Vacation stress career Procurementleaders Hooking on or dropping out!
Where do you stand as a Procurement leader in your development and what is the ideal next step? Should I take this step within my current organization, or should I look elsewhere for greener pastures? Do I stay within Procurement or should I really broaden my development now? What should I look out for, what is the best timing? Contemplations that may arise during the summer months. In short, are you on the right track and do you still find it enjoyable?
The exponential dynamics in value development for the customer are increasingly fueled by the supplier market. A growing impact of suppliers on profitability, value development for the customer, risk management, and sustainability for organizations is the result. When organizations do not strategically consider the opportunities and threats of the supplier market in their decisions, they are strategizing with one eye closed. The desire to take the next step with Procurement and integrate it with the business is becoming stronger. A promising outlook with exciting challenges. However, significant hurdles seem to lie on this path, not just within Procurement. It is likely recognizable and influential for your development within Procurement.
As mentioned, there are many challenges for Procurement, but are you also well-positioned to play the role that suits you? Answers to questions such as "what is the dynamics within the supply chain of your organization" and to what extent your organization operates integrally from the customer are important ingredients for the flow in which Procurement can operate within your organization or may already be operating. Certainly, the answer to the second question indicates the space available for Procurement to transcend its pillar. An important requirement for the strategic development of Procurement.
In general, we see the following practice and what does that mean for you?
In most cases, Procurement operates as a pillar within the organization, making it more challenging to connect with the business and strategically participate in the game. Procurement is essentially trailing behind the business. "Operational Excellence" is the highest achievable goal in this case. Working hard within limited boundaries, but is it still in line with your ambition? Do you want to reach beyond "Operational Excellence" and undergo the development towards strategic impact on the organization? This can be a fantastic journey that brings new vigor outside the beaten path. You will have to crack tough nuts. If your conclusion is that this challenge is not feasible within your current organization, but you desire it, then you know what to look for when seeking another organization. However, the grass is not always greener on the other side, and before you know it, you might be doing the same "trick." Perhaps with more spending, complexity, and salary, but without making strategic progress. Position is key! Without a position, it may still be interesting, but you are not contributing to the selection criterion for the procurement leader of the future; "business leadership."
Very concretely, we recognize the following situations when advising Procurement leaders on the next step:
1 You operate as Procurement within a pillar with "Operational Excellence" as the highest achievable goal. Little room to develop the "Business Connection." The following choices are then possible:
- You are satisfied with the current dynamics and stay with your current organization or seek elsewhere with similar dynamics;
- You market your expertise in "Operational Excellence" as an independent contractor;
- You seek more business connection for Procurement or the space to develop it in another organization;
- You seek a broader responsibility than Procurement alone, within or outside your current organization;
2 You operate with Procurement in the "Procurement pillar," and there is room for the development of the "Business Connection" of Procurement.
- You take the lead in the development of the "Business Connection" with refreshing new vigor;
- The same challenge in another organization;
- You look for an organization where the "Business Connection" of Procurement is natural (still rare). You make several steps in your development simultaneously;
- You aim for a broader responsibility than Procurement within or outside the organization;
3 You operate with Procurement in an organization where the position of Procurement and the connection with the business are natural (also rare).
- If this is what you want, you stay or seek another organization with the same dynamics in Procurement
- You aim for a broader responsibility than Procurement within or outside the organization; With the dynamics in value development for the customer and the role of suppliers in it, you have an extremely interesting position to contribute from a strategic responsibility to the organization's success in challenging times;
- You are excellently prepared for a broader business responsibility, potentially from the board.
Of course, choices have to do with your ambition, the knowledge and experience you have gained, and the level at which you operate. It is important to be aware of the developments and opportunities within Procurement. Do the possibilities within your organization align with your ambition, and perhaps most importantly; what is your ambition? Staying too long on the "wrong" train often makes the "career trap" for Procurement professionals a harsh reality. What is too long and what is the best timing? In a transitioning world within a discipline that has a future, maintaining an overview is quite challenging."