Regional Trends and Capability Development

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1 Regional Trends and Capability Development CIPS Dubai Branch 25 th October 2017 Leading global excellence in procurement and supply

2 Agenda and program 18:30-18:45 Introduction by Cory Thwaites, MCIPS Chairman of Dubai Branch Committee 18:45-19:00 Sam Achampong FCIPS, Head of CIPS MENA 19:00-19:10 Procurement Academy Launches in the MENA Region Omar Makkieh, Director Business Development MENA 19:10-19:25 19:25-19:45 19:45-20:10 20:10-20:40 Procurement Academy: Trends in Corporate Capability Development by Raf Verheyden, Managing Partner - Sales The Effect of VAT in the UAE by Morison MJS Tax Consultancy Driving Innovation through Experience Management by Jonathan Tungu, TECOM Group Closing Remarks & Open Networking 2 Leading global excellence in procurement and supply

3 CIPS The Voice, The Standard of Procurement & Supply Sam Achampong FCIPS Regional Director CIPS Middle East & North Africa (MENA) Leading global excellence in procurement and supply

4 Who we are Chartered Body Charitable Status Awarding Body CIPS Established 1932 to promote and develop for the public benefit the art and science of purchasing and supply Membership Organisation Business Global Network 4 Leading global excellence in procurement and supply

5 What we do All organisations All sectors All around the world Helping organisations achieve sustainable value from their supplier base PERFORMANCE Professional training and certified qualifications assessed against a GLOBAL standard. CAPABILITY DEVELOPMENT SUPPLY ASSURANCE AND COMPLIANCE Corporate Ethical Procurement Sustainable Procurement Review CIPS Sustainability Index CIPS Risk Index Transformation Services Procurement Fraud Advisory Service 5 Leading global excellence in procurement and supply

6 Performance We provide advisory services to ensure that your performance is Best in Class. PERFORMANCE CIPS FOR BUSINESS Performance You need to ensure you understand what best in class looks like you keep delivering results your Procurement and Supply function keeps evolving We help by accelerating and evaluating performance within an organisation's procurement and supply chain function 6 Leading global excellence in procurement and supply

7 Performance Performance Abu Dhabi Education Council recently received CIPS Platinum Certification. They join several other regional organisations and others around the world such as PwC and Royal Mail (UK) to have been certified for compliance and performance excellence by CIPS. 7 Leading global excellence in procurement and supply

8 Supply Assurance and Compliance We provide advisory services to ensure your risk is managed and compliance is maintained. CIPS FOR BUSINESS SUPPLY ASSURANCE AND COMPLIANCE Supply Assurance and Compliance You need to ensure your team is managing supply chain risk, continuity of supply, brand reputation and compliance with legislation achieving consistency of process application and excellence in contract management We help by building resilient, compliant, ethical and sustainable procurement practices and supply chains 8 Leading global excellence in procurement and supply

9 Supply Assurance and Compliance Supply Assurance and Compliance The Department of Culture and Tourism recently achieved CIPS Certification. They join other regional and global organisations such as NHS (UK), BaE Systems, Johnson Controls, American Express and the African Development Bank to have achieved this status. 9 Leading global excellence in procurement and supply

10 Licensing the Profession Certified qualifications Industry Knowledge Peer networks Ethics tests Code of Conduct Global Standard Qualified Professionals, effective organisations 10 Leading global excellence in procurement and supply

11 The Future of Procurement & Supply 11 Leading global excellence in procurement and supply

12 2016 CIPS Group CEO 12 Leading global excellence in procurement and supply

13 Procurement Academy Launches in the MENA Region Omar Makkieh Director Business Development MENA Leading global excellence in procurement and supply

14 C U S T O M P R O C U R E M E N T A C A D E M I E S H o w t o r e t a i n a n d d e v e l o p y o u r g l o b a l P r o c u r e m e n t t e a m s Copyright For internal use only

15 Infographic - Key accomplishments 150 Global Academies 15

16 With close to 40 people, we serve learners in over 100 countries Support in Seattle Development in UK Belgium New York France Basel Singapore Support in Mauritius Melbourne Further External Recognition: April first commercial company to be externally audited & globally accredited by IFPSM (union of 48 associations/ 250,000 members) ( May our customer Roche was awarded best corporate talent development initiative Procurement Leaders Awards 2015 / ( 16

17 FOLLOW Academy Middle East & North Africa 17

18 Procurement Academy: Trends in Corporate Capability Development Raf Verheyden Managing Partner - Sales Leading global excellence in procurement and supply

19 C O R P O R AT E T R A I N I N G I S R A I S I N G T H E B A R Tr e n d s i n c o r p o r a t e c a p a b i l i t y d e v e l o p m e n t D u b a i, O c t o b e r

20 Research consistently confirms world-class organisations INVEST MORE IN TRAINING World-class procurement organizations provide MORE TRAINING and invest more in retention planning. Best Practices in Purchasing Performance Improvement % Talent Management. Aspirations..... Strategic Influence of Purchasing. Purchasing Processes/strategies.. Performance Tracking % New Employees are more likely to stay when receiving the training they need to do their job properly Through training, teams are times more likely to meet significant objectives 3 20

21 HOW SHOULD WE ORGANISE CORPORATE TRAINING? CORPORATE TRAINING TO DATE Limited number of people Class only (what about best practice content?) Limited training (= limited number of topics) Expensive Often Missing Long-term Vision AdHoc

