aerce 201006 (slideshare)

Sammy Rashed
Coaching & Development
Presented to
How to steer Procurement
in a post-digital world
Manage a more
complex eco-system
Secure
continuity
Drive
sustainability
6 October 2020Sammy Rashed
SRCD

Sammy Rashed
Sammy Rashed
About Sammy Rashed
A serial “Corporate Intrapreneur” turned Entrepreneur
5 6 12
1990 1995 2001 2013
7
Think Tanks
Strategic
Planning
Executive
Coaching
SCR
Workshops
MycareerMyproducts
COMPANIES INDIVIDUALS
Sammy Rashed
2

Sammy Rashed
Think Tanks theme
§ Collaboration beyond SRM
Publications from Think Tanks Publications
Strategy & guidance for break-through results
2013
2014
2015
2016
2017
2018
2019
§ Innovation Sourcing
Research & Publications
§ Productivity Engine
§ Next-Level Skills
§ Driving Agility and Efficiency
§ Deploying the Digital
Roadmap
§ Defining Procurement’s
Contribution post-digital
• “Beyond Procurement, Options for Procurement fo Drive
Company-wide Productivity”, EBS Universität, 2012
• “Co-creating Value”. Chemistry Today, 2013
• “The Seven Pillars of Strategic Procurement” Supply
Business, 2014
• “Innovation Sourcing” Procurement Leaders, 2015
• “The Changing Rules of the Game” Procurement Leaders
Quarterly, 2016
• “Procurement in the Age of Digitalisation” Medium, 2017
• “Preparing for digital transformation: A practical
breakdown” Raconteur 2018
• “Deploying the Digital Roadmap” Procurement Leaders,
2018
§ Beyond Procurement Survey2012
3

Sammy Rashed
Proper alignment is critical to enabling successful transformation
Focus for 2020 Think Tank is how to position, engage, and develop
© 2019 S. Rashed – all rights reserved
Alignment
Business
1
Engagement
Stakeholders
23
Function
People
Development
Inform / mobilize
support from
critical players
upstream and
downstream
Align your
leadership team,
have them steer
their resources,
and position for
growth beyond
Understand
company’s strategic
imperatives and how
our function can best
contribute to it
Trends Industry
landscape
Business
strategy
Internal
stakeholders
Suppliers Community Self Team Organization
Members Focus
BUSINESS STAKEHOLDERS PEOPLE
4

Sammy Rashed
Understanding the burning platform
Managing a more complex eco-system
Securing continuity
Driving sustainability
Building the CPO of the future

Sammy Rashed
6
Change Management
To create a burning platform, start with WHY?
1
3
2
WHY we must
change?
HOW we can
change?
WHAT to
change into?

Sammy Rashed
Initial Theories
§Digitalization will
offer the unique
opportunity for
procurement to
meet the demand
that it plays a
strategic role.
§Procurement plays
a decisive role in
bringing innovations
into a company.
Procurement is shrinking and operative
procurement is becoming autonomous in
most areas.
In the future, procurement will take on a
completely different form and traditional
purchasers will be a thing of the past.
Expectations from strategic procurement
are growing and the demand for a higher
value contribution is increasing.
Personal relationships will also continue to
be extremely important in Procurement 4.0.
1
2
3
4
The Digitalization of Procurement
Key Thesis in pilot Study: Procurement 4.0
7

Sammy Rashed
Then Now Future
1) Focus Spend Penetration Spend Optimization Enterprise Value
2) Business
Requirements Technical Specifications Functional & Output Outcomes & Benefits
3) Value
Realisation Tactical Win/Lose Strategic Win/Win Collaborative Value
4) Governance Operational Finance or GBS Excom
5) RTP Process Workflow, Spend Coverage Efficiency & Automation User Experience
6) STC Process Spot-buys, Annual Contracts Cat Man & Multi-year
Contracts
Agile Sourcing &
Contracting
7) SRM Process Compliance (QPD)
Management Performance Management
Innovation & Value Co-
creation
8) Supply Base Fragmented & Disaggregated Aggregated & Consolidated Broader and more
complex eco-system
Org
Suppliers
Process
Role and aim
Procurement has greatly evolved and will continue to
do so, enabled by Digital
This will require new capabilities and mindset
8

