2013 Global SRM Research Report - Six pillars for success

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Figure 3.0. Organisations that have a single SRM process owner – buy side

Process ownership In order to determine if there is a single point of accountability and responsibility for developing SRM governance and process we asked if organisations had a single process owner and what that process owner was responsible for. A single process owner is in place across 64% of the organisations who responded and the second chart indi- cates the main responsibilities they fulfil. Another indicator of process ownership is provided by budget responsibility (see figure 3.2). From the feedback received we can see that this falls broadly in line with the process ownership result, in that 50% of respondents hold the budget for SRM in procurement. The 32% of respondents with no formal budget allocated would also provide a link to the budget and resource concerns that respond- ents report. Best practice SRM is achieved through process excellence and consistency, while retaining a level of flexibility that allows each area of the business to function effectively within an SRM framework that has good governance and process defined. We believe that this level of consistent best practice can only be achieved with a single process owner. They need to be responsible for working effectively with business stakeholders and subject matter experts to develop the overall vision and direction for SRM. This person manages senior stakeholder engagement, and develops an operating model and the organisational design. In addition, they need to plan and direct the SRM develop- ment project, including building the necessary process tool kit, and taking the lead in defining requirements and devel- oping an information and technology strategy. In conjunction with subject matter experts, they need to develop a complete organisation and talent develop- ment plan.

DON’T KNOW 5%

NO 31%

YES 64%

Figure 3.1. Process owner responsibilities – buy side

86%

DEVELOPMENT OF TOOLS AND TECHNIQUES DEVELOPMENT OF PROCESS EXCELLENCE DEVELOPMENT AND ROLL OUT OF THE SRM PROGRAMME

76%

74%

63% 64%

SKILLS DEVELOPMENT AND TRAINING SENIOR STAKEHOLDER ENGAGEMENT

60%

OTHER DEVELOPMENT OF THE SRM IT STRATEGY ORGANISATIONAL AND OPERATING MODEL DESIGN

38%

6%

Figure 3.2. Budget responsibility for SRM

NO SPECIFIC BUDGET ALLOCATED 32%

PROCUREMENT / SUPPLY CHAIN FUNCTION 50%

OTHER 4%

OTHER BUSINESS UNITS OR FUNCTIONS 14%

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