PEOPLE
OUTSIDELEADERSANDFOLLOWERS, HALFOFBUSINESSESHAVEYETTO DEFINETHESRMROLE.
SRMLEADERSAREMORELIKELYTO HAVE INVESTED INSRMSKILLSDEVELOPMENT
Fig 19. Is SRM defined as a specific role* in your organisation?
Fig 20. Which of these activities have you completed in relation to people and skills development for SRM?
% of respondents
Other Follower Leader
62
% of respondents Other Follower Leader *The termrole refers to a set of defined accountabilities and responsibilities that can be all or part of a job design)
95
77
31 31
25 22
22
20
19
19
51
17
45
12
9
6
3
2
22
Completed an SRM skills and competency assessment
Created an SRM people development strategy
Developed an SRM skills and competency framework
Implemented SRM training
None
5
1 4 0
Yes
No
Don’t know
Note: due to rounding, percentages do not sum to 100.
However, even if the role is defined, as it is by 95% of leaders (Fig 19) , only around a quarter have an inventory of skills and competencies specific to SRM, and less than 20% have performed an SRM capability assessment with just over 30% having SRM specific training options available (Fig 20) . Asbusinesses identify thecritical SRMskills theyalsoseeagap in theiravailability. SRM leadersaremore likely tobeaddressing this by investing in training comparedwith those trailing inperformance.
INVESTMENT INTRAINING We have not seen investment in training keeping pace with other aspects of SRM. While the proportion of companies investing moderately to significantly has increased slightly (35% in 2015 to 38% in 2016) the number not investing at all has increased from 26% to 39%. PEOPLEDEVELOPMENTPROCESS Since we identified the PEOPLE pillar as a key aspect of developing SRM capability we have seen a tendency for it to be considered just a training challenge. In reality, developing the necessary SRM skill set requires a serious look at the people development process. It starts with defining the role, move to assessing team member capability and then identifying needs based training solutions. What we observe is an ever decreasing proportion of companies that have followed these simple process steps. There is a clear tendency to leap to a training solution. While this is done with the best of intentions it does risk wasting scarce training budget on activities that are not well aligned to priority skills development. The relationship between training needs (demand) and available training (supply) is explored in more detail on page 46.
PERFORMANCEMANAGEMENT No matter what is defined in a person's job description, what they prioritise and how well they performwill always be heavily influenced by what they are measured on and how they are rewarded. The old adage of "what gets measured gets done" is as relevant today as it has always been. Measuring and incentivising great SRM performance is a challenge. This year for the first time we have asked respondents to provide feedback on how personal performance relating to SRM is measured in their companies. The most popular response from 44% of respondents was that they don't currently have clear criteria for SRM performance management at all. Amongst those that do 43% said it was based on savings, 26% that it's based on internal stakeholder and customer feedback. Other factors being taken in to consideration are reduced risk and innovation. Interestingly only 12% take supplier feedback into account.
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