The role of leaders in times of change

Transcription

1 The role of leaders in times of change CIPS Fellows of the Future City Hall, London 29 October 2014 Ira Gaberman, Partner, A.T. Kearney

2 LEADING IN TIMES OF CHANGE A.T. Kearney 12/

3 We live in a world of accelerated change, and this is impacting all companies A.T. Kearney 12/

4 Company s have a choice on whether to adapt within the industry or shape it Source: A.T. Kearney A.T. Kearney 12/

5 Many organisations are increasingly becoming more networked Source: A.T. Kearney A.T. Kearney 12/

6 This creates a natural tension in the way value is generated and the perception of role between parts of the business Source: A.T. Kearney A.T. Kearney 12/

7 To help navigate this, leaders need to do three things especially well ALIGN the organisation The ability to align, inspire, and enable teams, to create coalitions for change, to embody the organisation s values ANTICIPATE the market dynamic The ability to lead from the front, anticipating customer and other stakeholder needs The Triple A of Leadership Move to ACTION The ability to take the difficult decision and focus on what matters Source: Anne Deering ( Alpha Leadership ), A.T. Kearney A.T. Kearney 12/

8 Leaders must also balance two complimentary, but distinct roles Operational Leadership Keeps the show on the road Captures peoples committed energy Motivates others by appealing to their own selfinterest Works within existing boundaries Change Leadership Inspires a change of course Captures peoples discretionary energy Motivates others by appealing to a higher value Works to change existing boundaries Source: A.T. Kearney A.T. Kearney 12/

9 THIS IS AS RELEVANT FOR PROCUREMENT, AS FOR ANY OTHER FUNCTION OF A BUSINESS A.T. Kearney 12/

10 Leading procurement organisations have stronger engagement across their enterprise, and closer strategic alignment Connection between Procurement Strategy and Business Plans (% Companies selecting Totally ) 100% 62% 48% 70% Procurement strategy aligns with overall business strategy Procurement actively contributes to development of individual BU & regional strategies Business stakeholders proactively invite procurement to discuss business plans Business stakeholders and procurement mutually agree on budgets and targets for external expenditures 62% 27% 15% 27% Leaders Typical Companies Source: AEP 2014; A.T. Kearney A.T. Kearney 12/

11 As a result, leading organisations are more prepared to mitigate changing market dynamics and disruptive technologies Changes that could affect Company Procurement Strategy (% Companies selecting Fully prepared response plans for) 81% 70% 70% 63% 41% 37% 24% 15% 17% 7% 10% 10% Significant shifts in supply-demand balance within the supply industry Economic or demographic trends affecting supply industry capacity Market Dynamics Leaders Source: AEP 2014; A.T. Kearney Typical Companies New processes that significantly change the types or quantities of goods and services required Emergence of new technologies and non-traditional suppliers that increase market competition Emerging technologies that could significantly alter the companys products or markets Disruptive Technologies Pace of adoption of new technologies by customers A.T. Kearney 12/

12 To deliver on these dynamics, leading organisations are more focused on advancing the capabilities of their procurement teams HR Practices (% Companies selecting Fully enterprise-wide ) 71% 68% 55% 32% Procurement has a formalized roadmap/plan to enhance human skills and capabilities Significant active investment in the procurement team/people to drive improvements Procurement routinely reviews mix of skills to advance the group towards procurement excellence Procurement has developed specialist career tracks beyond category expertise 20% 29% 15% 7% Leaders Typical Companies Source: AEP 2014; A.T. Kearney A.T. Kearney 12/

13 WHAT YOU NEED TO DO AS A LEADER DEPENDS ON THE LEVEL OF LEADERSHIP (or does it?) A.T. Kearney 12/

14 Future proofing or moving teams to action? Most important responsibilities of a leader (% of respondents) 39% 36% 28% 28% 22% 24% 11% 12% Future proofing the function Building the next generation Moving teams to actions Leading & role modelling Fellows of the Future Fellows(2) 1. FoF: Fellows of the Future; 2. Fellows Source: Fellows of the Future A.T. Kearney 12/

15 Long term or short term? Beyond your own skills, what most helps you operate successfully as a leader (% of respondents) 38% 31% 23% 19% 19% 15% 12% 12% 8% 8% 8% 8% 0% 0% Skills and expertise of the team Atmosphere of commitment & collaboration with team Culture of risk taking & support Wider peer network Understanding & support of seniors Data & systems Enhanced responsibilities Fellows of the Future Fellows 1. FoF: Fellows of the Future Source: Fellows of the Future A.T. Kearney 12/

16 Future proofing and network support are key challenges for future CPOs Main challenges for CPOs of the future (% of respondents) 40% Speed of change and keeping a strategic focus very easy to become very short term and tactical Adding value in such a fast paced and demanding environment. If we aren't at the top of our game, our clients will just opt to automate and outsource us Winning hearts and minds at Board Level 33% Do more with a lot less 20% We need to train people to see the wood for the trees Re-energizing teams learn from the past 7% 0% Future proofing the function Moving teams to actions Building the next generation Leading & role modelling Gaining support of wider org and seniors 1. Fellows in this slide include both Attending Fellows and Not Signed Fellows Source: Fellows of the Future - Attending Fellows, Fellows Not signed up yet? and Fellows of the Future A.T. Kearney 12/

17 Fellows own learnings are informative Select quotations from the biggest mistakes & what Fellows wished they knew earlier The importance of networking More advanced techniques to engage more successfully with internal nonprocurement oriented colleagues who needed persuading towards smarter procurement or commercial success Don t try to do it all yourself Network, network, network The importance of networking at all levels Networking Self-confidence That confidence is half the battle Be bolder. Speak up more. Be authentic and true to your own values and beliefs. To have had the confidence to push ideas forward That I could of pushed the boundaries a bit more and been more confident. Success is not about procurement and supply chain theory - its about understanding people and what makes them tick. Whilst technical and professional knowledge is very important, effective leadership is equally about relationship management across the whole spectrum of internal and external activities Valuing the differences and variety in people Relationship Management Ability to Influence How to exercise power without antagonizing or alienating others Success doesn't have to be at the detriment of others and competition doesn't have to be underhanded I wish I had used my leadership abilities more fully instead of staying within the boundaries that I set myself. How to handle the politics and influence upwards. Source: Fellows of the Future - Attending Fellows, Fellows Not signed up yet? and Fellows of the Future A.T. Kearney 12/

18 QUESTIONS FOR THE TABLES HOW DO WE BROADEN OUR FORESIGHTING AND ANTICIPATION SO OUR STRATEGIES ARE FUTURE PROOFED, AND ALIGNED WITH THE BUSINESS? HOW DO WE BUILD OUR WIDER NETWORKS, SO WE HAVE COALITIONS OF SUPPORT THAT ALLOW US TO MOVE TO ACTION A.T. Kearney 12/