New CPO - The First 100 Days

New CPO – The First 100 Days

Guy Allen
November 20th 2013

Spend Matters UK/Europe
©ALL RIGHTS RESERVED - Confidential

Real World Sourcing

Part 1 – Introduction
The Real World Sourcing Series is a series of 6 sessions covering hot
topics for procurement professionals.

The Real World Sourcing Series is promoted and supported by Tejari
and developed by Peter Smith (Spend Matters) and Guy Allen (Real
World Sourcing Limited).
Guy Allen started his procurement career with Ford Motor Company,
moving through IBM, SmithKline Beecham and GSK before becoming
CPO for Abbey National and VP Global Sourcing at Fujitsu before
joining 4C as a Managing Partner. Guy has since left 4C and started
his own consultancy, Real World Sourcing Limited.
.


Real World Sourcing

Agenda
1.

Before you start

2.

First day

3.

Following an Action Plan

4.

Strategic Mandate

5.

Advantage of a new boy (or girl)

6.

Stance

7.

Summary


Real World Sourcing

Situation Analysis
What is going on and what is important

Implement quick wins/fixes
Early action, demonstrating effectiveness

Establish Vision/Direction
Alignment of team

Deliver Strategic Proposal
CEO/Board mandate for change


Real World Sourcing

Before you take the job
• What Does Success Look Like?
– For your boss

– For the organization
– For you

• Support for change
– Willingness to address poor performance
– Redeployment
– Resources for training
– Consultancy support

• What are the Organization’s key strategies?
• Advocacy for the role/change
Real World Sourcing

Before you start
• Meet the Incumbent
– Understand Challenges

– Competing Departments

• Gather data
– Current processes

– Spend data
– Customer surveys
– Employee Opinion Surveys
– Glass Door
– Audit reports


Real World Sourcing

Before you start (cont)
• Meet with industry peers
– What did they do?

– Did it work?

• Draft out action plan
– Circulate it to the new boss


Real World Sourcing

Task 1 - Organizational Style
The style and culture will differ between various organizations.
Consider a
– Defence contractor
– Fashion clothing manufacturer
– Public Sector
– Global food producer

• What might be the key management style differences
between the organizations?
• How might you change your approach to each organization?

Discuss on your tables and feedback your answers

Real World Sourcing

Developing the Action Plan
Days
1-30

Key Stakeholders
Key Categories
Set Expectations
Establish process checkpoints

Days
30-60

Team Capabilities
Establish Vision
Re Organize
Establish targets

Days
60-100

Technology Requirements
Processes
Mandate


Real World Sourcing

First Day
• Make your first day a Thursday
• Get the admin sorted
– PC
– Access
– Mobile Phone

– Business Cards
– Arrange Meetings

Ready to start with energy on Sunday

Real World Sourcing

The Action Plan - First 30 Days
• Meet Key Stakeholders
– Listen! What are their drivers?
– Supporters or blockers?
– Talk about what you need of them
– Address any perceived threats

•Organizations view of
Procurement
•Get the change message
across
•Get them onboard

– Summarise meeting back to them

• Understand the spend profile
– Key Categories
– Key Suppliers

•Prioritisation of actions
•Identify key areas of risk

– Key budget holders


Real World Sourcing

Taking on a New Category
Current Situation - Kraljic Matrix (adapted)
High

Supply risk

Critical

Strategic

Ensure availability:
• long-term contract
• price indexes
• contingency planning

Collaboration - close supplier
management:
• detailed contract
• collaborate
• market awareness

Acquisition

Leverage

Minimum attention:
• price formula
• call-off contract
• look to rationalise

Drive for value:
• market pricing
• aggressive approach
• use leverage

Low

Magnitude of spend


High

Real World Sourcing

(cont)
• Identify Quick Win
– Ideally eAuction

• Early credibility

• Establish Governance
– Prior to full assessment, implement
simple governance from day 1 (eg CPO to
review all contract over $xk)


