What makes a good Category Manager key imperatives and soft skills

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2 1 Category Management defined What makes a good Category Manager key imperatives and soft skills 2 3 Category Management Journey a fundamental change to the way organizations approach procurement 4 Key Enablers to become truly strategic 5 Training and CategoRise game 42

3 Expanding Procurement s Value for The Global 1000 Since 1996 Procurement Transformation, Assessment & Strategy, Technology Strategy, Change Management Category Management, Analytics and Managed Source to Pay Programs On-demand high-end supply chain talent for projectbased work. Temp-hire conversions Learn, Play and Reinforce: Category Management and Strategic Sourcing Training Direct-hire placement of supply chain professionals Subscription and Custom Supply Market Intelligence ROBUST 3 YR GROWTH RATE GLOBAL TEAM MEMBERS FOCUS ONLY ON PROCUREMENT 156% 300+ US INDIA CHINA TURKEY IRELAND 43

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5 Category Management is a strategic, end to end procurement approach to more holistically manage how companies buy goods and services. Category Management aligns a company s vision and business objectives with external market factors and capabilities, and seeks to consider longrange value to decision making. Deliver Results Understand Your Categories Know Your Stakeholders What Is My Project Prioritization? What Resources Can I Use? How Do I Deliver Against Goals? How Can I Increase My Value Delivered? Where Did We Spend Yesterday? Where Will We Spend Tomorrow? Who Are Our Top Suppliers? What is the Market Doing? Who Owns the Spend? What Drives Them? How Can I Add Value? What Do They Care About? 45

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7 An end to end owner, the Category Manager is someone who is in charge of defining a strategy for the category, a market intelligence expert in this category, and is capable of communicating this strategy for implementation in a regional or global level. He or she should work in a cross functional manner with stakeholders to influence important decisions gathering important input from internal and external sources for strategy definition. Skills Aligning to Key Imperatives Know your Stakeholders Understand your Categories Deliver Results Relationship Building Influencing Integrity Adaptability Analytical Thinking Conceptual Thinking Planning & Organizing Innovation Problem Solving Change Management Initiative/Leadership Decision Making Communication 47

8 One way to identify whether a Category Manager has the necessary soft skills is through competency based interview techniques using the STAR or SHARE approach. It s a well known fact that looking at a candidate s past behavior is the best way to predict their future performance. Behavioral interview questions will let you understand in detail how a candidate has acted in specific situations. First, identify the core behaviors you d like your candidates to demonstrate. Then, you can select your specific questions. Remember to assess all candidates against the same behavioral criteria. Core Competency Key Actions Question Decision Making Uses sound judgment to make good decisions based on information gathered and analyzed Considers all pertinent facts and alternatives before deciding on the appropriate action Commits to decision Give me an example of a time when you had to be quick in coming to a decision. What obstacles did you face? OR Give me an example of a business decision you made that you ultimately regretted. What happened? 48

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10 Transforming procurement to a category management based approach is leading practice and drives significant benefits. Successful companies use a multi year vision and address the key elements below to build, scale and sustain Category Management competencies within their organizations. Business Results Accelerate & Consistently Apply High Business Engagement & Decision Making Updated Vision/Roadmap, Linked to Bus. Objectives Enablers / Core Foundations Improved, Optimized Global Multi Year Category Roadmaps, Pipeline Robust Strategies, Deep Market Understanding CM Excellence Training, CategoRise CM Game Category Coaching, Targeted Skill Development CM Cross Training Modules, Role Plays Build Foundation 3 5 year Procurement Vision and Roadmap Clear Org Roles, Aggressive Yet Achievable Targets CM Process, Tools and Templates Established Category Roadmaps, Multi year Project Portfolio Assess CM Capabilities, CM Competency Plans CM Foundations Training, elearning, Exercises Category Coaching, Application Workshops Intentional Comm & Change Mgmt. (ongoing) Scale & Globally Optimize Collaborative, Results Oriented Culture Fully Integrated Business Planning, Budget Cycle Advanced Strategies Drive Lifecycle Alignment Globally Aligned Process, Technology, Knowledge Global Category Councils Manage All Spend CM Mastery Training, Project Competition Category Coaching, Targeted Skill Development Developing Business Leaders, Category Expertise Failure to Sustain Failure to Scale Failure to Launch Time 50

