Quiz: How should a Chief Procurement Officer implement eSourcing 2.0? (WWCPOD?)

(Answer found at bottom of page)

Our ongoing discussion of eSourcing 2.0 picks up from last Friday’s article which made the argument that there should be an enterprise-level system of record that captures the key elements of the discussion with suppliers that result in the final (or agreed upon) business requirements and associated terms. As a reminder:

eSourcing 2.0: Every negotiation that results in an executed contract should use an eSourcing solution.

Let’s say the CPOis now fully convinced that eSourcing 2.0 is the right path to pursue. How should the CPO pursue it? What would you do? eSourcing 2.0 is a big change to the natural order of things. It clearly requires some type of change management. The pros who commented on last Friday’s post shared different experiences and different challenges in rolling out their eSourcing initiatives. The approaches that they have taken may have shared some similarities, but must have differences too.

In general, there are two schools of thought on an approach to rolling out a new policy/process/solution – A. Sell the Vision or B. Mandate the Behavior. Let’s take a brief look at a thought process behind each approach. Better still, with election season in full swing in the UK, let’s have a mini-debate.

School of Thought I: Sell the Vision

Today’s professionals are increasingly adaptive and flexible. Their tendency is to do the right thing for the team/department/enterprise. A few carrots and a nudge in the right direction and you are off to the races. If the vision and leadership of the Chief Procurement Officer are on target (and eSourcing 2.0 hits the bull’s-eye ;-)), the procurement staff will have no problem following the suggestions made from the CPO’s bully pulpit. Then the loyal staff, acting as CPO-proxies, will work to ensure that the message is carried out to the business and functional stakeholders. To place more spend under management, the Chief Procurement Officer’s job has increasingly become one of marketing and sales to the larger enterprise. Selling fits this style. To quote Roy Anderson, “People are like water……” In nature, water finds a path, its path and flows ever gracefully to the sea. It gets there. Sell it, they will come.

School of Thought II: Mandate the Behavior

Today’s professionals lack the tools for change. Worse, they fear it. Yes, inertia and the fear of change have conspired to constrain and restrict the department. The only thing that outweighs this deadly combination is a big stick. SLAP! Can I have your attention please? The directive is clear, follow the code or else. Watch as the staff quickly falls in line and then actively trains and recruits the rest of the enterprise on the rigors of eSourcing 2.0. To place more spend under management, the Chief Procurement Officer must employ a command and control strategy. Mandating behavior fits this style. To quote Roy Anderson, “People are like water….” You must build dams and canals and guide the flow where you want it to go. “If you build it, they will come” is a work of fiction. Field of Dreams, the movie which introduced this phrase into the American vernacular in the late 1980s was a great an ok movie, but a work of fiction, nonetheless. In fact, the real quote is “if you build it, he will come.”  Who’s got time to worry about one person? You want results? Lay a mandate and track it often. Full Stop.

Quiz Answer: While I have an opinion on this, there’s not necessarily one correct answer. And if there is, I might not have it — Let’s see if there is a consensus among the CPO Rising readers to provide a final Answer to today’s Quiz below. What would you do? Please comment below.

Tagged in: Chief Procurement Officer, CPO, eSourcing, People, Strategy, Technology