David Copperfield (the illusionist, not the Dickens character) once said that the real magic lies in the performance. And it is the performance that is both the bane and the blessing of procurement and supply chain professionals.
It is because of the performance and the seeming ease of performing the functions, that many within the organization believe that they can perform at an equally adept level.
If someone had performed magic at one point in time in her/his life, they might reflect on the Copperfield magic and believe that they can perform a specific illusion. Yet, when the jet airplane doesn't disappear they would have immediate feedback that perhaps they had overestimated their own capabilities.
Unfortunately the feedback is not usually that immediate when someone in your company, other than a member of the procurement area, initiates a negotiation, contract or some other commitment with a vendor. Everyone else in the organization believes that they have been endowed with some "magical" talent, after all haven't they negotiated deal X or Y and got concessions here and there. We've all heard our internal clients say "I or a member of my team can do pretty much everything the procurement folk do."
And, as Shakespeare would say "Therein lies the rub!" Many believe that the work and effect of the procurement team is simple and as such they can do it themselves. Furthermore, these internal groups often feel they can do it better. And that is because of the master illusionists that Procurement professionals are.
We make it look easy, because a lot of what is done, is done behind the scenes. And because there is a belief that if we give our client credit for the
outcome, it will cement our relationship with them. But as comedian John Pinette would say, "Nay-Nay!"
When procurement shies away from the limelight and allows the client to take the bows, it in effect has the counter effect. As they are buoyed and repeat to others how this outcome was achieved, the role attributed to procurement becomes less and less -- and in fact this client may actually come to believe that they were solely responsible for the outcome. And moreover, this will then harm the opportunity for you to make inroads with other clients, because of course, if X client didn't need you why should they.
Now this doesn't mean we need to become aggressive chest thumpers and horn trumpeters. It does however mean, that is important to continuously message on successes and contributions, throughout the organization. Make the company understand that procurement is such a vital component that there would be significant deleterious effects without it's involvement.
McKinsey just published a study that showed that companies that had highly integrated procurement groups -- at the corporate strategic level -- had on average a full 5 percentage points of EBITDA than those which were marginalized.
It's time that procurement allowed the organization to access to the work behind the magic, because the only true illusion is that procurement brings no value.
It is because of the performance and the seeming ease of performing the functions, that many within the organization believe that they can perform at an equally adept level.
If someone had performed magic at one point in time in her/his life, they might reflect on the Copperfield magic and believe that they can perform a specific illusion. Yet, when the jet airplane doesn't disappear they would have immediate feedback that perhaps they had overestimated their own capabilities.
Unfortunately the feedback is not usually that immediate when someone in your company, other than a member of the procurement area, initiates a negotiation, contract or some other commitment with a vendor. Everyone else in the organization believes that they have been endowed with some "magical" talent, after all haven't they negotiated deal X or Y and got concessions here and there. We've all heard our internal clients say "I or a member of my team can do pretty much everything the procurement folk do."
And, as Shakespeare would say "Therein lies the rub!" Many believe that the work and effect of the procurement team is simple and as such they can do it themselves. Furthermore, these internal groups often feel they can do it better. And that is because of the master illusionists that Procurement professionals are.
We make it look easy, because a lot of what is done, is done behind the scenes. And because there is a belief that if we give our client credit for the
outcome, it will cement our relationship with them. But as comedian John Pinette would say, "Nay-Nay!"When procurement shies away from the limelight and allows the client to take the bows, it in effect has the counter effect. As they are buoyed and repeat to others how this outcome was achieved, the role attributed to procurement becomes less and less -- and in fact this client may actually come to believe that they were solely responsible for the outcome. And moreover, this will then harm the opportunity for you to make inroads with other clients, because of course, if X client didn't need you why should they.
Now this doesn't mean we need to become aggressive chest thumpers and horn trumpeters. It does however mean, that is important to continuously message on successes and contributions, throughout the organization. Make the company understand that procurement is such a vital component that there would be significant deleterious effects without it's involvement.
McKinsey just published a study that showed that companies that had highly integrated procurement groups -- at the corporate strategic level -- had on average a full 5 percentage points of EBITDA than those which were marginalized.
It's time that procurement allowed the organization to access to the work behind the magic, because the only true illusion is that procurement brings no value.
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