Monthly Archives: November 2014

Procurement Trend #20. Increased Strategic Focus

Seventeen anti-trends still remain. And while somedays it might seem like this series will never end, we assure you it will and now that LOLCat has figured out that the best thing to do is just take a nap, dream of his grandfather’s adventures as an archaeologist cat uncovering lost tombs, and wait for the series that is regurgitating topics of his past lives, we can march on knowing that as long as other LOLCats do the same, the series will do no our poor LOLCats more harm. And in fact, when we lay bare each and every one of the futurists’ lies, you’ll be in a better position to learn the truth and seize upon the real trends that lie ahead and the opportunities they contain.

So why do the historians keep pegging increased strategic focus as a future trend? Besides asphyxiation as a result from breathing in too much of their own hot air, probably because:

  • Supply Management is still tactically focussed in many companies

    on purchase order creation, invoice processing, and other forms of paper document and contract management.

  • Supply Managers are too focussed on survival, not control

    Procurement in many companies is comparable to the Island of Misfit Toys where the toys are all wandering around aimlessly trying to figure out how to find what they need to get through another day, instead of taking control of the situation.

  • Reaction is the name of the game, but Planning is the key to winning

    but most Procurement departments spend their days reacting to requisitions, supplier mishaps, late deliveries, stock-outs, and other unplanned events.

So what does this mean?

Strategic Focus

Procurement has to acquire and implement automation management to reduce tactical focus from mundane processing to exception management to give it time to focus on more strategic sourcing tasks, category planning, process review and improvement, and other tasks that will allow it to not only find any savings it has not yet tapped but identify new sources of value to the organization.

Transition to Farming and Harvesting

When you’re just trying to survive, all of your efforts generally go into hunting and gathering to meet the day’s needs. But in order to get ahead, you have to start farming and harvesting. You have to work together and divide up the work in such a way that someone has time to focus on more long term tasks while others handle the emergency situations of the day. While Procurement cannot avoid doing what it takes to put out the fires to avoid burning to the ground, it has to regularly step back, step up, take a wider view, and come up with ways to advance its methodology and operations and implement those so it can progress towards a path of proactive strategy and not reactive data processing.

Forward Planning

Procurement has to not only look for ways to get better today, but for ways that will allow it to continue progressing in efficiency and capability and potential beyond next quarter and next year. True forward planning looks five years into the future, not five months. While it won’t be able to see that far right away, when it has truly matured as a strategic organization, it will be working on projects for the current the year, next year, and on preparing for projects that will happen three to five years in the future that take a lot of planing and preparation to get right, such as factory and warehouse relocation as a result of a supply chain redesign project.

It’s Faster PussyCat; not Faster Idiot!

Fashion. Mobile Devices. Software. Everything is moving faster and faster. Maybe LOLCats need to move faster because their expected lifespan is one sixth of ours. But we don’t. We’re moving so fast that we’re bringing back infinite scroll and software mystery meat. We’re building mobile devices so thin that they bend, sewing new clothes after they are already out of fashion, and re-launching movies from the 80s because no one has time to even think of an original idea (so forget about taking one to completion).

There’s a place for speed — and it’s on the racetrack. And while first to market is nice, in the long run, it’s usually best to market that wins. The same goes for organizational technology. It’s not about being the first to have the shiny new toy, it’s about identifying and implementing the right technology the first time. A shiny new toy always looks good, but what good is a toy that sits on the shelf? And that’s exactly what happens when you buy a piece of software that looks good but doesn’t support organizational processes and do what needs to be done.

Slowing down isn’t just for buddhists and chess masters, it’s for anyone who wants to get ahead in business and Supply Management. While it’s important to be efficient and effective when doing non-value added tactical tasks, when it comes to important, strategic, activities that, if done right, can generate an ROI that is effectively multiples of the resources invested in the activity (but, if done wrong, can cost the company millions), speed is not of the essence. Getting it right is. If it takes an extra hour, an extra day, an extra week, or even an extra month to get it right, sometimes that’s the right thing to do.

And in each of the examples given above, the extra time would make a big difference. With enough time, developers would be able to research, understand, and build software that did what people want the way they wanted the software to do it — there’d be no mystery meat. And while the mobile iPhone version of your site might need to be infinite scroll because, let’s face it, you can’t click a button the size of a flea on a 4″ screen, no one wants that garbage on a regular 13″ laptop screen and they definitely don’t want it on a 27″ desktop monitor! You could take the time to research exactly how thin and light you could make a phone that was still resilient enough for everyday use and you could design practical, fashionable clothes that people actually wanted to wear, and not just wear the day a model walks them down the runway.

There’s nothing wrong with wanting to go as fast as you can, but going fast just for the sake of going fast doesn’t help anyone. It just makes your organization look stupid. So slow down once in a while, figure out where you are, figure out where you want to be, and work out a detailed plan to get there. The results might surprise you.

And now, to (software) developers everywhere who bring us infinite scroll and mystery meat on a regular basis, LOLCat has a special message just for you!


LOLCat says you're stupid!

Twenty Five Years Ago Today

Due to a miscommunication, the Berlin Wall Fell (a day before it was supposed to) and Germany was united. (See the Wikipedia History.)

