Tag: Transformation

Communication, Leadership, Procurement, Relationships, Teamwork, Transformation

Building a High-Performance Procurement Team

Building a high-performance culture involves more than assembling talented individuals. It fosters collaboration, communication, and a shared commitment to excellence. A stellar team is the backbone of procurement success. Developing a high-performance procurement team goes beyond individual excellence; it’s about synergy and a collective commitment to achieving goals. 

The importance of cultivating high-performing teams cannot be overstated. A well-functioning team ensures seamless operations and is the key to unlocking innovation, efficiency, and strategic success. 

“Individual commitment to a group effort – that is what makes a team work, a company work, a society work, a civilization work.” ~ Vince Lombardi

Leadership plays a pivotal role in team performance. A leader is not just a manager but a catalyst for inspiration. Effective leadership can unleash the full potential of your procurement team. The leader sets the tone for a culture of excellence.

“A leader is one who knows the way, goes the way, and shows the way.” ~ John C. Maxwell

The benefits of developing a high-performance team includes:

  • Enhanced efficiency and productivity: High-performing teams are characterized by streamlined processes, effective communication, and optimized workflows. This significantly boosts efficiency and productivity, allowing procurement professionals to accomplish more in less time.
  • Innovation and adaptability: A cohesive team fosters an environment that encourages creativity and innovation. High-performing teams are more likely to embrace new ideas, technologies, and methodologies, enabling procurement departments to stay ahead of industry trends and adapt to changing market dynamics.
  • Cost savings and value creation: Effective collaboration within a high-performing team leads to better negotiation strategies, vendor relationships, and contract management. This, in turn, contributes to cost savings and enhances the overall value delivered by the procurement function.
  • Employee satisfaction and retention: A positive and collaborative team culture contributes to higher job satisfaction and employee engagement. This, in turn, reduces turnover rates and fosters a sense of loyalty, ensuring the continuity of expertise within the procurement team.
  • Risk mitigation: High-performing teams are better equipped to identify and address potential risks in the procurement process. Whether it’s legal compliance, supply chain disruptions, or market volatility, a vigilant team can proactively manage risks and mitigate potential negative impacts.

Consider the Allied Forces during World War II. Diverse nations united by a common goal demonstrated the power of collaboration. In the procurement realm, various examples can be cited. For example, 

  1. Amazon’s procurement and logistics teams have leveraged advanced data analytics and machine learning to develop highly efficient forecasting models. This has not only optimized inventory management but has also set new standards for e-commerce operations globally. 
  2. Apple’s procurement team has been pivotal in establishing and enforcing strict supplier responsibility standards. This commitment to ethical sourcing and sustainability has set industry benchmarks and influenced other companies to prioritize responsible supply chain practices. 
  3. Toyota’s procurement team revolutionized the automotive industry by implementing the “just-in-time” inventory system, minimizing waste and improving efficiency. This approach has since been widely adopted across various industries.

Here are some tips for developing high-performing teams:

  1. Invest in training and development: Provide continuous learning opportunities for team members to enhance their skills and stay updated on industry best practices. Training programs can include negotiation skills, contract management, and technology adoption.
  • Foster effective communication: Clear and transparent communication is fundamental to team success. Establish regular team meetings, encourage open dialogue, and leverage collaboration tools to ensure everyone is on the same page.
  • Encourage diversity and inclusion: Diverse teams bring various perspectives and ideas, fostering innovation and creativity. Encourage an inclusive environment where every team member feels valued and empowered to contribute their unique insights.
  • Set clear goals and metrics: Define clear and measurable goals for the team. This provides a sense of direction and purpose, allowing team members to align their efforts toward common objectives. Regularly assess and communicate progress using key performance indicators (KPIs).
  • Promote a positive team culture: Cultivate a positive and collaborative team culture that emphasizes trust, respect, and accountability. Recognize and celebrate achievements, fostering a sense of pride and motivation among team members.