Sammy Rashed
In the future everyone will need to think like an entrepreneur
Digital is key, but not the only consideration
Procurement needs to adapt to the Five New Economies
Digital Economy
Less need for
physical things and
more alternate
instant solutions
Sharing Economy
Less need for for
ownership and more
focus on access
Gig Economy
Less need for
permanent employees
and more flexible
workforce
Platform Economy
Less large
companies and
more brokerage
between smaller
players in
fragmented eco-
system
Circular Economy
Less disposal and
more reusing
9© 2017 S. Rashed – all rights reserved
9

Sammy Rashed
A system, or a group
of interconnected
elements in an area,
formed by the
interaction of a
community and the
way they affect
each other and their
environment
Managing a more complex “eco-system”
Implications for Procurement
WHAT IS IT? WHY IS IT IMPORTANT?
The traditional sequence
of clients à company à
suppliers has changed
Now more circular than
linear, with more players
This brings new challenges for Procurement:
• Broader supply base
• Smaller-size vendors with different needs
• Greater benefits but also risk
11

Sammy Rashed
CFOs allowingshorter payment terms
for smaller suppliers
Procurementmanagingonsiteincubator
Procurement is now increasing its
vendor base in many companies
Covid-19 reduces social safety
net in Gig Economy
Joint ideation teams formed with
buyer, customers, consultants,
solutions providers, SMEs, and
freelancers
Managing a more complex “eco-system”
Some examples
The growing eco-system brings new challenges
and opportunities for Procurement

Sammy Rashed
Aim is to offer small / new entrepreneurs capabilities that
are flexible, affordable, and reliable, so they can focus on
their expertise and scale their business.
Small Business Ecosystem ©
An example of potential solution to new challenges
Clan
Tribe
Community
Cell
10
1
100
13

Sammy Rashed
Secure continuity
Preventing potential
disruptions and
ensuring recovery to
enable ongoing
operations.
Disruption can come
from areas less
managed by
Procurement
Production of goods and
delivery of service is
subject to weakest link in
value-chain, not highest
spend
Opportunity to reinforce
critical contribution that
was taken for granted
• Step-back to more basic responsibilities
• Deal with smaller vendors with less KPI impact
• Traditional levers not applicable during crisis

Sammy Rashed
Procurement is reminded of the 3 types of customer needs
The Kano Model
Slide No. 16 •
Satisfaction
+
Primary Satisfiers
Service
Fully
FunctionalService
Dysfunctional
-
Dissatisfaction
§ To fully understand customer
need, it is important to
understand that they have
different types of needs
§ Dr. Kano determined that there
are three types of Customer
needs as shown
MUST BE
DELIGHTER
§Unfortunately, customers typically
only tell us about their primary
satisfiers when asked and we
must use other methods to
identify the “Must be” and
“Delighters”

Sammy Rashed
Immediate needs are clear, but what’s next?
Corona crisis has forced companies to build Resilience in 3 phases
RecoverRespond Reimagine
Source: BGC analysis
Ensure safety and
business continuity
Prepare to restart
and rebound
Invest for sustained
competitive advantage
Tackle immediate
priorities to keep
employees safe
and stay in business
Be ready to grow
in the right markets
at the right time
Transform to strengthen
resilience and drive in the
future
These are under way How do we prepare for this?

Sammy Rashed
Sammy Rashed
What to measure and report?
Focusing on output and impact on company objectives
Why What How Output
Traditional measurements
from support functions
Alignment with
strategic
imperatives
Tangible
contribution to
business results
✗ ✗
✗ Internal metrics: help understand factors behind performance and improve
Reported measures: demonstrates impact of performance and alignment to business goals
Leverage focus on short-term basic needs to tie-back
Procurement’s contribution to wider company strategy

Sammy Rashed
Driving sustainability
Meeting our own
needs without
compromising the
ability of future
generations to meet
their own needs.
Based on 3 pillars:
Economy, Society,
and Environment
Consistently in top trends
and priorities
Impacts all stakeholders
groups
Expectations moved
from ”do no bad” to “do
good”
Circular economy
• Responsible for impact of vendor-base
• Directly impacts reputational risk
• Can be a significant differentiator