• Control
• Visibility

Real World Sourcing

• Meet all of Direct Team

• Approachable
• Feedback on colleagues

• Set Expectations
– Be unequivocally clear!
– Immediately address any dysfunctional
behaviour

– Promise a supportive working environment

• Win Hearts and Minds
– Role is impossible without the team
– Alignment to common direction


• Promise to address non
performance
• Organizational effectiveness
• Good place to do ‘good’
Procurement

• Team become advocates and
ambassadors internally and
externally

Real World Sourcing

The Action Plan – 30 to 60 Days
• Team Capabilities
– Work with team to assess current staff
informally
– Identify skill and capability gaps

• Shared view of individual
capability
• Identification of skill and
capability shortfalls

– Plan training programme to address gaps
–

As

• Re Organize
– Redesign organization structure to meet
business needs
– Use Re-organization as a means of
addressing capability gap days


• Team aligned to deliver
against organizations strategy
• Non performers re deployed

Real World Sourcing

The Action Plan - 30 to 60 Days
(cont)
• Establish Vision
– Describe the journey and destination

• Shared view of target and
journey
• Fully aligned procurement

– Invite team to join you

• Build targets
– Implement quick win
– Establish what is possible
– Set objectives to meet targets


• Procurement clear on what
success looks like
• Team motivated and
rewarded to deliver

Real World Sourcing

(cont)
• Meet Suppliers
– Start meeting with ‘top 10 ‘suppliers

– Understand your organizations position in
their priorities
– Establish what you do that makes them
inefficient


• Success can only be achieved
through the supply base
• Establish which are willing to
work with you and which
represents an exposure

Real World Sourcing

• Technology
– Understand available technology and what
needs updating
– Priorities with short term gains as opposed
to 1 year implementations

• Clear Roadmap of what you
have and what you need
• Identification of investment
required

– eAuctions and Spend Data are two obvious
short term possibilities

• Understand Processes
– Purchase Order/Governance Process
– Risk process


• Establish the gateways for
purchasing decisions
• Identify and address key
supply risks

Real World Sourcing

The Action Plan – 90 to 100 Days
• Write the Strategic Plan!
• Socialise Proposals
• Obtain Board/CEO Approval


Real World Sourcing

Strategic Proposal – Key Elements
•
•
•
•

People Plan
Governance
Targets
Resource Required
– Training

– Technology
– Consultancy


Real World Sourcing

Approach
• The first 3 months in an organization presents a unique
opportunity
• Key to make the most of this window as it closes very
quickly


Real World Sourcing

Advantages of a New Boy (or Girl)
•
•
•
•

Ask naive questions
Implied senior management mandate
Be challenging
Agent of Change

But Beware
• It doesn't last forever
• Some will see you as a threat


Real World Sourcing

Stance

• Assume you have the Power to make things happen
If you think you’ve got it, you’ve got it
If you don’t think you’ve got it then even if you have got
it then you haven’t


Real World Sourcing

Task 2 ‘We asked newly appointed CPO’s which were
their key priorities in a the role and they said.........’
On your tables agree the most popular response from those we
interviewed
Guess the priority that you feel would have the most people
identifying it as key
Score points = to the percentage of people who selected that
priority!
Prize for the winners

Real World Sourcing

Real World Sourcing Scholarship
• 10,000AED towards any procurement based training
• Go to StrategicSourcing.ae with the URL you will receive
tomorrow by email
• Complete the certification programme
• Answer as many questions right as possible
• The winner will be announced at the end of the series!


Real World Sourcing


THANK YOU!
Please feel free to contact me on
guyallen@realworldsourcing.com


Real World Sourcing

New CPO - The First 100 Days

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (15)

Similar to New CPO - The First 100 Days

Similar to New CPO - The First 100 Days (20)

More from Tejari

More from Tejari (12)

Recently uploaded

Recently uploaded (20)

New CPO - The First 100 Days