“To develop a complete mind: Study the science of art; Study the art of science. Learn how to see.” ~ Leonardo Da Vinci, Artist & Scientist
After a few weeks away from this series, we’re back looking at the 15 annual CPO/State of Procurement reports that I have written. In June of 2016, we published CPO Rising 2016: The Art and Science of Procurement. As with many of our works, this one served as the genesis and theme for a new organization to use as a lens to examine procurement. The idea behind the theme (and subtitle) of this year’s report was not to pose the question of whether procurement is an art or a science. Rather it is to examine how the unique elements of each field can and should be applied in the pursuit of procurement mastery.
Procurement is a blend of art and science, combining business, category, and supply expertise with leading technology, data analytics, and associated value-based decision support capabilities. (To be fair, the survey did asked the question and 94% of CPOs at the time agreed that procurement is a blend of both art and science.) Procurement is a science because it deals with process and application and it studies and tests its results; quantitative analysis and precision are valuable tools of the trade. Procurement is also an art because it involves the knowledge and insight from the humanities and the social and behavioral sciences; nuance and negotiation are critical to the craft.
Here are a few excerpts:
To achieve procurement mastery in the age of innovation, today’s CPOs must develop and balance the creative (“art”) and quantitative (“science”) capabilities of their organizations to deliver maximum value in support of enterprise goals and objectives.
It is the CPO’s destiny to expand the influence of procurement and improve its performance in the essential work of supply management.
Globalization, complexity, technology, and innovation both individually and collectively have contributed to the steadily increasing levels of speed and competition in the market today. These factors pose significant challenges and create opportunities for procurement departments. They also have served to make the function fundamentally more important to both business and executive leaders, and dramatically increased the importance of organizational agility. That said, many of the truly important problems that CPOs face in 2016 do not come from these external forces directly, but are caused by the very success of the procurement department itself. Success, after all, breeds success, but it also breeds higher expectations and a drive to focus on the next big thing.
The best CPOs are driven to take on more and are ready to rise and meet the next challenge. As their procurement organizations advance and mature, these leaders know that they cannot simply rest on their laurels – they must “go west” but also, east and north and south and anywhere that demands their attention and resources in support of enterprise objectives. As the Global CPO of a CPG company explains, “The path we have taken isn’t the one I intended. Every time we reach a new platform, we realize that the next journey is out there.”
There are many roads to procurement success, but they are not all paved or well-traveled. The CPO’s path can, and frequently does, twist and turn in unpredictable ways; a strong sense of direction and a steady hand are needed. It is the CPO’s destiny to expand the influence of procurement and improve its performance in the essential work of supply management. To ably lead this mission, CPOs must play many roles across business, technical, and cultural terrains and the teams they assemble must be equipped with the right skills, tools, resources, and direction to keep pace.
CPOs must remember that they are both the literal and symbolic “face” of the procurement operation. Strong and consistent execution can help keep procurement teams engaged with their stakeholders, but most teams still need executive support to get in the door… and the CPO is the executive best equipped to open it.
So, the above is taken just from Chapter One (of four chapters). As such, I’ve just decided to split this report up into a couple of articles… to be continued next Thursday!
RELATED RESEARCH
NEW WEBINAR – Aug 18: ePayables 2020: Smart Strategies for Tough Times
CPO Rising 2015: The Agility Agenda
CPO Rising 2012: Keeping Score
CPO Rising 2011: Innovative Ideas for the Decade Ahead
The CPO’s Agenda 2009: Smart Strategies for Tough Times
Tagged in: Ardent Partners Research, Chief Procurement Officer, CPO, Performance, Throwback Thursday
