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PROPRIETARY AND CONFIDENTIAL TO NORTH HIGHLAND CHANGING THE WAY ORGANIZATIONS THINK, FEEL AND DO An Intro to Professionalizing Procurement & Strategic.

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Presentation on theme: "PROPRIETARY AND CONFIDENTIAL TO NORTH HIGHLAND CHANGING THE WAY ORGANIZATIONS THINK, FEEL AND DO An Intro to Professionalizing Procurement & Strategic."— Presentation transcript:

1 PROPRIETARY AND CONFIDENTIAL TO NORTH HIGHLAND CHANGING THE WAY ORGANIZATIONS THINK, FEEL AND DO An Intro to Professionalizing Procurement & Strategic Sourcing What Why How

2 PROPRIETARY AND CONFIDENTIAL TO NORTH HIGHLAND CHANGING THE WAY ORGANIZATIONS THINK, FEEL AND DO PROFESSIONALIZING PROCUREMENT STRATEGIC SOURCING INSPIRING CHANGE SUSTAIN PROJECT & PROGRAMME LEADERSHIP PEOPLE PROCESS TECNOLOGGY TRANSFORM Strategic Sourcing & Professionalizing Procurement SOURCING STRATEGY SUPPLIER MANAGEMENT SPECIFICATION & SELECTION FOUNDATION Empowering and inspiring people to embed the change and make it stick Changing the way organisations shape, build and run procurement functions Transforming procurement to support business outcomes and set the foundations for success

3 PROPRIETARY AND CONFIDENTIAL TO NORTH HIGHLAND CHANGING THE WAY ORGANIZATIONS THINK, FEEL AND DO What and Why Professionalize Any of these ring true? Professionalizing Procurement Organization Diagnostics, Vision and Functional Model Collaboration Model Operating Processes and Governance Organization Design Capability Development Framework Workforce Transition Building Capability You’ve restructured your Procurement Organization but things have not really changed. You’ve brought in new capabilities but it hasn’t seemed to have had the effect you were after. You don’t have clear ways of working and duplicate effort, systems and processes. You are reliant on traditional approaches to procurement that don’t deliver real business value.

4 PROPRIETARY AND CONFIDENTIAL TO NORTH HIGHLAND CHANGING THE WAY ORGANIZATIONS THINK, FEEL AND DO Diagnostic, Vision and Case for Change Induction, Recruitment & up-skilling The Professionalizing Procurement Roadmap Collaboration - ways of working, processes and governance Team structures, headcount, roles & reporting lines Clarity on expectations for each role Functions by team to determine accountabilities and responsibilities Current state analysis, case for change, and vision for the Procurement department and how it will engage with, help shape and support the Business Competencies by role & levels Career maps by role, upwards & sideways Organization Diagnostics & Vision Operating Processes & Governance Capability Development Framework Building Capability Workforce Transition Functional Model Collaboration, Processes & Governance Organisation Structure Job Descriptions Learning & Development Competency Model Workforce Transition Functional Model Career Paths Learning & Development Catalogue The tools, techniques and consultation to transition staff to the future state organization Bring in the right people with an inspiring on- boarding program and continue to develop capabilities Technology Assess, implement & embed technologies to support new ways of working Career Progression Performance Management Learning & Development RecruitmentBenchmarking Organization Design

5 PROPRIETARY AND CONFIDENTIAL TO NORTH HIGHLAND CHANGING THE WAY ORGANIZATIONS THINK, FEEL AND DO Discussion Points – Professionalizing Procurement 5 ThinkFeelDo What does your Procurement strategy say about the future shape, structure and resourcing for the organisation? What are the key people capabilities and skills you will require to deliver your Procurement strategy and major programs? What is your people development strategy (covering areas such as competencies and culture) for achieving your Procurement strategy? Is everyone clear about team accountabilities, responsibilities, involvement and hand-offs? How could you cover both Procurement and business competencies over a range of levels? What can you provide people to help them identify and pursue career progression opportunities? What are the specific skills gaps and development needs across the organisation and the relative priorities? Have you updated your learning and development program to align with your competency model? What is your retention and succession strategy? Do you have clear processes that are aligned to how your systems and organisation works? Are there opportunities to group roles more effectively?

6 PROPRIETARY AND CONFIDENTIAL TO NORTH HIGHLAND CHANGING THE WAY ORGANIZATIONS THINK, FEEL AND DO Why focus on Strategic Sourcing? SUPPLIER MANAGEMENT SUPPLIERS / VENDORS GOVERNANCE COMMS, CULTURE & CHANGE SPECIFICATION & SELECTION SOURCING STRATEGY CORPORATE FUNCTIONS Strategic Sourcing A coherent strategy aligned to business priorities, with procurement linked to business performance Improved supplier planning, management and performance underpinned by deep relationships A sustainable, professional procurement organisation that delivers value to the business Part of our established suite of Professionalizing your organisation methodologies and tools.