“Alone we can do so little; together we can do so much.” ~ Helen Keller

Excellence is a choice that each person in the team must make. The collective effect of that commitment is what makes the team great. Developing high-performing teams is not a luxury but a necessity for staying relevant and innovative. By reaping the benefits of enhanced efficiency, innovation, cost savings, and more, procurement professionals can position their teams as strategic contributors to organizational success. Adopting the tips outlined in this article can pave the way for a transformative journey toward building and sustaining high performance within procurement. Remember that success is a team sport!

Communication, Leadership, Procurement, Relationships, Teamwork, Transformation

SMART Goals in Procurement: A Roadmap to Success

In my blog post last month, I discussed creating a vision that puts you and your team on the path to success. This month, let us explore the significance of goals and why they create your roadmap to success. Setting clear and actionable goals is paramount to achieving success. One effective framework for goal-setting that has gained widespread acclaim is the SMART criteria – Specific, Measurable, Achievable, Relevant, and Time-bound. 

“The trouble with not having a goal is that you can spend your life running up and down the field and never score.” ~ Bill Copeland

What are SMART goals, and why are they essential for procurement leaders? SMART stands for Specific, Measurable, Achievable, Relevant, and Time-bound. It’s not just a framework; it’s a strategic approach that shapes the trajectory of your procurement team. 

The benefits of setting SMART goals in procurement include:

  1. Clarity and focus: SMART goals provide a clear and concise roadmap for procurement professionals. By defining specific objectives, teams can maintain focus on critical tasks and avoid unnecessary distractions.
  • Measurable performance: The measurable aspect of SMART goals ensures that progress can be quantified. Procurement professionals can track key performance indicators (KPIs) to gauge success and make data-driven decisions.
  • Achievability and realistic expectations: Setting Achievable and Realistic goals helps prevent teams from becoming overwhelmed or setting unattainable targets. This promotes a healthier work environment and fosters a sense of accomplishment as goals are met.
  • Relevance to organization’s objectives: SMART goals in procurement should be Relevant to the broader organizational strategy. Aligning procurement goals with overall business objectives ensures that every effort contributes to the company’s success.
  • Time efficiency: The Time-bound nature of SMART goals adds a sense of urgency, encouraging timely completion of tasks. This helps prevent procrastination and ensures that projects move forward steadily.

“A goal without a plan is just a wish.” ~ Antoine de saint-Exupéry

Here’s a lesson from the Apollo 11 mission. NASA’s SMART goal was to land humans on the moon and bring them safely back to Earth before the decade’s end. With its specificity and time-bound nature, this audacious goal inspired a nation and changed the course of history.

A goal without precision is like a ship without a compass. Goals must be specific and clear. Procurement leaders should craft goals that represent specific, ambitious targets that stretch the capabilities of a team, keeping in mind that they should be realistic and achievable.  When you make them measurable, you move from abstract to tangible achievements. Measurability is the secret sauce. Metrics and key performance indicators become your allies on the journey to goal achievement.

Here are some tips for developing SMART goals:

  1. Collaborative goal setting: Involve key stakeholders, including team members, suppliers, and other relevant departments, in the goal-setting process. This collaborative approach ensures a more comprehensive understanding of organizational needs.
  • Specificity matters: Clearly define the Specifics of each goal. Rather than setting a general objective like ‘reduce costs,’ specify the target amount or percentage, such as ‘reduce procurement costs by 15% within the next fiscal year.
  • Use measurable metrics: Identify specific metrics to measure progress. Whether it’s cost savings, supplier performance, or inventory turnover, having measurable data allows for objective assessment and continuous improvement.
  • Check for achievability: Ensure that goals are Achievable by considering available resources, expertise, and potential challenges. While ambition is commendable, setting unrealistic goals can demoralize teams and hinder success.
  • Relevance to strategy: Align procurement goals with the overarching business strategy. Consider how each goal contributes to the company’s mission and objectives to ensure a cohesive and coordinated approach.
  • Set realistic timeframes: Establish Time-bound deadlines that balance urgency and feasibility. Avoid setting overly aggressive deadlines that could compromise the quality of work or lead to burnout.

