2016 Global SRM Research - Supplier relationships in tech

ENGAGEMENT

SENIORSTAKEHOLDERS Splitting the results into leaders and followers shows that while the level of engagement for leaders is higher, just 55% reported strong and active support from senior management (Fig 11) . This is an increase from 2015 (45%), but still below where it needs to be to provide the executive sponsorship SRM needs to fulfil its promise.

Others are not so lucky. An effective senior stakeholder management plan must include some form of engagement with whoever holds that role. Two thirds of companies say their CEO is supportive of SRM, but only 17% say they are actively involved. However, in more than a quarter of organisations (27%), the CEO is the most supportive executive, apart from the CPO. 2/3of companiessay their CEO issupportiveof SRM but only17%say theyare actively involved.

SUPPLIERSASSTAKEHOLDERS Failure to see suppliers as genuine stakeholders in SRM is a commonmistake. Their engagement and support is vital. Positive supplier engagement and support as reported by all companies remains steady at 77% (Fig 13) However, only 17% indicate that this support is strong and active. The importance of engaging suppliers in an SRM programme is illustrated by examining the difference between the level of support reported by leaders and followers compared with others. Our research shows 95% of leaders and 90% of followers have support from suppliers with 35% and 23% respectively reporting that as strong and active engagement. Of the others, just 64% claim to have supplier support, of which just 9% report it as strong and active (Fig 14) . 95% of leaders enjoy support fromsuppliers

55% of leaders report strong and active support fromsenior management

Because any number of people and departments will have regular contact with suppliers, SRM requires backing from outside procurement or supply management, which may well have provided the initial spark. But where should external backing come from? By far the most influential among senior management and executives is the CEO. Some businesses will see them drive change in procurement (see the Telstra case study on p30).

BUSINESSANDOPERATIONAL STAKEHOLDERS

Far from being a procurement initiative, SRM is a business change programme with a footprint across the whole organisation. While the majority of CEOs are not actively involved, our research shows a slight increase in the level of engagement with business and operational stakeholders, up from 65% in 2015 to 69% in 2016. However, strong and active engagement remains low at just 10% (Fig 12) .

IS JUSTBEINGSUPPORTIVEENOUGH? SENIORSTAKEHOLDERSNEEDTOBE STRONGANDACTIVESUPPORTERS

ONLY1 IN10OPERATIONAL COLLEAGUESSHOWSTRONG SUPPORTFORSRM

OVERALL77%OFSUPPLIERS SEEMTOSUPPORTSRM

Fig 11. How would you describe the support for SRM from your senior management and executives?

Fig 12. How would you describe the support for SRM from your business and operational colleagues ?

Fig 13. How would you assess the level of engagement and support from your key suppliers ?

10 %

Strong and active engagement

17 %

Strong and active engagement

20 %

Strong and active engagement

59 %

Supportive

60 %

57 %

Supportive

Supportive

21 %

Neutral

26 %

Neutral

22 %

Neutral

5 %

2 %

1 %

Opposed

Opposed

Opposed

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