PEOPLE
PEOPLE
15% OF ORGANISATIONS CARRY OUT SKILLS AND COMPETENCY ASSESSMENTS
27% OF FOLLOWERS HAVE DONE NOTHING TO PREPARE THEIR PEOPLE FOR THE INTRODUCTION OF SRM
43% OF FIRMS HAVE IMPLEMENTED SRM TRAINING
Summary
All of the leader group have defined SRM roles Fig. 27. To develop SRM skills and competencies have you done any of the following?
To understand what skills an organisationmight need for SRM, it is important to first define the skills required and then assess the skills it has. But not enough companies do this groundwork.
There are signs of improvement in organisations’ approach to providing the skills to support SRM, but there are also causes for concern. More businesses than ever are defining the SRM role: 58% did so in 2018; only 29% did in 2017. However, only 15% of organisations have carried out skills and competency assessments to understand what skills they will need, only a slight increase on last year’s 11%. We are also seeing increasing support for dedicated SRM roles: half of organisations have created them, but 54% of firms merge SRMwith other procurement roles. Gaining suppliers trust in SRMwill depend on the people organisations dedicate to it. We see room for improvement in defining their roles and developing their skills.
Leader
Fast follower
Follower
Defined the SRM role
100%
79%
46%
58%of organisations are defining SRM roles Fig. 26. To develop SRM skills and competencies have you done any of the following?
Plans for SRM value, engagement and governance look very good on paper, but they mean nothing if organisations lack the people to put them into practice. People and skills underpin the relationships, both internal and external, that take SRM off the drawing board and transform it into a living, breathing business mission. Organisations should invest in people and skills carefully. Because SRM cuts across the business, successful businesses decide who will be involved with SRM, define roles, select the necessary skills and design and deliver training. It’s an area where we often find weaknesses in the SRM strategy.
Included SRM in personal performance measures
77%
51%
33%
Defined the SRM role
58%
Implemented SRM training
68%
Created or updated job descriptions
Research shows an increasing number of organisations are defining SRM roles
43%
65%
30%
Implemented SRM training
Our 2018 research shows some promising signs of improvement in the area of people and skills. The proportion of companies defining the SRM role has leapt to 58% compared with only 29% in 2017. Similarly, the development of a skills and competency framework is getting more attention: 28% of organisations now carry out this work, up from 21% last year. SRM training is also increasing. In 2017, just 20% of firms had implemented any training; this year the figure is 43%. In this year’s research we have introduced a question to assess whether SRM job descriptions had been developed and if it was included in personal performance measures. We found 43% and 40% respectively of organisations have done this work. To develop the skills an organisation might need for SRM, it is important to first understand clearly what those skills are and then secondly to assess the extent to which they currently exist. But not enough companies do this groundwork. Only 28% have created a SRM skills and competency framework and then only 15% of them carry out skills and competency assessments. This was a marginal increase on last year’s 11%. Vital people and development steps are being missed out. Potentially organisations are designing jobs, placing people in them and providing training without ever having tried to understand what skills are required or assessing the skills people already have. SRM leaders, however, do prepare their skills strategy better than the rest of the pack: 36% of them have completed an SRM skills and competency assessment, while only 8% of the follower group have done the same. The follower group could be storing up difficulties in their execution of SRM because of lack of attention to skills. More than a quarter of followers have not addressed SRM people development in any meaningful way.
42%
Created or updated job descriptions
Included SRM in personal performance measures
68%
40%
61%
34%
Developed a SRM skills and competency framework
28%
Developed a SRM skills and competency framework
None
55%
20%
44%
20%
Completed a SRM skills and competency assessment
15%
Completed a SRM skills and competency assessment
36%
28%
SNAPSHOT ANALYSIS
8%
While all of the SRM leader group say they have defined their SRM roles, they should not be complacent. It is difficult to see how they will understand what roles they need, and the training necessary for people to perform those roles, without a competency and skills assessment. Even among leaders only 36% have completed one. A greater concern though is the follower group, whichmake up the majority of the sample: 27% of themhave done nothing to prepare their people for the introduction of SRM. Omissions like this threaten the future success of SRM in the business.
None
0%
5%
27%
62
STATE OF FLUX
2018 GLOBAL SRM RESEARCH REPORT
63
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