Careermoves for procurementleaders 2022

Opt-in or opt-out

Where are you on your career development and what’s the best next step to take? Do I have to make this move at my current organization or search for greener grass elsewhere? Do I stay in procurement or may be I have to develop more widely? What should I watch for and what’s the best timing? Reflection that may pass by this “peaceful” christmas. In short are you on the right track, do you still consider your job as exiting and challenging and can’t you wait to start 2021? Fish & chips or haute cuisine?

Research, carried out in recent years by Di-Mens among procurement leaders and board members, shows that in general the first group is sufficiently satisfied with their organization and take a reasonable positive view of making their next move within procurement. Let’s say “not to die for”! Procurement leaders would rather focus on “value development for the client” but they feel trapped in the pressure on “cost reduction”. However boardmembers indicates “value development for the client” as the main topic for procurement. Looking from planet Mars it appears there are 2 bubbles which haven’t found eachother yet.

Within procurement the professionals are increasingly convinced that procurement has to make the next step in the interest of organizations. The exponential dynamics in value development for the clients is more and more powered by the supplier market. A growing impact of suppliers  on return, value development, risk management and sustainability  of organizations is the result. As a matter of fact when organizations don’t take the interest and dynamics of the supplier market into account developing their strategy, they determine directions blindfolded. The pressure on procurement to connect and integrate with the business is getting stronger. That’s a nice prospect with exiting challenges. However there are bumbs along the road and for sure not only in procurement.

As indicated there are immense challenges for procurement, but are you well positioned to involve with these developments and play the game that suits you? Answers to questions such as: what are the dynamics within the supply chain of your organization and to what extend operates your organization integral from clients interest, determine in what flow procurement may enter. Especially the answer to the second question says something about the room voor procurement to develop and your personal horizon.

In general we see the following practice and what does this mean to you?

Procurement operating as a pillar in the organization makes it more difficult to connect with the business and participate in the strategic game. Procurement is always just a step behind the business. In fact “operational excellence” is the highest achievable. Many procurement organizations are rechewing the last 5%. It’s not for nothing that 90% of the procurement leaders in the Netherlands indicates they have realised or exceeded the procurement targets for the last two years. Hard working, but is it in line with your ambition? Do you want to go beyond “operational excellence” and evolve into “strategic impact” on the organization? This can be a fantastic journey that brings you off the beaten track and gives fresh impetus. You’ll have to decide on tough issues (read “Procurement leaders in 5 steps towards strategic business impact” https://www.di-mens.nl/blogs/3/dswqnf-procurement-leaders-in-5-steps-towards-strategic-business-impact ) Do you conclude that these challenges aren’t possible within your organization, but it’s what you want than you know what you have to look for, searching for another organization. However the grass isn’t always greener on the other side and before you know it, you’re trapped doing the same trick. Although more spend, more complex and better salary, you’re not progressing at a strategic level. Position that’s what it’s all about! Of course it still can be interesting but you work less on the development of the selection criterion for the procurement leader of the future; “businessleadership”.

You have the opportunity to realize strategic impact on the business by rising above the procurement pillar and take a broader responsibility, may be at a smaller organization.

In particular we recognize the following circumstances and options when we talk to procurement leaders about their best next step

• Procurement is operating in “the procurement pillar” with “operational excellence” as the ultimate goal. Little/no room to develop “business connection procurement”:
  • You’re satisfied with the mentioned dynamics at your current organization or elsewhere
  • You employ your expertise in “operational excellence” as an entrepreneur in the market
  • You search for an organization with higher level of business connection procurement and/or the room to develop this
  • You search for a broader responsibility internal or external
• Procurement is operating in “the procurement pillar” with room/demand to develop “business connection procurement”
  • You take the lead in developing “business connection procurement” with new momentum;
  • Same challenge at another organization
  • You search for an organization where “business connection procurement is obvious (still scarce). You make several staps at once;
  • You search for a broader responsibility internal or external
• Procurement operates in an organization where the position of procurement is obvious (scarce)
  • Due to the dynamics in value development for the client and the increasing contribution of the suppliermarket, you are in an extremely interesting position, based upon your strategic responsibility, to impact on the success of the organization in a challenging time;
  • You are very well positioned to move towards a broader business responsibility, possibly as a board member;

To think about the development of the “business connection procurement” within your organization is a crucial beginning of the process!

Of course your choices have to do with your ambition, the knowledge and experience you’ve gained and your working level. At least it is important to be aware of the developments and opportunities within procurement in general. Are the opportunities in your organization in line with your ambitions and may be the most important question: what’s your ambition? Too often sitting in the wrong train for too long makes the career trap for procurement professionals a harsh reality. What is too long and what is the best timing? In a world in transition within a discipline in which the future lies, the overview might be quite difficult.