Developing the Next Generation of Procurement Leaders
Uncertain times are driving Chief Procurement Officers to pursue growth and add value in new ways, according to Deloitte’s 2017 Global Chief Procurement Survey. Procurement has evolved from a strategic hub for cost savings to address new responsibilities across the risk, finance and legal functions. JAGGAER’s own 2017 survey of procurement trends shows the function is evolving rapidly as it seeks to become a profit center.
As responsibilities and expectations increase however, procurement teams are shrinking. Meeting the challenge requires new operating models driven by strong talent working closely with digital technologies.
Sophisticated management tools already allow procurement professionals to demonstrate leadership and expertise. JAGGAER found 72% of procurement professionals already use (or plan to use) spend analytics technology to assess suppliers and make business decisions.
More important than the tools are the workers using them. Eighty-seven percent of CPOs point to talent as the greatest factor driving performance. However, 60% do not believe their teams have the skills to deliver on their strategy. Despite the gap, many procurement teams spend less than 1% of their budget on training and development.
As the nature of procurement changes and technology advances, investing to attract and retain the best talent presents a huge opportunity to reinforce the function and rise above the competition. It also ensures the procurement function is prepared to address tomorrow’s challenges, many of which will emerge from beyond procurement’s current sphere of influence.
Procurement is already grappling with a broader range of issues limiting business performance. It also faces a talent gap that jeopardizes its future. Staying vibrant and relevant in the future requires new leaders with fresh skills, innovative thinking and a willingness to challenge the status quo.