event Intuitively ‘monitors’ the political landscape • Who seems to have inherited a problem? • Who seems to be causing a problem? • Who needs/wants ‘rescuing’? • Who wants/needs support? A Knowledgeable Buyer – Business Improvement Services
  12. 12. Slide 12 The ‘Knowledgeable’ Buyer – Paul Vincent [10th November 2010] Consultancy Purchasing Group Event Tunes into the ‘urgency’ of business needs • When Business Improvement needs emerge they are NOT suited to a long drawn out selection exercise – a degree of supply ‘filtering’ must be done in advance • Buyers need to recommend the selection process that is most likely to deliver the ‘best fitting’ choice • Business Improvement engagements are almost always ‘phases’ of work – but not all phases need to be bought at the same time and from the same firm A Knowledgeable Buyer – Business Improvement Services
  13. 13. Slide 13 The ‘Knowledgeable’ Buyer – Paul Vincent [10th November 2010] Consultancy Purchasing Group Event Helps shape the ‘scope’ of work • Internal clients can sometimes be blinded by the scale of their challenge and spend insufficient time on root cause analysis. Buyers should be alert to the impact this can have on the scope of work required and help to qualify perceived needs • Share knowledge of past projects and/or external case studies to offer advice on engagement options and possible best practice • In particular help them to define the specific outcomes required A Knowledgeable Buyer – Business Improvement Services
  14. 14. Slide 14 The ‘Knowledgeable’ Buyer – Paul Vincent [10th November 2010] Consultancy Purchasing Group Event Recommends the ‘best fit’ supply options • Who has your organisation used before and how did they perform? • Are they still as capable or has something changed in their organisation (e.g. key person left) • Could/should they be re-engaged? • If an alternative choice is required – how widely should you cast the net? A Knowledgeable Buyer – Business Improvement Services
  15. 15. Slide 15 The ‘Knowledgeable’ Buyer – Paul Vincent [10th November 2010] Consultancy Purchasing Group Event Contributes to ‘setting’ the key milestones • Core principle - payment by outcome/results but... – Needs to be appropriately applied – Plan needs to be realistically achievable – Needs to take account of the ‘real’ baseline A Knowledgeable Buyer – Business Improvement Services
  16. 16. Slide 16 The ‘Knowledgeable’ Buyer – Paul Vincent [10th November 2010] Consultancy Purchasing Group Event Supports the ‘delivery’ of project outcomes • Practically support ‘on-boarding’ • Once supplier has been selected ‘help’ create the environment for success • Stay close to progress – don’t just wait for the client to keep you informed • Spot potential issues before they become escalations A Knowledgeable Buyer – Business Improvement Services
  17. 17. Slide 17 The ‘Knowledgeable’ Buyer – Paul Vincent [10th November 2010] Consultancy Purchasing Group Event Ensures there is a ‘feedback loop’ in all cases • Firms are often only as good as their last project in your organisation • Consulting firms don’t want to be known for unsuccessful engagements • Tie feedback to payment if you can – but be reasonable about it • Feedback is two way – expect issues to be created by internal clients too A Knowledgeable Buyer – Business Improvement Services
  18. 18. Slide 18 The ‘Knowledgeable’ Buyer – Paul Vincent [10th November 2010] Consultancy Purchasing Group Event “He who asks a question is a fool for a minute; he who does not remains a fool forever" Chinese Proverb A Sensible Consultant will develop a positive relationship with a Knowledgeable Buyer
  19. 19. Slide 19 IBC Consultancy Purchasing Group Event 10th November 2010 The ‘Knowledgeable’ Buyer Thank You

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