It’s both a reminder of how a situation can literally change over night and of how fast the world moves on. For example, a report over on euractive.com notes that while most of Germany wants to look ahead rather than reflect on their recent history that consisted of a divided Germany, 58% of the 14-29 demographic would like to find out more about the history of the communist East German state and the German division because they feel they don’t know enough about their own history.

Today’s fast paced world is moving so fast and focused so much on the future that recent history is being overlooked because the older generation, who still remembers it, feels that it’s recent enough that it does not need to be discussed. However, it is not yet making the school curriculum and being taught in enough detail to the younger generation in a manner that will allow them to understand why the older generation just wants to focus on the future and what the lessons to be learned from the past are.

But we have to remember, because if we don’t, we’ll make the same mistakes, and more importantly, we’ll forget how to deal with the situation when it rises again. For example, the Ukraine is in the process of splitting just like Germany was split after World War II, and may, or may not, reunite someday. As long as there is conflict, borders are destined to change, border crossing rules are destined to be revised, and new trade restrictions will be created while old ones removed. So we have to remember, learn, and prepare.

NewsFlash: PR Perp, I Don’t Care What You Think! (Blogger Relations Part V)

It’s no secret. the doctor doesn’t like PR pros. To be specific, the doctor does not like “professional” PR pros who work for PR Agencies who believe that all they need to know to do their jobs is “best practice” PR techniques and that subject matter knowledge is not required. This really bugs me because even the best salesman knows that you have to have both some understanding of the product and a customer’s desire if you want to sell it. Thus, in order for a PR “pro” to sell a story to publisher, would it not stand to reason that she should, at a minimum, understand the product or service she is pushing as well as the interests of the publishers she is pursuing?

Apparently not. Apparently SI wants to write about website building using glorified Facebook profiles, physical therapy, the average ball player’s salary, lipstick, reality TV, and PR agency press releases! Anyone who took fifteen seconds of time to look up SI (and scan any post in the Blogger Relations series or any entry in the FAQ) would realize that the doctor disdains social media for the sake of social media (if you want to take selfies and poke, prod, and farmville your life away, go for it, but leave me out of it), only writes about supply chain, and has a general disdain for PR agencies so the last thing the doctor wants is to write about your recent press release on how you just released a new social media tool that is going to revolutionize the business world (not), how you just ran a campaign for client X that was revolutionary (and probably had no impact on actual sales), or how you just hired more more PR “pros” to increase the number of publishers you can spam with inane, irrelevant, bullsh!t on a daily basis.

And to make matters worse, they all have outreach press release syndication engines that not only blast you with the most ludicrous story idea you can think of, but that send two to four follow-up e-mails on a scheduled basis where they remind you of how great the story idea was, in case you missed it the first time. If you’re lucky, it will include an unsubscribe link, but it won’t matter, because they set these engines up with a thousand lists, and every time they get a new e-mail address, immediately syndicate to all of the other engines in their PR network, so that way, even if you manage to unsubscribe from the Reality TV in Atlanta list, you’ll still get the same story from the Reality TV in New York list, that cross-runs all of their stories from the Reality TV in Atlanta list to make sure all stories get as wide a reach as possible. In other words, these PR pros have taken the art of spamming to a whole new level! (the doctor bets that even the Nigerians are impressed!)

But even this isn’t what’s currently driving the doctor mental. What’s currently driving the doctor crazy is how every ridiculous story (which is an accurate term because this is the word many people use to describe fiction, which is probably the most accurate term for a good portion of what SI gets pitched, which is another accurate term because this is what should be done with most of the content suggestions sent SI’s way) comes preceded by the words I think this is a great story for SI because …

PR Pro: What You Think Doesn’t Matter! Not in the least. No one gives a sh!t. All the company paying you cares about is that you promote their product or service. And all the publisher cares about is bringing quality subject matter on topic to their audience. SI isn’t being consulted by beauticians who want lipstick advice, isn’t being consulted by agents to professional athletes who want insights on how much their clients should be getting paid, and I certainly hope that SI isn’t being read by PR Pros who want insights on how to do their jobs even more annoyingly! (Although it’s possible that with this rant SI just gave a few amateurs a few ideas they shouldn’t have …)

And at least where SI is concerned, you have an archive of over 4,000 posts to search to determine whether or not SI has ever written about the topic, a detailed 20+ (or is it 30+) page FAQ that answers many of your questions, and a Blogger Relations series that, if read appropriately, makes it quite clear on how to NOT be an idiot. So if you can’t get the clue that all SI wants is Supply Management / Supply Chain related stories* and keep sending him stories about lipstick and baseball, expect him to unsubscribe to every list associated to your agency and blacklist you — permanently. (And this means that if you ever do get a great story in Supply Management, just like no one would listen to the boy who cried wolf, no one here is going to listen to you!)

So please shape the hell up and put a little intelligence and insight into your job or get lost. Seriously.

*SI is quite willing to be pitched loosely-related stories that have a 1 in 100 chance of being written about as long as there is some, clear, relation to Supply Management / Supply Chain.