Category Management –defined skills way organizations

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• Category Management – defined

• What makes a good Category Manager – key imperatives and soft skills

• Category Management Journey – a fundamental change to the way organizations approach procurement

• Key Enablers – to become truly strategic

• Training and CategoRise game

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Category Management is a strategic, end‐to‐end procurement approach to more holistically manage how companies buy goods and services. Category Management aligns a company’s vision and business objectives with external market factors and capabilities, and seeks to consider long‐range value to decision‐making.

What Is My Project Prioritization? What Resources Can I Use? How Do I Deliver Against Goals? How Can I Increase My Value Delivered? Where Did We Spend Yesterday? Where Will We Spend Tomorrow? Who Are Our Top Suppliers? What is the Market Doing?

Who Owns the Spend? What Drives Them? How Can I Add Value? What Do They Care About?

Understand Your Categories

Know Your Stakeholders

Deliver Results



An end‐to‐end owner, the Category Manager is someone who is in charge of defining a strategy for the category, a market intelligence expert in this category, and is capable of communicating this strategy for implementation in a regional or global level. He or she should work in a cross‐functional manner with stakeholders to influence important decisions gathering important input from internal and external sources for strategy definition.

Know your Stakeholders Understand your Categories Deliver Results• Relationship

Building• Influencing• Integrity• Adaptability

• Analytical Thinking• Conceptual Thinking• Planning & Organizing• Innovation• Problem Solving

• Change Management

• Initiative/Leadership• Decision Making• Communication

Skills Aligning to Key Imperatives


One way to identify whether a Category Manager has the necessary soft skills is through competency based interview techniques using the STAR or SHARE approach.

• It’s a well known fact that looking at a candidate’s past behavior is the best way to predict their future performance.

• Behavioral interview questions will let you understand in detail how a candidate has acted in specific situations.

• First, identify the core behaviors you’d like your candidates to demonstrate. Then, you can select your specific questions.

• Remember to assess all candidates against the same behavioral criteria.

Core Competency Key Actions QuestionDecision Making • Uses sound judgment to make

good decisions based on information gathered and analyzed

• Considers all pertinent facts and alternatives before deciding on the appropriate action

• Commits to decision

• Give me an example of a time when you had to be quick in coming to a decision. What obstacles did you face?

OR• Give me an example of a

business decision you made that you ultimately regretted. What happened?



Business Results

Time

Build Foundation 3‐5 year Procurement Vision and Roadmap Clear Org Roles, Aggressive Yet Achievable Targets CM Process, Tools and Templates Established Category Roadmaps, Multi‐year Project Portfolio Assess CM Capabilities, CM Competency Plans CM Foundations Training, eLearning, Exercises Category Coaching, Application Workshops Intentional Comm & Change Mgmt. (ongoing)

Failure to Launch

Accelerate & Consistently Apply High Business Engagement & Decision Making Updated Vision/Roadmap, Linked to Bus. Objectives Enablers / Core Foundations Improved, Optimized Global Multi‐Year Category Roadmaps, Pipeline Robust Strategies, Deep Market Understanding CM Excellence Training, CategoRise CM Game Category Coaching, Targeted Skill Development CM Cross Training Modules, Role Plays

Failure to Sustain

Scale & Globally Optimize Collaborative, Results Oriented Culture Fully Integrated Business Planning, Budget Cycle Advanced Strategies Drive Lifecycle Alignment Globally Aligned Process, Technology, Knowledge Global Category Councils Manage All Spend CM Mastery Training, Project Competition Category Coaching, Targeted Skill Development Developing Business Leaders, Category Expertise

Failure to Scale

Transforming procurement to a category management‐based approach is leading practice and drives significant benefits. Successful companies use a multi‐year vision and address the key elements below to build, scale and sustain Category Management competencies within their organizations.


2013

2013o CM Excellence Trainingo Refine Process, provide guidanceo Initial Tools, Templateso Quick Wins / Strategic Projects

2014o Joint Targets establishedo Workshops build multi‐year portfolios, improve strategieso Tools & Templates improved; Training on CM Imperatives,

Business Case Development, Templates/Toolso Category Coaching continued to reinforce CM mindseto Category Roadmaps assess priorities, drive alignmento CM Maturity Model helped internalize CM Imperativeso Initial CM Dashboard, natural category hierarchy

2015o Proactively develop and prioritize portfolio, capacity plano 1:1 Category Coaching support at all levels for prioritized

categories, overall strategy and approach, global integration o Applied learnings, developed recommendations to

accelerate and improve quality of strategies and processo Skill Development ‐ targeted training

