VALUE
State of Flux opinion
In so many of our conversations with clients and others, getting everybody to agree why SRM is important and necessary is a constant topic of discussion. Clearly, strong and active stakeholder engagement is key to success (see Engagement on page 32) but this engagement and support can only be secured on the back of a compelling value proposition. The value proposition is really at the heart of SRM. So what does a good SRM value proposition look like? It needs to be clear, concise and relevant. In the initial stages of the programme, the value proposition is a ‘sales pitch’ aimed at senior executives. Therefore, it needs to be both broad in its consideration of different types of value, but also precise in targeting areas that will resonate most strongly with specific stakeholders. Three areas are important to emphasise: tangible benefits that are easy to understand and measure; less tangible benefits such as a contribution towards sustainability goals; and thirdly (but often overlooked) the implications of doing nothing. Doing nothing doesn’t mean standing still, it means the competition get the benefit of supplier innovation before you do and gain a competitive advantage. That can tend to focus minds.
26 STATE OF FLUX
Powered by FlippingBook