Like any good successful politician (good politician = oxymoron), I am trying to stay on message with the eSourcing 2.0 campaign (Source Baby, Source!). It’s a grass-roots movement and we need your help. And with eSourcing solutions in place at roughly 60% of companies and usage (for those companies with the solution) hitting less than 1/3 of addressable spend, we have much work ahead. I have been barnstorming around the US in October and have been generally able to work in a section on eSourcing 2.0 into most presentations that I have given on any number of CPO-themed topics. Rest assured (OK, you probably aren’t worried about this), it will continue to be a major theme on CPO Rising through election day and it will remain a major part of my “stump speech” this campaign season.
For those less familiar with the main theme of eSourcing 2.0, here’s a quick primer:
eSourcing 2.0: Every negotiation that results in an executed contract should use an eSourcing solution.
Adopting the eSourcing 2.0 policy will fast-track any procurement transformation and have the most significant, broad-based, and long-lasting benefits of almost any strategy that could be enacted in 2013.
As part of our current CPO Rising 2012 research effort, I interviewed a very well-regarded Chief Procurement Officer who transitioned to a new CPO position last quarter. The position was a new one for this large, global, services-based company that had centralized its sourcing for a few large indirect contracts but had otherwise left procurement to the finance leadership in each region. Six weeks into the role, this CPO was fully energized, having spent most of his time on the road, meeting executives and learning about the specific needs of the business. This CPO also used his time with the executives to “establish a personal connection with key decision-makers and explain at a very high-level, the initial strategy that we will use to build some organizational momentum and ultimately, build a Best-in-Class procurement organization.’
Since this CPO has literally “been there and done that” before, I am certain that a global transformation of the function will be realized. When I asked this CPO to discuss the keys to success in this new company, he replied, “hire well at the manager, director-level, get some quick wins to earn credibility in the regions, get live on eSourcing, and source everything in sight.“
The two last points (underlined), of course, are a clear vote from one Chief Procurement Officer for eSourcing 2.0. The question now is – Do we have your vote?
Source or Lose 2012!