11 2013 Build Foundation Accelerate & Consistently Apply o CM Excellence Training o Refine Process, provide guidance o Initial Tools, Templates o Quick Wins / Strategic Projects 2014 o Joint Targets established o Workshops build multi year portfolios, improve strategies o Tools & Templates improved; Training on CM Imperatives, Business Case Development, Templates/Tools o Category Coaching continued to reinforce CM mindset o Category Roadmaps assess priorities, drive alignment o CM Maturity Model helped internalize CM Imperatives o Initial CM Dashboard, natural category hierarchy 2014 Results: Exceeded Savings Target by 20% (50% over baseline) Accelerated Portfolio Development Built 1.5X 1yr project portfolio, 1.9X 3yr portfolio 61 Category Strategies Completed Delivered thought leadership and CM best practice awareness; support to implement and drive change 2015 o Proactively develop and prioritize portfolio, capacity plan o 1:1 Category Coaching support at all levels for prioritized categories, overall strategy and approach, global integration o Applied learnings, developed recommendations to accelerate and improve quality of strategies and process o Skill Development targeted training 2016 o Continuing 1:1 Coaching support at all levels for prioritized categories, new team members, overall strategy and approach, global integration efforts o Implementing recommended opportunities to accelerate and improve quality: Spend Analytics Dashboard, Market Intelligence Planning, and Standardized Market Summary 2015 Results: Exceeded Savings Target by 24% (2.2X baseline) Expanded multi year rolling portfolio More than 90 Category Strategies completed Focus on core fundamentals to enable acceleration / sustain change; continued development of best practice training/tools 51

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13 Training & Coaching Execution Support Market Intelligence Spend Analysis Processes & Tools Category Strategy Network 53

14 Category Management Planning, Processes, Tools Vision, Strategy, Governance Structure Category Planning and Road Mapping Category Manager Imperatives and maturity development Category Manager Training Category Management Process Fundamentals / Advanced Applied Learning Approach Ongoing support and reinforcement Category Coaching Category Manager Engagement Category experience to augment client category knowledge Category Strategy level or Sourcing Project level support Category Strategy Support Category Plan / Playbook Development Development of category project portfolios and joint target setting Support client Category Managers or Denali drives Category Strategy 54 54

15 Stakeholder Engagement Internal Assessment External Assessment Strategic Review Category Vision & Strategy Project Portfolio Stakeholder Mapping Business Requirements Assessment (AQSCI) Category Scoping and Segmentation Category Spend Review Category Supplier and Contract Review Supply Base Review, Profile Supplier Landscape and Profiles External Market Assessment Category Risk Assessment Category Maturity Assessment Category Positioning SWOT Analysis Finalize Category Objectives and Strategy Category Vision & Strategy Category Plan Documentation Category Opportunity Analysis Develop Prioritized Portfolio of Projects Develop Category Playbook Category Plan Development Tools & Templates Stakeholder Map Market Profile AQSCI Requirements Templates Template Category Discovery Baseline Stakeholder Questions Questions Category Summary Template Spend Analysis Dashboard Contract Summary Template Porters Five Forces, Kraljic Matrix SWOT Analysis Sourcing Levers Category Plan Template (brief/full) Category Dashboards Category Roadmaps Business Case Framework Opportunity Assessment Visual Project Timeline Template 55

16 Planning Category Management Phase I Internal Assessment Phase II External Market Assessment Phase III Strategy Development Phase IV Category Planning Execution Source to Contract Supplier Management Procure to Pay Phase I Scope and Plan Project Phase II Analyze (Spend and Market) Phase III Set Sourcing Strategy Phase IV Execute (Source and Negotiate) Phase V Sustain (Contract and Transition) 56

17 Coaching CM Mastery Project Competition CM Excellence Role Plays CategoRise Work Shops CM Foundation elearning Exercises Webinar 57

18 Building Procurement Competencies Covers Procurement Workflows / Processes Category Management Strategic Sourcing, Negotiation, Contracting Supplier Relationship Management Integrates Soft Skills that are Critical Success Factors for Category Managers Stakeholder Engagement, Change Management Effective Communication, Influencing Techniques Uses a Blended Learning Approach elearning modules teach process, methodology, terminology what is it? Classroom training focuses on application, interaction, exercises and role play: how to do it CategoRise Denali Category Management board game reinforces CM principles in a fun way Category Management Curriculum: Modular and holistic approach Progressive classes include CM Foundations, CM Excellence and CM Mastery classes Category Management methodologies, tools and frameworks Discussion to change mindset and behaviors Tools and Templates are delivered as part of the training Example CM Training Reinforced with Applied Learning and Coaching Follow up in Application Workshops / Webinars and helps change behaviors, embed learnings 1:1 Category Coaching with experienced CM s builds actual category strategies and accelerates portfolio development 58