Procurement Perception -- What's causing it?

As we move into the New Year, I thought that this might be an appropriate time to try to find an answer to the question -- "Why hasn't Procurement in organizations gained the same respect as other functional areas have?

Marketing has always been seen as sexy; Legal -- well they keep us out of trouble; Finance -- they will make sure we are getting the numbers right and that we all get paid; Human Resources -- to honor and protect the employee, provide training and support leadership; Sales -- well of course they bring in the revenue. Even the term Supply Chain has a certain cadence that has allowed the business gurus to latch onto it and espouse its virtues.

But Procurement (the area formerly known as Purchasing) is still burdened (some would say oppressed) with the perception of -- they just cut Purchase Orders; they are obstacles; and more often than not -- I could get a better deal than they could -- its not as hard as they are trying to make it!

Now remember, I said PERCEPTION -- which is often, distinctly distanced from reality!

So why has Procurement, not gained the same respect or at least tolerance as other areas?

There are a few reasons for this -- none necessarily valid -- but again perception is not caused by rational thought.

Firstly, Purchasing (and some organizations still call it that) was seen as a bunch of old ladies just typing out the purchase orders so that there was a paper trail for the goods that were bought --- basically an administrative function.

Secondarily, everyone thinks they can negotiate --"That salesperson -- I got the best of them" is often heard, while the salesperson is grinning in the background, knowing that once again they have been successful in pulling the wool over the eyes of an all too "confident" contender.

Thirdly, and perhaps most importantly -- as procurement has morphed into a significant part of the business -- not just in a supporting role, but identifying business opportunities, creating alliances, innovating on financing and shared risk/reward, sourcing from the global economy, reducing costs, enhancing services and preparing the business for the long term -- well I'm out of breath, before I'm even finished with the list -- Procurement professionals have remained humble, willing to give the credit (and spotlight) to others -- and say -- "well everyone will know what we did."

Well guess what? The perception says quite the opposite. If you think that you have the best product since sliced bread -- but you sit back and wait for your potential clientele to discover the product -- you'll be waiting a long time.

It is about creating buzz, understanding, and both true and perceived value. It is about perhaps not stealing the spotlight, but certainly sharing the stage. It is about being both support and simultaneously obtaining front and center attention. Think about how often you'll remember who got the best supporting actor OSCAR -- but you'll tend to remember the Best Actor!

In the next few blog entries, I'll try to provide some insight into what should be done to turn the perception tide in your favor and achieve Best Actor/Actress status! Stay tuned!