The desire to become ‘trusted advisor’ to internal clients has become recognized as one of the keys to improving procurement performance and recognition within the organization. A recent survey has confirmed that, after cost reduction, improving procurement’s engagement with stakeholders is the most important priority for CPOs. How can you increase stakeholders’ readiness to work collaboratively with procurement? How to engage stakeholder ‘clients’ – from ‘securing access’ to ‘making a good withdrawal’? Have similar questions in your mind?

1. Procurement Office Hours By Zycus –
Client - Centered Procurement Advantage:
Reinventing Your Procurement
Organization’s Stakeholder Experience

2. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Know Your Expert – David Atkinson
20 YEAR PROCUREMENT CAREER IN CONSUMER GOODS,
AUTOMOTIVE AND AEROSPACE SECTORS.
FROM BUYER AT BLACK & DECKER TO PROCUREMENT
DIRECTOR AT ROLLS ROYCE.
ACCREDITED TRAINER FROM HARVARD/MIT PROGRAM
ON NEGOTIATION.

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PROPOSITION: TO WORK TOGETHER WITH THE CLIENT TO BUILD A VIABLE, SELF-
IMPROVING & SELF-SUSTAINING ENGAGEMENT APPROACH.
AN ADVISOR IS SOMEONE WHOSE AIM IS TO ASSIST PEOPLE IN IMPROVING THEIR
PERFORMANCE, TO SERVE THE OVERARCHING PURPOSE OF THE CLIENT
STAKEHOLDER’S ORGANISATION (OR PROJECT).
ALTHOUGH THE PROCUREMENT ADVISOR MAY BE A SUBJECT MATTER EXPERT,
EXPERIENCED ADVISORS CO-CREATE SOLUTIONS WITH THE CLIENT. THE
PHILOSOPHY OF WORKING TOGETHER (WHILST SUPRESSING SELF-INTEREST) IS AT
THE HEART OF BEING EFFECTIVE IN PROVIDING SUPPORT AND ADVICE.
DEFINING YOUR ROLE: ARE YOU A PROCUREMENT EXPERT OR A CRITICAL FRIEND?
STAKEHOLDER AS ‘CLIENT’ AND PROCUREMENT AS ‘ADVISOR’

5. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Question for the Expert – David Atkinson
Q.1.
WHAT DO STAKEHOLDERS WANT FROM
PROCUREMENT?

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Check out our webinar at https://zyc.us/2MJfowV

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DIFFERING
DEMANDS ON
PROCUREMENT
CPOs should seek to answer two questions:
1. How does Procurement add value to each stakeholder constituency
2. How does each stakeholder constituency convert inputs from
Procurement into useful outputs that enable the stakeholder to
succeed?
Answer

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Question for the Expert – David Atkinson
Q.2.
WHAT ARE THE TYPICAL PROCUREMENT
CHALLENGES IN ENGAGING STAKEHOLDERS
EFFECTIVELY?

9. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
TYPCIAL
PROCUREMNT
CHALLENGES IN
ENGAGING
STAKEHOLDERS
1
Taking your role as procurement advisor completely seriously, and
recognising the importance of your contribution
2
Being positive in the face of stakeholder resistance, and not
encouraging others to complain or blame.
3
Developing functional ‘self-esteem’, without pushing solutions onto
unwilling stakeholders.
4
Understanding when arm’s length engagement is more appropriate
than collaboration.
5
Treat stakeholders with complete respect, and encouraging
colleagues to develop their leadership.
Answer

10. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
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Question for the Expert – David Atkinson
Q.3.
WHAT SORT OF RELATIONSHIP SHOULD WE BE
AIMING FOR?

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THE PROCUREMENT
ADVISOR:
THE JOURNEY FROM
PROCUREMENT
EXPERT TO CRITICAL
FRIEND
BREADTH
OF
BUSINESS
ISSUES
DEPTH OF PERSONAL RELATIONSHIP
CRITICAL FRIEND
TRUSTED ADVISOR
RESPECTED
CONSULTANT
PROCUREMENT EXPERT
IT IS NORMAL FOR MOST CLIENTS TO DRAW ON ‘PROCUREMENT
EXPERTS’ AND ‘RESPECTED CONSULTANTS’.
BUT IT IS BETTER TO BE ACKNOWLEDGED AS ‘TRUSTED ADVISOR’ AND,
ULTIMATELY, ‘CRITICAL FRIEND’.
SO HOW DO WE GET THERE?
Answer

13. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Question for the Expert – David Atkinson
Q.4.
HOW CAN WE ENCOURAGE RESISTANT
STAKEHOLDERS TO BE READY TO ENGAGE
WITH PROCUREMENT?

14. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
STAKEHOLDER
READINESS
PROCUREMENT MUST
RECOGNISE THAT THE
STAKEHOLDERS’
PRIMARY CONCERN IS
ABOUT THEIR PART OF
THE SYSTEM.
TO GAIN ACCESS TO THE STAKEHOLDER’S ‘SYSTEM’, THERE NEEDS AT
LEAST ONE PERSON INSIDE THE SYSTEM WHO IS DISSATISFIED WITH
THE PRESENT SITUATION AND READY TO ACCEPT SUPPORT
READINESS IS DETERMINED BY TWO MAIN VARIABLES:
• The level if dissatisfaction felt by the stakeholder with the current state of
affairs.
• The level of security felt by the stakeholder in respect of a change that is
proposed.
Feelings are paramount, regardless of whether they are rationally based or not.
The key word is ‘felt’ - security or dissatisfaction.
Answer

15. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Question for the Expert – David Atkinson
Q.5.
HOW WILL THE STAKEHOLDER JUDGE
PROCUREMENT’S SUPPORT?

16. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
HOW WELL DOES THE
VARIOUS
PROCUREMENT VALUE
PROSPOSITIONS GAIN
THE SUPPORT OF
STAKEHOLDERS
ADVISORCOMPETENCE
ADVISOR COMMITMENT
Skills & Knowledge
Relationship Building
Decision Making
Information Sharing
Innovation Ideas
Goal Alignment
Value Improvement Perspective
Takes Responsibility
Mutuality
Ethics and Trust
Answer

17. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
THE ENGAGEMENT
CYCLE: A PROCESS-
THINKING APPROACH
Establishing
Trust
Jointly
Generating
Data
Making a
Diagnosis
Co-creating
a Change
Strategy
Managing
the Change
Evaluating
Progress
Making a
Good
Withdrawal
Answer

18. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Further Questions

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