PROCUREMENT ACADEMIES: Making an Impact

PROCUREMENT ACADEMIES: Making an Impact By Robin Jackson, BA (Economics) Hons CEO, ADR International

Presentation Agenda CPO Top Priority Today s Required Procurement Skills Main Challenges Building your Academy Keys to success

CPO Top Priorities Internal and External Collaboration Talent Improvement Innovation Cost and Value

Management is not willing to wait They Either Change the People or Change the People Develop new skill sets and change Get left behind & be changed out

QUOTE My main job was developing talent. I was a gardener providing water and other nourishment to our top 750 people. Of course, I had to pull out some weeds, too. Jack Welch -GE

Our Evolution? Transaction Driven Efficiency Driven Price Driven Globally Driven Cost Driven Business Strategy Driven

Today s Required Procurement Skills Highly developed business skills Ability to manage global supply chains Deep understanding of macro- and micro-economics Understanding of organizational political dynamics Deep understanding of finance and financial management Ability to think strategically Deep understanding of category management Highly developed influencing skills Relationship management skills for internal and external relationships Highly developed analytical skills Ability to create a vision Ability to manage and motivate Outstanding communication and networking skills Ability to lead and manage change The Most Challenging Career in Business today!

Main Challenges Key issues Top talent retiring Lack of executive support HR don t know where to find talent or understand the need Tier 1 companies can offer very attractive packages other business not attractive to millennial generation Can t find talent in emerging countries Unable to recruit new graduates

Build your Procurement Academy A document, linked to job roles, that shows the desired technical procurement competencies at each level. On-line skills assessment against an agreed competency framework. Used pre and post training to allow progress to be measured. Optional practical and simple howto guide for the key strategic sourcing tools and templates. Advanced incompany training. Optional awareness events for stakeholders. Focused on the process & tools. Highly interactive with practical exercises & case studies. ADR s OSCA offers 18 on-line courses directly linked to the strategic sourcing process. Each course is 65 minutes long and qualifies for 1 credit for ISM recertification. Individual or team face-to-face coaching to embed the application of sourcing skills. Or follow-up remotely on post classroom assignments using webinars. Alignment across the Academy DNA Question Set = On-line Toolkit Subjects = Tailored Workshops = On-line Supply chain Academy Courses

Procurement Academy Structure - Example Advanced HIPO Program Managing Procurement Teams for Effective Sourcing Procurement Leadership Cost Analysis Strategic Sourcing Cost Management Master Class Risk Analysis and Supplier Financial Analysis (combined) Supplier Relationship Management Supplier Relationship Management Master Class Category Management Category Management Master Class Contracting and Contract Management Contracting and Contract Management Master Class Legal issues in Procurement and Contracts Terms Master Class Strategic Sourcing Master Class Introduction to Contracting and Contract Management Introduction to Cost Management and Total Cost of Ownership (TCO) Master Class Finance for Non Finance Advanced Negotiation Negotiation Skills Influencing Skills Winning Negotiation Master Class World Class Tendering Master Class Introduction to Strategic Procurement Stakeholder Engagement Introduction to Legal Legal Terms How to collaborate with Procurement Anti-Fraud & Audit Policies & Procedures Operating Guidelines SAP Training PSC Membership Access University Program* *Also for Hipos elearning Classroom In-house training PSC Membership 1 2 3 4 5 6 7 Job /Competency Profiles

On-line Supply Chain Academy (OSCA) OSCA includes 20 on-line learning courses Each course offers practical tools, exercises, scenarios and a quiz to help learners gain a working knowledge in each area. Variety of learning methods: Scenarios, Case Studies, Practice while learning (use of worksheets & templates), regular checkpoints and end of module quiz to validate what participants have learnt Using bespoke software OSCA s hyper-navigation functionality allows participants to work at their own pace, to interact with the training module and control the direction of their learning through the program into other topics, exercises, checkpoints and quizzes - all without leaving the OSCA module Each course is recognized by ISM and counts as 1 point towards recertification Designed for use anywhere in the world. OSCA uses neutral terminology, visual display and written text that does not discriminate based on ethnicity, gender, religion, age or sexual orientation. Written text is in American English and spoken language is BBC English. With 24/7/365 access using desktop, laptop or tablet, OSCA modules can be used any time and any where you have internet access. Each self-paced course : takes approximately 65 minutes to complete can be applied to an individual professional development plan The on-line learning courses can be client branded You can save or print ADR or bespoke on-line templates for future use Notepad feature for learners to copy and make notes to future reference can be purchased individually or as a suite

OSCA s modules are aligned with your strategic sourcing process, the DNA Questions, the on-line Toolkit and the Classroom Training Courses Strategic Sourcing Step On-line Learning Modules STEP 1 BUSINESS NEEDS ANALYSIS STEP 2 CATEGORY PROFILING STEP 3 SOURCING STRATEGY DEVELOPMENT 1. Stakeholder management & engagement 2. Business needs analysis 3. Spend & Opportunity Analysis 4. Portfolio Analysis 5. PACE & Supplier Pricing Analysis 6. Risk Management 7. Supply Market Analysis 8. Supplier Financial Analysis 1 9. Supplier Financial Analysis 2 10. Deconstructing Price 1 11. Deconstructing Price 2 12. Deconstructing Price 3 Creating Competition 13. Deconstructing Price 4 Should Cost Modelling 14. Deconstructing Price 5 Could Cost Analysis 15. Global Sourcing 1 16. Global Sourcing 2 STEP 4 SOURCING EVENT 17. The RFx, e-sourcing & e-auction Process STEP 5 SUPPLIER EVALUATION & SELECTION STEP 6 NEGOTIATION (TYPES, PROCESS & PRINCIPLES) STEP 7 CONTRACT AND IMPLEMENTATION STEP 8 SUPPLIER MANAGEMENT 18. Supplier Evaluation & Selection See THE ADR NEGOTIATION ACADEMY (x5) (in Development) 19. Contracting for Performance 20. Supplier relationship optimization and management

10 Keys to Success 1. Talent strategy needs to be aligned with the overall business strategy 2. Build success profiles identify what success factors the talent must have to succeed in your company 3. Develop metrics and job role clarity 4. Build effective succession plans and map the talent 5. Use cross training and rotational roles to stimulate the talent 6. Develop a development program using tools and techniques that appeal to 4 generations in the workforce 7. Develop and work with employees