STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
PEOPLE & SKILLS 133
Analysis
RESOURCING AND JOB DESIGN
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. In considering people and skills, we have resisted the temptation to jump straight into the training debate, although investment in training is clearly a big issue to be addressed. Through our research and the way we engage with our clients, we always seek to widen the discussion to include all aspects of talent and capability development. This approach is reflected in the following analysis of the results from our 2014 research.
It appears we have reached a steady state in terms of companies’ preferences for resourcing and designing SRM jobs. The most favoured option adopted by 43% of companies is to combine the role with that of the category or sourcing manager. While this appears expedient, as the majority of organisations position SRM in the procurement function, it should also be approached with caution. In truth, this has probably been the most popular solution since SRM was first conceived, but in practice has often run into problems. These have arisen mostly from a failure to fully understand the SRM role and also through a lack of proper job design. The combination of SRM and category or sourcing roles can be successful, but only if the new consolidated job is designed to create the right balance between the roles including clear deliverables, objectives and performance management. SRM leaders and fast followers are more likely to be creating a dedicated SRM job than both followers and others. As more companies become aware of both the potential for value creation and the unique skills required for the role, we can see this proportion growing.
SRM AS ROLE
We have seen a steady, if not spectacular increase in the number of companies taking at least a first step in recognising the SRM role as one that is distinct and different from the more traditional procurement and supply chain management roles. However, for many the role remains something that exists in the margins of procurement or a business function. Given the opportunity to deliver real change, and to maximise value contribution to the organisation, to be successful this role must be properly defined and one designed to attract the best talent. The evidence is there in that SRM leaders are far more advanced in this area with more than eight in ten reporting that the role is defined and recognised. To qualify this, we also asked about the proof points that should be in place if the role is well defined. Out of the 52% that reported a well defined role, we saw that less than half were aware of their organisation: ö ö Having an SRM specific skills / competencies inventory. ö ö Performing an SRM capability assessment. ö ö Having SRM specific training options available. Creating a well-defined role is a good starting point. However, to be successful, we must then build on that with a clear understanding of the skills required and in place within our teams. Then delivering some well aligned training where needed will together ensure the delivery of maximum value to the organisation
TEAMWORK
Our research revealed that 56% of all respondents were making use of cross- functional teams, with this approach being more a standard feature of SRM for nearly 80% of leaders. We are sure that more companies use a less defined version of cross-functional teams pulling together resource and expertise on an ad hoc basis. We would maintain that formally constituted teams of named
individuals with defined roles and responsibilities is a better practice.
SKILLS – SUPPLY AND DEMAND
Always a point of discussion – this research has consistently revealed the relationship between the most important skills required to deliver results through SRM, the degree to which organisations acknowledge the need to improve these skills, and finally the current training provided.
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