Fridays (in 2023) means that it’s time for another CPO Rising Listicle. Each list will include a variety of procurement tips, trends, insights, research, lists, strategies, and/or recommendations designed to help procurement teams improve operations. We’ll also include a summary graphic for you to share with your team.
Five Key Characteristics for any Chief Procurement Officer
The Chief Procurement Officer (CPO) of any enterprise is responsible for overseeing the sourcing, contracting, and procurement of the goods and services that are necessary to run the business. CPOs play an important role in ensuring that the company has what it needs to operate and that it is getting the best value for its money, and also that it is compliant with all relevant laws and regulations.
Among the many skills and capabilities that a CPO needs to perform at a high level, here are five key characteristics:
- Strategic thinking: As the CPO, you need to be able to think strategically about the long-term needs of the organization. This means identifying cost-saving opportunities, developing sourcing strategies, and creating relationships with key suppliers that will benefit the company in the future.
- Excellent negotiation skills: A significant part of your job as CPO will involve negotiating contracts with suppliers. You need to be able to effectively communicate the needs of the company and negotiate favorable terms that meet those needs. This requires excellent communication skills, the ability to build rapport with others, and a strong understanding of the competitive landscape.
- Financial acumen: You need to have a solid understanding of financial principles and be able to analyze data to make informed decisions. This includes being able to develop and manage budgets, create financial reports, and track and measure the performance of suppliers.
- Superior leadership and management skills: As the CPO, you will be responsible for leading and managing a team of procurement professionals. This requires strong leadership skills, the ability to delegate tasks effectively, and the ability to create a positive work environment.
- Ethical behavior: As the CPO, you are responsible for ensuring that the company is following all relevant laws and regulations. This includes preventing corruption and ensuring that the company is engaging in fair and ethical business practices.
The CPO role is an executive position that is critical to business operations and bottom line results. A successful CPO needs to be a strategic thinker with excellent negotiation and financial skills, strong leadership and management abilities, and a commitment to ethical behavior.
RELATED RESEARCH
Skills for the Modern Procurement Pro – Some Final Thoughts
Procurement Experts on CPO Rising — Putting Your Skills to Work
Procurement Experts on CPO Rising – The Procurement Diagnostic
Procurement Experts on CPO Rising — Assessing Your New Leadership Role