7 PROPRIETARY AND CONFIDENTIAL TO NORTH HIGHLAND CHANGING THE WAY ORGANIZATIONS THINK, FEEL AND DO The value of Strategic Sourcing What are the key benefits? Achieve efficiencies, reducing costs and risks Deliver best value from procurement spend Improve supplier relations and establish strategic partnerships Improve performance and achieve a competitive advantage Meeting the sourcing needs of the business Aligning the procurement approach to business strategy and performance Providing a strategic assessment of costs and strategic business processes Rationalizing suppliers and governance using a strategic supplier list Implementing consistent supplier and procurement performance measurement Developing a consistent approach to supplier relationship management Ensuring an appropriate mix of suppliers are used for upcoming programs Providing governance and support in the supplier selection process What are the elements of Strategic Sourcing?

8 PROPRIETARY AND CONFIDENTIAL TO NORTH HIGHLAND CHANGING THE WAY ORGANIZATIONS THINK, FEEL AND DO Discussion Points - Strategic Sourcing 8 ThinkFeelDo What does your Procurement strategy say about how you are going to support the wider business goals? Are you getting the best value from your current suppliers? Have you got the right mix of suppliers? Have you got visibility of all supplier spend from across the organisation? How can you engage with the business to ensure that you are managing their demand and expectations and aligning their need with your capacity and expertise? How can you strengthen the relationships with Strategic Suppliers in ways that increase transparency and better align critical business partners to your mission and objectives? Are there opportunities to consolidate suppliers or spend across the Organization? Are there any quick wins that can demonstrate the value of Procurement to the wider Organization? Can you evolve your procurement processes to deliver improved outcomes, whilst still maintaining rigour, accountability and transparency?

9 PROPRIETARY AND CONFIDENTIAL TO NORTH HIGHLAND CHANGING THE WAY ORGANIZATIONS THINK, FEEL AND DO APPENDIX

10 PROPRIETARY AND CONFIDENTIAL TO NORTH HIGHLAND CHANGING THE WAY ORGANIZATIONS THINK, FEEL AND DO Organization Diagnostics, Vision and Functional Model 10 A clearly defined vision for procurement that is linked to corporate strategies, a view of the key business priorities and a functional model of where you want to take the Organization. Produce Organizational diagnostics to clarify current state, key business drivers and priorities, linking your vision and strategic priorities to a high-level, functional design. Procurement Vision What you get What we do Functional Model Organization Diagnostics & Current State Analysis

11 PROPRIETARY AND CONFIDENTIAL TO NORTH HIGHLAND CHANGING THE WAY ORGANIZATIONS THINK, FEEL AND DO Specification & Selection Identify procurement activities Perform a market assessment to identify suitable vendors and trends Define functional and non-functional requirements Establish evaluation criteria Manage the procurement process through to vendor selection Finalize the commercials, complete the transition and embed Support in scoping, managing and delivering a complex or large-scale procurement along with best practice tools, templates and methodologies to improve future procurement performance. Focus on the identification and procurement of products, services or people to meet an existing business need or drive efficiencies. What we do What you getHow we do it

12 PROPRIETARY AND CONFIDENTIAL TO NORTH HIGHLAND CHANGING THE WAY ORGANIZATIONS THINK, FEEL AND DO Our approach fits within the established Scan, Focus and Act delivery framework We have an established methodology that can be tailored to a client’s individual situation and requirements What is our methodology? Our approach to Specification & Selection SCANFOCUSACT Assess procurement options Assess the marketplace and identify vendors Review current state and understand drivers Capture Business Drivers, priorities & imperatives Create procurement documentation Establish evaluation criteria, tools & team Define Future State & Requirements Develop Governance Arrangements Agree procurement route, process & timelines Warm-up identified vendors Define business objectives and requirements Define procurement scope Develop Functional & Non- Functional Requirements Transition to new provider(s) and embed Finalise commercials Run process and manage vendors Capture Business Drivers, priorities & imperatives Evaluate responses against requirements & objectives Select chosen vendor & sign- off

13 PROPRIETARY AND CONFIDENTIAL TO NORTH HIGHLAND CHANGING THE WAY ORGANIZATIONS THINK, FEEL AND DO The value of Specification & Selection Identifying, evaluating and selecting the appropriate supplier(s) for a specific contract is critical across all areas of corporate procurement A coordinated approach from requirements gathering through vendor evaluation, and subsequently to supplier negotiations, helps clients to deliver efficiencies and reduce the costs associated with all procurement activities Following a robust and comprehensive specification & selection process will ensure that procurement functions focus on balancing cost against a supplier’s ability to deliver their specific goals and requirements An objective evaluation process will ensure the best option is chosen and not just the cheapest Key drivers and benefitsKey outcomes Structured end-to-end vendor selection and procurement support Ability to identify and source specific products or key skill sets Confidence developing & executing successful negotiating strategies A reduction in the cost of supplier contracts and arrangements Access to knowledge best practice tools, templates & deliverables


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