PEOPLE & SKILLS
STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
122
TTTTTTTTTTTTU PEOPLE & SKILLS
Pillar executive summary
The development of SRM people and skills capability has consistently been reported as a barrier to the progress of SRM as a means of delivering value.
SRM leaders and fast followers are more likely to be creating dedicated SRM jobs.
SRM is a people led activity and we must invest in people as our greatest asset. Only by investing today in training and development to equip our teams with the right skills and competencies can we ensure that SRM delivers to its maximum potential for our organisations in the future. We have seen an increase in the number of companies that have recognised and defined the SRM role as one that is distinct and different from the more traditional procurement and supply chain management roles. But it is clear that for many, the role remains something that exists in the margins of procurement or a business function. It’s worth noting that SRM leaders are far more advanced in this area with more than eight in ten reporting that the role is clearly defined and recognised. Even when the role is defined, less than half have moved on to having an SRM specific skills / competencies inventory, performing an SRM capability assessment and having SRM specific training options available. A steady state in terms of companies’ preferences for resourcing and designing SRM jobs seems to have been reached – the most favoured option currently being to combine the role with that of the category or sourcing manager. While this may be expedient, it should be approached with caution. Combining these roles is difficult without careful job design. It’s interesting to note that the
Cross-functional teams are essential to good SRM and over half of all respondents were making use of them. For most SRM leaders (nearly 80%), this has become a standard feature. Part of an increased understanding of SRM is of the skills and competencies required, and it is here that a supply and demand gap starts to emerge. The message is clear and simple: SRM depends to a huge degree on the interaction between people. + Our people do not possess the requisite skills to perform the role to its full potential. In particular they lack the so called ‘softer’ relationship management and development skills. + We are not currently investing sufficiently in training to develop their skills. = Sub-optimal SRM. The proportion of companies investing in training has declined since we started our research in 2009. At that time over 50% of companies said they were investing in SRM training. By 2012 that had fallen to 43% and in 2014 the figure is 39%. Yet companies who we’ve identified as leaders in SRM are also the ones that are making the training investment.
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