While procurement teams want to deliver and recognise they are capable of generating value beyond savings, there always seems to be something blocking the function from delivering on that completely. Why is that?

I considered this question with a group of cross-industry procurement executives at one of Procurement Leaders’ regular Member Exchange events and we came to some interesting conclusions.

Hosted by the HPE procurement team at the company’s brand new office in Dallas, we challenged each other and debated exactly where and how the function should pursue value.

To start with, the process is neither quick nor easy.

One of the group said it had taken some seven years of hard graft to get to the point where their function was now more deeply ingrained with other teams in the business and helping to deliver that value.

Others across the board had similar stories. It takes a lot of time and effort to get the point where a procurement organisation can deliver value and that is because the team has to work to build trust with other functions.

Trust takes years to build and can be destroyed in moments, so it has to be carefully crafted – something that was clear among all in the room. How does the function do that? A couple of solutions emerged from within the group.

Get out and meet your stakeholders

One of procurement executive said they had set up a series of roadshows to tell as many people as possible about the function and what it could do. One participant asked how they had managed to ensure those people turned up, which was a good question. I would suggest getting some good coffee.

Understand your stakeholders’ needs, priorities and goals

Understand how colleagues throughout the business define value as it relates to procurement. This will enable you to understand what you need to pursue and where you can best align your efforts with those of your stakeholders. One of the group pointed out that procurement shouldn’t have a separate definition of value to the rest of the organisation – the function’s interpretation needs to be fluid and take account of different stakeholders.

Share in the acclaim – but don’t take it all

Procurement has got much better at taking credit for its work, but the group was happy to let stakeholders take most of the credit for any value their functions added. Why? It goes back to trust. If procurement is seen as grabbing the limelight then it will lose that trust. In the long-term, it is far better for the function to sit back and let the word of its capabilities spread throughout the organisation.

It was a heartening discussion and what was even more heartening was the fact that this group wants to stick together to ensure they make progress against some of their challenges and the solutions they came up with.

My key takeaway was that procurement has matured over the last couple of years. This was clear from the fact the function is confident in its abilities and what it can deliver. It knows it can deliver value and that it does not have to constantly talk savings – they will follow anything the function does.

It was a great group to host, talk with and learn from. I look forward to seeing what comes next.

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What does a consultant do?

There are a number of reasons why business owners should consider hiring consultants:

• Expertise in a specific market
• Identify problems
• Supplement the existing staff
• Get the ball rolling on change
• Provide objectivity
• Teach and train employees
• Do the “dirty work,” like eliminating staff
• Revive an organization
• Create a new business
• Influence other people, like lobbyists

The first step for any business consultant is the discovery phase, where the goal is to learn the client’s business. A good business consultant takes the time to learn as much as possible about the business, from the owner and employees. This can include touring the facility, meeting with the board of directors and employees, analyzing the finances and reading all company materials. During this process, the business consultant will uncover the details of a company’s mission and what operations are in place.

Once an in-depth understanding has been developed, a business consultant has entered the evaluation phase, where the goal is to identify where change is needed. This includes identifying the company’s strengths and weaknesses, as well as current and foreseeable problems. These can include problems already seen by ownership and management, and new problems seen thanks to the business consultant’s objectivity. A business consultant should also identify opportunities to grow business, increase profits, and boost efficiency. +

In addition to identifying these problems and opportunities, a business consultant should also develop solutions to problems and plans on capitalizing on opportunities. Perhaps a company has a particularly strong sales department but weak marketing department; this is an opportunity for the company to increase marketing resources and capitalize on the sales staff. During this phase, it’s important for the consultant and the company’s employees to maintain open and clear communications.

Constructive criticism

It’s important for an owner to take the business consultant’s advice at this stage as constructive criticism, and not as a criticism to how the owner has been doing things. The business consultant brings objectivity and a fresh viewpoint, whereas the owner is personally close to the business. The owner should certainly have feedback and provide opinions to the business consultant, who should take the owner’s reflections and revise plans as necessary.

Once the owner and the consultant agree on a plan, the consultant should enter the third phase of consulting, which is the restructuring phase, or the implementation of the plan. In this phase, the consultant is to build on assets and eliminate liabilities, as well as monitoring progress on the plan and adjusting as needed.

Finding a consultant

Finding the right business consultant may be the most difficult part for the owner or management. The consultant should have a passion for their work, a drive for excellence, and an eye for organization and detail. It’s important to find a consultant with expertise in your industry or with the kind of problems that your business faces. When hiring a consultant, make sure they have solid referrals and offer these skills.

Anyone can call themselves a consultant, but it takes a combination of many skills to make for a good business consultant. It’s also important to make sure that they have any necessary certification, depending on your industry. You should vet the consultant through their website and materials. Look for professional images and well-documented information about their services. It’s a good idea to request examples of past successes and to speak to those businesses.

Business consultants are not necessarily cheap. But the feedback and planning they provide can help increase business and boost profits in the long run, while also helping ensure future success by eliminating problems and identifying opportunities.

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