THE BUSINESS REVIEW FOR PROCUREMENT LEADERS
Procurement has become a much more professional discipline in recent years. The introduction of strong processes is sensible and necessary, but there is still a place for well-informed judgment. And for judgment, read leadership.
While managers tend to focus on getting “stuff” done, leaders focus on how people feel. Such leadership qualities are vital if procurement is to seize the business, and personal, opportunities presented by alliances and collaboration. The best leaders are also the best collaborators, says author René Carayol, a business thinker and former board director at PepsiCo.
In a complex, competitive and fast-moving business environment, strategic relationships between firms – even between apparent rivals such as booksellers Borders and Amazon – are an alternative to both organic growth, and mergers and acquisitions. But partnering is no panacea: a recent survey indicated that more than half of business alliances either fail or do not live up to expectations. Poor working relationships are the primary cause of failure.
Becoming the “keeper” of key strategic alliances gives CPOs a shot at making it into the boardroom. But management and process alone will not be enough.
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