Recruit a board-level SRM champion in 2016 - part 2

Guest blog by Ryan Nied, Global Procurement & Supply Chain Executive

Part 1 considered the business benefits of implementing an SRM program. However for many change agents in middle management, it can become tempting to initiate a grassroots SRM movement amongst stakeholders and suppliers. Though these activities are worthwhile at a tactical level, it is hard to deny that these activities do not trigger the transformational change needed to create maximum value.

These efforts are often better directed at a business case for SRM culture transformation, which starts at the top. Without the executive sponsorship, practitioners will encounter a range of barriers to building a high-performing SRM culture. Some of these include:

• Insufficient resources
• Short-sighted performance metrics
• Talent gaps
• Underinvestment in technology
• Ineffective operating model

3 actions to assist with gaining a board-level champion

Procurement plays the leadership role in showcasing the importance of building SRM as a competitive advantage with the exec rank. Here are a few actions you can take right now to get the ball rolling:

1. Read the State of Flux survey report. Study each of the six pillars of SRM. Reflect upon what opportunities exist in your organization. Network with external procurement professionals to gain further perspective.
2. Review SRM within your current procurement organizational strategy. Schedule time with your CPO and others leaders. Include other stakeholders whose endorsement is critical. Identify the top three outcomes your business aspires to achieve in the next three years where suppliers are essential to deliver them.
3. Develop an action plan to present to a board-level champion. Build a project plan that highlight linkages from supplier deliverables to enterprise-wide initiatives in line with the business plan. Propose a well-crafted, top-down supported business change program, which highlights the benefits, the required investments and the timescales needed to drive a cultural shift.

For further information on SRM please contact State of Flux on +44(0) 207 842 0600 or email us at enquiries@stateofflux.co.uk

Ryan Nied is a senior procurement leader with 18 years of experience in global, industry-leading CPG and packaging businesses. For comments on this article, he may be reached at Ryan.Nied@gmail.com.  

Download the 2015 SRM report here