STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
ARTicle 139
DEVELOPING TECHNICAL SKILLS
Here we see four component areas to focus on: the ability to apply a structured governance model; engaging suppliers and a wider range of stakeholders pursuant to leading joint account planning; driving value release (focusing on unlocking latent value in the relationship); and creating new value.
GOALS
CONTRA-INDICATIONS
PROOF POINT
6 ––– GOVERNANCE
ö ö Governance model defined. ö ö Evidence of governance model. ö ö Segmentation model is current.
Under-used (or mis-used) governance model. No evidence of continuous improvement of the governancemodel. No evidence of collaboration or governance effectiveness measures. Lack of accountable executive involvement. Account planning seen as a form filling exercise rather than valued for the thought process and actions it can generate. Value is limited to a narrow range of savings-type targets. Value release not treated as a programme (i.e. no plan, no milestones, no accountability, etc.). Innovation is required fromthe supplier but no structuredmanagement, follow
Applies structured governance model and leads in engaging the supplier. Validates supplier is strategic (and vice versa).
7 ––– JOINT ACCOUNT PLANNING
ö ö Account plan document exists and has been updated in the last 90 days. ö ö Account development actions reported and managed. ö ö Value release plan (quantified). ö ö Plan is ‘programme managed’. ö ö Proof of shared benefits.
Collaborative, joint account planning is performed with the supplier’s account manager and team members.
8 ––– VALUE RELEASE
Defined value release plan alongside the account plan. Wide range of quantified value drivers are considered, including risk, bottom line / top line. Stimulates and manages an innovation pipeline with the supplier. Selected innovations are progressed through a jointly created business case.
9 ––– VALUE CREATION
ö ö Innovations received / actioned. ö ö Evidence of joint business planning and shared value.
up and results are delivered. Supplier fatigue occurring (i.e.
supplier has a perception that their good ideas are not being progressed).
DEVELOPING BEHAVIOURAL SKILLS
We break this area down into four component areas that enable the supplier manager to be an effective business-to-business coach: stakeholder management, cross-functional leadership, strategic thinking (and driving action), and communication skills.
GOALS
CONTRA-INDICATIONS
PROOF POINT
10 –––
ö ö Relationship plan. ö ö Range and depth of contacts. ö ö Evidence of engagement.
Stakeholder map is biased towards contacts in own organisation (lack of breadth and reach into supplier’s organisation).
Proactively engages key stakeholders acknowledged as the relationship owner. Uses a relationship plan that spans buy and sell sides at operational, performance and strategic levels. Effective at leading a cross- functional / cross-business virtual team in context using influence rather than authority.
STAKE- HOLDER MANAGEMENT
11 ––– CROSS
ö ö Supplier / stakeholder willingness to engage measures. ö ö Voice of the supplier / 360 degree survey data.
Ineffective in leveraging resources, securing commitment and demonstrating action. Is not invited to the table and consulted as a trusted advisor.
FUNCTIONAL LEADERSHIP
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