2016o Continuing 1:1 Coaching support at all levels for prioritized

categories, new team members, overall strategy and approach, global integration efforts

o Implementing recommended opportunities to accelerate and improve quality: Spend Analytics Dashboard, Market Intelligence Planning, and Standardized Market Summary

2014 2015

Build Foundation Accelerate & Consistently Apply

2016

2015 Results:• Exceeded Savings Target by 24% (2.2X baseline)• Expanded multi‐year rolling portfolio• More than 90 Category Strategies completed• Focus on core fundamentals to enable acceleration / sustain change; continued development of ‘best practice’ training/tools

2014 Results:• Exceeded Savings Target by 20% (50% over baseline)• Accelerated Portfolio Development – Built 1.5X 1yr project portfolio, 1.9X 3yr portfolio

• 61 Category Strategies Completed• Delivered thought leadership and CM best practice awareness; support to implement and drive change



Market Intelligence Spend Analysis

Training & Coaching

Processes & Tools

Execution Support

Category Strategy Network


Category Management Process Fundamentals / Advanced Applied Learning Approach Ongoing support and reinforcement

Category Manager Training

Category Plan / Playbook Development Development of category project portfolios and joint target setting Support client Category Managers or Denali drives Category Strategy

Category Coaching Category Manager Engagement Category experience to augment client category knowledge Category Strategy level or Sourcing Project level support

Category Strategy Support

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Category Management Planning, Processes, Tools Vision, Strategy, Governance Structure Category Planning and Road Mapping Category Manager Imperatives and maturity development


Stakeholder Engagement

Supply Base Review, Profile

Supplier Landscape and Profiles

External Market Assessment

Category Risk Assessment

External Assessment

Category Maturity Assessment

Category Positioning SWOT Analysis Finalize Category

Objectives and Strategy

Strategic Review

Category Vision & Strategy

Category Plan Documentation

Category Vision & Strategy Project Portfolio

Category Opportunity Analysis

Develop Prioritized Portfolio of Projects

Develop Category Playbook

Internal Assessment

Stakeholder Mapping Business Requirements

Assessment (AQSCI) Category Scoping and

Segmentation Category Spend Review Category Supplier and

Contract Review

Category Plan Development Tools & Templates

Stakeholder Map AQSCI Requirements

Template Baseline Stakeholder

Questions Category Summary

Template Spend Analysis Dashboard Contract Summary

Template

Market Profile Templates

Category Discovery Questions

Porters Five Forces, Kraljic Matrix

SWOT Analysis Sourcing Levers

Category Plan Template (brief/full)

Category Dashboards Category Roadmaps Business Case

Framework

Opportunity Assessment

Visual Project Timeline Template


Phase I

Scope and Plan Project

Phase II

Analyze (Spend and Market)

Phase III

Set Sourcing Strategy

Phase IV

Execute (Source and Negotiate)

Phase VSustain

(Contract and Transition)

Phase I

Internal Assessment Assessment

Phase II

External Market

Assessment

Phase III

Strategy Development

Phase IV

Category Planning

Source‐to‐Contract

Supplier Management Procure‐to‐Pay

Category ManagementPlanning

Execution


CM Foundation

elearning Exercises Webinar

CM Excellence

Role Plays CategoRise

CM Mastery

Coaching

ProjectCompetition

Work Shops


Covers Procurement Workflows / Processes• Category Management• Strategic Sourcing, Negotiation, Contracting• Supplier Relationship Management

Integrates Soft Skills that are Critical Success Factors for Category Managers• Stakeholder Engagement, Change Management• Effective Communication, Influencing Techniques

Uses a Blended Learning Approach• eLearning modules teach process, methodology, terminology “what is it?”

• Classroom training focuses on application, interaction, exercises and role play: “how to do it”

• CategoRise – Denali Category Management board game reinforces CM principles in a fun way

Reinforced with Applied Learning and Coaching• Follow‐up in Application Workshops / Webinars and helps change behaviors, embed learnings

• 1:1 Category Coaching with experienced CM’s builds actual category strategies and accelerates portfolio development

Category Management Curriculum:• Modular and holistic approach• Progressive classes include CM Foundations, CM Excellence and CM Mastery classes

• Category Management methodologies, tools and frameworks

• Discussion to change mindset and behaviors• Tools and Templates are delivered as part of the training

Example CM Training

Building Procurement Competencies

Documents

Category Management –defined skills way organizations