Setting goals is not a routine task; it’s a strategic process that propels your team toward success.  SMART goals serve as a guiding light, helping professionals navigate the complexities of their roles with purpose and precision. By adopting this goal-setting framework, procurement teams can enhance efficiency, track performance, and contribute significantly to the overall success of the organization. Remember, the journey towards procurement excellence begins with setting SMART goals that are Specific, Measurable, Achievable, Relevant, and Time-bound. 

“If you aim at nothing, you will hit it every time.” ~ Zig Ziglar

Communication, Leadership, Procurement, Teamwork, Transformation

Crafting a Vision: Illuminating the Path to Success 

A vision is like a compass that guides the team through the procurement landscape and leads them to success. So, what exactly is a vision? A vision is not just a lofty statement on the wall. Like the North Star, italigns your procurement team’s efforts with the organization’s broader goals. It’s not just about what you do; it’s about why you do it and the impact you aim to achieve. A clear vision provides direction, purpose, and a shared understanding of the destination.

“The only thing worse than being blind is having sight but no vision.” 

~ Helen Keller

Take the example of Dr. Martin Luther King Jr. His iconic “I Have a Dream” speech wasn’t just a collection of words; it was a powerful vision that fueled a movement for civil rights. Steve Jobs transformed Apple by envisioning a world where technology seamlessly integrates into our lives. History has given us many other examples of people whose vision changed how we think and what we believe is possible.

“The only limit to our realization of tomorrow will be our doubts of today.” ~Franklin D. Roosevelt

A vision articulates what procurement does and its impact on the organization and its stakeholders. A compelling vision goes beyond strategy; it’s a motivational tool. When your team understands the ‘why’ behind their work, they become more engaged, innovative, and resilient in facing challenges.

“Your vision will become clear only when you can look into your heart. Who looks outside, dreams, who looks inside, awakes.” ~ Carl Jung

To develop a compelling vision, consider the tips below.

  • Alignment with organizational goals. Your procurement vision must be seamlessly integrated with your organization’s broader goals. A vision that aligns with the company’s strategic objectives ensures that procurement efforts contribute directly to the business’s overall success. As Peter Drucker, the renowned management consultant, once said, “The best way to predict the future is to create it.” Procurement leaders must envision a future where their activities play a pivotal role in achieving organizational excellence.”
  • Focus on innovation and technology. Successful procurement visions must embrace innovation and technology. Leverage advanced tools and technologies to streamline processes, enhance efficiency, and gain a competitive edge. Satya Nadella, CEO of Microsoft, emphasizes the importance of innovation, stating, “Our industry does not respect tradition. What it respects is innovation.”
  • Prioritize sustainability and social responsibility. Modern procurement goes beyond cost savings; it incorporates sustainability and social responsibility. Craft a vision that reflects a commitment to ethical sourcing, environmental consciousness, and social impact. As Indra Nooyi, former CEO of PepsiCo, noted, “Sustainability is not just important for people and the planet, but it’s vital for business success.”
  • Embrace collaboration and relationship building. Foster a vision that emphasizes collaboration, both internally and externally. Building strong relationships with suppliers, stakeholders, and other departments is crucial for procurement success. Jack Welch, former CEO of General Electric, once said, “The team with the best players wins.” In the context of procurement, this implies cultivating strong partnerships.”
  • Continuous learning and adaptability. The procurement landscape is dynamic, requiring professionals to stay informed about industry trends and continuously learn. Craft a vision that encourages a culture of learning and adaptability. As Sheryl Sandberg, COO of Facebook, stated, “The ability to learn is the most important quality a leader can have.” 

Crafting a compelling vision for procurement success is a strategic imperative for leaders in the field. Procurement professionals can chart a course toward excellence by aligning with organizational goals, embracing innovation, prioritizing sustainability, fostering collaboration, and promoting continuous learning. A well-crafted vision inspires the team and lays the foundation for a future where procurement is pivotal in organizational success.

