STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
Stakeholder Engagement & Support 79
Analysis
SRM AS A BUSINESS CHANGE PROGRAMME
STAKEHOLDER ENGAGEMENT AND SUPPORT
the role of an accountable executive for a key supplier relationship. Less than half of companies have accountable executives appointed for more than 50% of their key suppliers. Getting an accountable executive in place for every key relationship may not be practical, and clearly there needs to be prioritisation and a clear definition of what the role entails. However, the analysis here suggests there are plenty of vacancies.
SRM implementation treated as just a procurement initiative is destined for failure. To implement SRM requires a business change programme that has an impact on people, process and technology across every part of the
organisation. Like any business change programme it needs cross-functional communication and involvement.
STAKEHOLDER MANAGEMENT
A key feature of effective SRM is how it should change the relationship experience for both parties, from one that is fragmented and opportunistic (on both sides), to one that is consistent and structured. For consistency to be achieved, all stakeholders need to not only understand what SRM is, but also what role they play and what is expected of them. Senior stakeholder support is invaluable here and will help galvanize and align both organisations. The analysis of this section reveals that stakeholder engagement and support across all three groups (senior management and executive, business and operational, and suppliers) is far below its optimum level to make SRM work in most organisations. Even among the leading companies where you would expect very good support, the number reporting strong and active engagement is very low. While we accept that gaining stakeholder buy-in is not easy, it is essential. Both moderate support and a neutral position (which is more akin to passive resistance) are not good enough. If a stakeholder is really impacted by SRM then they need to be providing strong and active support for the programme to succeed.
Given the cross-functional scope of SRM and the potentially long list of impacted stakeholders, a methodical and structured approach to stakeholder mapping and management is highly recommended. Stakeholder engagement and support is not achieved via a single email or even a single meeting. Stakeholder management needs to be an ongoing activity sensitive to any change that might impact the risk profile surrounding stakeholder support. VOICE OF THE SUPPLIER AND SUPERIOR SUPPLIER ENGAGEMENT The analysis in this section reveals that gathering feedback from suppliers is an important attribute of the leaders' approach to supplier engagement. Achieving supplier engagement excellence is about changing the supplier’s experience and how they think about you as a company and as a customer. The first step towards changing the supplier experience is quite a simple one – ask them what they think. This simple gesture of openness and trust can do a lot to enhance your reputation as a company that regards its supplier relationships as less of a risk to be managed, but instead an asset. However simple this first step might appear, do not take it lightly. First you have to be committed to change. Asking someone what they think
‘ACTIVE’ STAKEHOLDER ENGAGEMENT
Strong and active stakeholder support can best be judged by a willingness to get involved. For many stakeholders, this could mean taking on
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