Amidst two other series – CPOs on the Rise and Adoption – we will also dedicate several articles to discussing Ardent Partners’ latest research report, CPO Rising 2011: Innovative Ideas for the Decade Ahead. The report is available for download from the report sponsors here or here, and here (registration required at each).
This research report presents a comprehensive, industry-wide view into what is happening in the world of procurement today by drawing on the experience, performance, and perspective of nearly 250 Chief Procurement Officers and other procurement executives. I hope and believe it will be viewed as the definitive State of Procurement research report for 2011. In any case, I have to say that I am very pleased with the results and that it is as strong as any of the 100+ research reports I have written. I also think it is a “must read” (if such a thing really exists) for CPOs and other procurement executives, and those that aspire to those roles.
Given the current state of many different markets (including global equities), it may be of some comfort to those of us focused on supply management that the “State of the CPO” market in 2011 is strong. Over the next few years, it will certainly get stronger.
The State of the CPO – 2011
“We have a unique position in the market: access to information and market trends. What we want to be is an influencer on the company and on our suppliers.” – John Paterson, Chief Procurement Officer, IBM
The most passionate Chief Procurement Officers (“CPO”) are the ones who go to bed each night excited by the opportunities that exist in the future for themselves and for their teams. Many of these leaders were originally drawn to procurement because of the wide variety of duties and challenges that the function offers as well as its ability to make a lasting impact on a business.
One CPO who has impacted his company’s business in a significant way and keeps pushing the vanguard is John Paterson, Chief Procurement Officer at IBM (friend of the site and soon to be profiles as a CPO On the Rise in 2011), who heads up global supply chain operations from a base in China. Says Paterson, ”The more mature you are as a procurement organization, the more extensive the value proposition you offer becomes; this results in a more extensive performance expectation, too. For example, if I look at how I am evaluated today, the standard things like ‘Cost, Quality, and Delivery’ are what we’re expected to deliver; these don’t generate special kudos. Our clients have learned to anticipate far more value from us.”
This globally renowned CPO capitalizes on the position of his team to drive value in both traditional and very innovative ways – this leader has driven extraordinary supply chain synergies by driving costs out and becoming agile. But this CPO’s team has also been involved in company divestitures and has worked to develop many of its regional suppliers and ultimately turn them into global strategic partners. Stories like Paterson’s IBM operations are not yet commonplace, but they are becoming more familiar to those that work and follow this profession. As more procurement organizations and CPOs advance and mature, they will certainly gain greater access to information, stakeholders, and spend which will, in turn, allow them to influence a much wider range of business decisions and behaviors.
Next time: More on the “State of the CPO”
