“People always ask if I wanted to be an astronaut when I was a little kid. But, you have to remember when I was a farm boy growing up in the 1930s, there was no such thing as an astronaut.”
~ Story Musgrave, NASA Astronaut for 30+ years
There are some people who know what they want to be when they grow up in a way that is different than the aspirational ideas of a child who wants to become president or play in the NBA. During our freshman year, my best friend from college told me he wanted to be a money manager. Today, he manages his own hedge fund. Growing up, Tim’s dad was a successful money manager so he had a great, first-hand career model. I believe that Tim’s career path was unique in that most people come into their careers through a process of discovery and a personal journey in the professional world. I know that is how I came to be writing today’s article and working as an analyst in procurement and supply management. More by chance than design. I have no complaints.
When I started business school, I had a “less traditional” work background (I ran a homeless shelter in Los Angeles for four years) and was told that I needed to focus on an area and “specialize” as a way to clearly discern myself from my fellow classmates with “more traditional” work histories. So I chose real estate and I exited Business School with an offer to join the country’s most prestigious real estate consulting firm. I had also been pursuing investment banking jobs but knew that this firm would provide the same great experience and exposure while also allowing me to keep “my options open;” while I was able to focus on capital market transactions (develop a specialization), working at a “Big 4” firm gave me enough high cover that I could also position myself as a generalist (I should note that while I had a specific career plan, it became much less important to my career trajectory when I jumped industries).
Fast forward a few bunch of years, and I became an industry analyst after falling into and working in the exciting world of strategic sourcing software (and ultimately procurement). A few years later, Ardent Partners was born. As a firm, Ardent Partners specializes in “supply management” which includes, sourcing, procurement, services procurement, and accounts payable – effectively the “Source-to-Settle” process. From my perspective, a successful analyst, by definition must be deep in their coverage area. When an analyst spends any significant time outside of their coverage area, they can easily lose focus and their work has the potential to suffer. I believe that the same holds true for analyst firms and so, in our ten years of operation, Ardent has had numerous opportunities to expand beyond our core coverage and declined to do so, leaving serious money and some relationships on the table. Our laser focus has created many more benefits and opportunities than the short-term gains we have passed.
But, the specialization benefits in the analyst and research profession is less important in other fields. Taking the path of either the specialist or generalist can pay dividends in many industries and I believe that is true of procurement. That said, proactive career management and understanding whether you are a generalist or specialist (and then driving that forward) are hugely beneficial.
So, the question I pose to you today is: are you a generalist or a specialist, and how much time have you spent trying to become one or the other?
Are you a category specialist that can own an area of spend at any company? Have you developed an expertise in analyzing spend and identifying large sourcing opportunities? Do you know the ins and outs of contract T’s & C’s? Are you the power user and expert on the software used by your team? Are you a great project manager?
OR
Have you spent your career rotating through various assignments with a goal of getting as much exposure as possible?
I have written extensively about the career paths of specific Chief Procurement Officers (CPOs) and I have had hundreds of conversations with procurement executives regarding their careers. The career paths of many of today’s CPOs have passed across similar terrain – an early post-undergraduate career in procurement (or finance) followed by some significant experience with a process-driven company, or in a process-driven role and then spending several years in a procurement leadership role before ultimately becoming a CPO. Some CPOs have advanced quickly in their early careers by excelling in a specific area, while others have been fast learners that have been able to make an impact in many areas.
The path to a procurement leadership role and the ultimate prize — CPO — can be achieved as a specialist or generalist, you just have to know which path you’ve chosen and be able to position the benefits of the journey you’ve taken.
“People always ask if I wanted to be a Chief Procurement Officer when I was a little kid. But, you have to remember when I was a woman growing up in the 1980s, there was no such thing as a CPO.”
~ Future First-time CPO, in 2020
Suite or Best of Breed
While specialists and generalists can thrive in a procurement department, the votes are in in the software industry – specialization is the best way to enter an industry but the demands of a procurement department (much less, an investor team focused on growth, growth, and more growth) push tech start-ups to quickly expand their footprints and their value propositions (and revenue per customer metrics).
Case in point #1: I’m in San Francisco this week to attend Scout RFP’s user conference, “Spark by Scout.” Scout is a one-time start-up, now established high-growth player that began as an eSourcing specialist. The company did a remarkable job establishing brand awareness as an innovative, alternative solution in a fairly mature market. And then, it began to expand its solution footprint and develop a suite of offerings that includes contract management, supplier management, and in 2019, sourcing-based optimization.
Case in point #2: Corcentric, a longtime ePayables provider that Ardent Partners now ranks as a Leader in the market, has made a bid to expand its footprint via the timely acquisition of Determine, a provider whose solution suite and customer base are very complementary to what it offers today. You can read our views on this new deal here.
RELATED RESEARCH
Monday First Thing: When Talent and Agility Meet
Monday First Thing: Innovate or Die
Best-in-Class Procurement Leaders Recognized for Outstanding Achievement at the CPO Honors 2018 Gala
Becoming a CPO – The CPO’s Perspective
Scout RFP Receives Series C Funding to Drive Further Growth in 2019
Spark 2018: Scout Catches Fire
Ardent Analysis: Corcentric to Acquire Determine, Offer Full Source-to-Settle Solution Suite
