How can companies achieve better practise
For Sawchuk it is all about customer centricity, how can this be done? Sawchuk commented “ A good model to understand what to be successful is to ask customers…(procurement) should be asking what they are trying to achieve.”. It is a modification from a results orientated approach to one that is outcome orientated. Identifying what the preferred outcomes are can take time.
There some debate about what the difference between result and outcome is. We would define a result as being the product of something being completed, an outcome is wider encompassing not just the result but also the effect and consequences. The result of the recent Japan vs South Africa game was 31-34, the outcome will almost certainly be much wider, and probably positive to Japanese rugby.
The Hackett group proposes that procurement want to rise to the status of trusted advisor to the business, a position that IT has long coveted and in the right company both have merits. They propose a nine step holistic approach, see below that underpins the work that Hackett group does for its customers. Sawchuk simplified this during an airplane flight into a five step pyramid that procurement teams should be able to identify with. Working from Supply assurance where procurement buys the right goods that are delivered at the right time and place up to value management where procurement become a trusted advisor and change manager to the business.
This pyramid can also be found in the report and IT leaders should be able to consider something analogous from keeping the lights on all the way up to innovative change leader and trusted advisor to the business.