“If you want to build a ship, don’t drum up the men to gather wood, divide the work, and give them orders. Instead, teach them to yearn for the vast and endless sea.” ~Anoine de Saint-Exupéry

Communication, Leadership, Procurement, Transformation

The 3 Things We Should Know about Effective Communication …and Practice

By Lourdes Coss, MPA, CPPO

It’s been said that communication is the single most important skill to the success of individuals in all aspects of life. I often listen to the advice that great communicators have to offer, such as Oprah Winfrey, Tony Robins, John Maxwell, Les Brown and others. I also listen to experts dissect the different communication styles of these great speakers with the goal of learning about patterns, techniques, and their take on “the secret sauce” to effective communication. I have found that the advice provided by these experts is somewhat similar, even if they don’t use the same terms to express it.

Communication is the transfer of information between two or more parties. There are three parts to communication: the message, the sender or message generator, and the recipient of the message. The education system does a decent job of instilling in us the technical aspects when it comes to the message. We begin learning at an early age the rules of grammar, syntax, and even literature.  We learn how to craft a message by writing essays, reports, letters, and even poetry. Yet, we don’t graduate being skilled communicators. There is more to communication than words, grammar, or correct syntax. The skill of communicating effectively is not in the core curriculum of the education system. But I think it should be, because even with all the years of language education, many do not grasp the concept of how to craft a clear message that has a high chance of being understood by the recipient in the way intended.  

To get some perspective on this subject, I want to share one of the interesting things that I learned later in life. Words account for only 7% of the communication. The other 93% is comprised of body language, face expression, and tonality. So, we spent all those years trying to learn how to write and understand the meaning of words, but their effect is really less than 90%.  I will not dive into details on this today, but many of the great speakers talk about this in their talks or their books.

I don’t think that anyone will argue against the need to continue to grow in the skill and art of effective communication. In fact, we should all be required to take a course to set us off on the communication growth journey and to help us avoid some rookie mistakes when we start a job!  If you consider your job duties, regardless of where you are in the organization, you will at some point be required to communicate with someone, whether an end user, supplier, a member of an interest group, a member of the governing body, your supervisor, or a colleague.  

Communication comes into play as we promote and live procurement values with every project that we handle. Let’s take transparency, for example. It requires clarity. Transparency is manifested in part in the solicitation documents. Requirements need to be clearly articulated. But before the requirements can be clearly articulated in a document, good listening should take place. Procurement professionals provide process leadership and service, but for anyone to follow, there has to be some level of connection that positively influences the stakeholders to follow his/her advice and adhere to the process, policies and legal requirements. Let me then highlight the three essential aspects of effective communication.

  1. Listen to Understand

Listening is a skill that we don’t practice enough. Many of us think we listen, but we are truly not. Listening to understand requires that you abandon the need to jump to conclusions, finish the persons thought, judge the message or the person communicating the message. Some great listeners place their index finger on their lips as a reminder to listen and keep them from interrupting the other person. Listening to understand requires empathic focus on the person’s message. Listening is one of the greatest gifts that you can give another person, particularly if as a result they feel heard, validated, and understood. Everyone wants to be heard. When a person feels heard, they can be more receptive to your response. 

2. Clear and Concise Message

A clear and concise message will help avoid confusion. Avoid using too many words.  Sometimes we want to show our expansive vocabulary and end up confusing the other person. If you tend to ramble or get sidetracked, write down the main point in simple, everyday words. Many people stop paying attention if the point is lost in the abundance of words. Also, make an effort to know your audience or learn about them so that you can communicate in a way that they understand. Even when you are using the storytelling technique, it is important to make the point with the least number of words in order to make it effective. So, the advice is to keep it simple.

3. Connection

Connecting with people encompasses good listening skills and a clear message. This skill goes beyond verbal communication. It requires you to be authentic but also to meet the person where they are. This may require blending your style or mirroring the style of the person with whom you want to communicate. To connect requires some extra effort.  Don’t expect people to adapt to you; instead, help people relate to you by meeting them where they are emotionally. From a broader perspective the goal of communicating is to connect with the other person.  When you have a connection, a common ground, or are in rapport, the communication becomes a vehicle for trust.  If you want to positively influence others, communicate to connect. 

