ENGAGEMENT
Other priorities are a barrier to SRM for a third of organisations Barriers to leadership team support
Barriers to leadership team support The trend in declining leadership team support is likely to be caused by familiar barriers to SRM. Chief among them is organisations putting “other business priorities” ahead of SRM. The second most reported barrier is that the leadership team have insufficient awareness of the SRM value proposition, which is hardly surprising given our survey also shows almost half of companies have not developed a value proposition for SRM. Together, the results demonstrate why the value proposition is so vital to SRM engagement. The industry sectors (C-level) where a higher proportion of the senior leadership are fully on board with SRM are IT and telecoms and FMCG. Business and operational engagement Whereas strong and active support from the leadership team is vital to initiating and sustaining SRM, day-to-day management of suppliers is largely in the hands of the business and operational teams. Ensuring they are fully engaged with SRM is also vital to delivering the value proposition. As with the leadership, the level of support from business and operational teams is a tell-tale sign of the health of a programme. SRM leaders are almost three times more likely to be receiving strong and active support than fast followers. This level of support is very rare among followers, partly due to
Other business priorities 33%
Insufficient awareness of the value proposition 29% Procurement and supply chain is not high enough on the corporate agenda 18% Difficult to make a compelling business case 14%
Disagree with the concept 2%
SRM leaders are the most likely to get operational support Business and operational team support (Leaders, Fast Followers, Followers)
Leader
Fast Follower
Follower
33% Strong and active engagement and support 14% 3%
Supportive
52%
Snapshot analysis
67%
45%
Neutral
Business leaders and operational managers alike can get caught up in the challenges in front of them. And there are many. So underlying trends can get ignored, such as the growth in activities handed over to the supply chain. A strategic plan for managing these relationships helps businesses innovate and avoid risks. While procurement cannot force stakeholders to understand the importance of SRM, they can set the stage for them to learn. That’s what engagement is about.
11%
14%
40%
Some opposition
4%
5%
12%
0% Strongly opposed/resisting 0% 1%
32
STATE OF FLUX
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