Ardent Partners recently published our annual CPO Rising report (entitled CPO Rising 2014: Convergence) and of all the reports we publish this year, the focus of this report is exactly geared towards our regular readers (CPOs and those who aspire to the role). The report presents a comprehensive, industry-wide view into what is happening in the world of procurement and captures the experience, performance, perspective, and intentions of 273 Chief Procurement Officers and other procurement executives. As we do every year, we interview many Chief Procurement Officers (24 procurement leaders in total) to add context to this research effort. The report is available (with registration) from several sponsor sites including here, here, here, here, here, or here.

Spheres of Influence

As the Chief Procurement Officer role continues to mature, greater expectations are born. And, as a procurement organization matures, its focus and scope typically expand, as does its ability to impact decisions and operations. For example, by gaining better visibility into enterprise spend and developing a clear understanding of enterprise objectives, procurement is better able to influence stakeholders’ sourcing/buying decisions. And by gaining visibility into supplier performance and establishing trust and clear lines of communication, procurement is better able to influence strategic suppliers. But, beyond their influence on spend and suppliers, successful CPOs are expanding their influence into less traditional areas driven in part, by recognition of their superior performance and in part by the need to fill the void left by other, less successful groups.

For some CPOs, the convergence (or expansion) of power and influence has been a reward that was earned. “Our CEO saw value in expanding procurement’s role,” said the Senior Director of Sourcing at one of world’s largest distributors. “We’ve also been given more responsibility and target accountability for contributions to improve EBITDA.” For other CPOs, the convergence has been driven by a simple need to reduce costs and staff or a lack of resources and expertise in other departments.

Of course, as shown in the figure below, not all CPOs are in a position to wield significant influence this year. In fact, while 43% are well-positioned as either a “top collaborator” (18%) or “significant influencer” (25%), one in four CPOs are “reactive” to the needs of the enterprise while almost one in three are viewed simply as competent, a “solid supporter” (29%), far from spectacular. So, not every CPO is positioned to take advantage of the newest strategies or latest technologies. While some CPOs have truly “arrived” in the C-Suite and others are knocking on the door, just as many struggle for relevance, engagement, and traction within the enterprise today. For most, the opportunity to expand their sphere of influence should become both a short and long-term strategy.

How is the CPO Viewed within the Enterprise Today?

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