Sammy Rashed
Exploring the top future trend of Environment / Sustainability
Outcome & Insights from Think Tank Roundtable
21
Who What pain points are
relieved
What delighters are
gained
Customers - reduce consumption
guilt
+ Brand equity
+ Differentiator
+ Can move upmarket
Employees - Less ”reputational” risk
(to work for bad
employer)
+ Proud to work
+ Attract & retain
+ Purpose
Suppliers - Less orders if don’t
support
+ Increase collaboration
to address problems
+ Can sell new solution
elsewhere
Shareholders - May cost more + Reduce higher costs
+ Reduce consumption
(e.g. energy)
1) Why is this a key trend for
Procurement to consider above
the others?
2) Consider what are future pain
points / delighters that you can
help address:
2a) What will customers expect?
2b) What will be the impact on
employees?
2c) How will this change our dealings
with suppliers?
3) How can you take concrete steps
to help address this future scenario
WIP

Sammy Rashed
Sustainable Procurement Pledge – Impact starts with
“I”
vBased on UN Global Compact Principles
vSupport UN Sustainable Development Goals
vCreated by MANY, intended for ALL !
vCenters around 5 Principles
1. Standing up for people and our planet!
2. Together we will change the world!
3. Starting with myself!
4. Sharing my knowledge and listening to others!
5. Leaving the right legacy!
vComplements existing "Top-Down" initiatives
vBecome an Ambassador on LinkedIn
vCollaborate on www.spp.earth
#SPP

Sammy Rashed
The trend is clear
Which competencies are growing in demand vs. declining
Emotions
Relationship
Technical
Process

Sammy Rashed
25
SELF SOCIAL
RECOGNITIONREGULATION
SELF AWARENESS
• Emotional Self-Awareness
• Accurate Self-Assessment
• Self-Confidence
SOCIAL AWARENESS
• Empathy
• Organizational Awareness
• Service Orientation
RELATIONSHIP MGMT
• Developing others
• Change Catalyst
• Build Bonds & Influence
SELF MANAGEMENT
• Self-Control
• Adaptability
• Initiative
Driving relationships will be core in the future
And Emotional Intelligence will be even more key

Sammy Rashed
How do you contribute to the value chain
Insights will come from CONNECTING + APPLYING
CustomersIndividual Procurement Stakeholders
Where you
want to go in
the future
What you have
going for you
now (soft or hard)
What people
will pay you for
Questions to ask yourself?
• Which strategic priorities
can you contribute to?
• What ”unclaimed land”
can you move to?
• What unmet problems can
you help adress?

Sammy Rashed
Mastering the Journey
Towards personal and professional fulfillment
Sammy Rashed
DEFINE3
ASSESS2
PURPOSE1
VALIDATE4
BRAND5 SHARE6
START7
ENGAGE8
AIM9
DELIVER10
PAUSE11
STEER12
STRATEGIZE CRYSTALIZE REALIZE
Write well
Emotional
Intelligence
Combine skills in
a unique way
DEFINE3
ASSESS2
PURPOSE1
VALIDATE4
BRAND5 SHARE6
START7
ENGAGE8
AIM9
DELIVER10
PAUSE11
STEER12
STRATEGIZE CRYSTALIZE REALIZE
Find your
tribe
Entrepreneurial
Thinking
Maximize
your time
Stand
out
Be (truly)
authentic
Stay
focused
Attract
attention

Sammy Rashed
The future CPO will be supercharged
“You must lead with your head, heart, hands… and guts”
Heart
§ Wants value for all partners
§ Perceived as principled and
trustworthy
Hands
§ Credible Experience
§ Finance and Legal
Knowledge
Guts!
§ Strong Advocate
§ Unafraid of manageable
risks
§ Manages Conflicts
§ Don’t ask for permission
Head
§ Understands the totality of
the business
§ High Emotional
Intelligence
§ Align with Digital Strategy
§ Drive
Operational
Efficiency
§ Provide enhanced stakeholder
experience
§ Make better decisions
with data insights

Sammy Rashed
Welcome and Intro
Understanding the burning platform
Aligning Procurement’s strategy
Engaging internal & external stakeholders
Build on strengths to assemble “fit-for-purpose” teams
Q&A and next steps

aerce 201006 (slideshare)

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