22 Organisation of Corporate Training has changed drastically TRENDS

23 TREND 1 GOING DIGITAL SAVED APPROXIMATELY $200 MILLION 23 AFTER SWITCHING TO E-LEARNING Source: IBM, 2013

24 TREND 1 GOING DIGITAL TECHNOLOGY HAS BEEN RAISING THE BAR FOR CORPORATE TRAINING 24

25 TREND 2 As a consequence of trend 1 More Learners will train More Competences Negotiations Legal Negotiations Operational Procurement Category Management Sourcing Cost Management

26 TREND 3 CUSTOM ROLE BASED LEARNING CUSTOMER PROCUREMENT ACADEMY Strategy Category Mgmt Cost Mgmt Finance Sourcing Negotiations Legal Contract Mgmt Operat. Proc. Q1 Q2 Buyer Sourcing Legal Senior Buyer Category management Total cost management Before After CUSTOMER PROCUREMENT STRATEGY 26

27 Role Based Learning: Step 1: competences needed to perform well in your role? Step 2: assign a Role based learning Plan Operational Buyer Procurement Analyst Buyer Senior Buyer Contract Manager Category Manager 27

28 USE OF COMPETENCE MODELS - Research confirms: 1. You will send a consistent message to employees about what it takes to be successful in the job 2. results in a higher percentage of employees who exceed performance expectations 3. is key to assess, develop, and manage talent 28 Source: Buket Akyel, presentation Talent Management, spring 2012

29 Role based Learning = Custom Academies Corporations will have several functional corporate academies CUSTOMER HOUSE OF LEARNING PROCUREMENT SUPPLY CHAIN IT LEGAL Note: currently and in comparison to other verticals, procurement (and supply chain) is advanced 29

30 TREND THE DOMINANT MODEL FOR CORPORATE LEARNING Workshops - Seminars - events E-Learning Coaching Message board - Communities - Activities Assignments Knowledge Library Do it 30

31 TREND 5 MATURATION OF TECHNOLOGY GAME CHANGER In the early days e-learning was about content generation. Now great content has become a minimum requirement, it is now about how the content is being delivered There are different E-Learning formats on the market Basic/rapid E-learning: old way of working using new technology = efficient Advanced E-Learning is using technology to its full potential = efficient and effective E-learning designed for application ( ) 31

32 So one can now develop quality programs and roll them out Fast Massive Effective Inspiring yet at Lowest Total Cost = custom Academies 32

33 TREND 6 Corporations are looking for global best practice This is a minimum requirement Who decides what is best practice? Local trainer? Your brightest employee? Reputation? External audit? For example, our clients asked us to go through an external & formal audit. 33

34 TREND 7 Measuring ROI How we used to measure: filled out quickly after training Mainly about did they like training and trainer? No consolidated reporting Usability for management is poor 34

35 TREND 7 Dashboards - Structured & comprehensive measuring of training impact Level 1: course progression Level 2: Satisfaction Level 3: application Level 4 Capability Progress 35

36 Conclusion trends in Corporate Training More people will be trained better than ever before Using high quality programs at fraction of cost These Academies are 1. Increasing staff retention 2. Increasing individual and team performance 3. Boosting your financial performance Talent Management strategy outcomes * Based on Lawson/Human Capital Institute, May 09 Nancy Rehbine Zentis, Ph.D. Principal and Founder of HRTalentPro, May

37 QUESTIONS? 37

38 Driving Innovation through Experience Management Jonathan Tungu TECOM Group Leading global excellence in procurement and supply

39 Driving Innovation through Vendor Experience Management October 25, 2017 A TECOM Group case study Jonathan Tungu Senior Manager, Procurement Operations & SRM

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41 The conventional wisdom is that competition in the future will not be company vs. company but supply chain vs. supply chain. But the reality is that instances of head-to-head supply chain competition will be limited. The more likely scenario will find companies competing and winning based on the capabilities they can assemble across their supply networks. J. Rice and R. Hope, MIT

42 Vendor Experience Management at a glance!! A journey aiming to go beyond the traditional competition to reinforce and develop the relationships and foresee any potential, additional or non conventional business ideas with the Valuable Suppliers

43 OUR VISION \WORLD RENOWNED CURATOR OF INNOVATIVE ECOSYSTEMS OUR MISSION \REALISE DUBAI S ECONOMIC ASPIRATIONS BY CREATING SECTOR-FOCUSED COMMUNITIES AND THRIVING WORK ENVIRONMENTS THAT ENABLE BUSINESS SUCCESS How does procurement support?

44 Procurement has to innovate to support TECOM s goals and industry expectations Innovations Feed INFRASTRUCTURE INDUSTRY DEVELOPMENT ICT Media Education OPTIMAL REGULATORY ENVIRONMENT Procurement Science Design Incentives Manufacturing SERVICES Innovations Appetite Trade

45 Vendor Experience Management A New Perspective! CLUSTER SUPPLIERS TRENDS & CHALLENGES DRIVER FOR NEGOTIATION DISTINCTIVE PARAMETERS TARGET PERFOMANCE Partner Preferred Approved Technology Price Model Delivery Model Price Quality Volume Acceptable Sustainable Valuable Readiness Low risk Direct value Benchmark Follower Competitor Innovation Cost Shaping Business Model Unconventional Traditional Collateral Sharable Variable Feasible Cross Business Risk sharing Back side value -An innovative way to build a comparison among the most important and critical touch point in every supply chain -A process to establish continuous benchmarking -A platform for stimulating feedback from suppliers -A journey that aims to reinforce and develop potential, collateral, not conventional business relationships with suppliers

46 A new Approach to Sourcing. A new model of supplier selection, using the value creation perspective A stakeholder s overall and multidimensional evaluation of a company

47 Supplier Innovation Forums - High Value Strategic Idea and Concept Development

48 Vendor Experience Management Outcomes Supplier Intimacy!

49 Leading global excellence in procurement and supply