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Slide 1
IBC Consultancy Purchasing Group Event
10th November 2010
The ‘Knowledgeable’ Buyer
Paul Vincent
Slide 2 The ‘Knowledgeable’ Buyer – Paul Vincent [10th November 2010] Consultancy Purchasing Group Event
"Attitude is a little thing that
makes a big difference"
Winston Churchill
Slide 3 The ‘Knowledgeable’ Buyer – Paul Vincent [10th November 2010] Consultancy Purchasing Group Event
I encounter a common image of procurement...
Windows on the World
Slide 4 The ‘Knowledgeable’ Buyer – Paul Vincent [10th November 2010] Consultancy Purchasing Group Event
• Procurement don’t have a say in the operational budget
• Procurement don’t understand the business need
• Procurement don’t know what ‘good looks like’
• Procurement might give the work to someone else
• Procurement only care about price
...and some corresponding core beliefs
Windows on the World
Best to leave engagement with procurement until it is unavoidable !
Slide 5 The ‘Knowledgeable’ Buyer – Paul Vincent [10th November 2010] Consultancy Purchasing Group Event
Perceived Role of Procurement =
Windows on the World
Slide 6 The ‘Knowledgeable’ Buyer – Paul Vincent [10th November 2010] Consultancy Purchasing Group Event
Traditional Procurement Flow
Internal ClientSpecification
Supply MarketNegotiation/Contract
ProcurementSourcing Exercise
Understanding the order of things
Typical Consultancy Procurement Flow
Consulting FirmGreat Idea
Internal ClientNeed/Cost
Internal ClientNeed/Budget
Consulting FirmProposition/Cost
ProcurementFormalise Deal/Contract
The Role of Procurement
Slide 7 The ‘Knowledgeable’ Buyer – Paul Vincent [10th November 2010] Consultancy Purchasing Group Event
The key challenges in managing this category
• Becoming an integral part of the end to end buying process• Ensuring procurement are involved at the right time• Relating most appropriately to the supply market
Inclusion
• Delivering real business value to internal stakeholders
Contribution
The Role of Procurement
• Adequately protecting corporate terms and conditions• Ensuring the business achieves ‘best value for money’ • Implementing effective processes not unnecessary bureaucracy
Approach
Slide 8 The ‘Knowledgeable’ Buyer – Paul Vincent [10th November 2010] Consultancy Purchasing Group Event
Internal ClientNeed/Cost
Consulting FirmProposition/Cost
Consulting FirmGreat Idea
Internal ClientNeed/Budget
Procurement Facilitate Discussion/Selection
& Contract Terms
The ‘Knowledgeable’ Procurement Flow
The Role of Procurement
A ‘knowledgeable’ buyer will focus their involvement and influence in achieving successful engagement outcomes
This approach will guarantee best value for money
Slide 9 The ‘Knowledgeable’ Buyer – Paul Vincent [10th November 2010] Consultancy Purchasing Group Event
“Quality means doing it right
when no-one is looking"
Henry Ford
Slide 10 The ‘Knowledgeable’ Buyer – Paul Vincent [10th November 2010] Consultancy Purchasing Group Event
Instinctively ‘anticipates’ business needs
• Business improvement needs will rarely feature in a category strategy
• Predict where needs may emerge during the year ahead – identify the parts of your organisation who face the biggest challenges
• Leverage your management chain to learn about emerging ‘problems’ or ‘pressure points’
• Track the organisational movements of ‘key’ executives – especially at certain times of the financial year
A Knowledgeable Buyer – Business Improvement Services
Slide 11 The ‘Knowledgeable’ Buyer – Paul Vincent [10th November 2010] Consultancy Purchasing Group Event
Intuitively ‘monitors’ the political landscape
• Who seems to have inherited a problem?
• Who seems to be causing a problem?
• Who needs/wants ‘rescuing’?
• Who wants/needs support?
A Knowledgeable Buyer – Business Improvement Services
Slide 12 The ‘Knowledgeable’ Buyer – Paul Vincent [10th November 2010] Consultancy Purchasing Group Event
Tunes into the ‘urgency’ of business needs
• When Business Improvement needs emerge they are NOT suited to a long drawn out selection exercise – a degree of supply ‘filtering’ must be done in advance
• Buyers need to recommend the selection process that is most likely to deliver the ‘best fitting’ choice
• Business Improvement engagements are almost always ‘phases’ of work – but not all phases need to be bought at the same time and from the same firm
A Knowledgeable Buyer – Business Improvement Services
Slide 13 The ‘Knowledgeable’ Buyer – Paul Vincent [10th November 2010] Consultancy Purchasing Group Event
Helps shape the ‘scope’ of work
• Internal clients can sometimes be blinded by the scale of their challenge and spend insufficient time on root cause analysis. Buyers should be alert to the impact this can have on the scope of work required and help to qualify perceived needs
• Share knowledge of past projects and/or external case studies to offer advice on engagement options and possible best practice
• In particular help them to define the specific outcomes required
A Knowledgeable Buyer – Business Improvement Services
Slide 14 The ‘Knowledgeable’ Buyer – Paul Vincent [10th November 2010] Consultancy Purchasing Group Event
Recommends the ‘best fit’ supply options
• Who has your organisation used before and how did they perform?
• Are they still as capable or has something changed in their organisation (e.g. key person left)
• Could/should they be re-engaged?
• If an alternative choice is required –how widely should you cast the net?
A Knowledgeable Buyer – Business Improvement Services
Slide 15 The ‘Knowledgeable’ Buyer – Paul Vincent [10th November 2010] Consultancy Purchasing Group Event
Contributes to ‘setting’ the key milestones
• Core principle - payment by outcome/results but...
– Needs to be appropriately applied
– Plan needs to be realistically achievable
– Needs to take account of the ‘real’ baseline
A Knowledgeable Buyer – Business Improvement Services
Slide 16 The ‘Knowledgeable’ Buyer – Paul Vincent [10th November 2010] Consultancy Purchasing Group Event
Supports the ‘delivery’ of project outcomes
• Practically support ‘on-boarding’
• Once supplier has been selected ‘help’ create the environment for success
• Stay close to progress – don’t just wait for the client to keep you informed
• Spot potential issues before they become escalations
A Knowledgeable Buyer – Business Improvement Services
Slide 17 The ‘Knowledgeable’ Buyer – Paul Vincent [10th November 2010] Consultancy Purchasing Group Event
Ensures there is a ‘feedback loop’ in all cases
• Firms are often only as good as their last project in your organisation
• Consulting firms don’t want to be known for unsuccessful engagements
• Tie feedback to payment if you can – but be reasonable about it
• Feedback is two way – expect issues to be created by internal clients too
A Knowledgeable Buyer – Business Improvement Services
Slide 18 The ‘Knowledgeable’ Buyer – Paul Vincent [10th November 2010] Consultancy Purchasing Group Event
“He who asks a question is a fool
for a minute; he who does not
remains a fool forever"
Chinese Proverb
A Sensible Consultant will develop a positive relationship with a Knowledgeable Buyer
Slide 19
IBC Consultancy Purchasing Group Event 10th November 2010
The ‘Knowledgeable’ Buyer
Thank You
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