When we think about these three aspects of effective communication, it is easy to think that we implement them – occasionally. The key is to be consistent in the application of these techniques. Sometimes we lack the awareness that our communication is not optimized, perhaps because of the mountain of work at the desk that robs us of the opportunity to intentionally improve our communication. I know many procurement professionals committed to their work and to the service that they provide to their community. Like me, they want to make a positive impact.  Over time, they masterfully juggle an insane number of projects particularly if they find themselves in a “solo procurement” scenario. Unfortunately, all the hard work may be overshadowed by their inability to practice tactics that can help them achieve effective communication on a consistent basis.  

The ability to communicate effectively and more importantly to connect, is key to a successful career. Any successful person may agree that communication is or has been an essential contributor of their success. Perhaps this is why despite all the good and hard work that some professionals do on a daily basis, they may feel that their level of success may not be commensurate with their efforts. There could be many factors why success in the form of promotions may have skipped them, but one that is sure to have an impact is “communication”. In his book, “Everyone Communicates, Few Connect”, Dr. John C. Maxwell talks about this. He states that hard work, even when the result is a great job, is insufficient to achieve success. In order to be successful, one must really be able to communicate effectively with others. 

Communication is important in all areas of our lives. This is particularly true if you want to lead, especially when leading a transformation process. Since people naturally reject change or being changed, effective communication is one of the key enabling factors. So, if you are leading change, there is no option but to be intentional about practicing techniques that help you communicate effectively.

In conclusion, to be successful in the different aspects of life, we need to continue to improve our communication. It’s not enough to work hard or have degrees or certifications. Effective communication requires practice and intentionality. Getting good at consistently communicating effectively is not the result of a one-time seminar or a finite time period for practice. When we consider our limitations, the complexities of human behavior, and the environmental challenges that restrict the way we communicate, it is easy to reason that getting good at communicating is a life-long journey.  

Leadership, Relationships, Teamwork, Transformation

The Five Qualities of a Highly Impactful Team

By Lourdes Coss, MPA, CPPO

It takes a team…! Whenever you see a successful leader, there is certainly a capable team beside that leader. As Dr. John C. Maxwell stated:  “One is too small of a number to achieve greatness”. A leader can accomplish some goals but to reach significance a leader needs a team.  Phil Jackson, the head coach of the Chicago Bulls back in the 1990s, stated: “The strength of the team is each individual member. The strength of each member is the team.” Team members contribute their talents, and the entire benefit from the collective contributions of each member.

Coming together is a beginning

Staying together is progress

And working together is success

–Henry Ford

Creating a cohesive team requires thoughtful consideration to bring together the talent needed to achieve specific goal(s). A team is as strong as its weakest link.  Strong, successful teams have certain qualities in common.

Members of great teams are committed to high performance.

Each team member shares the responsibility for the entire team’s success and each of its individual members. Each team member’s performance determines the team’s success. I read a story that exemplifies the commitment to high performance for the benefit of another team member. The story is about the veteran Charles Plumb, a US jet fighter pilot in Vietnam.  

Plumb was ejected from his jet and parachuted into enemy territory.  He spent six years in a Vietnamese prison.  After released and back in the US, he was sitting at a café one day, a man came up to him and said, “You’re Plumb! You flew jet fighters in Vietnam from the aircraft carrier Kitty Hawk. You were shot down!” Plumb was confused and asked how the man knew about that. “I packed your parachute,” the man replied. The man then shook his hand and said, “I guess it worked!” Plumb assured him it had and said, “If your chute hadn’t worked, I wouldn’t be here today.”

The story reveals the importance of skills and the ability to perform at your best when it matters most. In a good team, members are committed to the cause and its members. This story also unveils the element of trust.  

In great teams, members develop trusting relationships.

In his book “The Infinite Game”, Simon Sinek makes an interesting observation about the difference between a trusting team and a team. He states that in a team where a group of people come together to achieve a specific result, the relationship amongst the team members tend to be transactional. In contrast, in a trusting team environment, the team members develop a trusting relationship. Trust is a feeling that develops in the layering of situations where team members feel safe to be vulnerable. Trust cannot be imposed, required or demanded. Trust and vulnerability go hand in hand. A violation of trust essentially eliminates vulnerability, which then shatters the possibility of trust. 

