Stakeholder Engagement & Support
STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
74
Figure 2.0. The current level of internal executive and senior management stakeholder engagement and support for SRM – all respondents 2013 / 2014
Figure 2.1. The current level of internal executive and senior management stakeholder engagement and support for SRM – leaders / fast followers / followers
50%
60%
○ 2014 ○ 2013
○ LEADER ○ FAST FOLLOWER ○ FOLLOWER
50%
40%
40%
30%
30%
20%
20%
10%
10%
0%
0%
STRONG& ACTIVE ENGAGEMENT & SUPPORT
MODERATE ENGAGEMENT
NEUTRAL
SOME RESISTANCE
STRONG RESISTANCE
STRONG & ACTIVE ENGAGEMENT & SUPPORT
MODERATE ENGAGEMENT
NEUTRAL
SOME RESISTANCE
STRONG RESISTANCE
© 2014 State of Flux
© 2014 State of Flux
Figure 2.2. The current level of business and operational stakeholder engagement and support for SRM – industry sector
○ STRONG & ACTIVE ENGAGEMENT & SUPPORT ○ MODERATE ENGAGEMENT ○ NEUTRAL ○ SOME RESISTANCE ○ STRONG RESISTANCE
60%
50%
40%
30%
20%
10%
0%
FINANCIAL SERVICES
MANUFACT URING
OIL AND GAS
FOOD AND BEVERAGES
IT / HIGH TECH
UTILITIES
PUBLIC SECTOR
HEALTH CARE
PROFESSIONAL SERVICES
AUTO MOTIVE
© 2014 State of Flux
SENIOR MANAGEMENT AND EXECUTIVE STAKEHOLDERS
while the level of engagement for leaders is higher, just 45% reported strong and active support from senior management. This is cause for some concern, particularly as it is down from 69% in 2013. More encouraging is that the number of companies encountering resistance to SRM at the senior management and executive level is much reduced. When looking at senior management and executive engagement and support from an industry perspective ( figure 2.2 ), we can see that the automotive sector has the highest level of engagement. This may be another indication of the maturity of supplier management in this sector. The industry sectors with the toughest challenge to gain more stakeholder support are food and beverage, and public sector.
This group of stakeholders essentially hold the ‘go / no go’ decision on SRM in their hands. No amount of policy dictates or central mandates will enable SRM unless the key decision makers, influencers and budget holders in the business are convinced it can help them achieve their objectives. Despite the indication in the previous section that senior stakeholder engagement and support was making good progress, the responses to these specific questions about engagement with the three key stakeholder groups indicates the overall the level of support to be about the same as in 2013. Only 73% of respondents are receiving even moderate stakeholder support and this represents a real challenge.
When we look at the feedback from leaders, fast followers and followers in figure 2.1 we can see that
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