In great teams, members are committed to working collaboratively towards a common goal.

The 1992 Olympic Men’s Basketball Team aka “The Dream Team” is an example of collaboration towards a common goal – to bring home gold. The Dream Team was comprised of the best players in basketball history. To win gold, they had to put aside their egos and unite on a common objective. They had to trust each other on the basketball court to attain greatness as an Olympic team. “The whole is better than the sum of its parts.” –Aristotle

Another example is a team that over time has seen the participation of the brightest minds in the world, The Royal Society of London. The Society is committed to a common goal: the advancement of science. Under his leadership in the 1700s, Sir Isaac Newton asserted the Society’s dominant role in science.  With the help of Edmond Halley, the Society published Newton’s Principia Mathematica. It is one of the most influential books of all time describing the action of gravity. Through the Society’s photographic expeditions of the solar eclipse in 1919, astronomers confirm Albert Einstein’s relativity theory. Today, the Society fosters international scientific cooperation, innovative research, and better communication between scientists and the public.    

Members of great teams listen, communicate, and connect. 

Google led a research initiative on the qualities of the best teams, Project Aristotle, and concluded that the best teams are those whose members listen to one another and show sensitivity.  

In NASA 1969 Apollo 11, for example, the team had over 400,000 scientists, engineers, and technicians.  The astronauts of that mission were Whilst Neil Armstrong, Buzz Aldrin and Michael Collins. These men made it a point of visiting the laboratories where these scientists, engineers, and technician worked in order to establish the human connection with the people on whose hands they were entrusting their lives.  

The Manhattan Project, despite the controversial team’s purpose and extreme secrecy (developing an atomic bomb during WWII), is considered another of the most impactful teams in history.  It is said that communication and collaboration made it one of the most effective teams.  

Leadership and clarity are necessary to achieve greatness in a team.

The leader has a role in helping the team achieve greatness. Without effective leadership and clarity, it is very difficult for a team to achieve anything, much less greatness. Even when its members are highly talented and accomplished individuals who have enjoyed “solo recognition”, it is essential for the leader to create the right environment for high performance. Talent can be powerful in a team, but only if there is commitment to a common goal and collaboration. Where talent is abundant in the team, but self-interest guides team members actions, it is impossible to establish trust.

What undermines team success?

Research by The Ken Blanchard Companies concluded that teams fail due to a variety of reasons. Three of those conditions caught my attention:

  • lack of effective leadership and support
  • lack of clarity of purpose
  • lack of talent or training.

There are many examples of failed teams even when their members were very talented. Enron, for example, was a highly regarded company.  They violated the trust of many due to greed. They deceived over 20,000 employees who were left to face significant personal financial losses.  

Another example is the changes to the LA Lakers Basketball Team after the 2002 championship that the leadership of that organization made. Two very talented team members who enjoyed individual recognition were unable to work collaboratively. There were a number of player trades made by the organization, which essentially created a new team. The new team did not possess the qualities necessary to maintain its champion status in the season that followed. The inability to collaborate was detrimental to creating a cohesive team environment. The organization may have overestimated the value of individual talent and did not put enough attention to the other qualities required to assemble a strong team.

In conclusion, some of the most impactful teams in history attribute their success to a strong foundation of trust, respect, communication, collaboration, and a commitment to a common goal. The qualities that make a team successful are interconnected. The leader must orchestrate well the resources, talent, and the environment in order for the team’s efforts to achieve high impact. The leader has an important role in creating an environment that brings out the best of the team collectively and individually. When there is clarity of purpose and effective leadership, the team can move the organization in the right direction. 

About the Author: Lourdes Coss is a retired Chief Procurement Officer with 27 years of government procurement and transformation experience; the author of “Procurement Methods: Effective Techniques”; and an executive coach, speaker, leadership & procurement trainer, and procurement consultant