Category Archives: Best Practices

Even in a House of Lies there is Truth!

From 2012 to 2016, Showtime ran a series called House of Lies, which was a comedy drama where a charming management consultant and his crack team used every dirty trick in the book to woo powerful CEOs and close huge deals.

And, unlike many consultancy teams, they were quite successful. There were TWO reasons for this.

  1. When they worked together, they brought the A-Team.
    • The Face, Marty, played by Don Cheadle, who was not only charming, manipulative, and opportunistic, but skilled enough in business to nail the spin brought by
    • The Brains, Clyde, played by Ben Schwartz, who specialized in marketing and spin doctoring and could craft just the right messages for Marty to deliver (and, like the Marketing Mad Men, partied a bit too hard and struggled with addiction), and who would have his plans backed up by
    • The Techie, Doug, played by Josh Lawson, who was a genius in numerical analysis and statistics and could find the right numbers to spin any tale The Brains and/or The Face need to weave to make the sale, and this was all brought together by
    • The Toughie, Jeannie, played by Kristen Bell, who managed the engagements, supported the team, and made sure the clients were reeled in hook, line, and sinker. (Without her, the team probably would have fallen apart, especially given the egos that had to be managed on the team. Don’t overlook the importance of The Toughie!)
  2. They came together, and even after falling outs, stayed together.

The third point is probably the most important.

A team is NOT assembled by a sales manager assembling four random consultants with “the right backgrounds” and throwing them on your project. Four random consultants who

  • might not even speak the language when it comes to your problem domain,
  • could be missing critical skills,
  • have entirely different work styles, and
  • are misaligned on what the right outcomes of a successful engagement for the client actually are!

An A-Team

  • speaks the same language,
  • have all the required skills between them,
  • work well together and have already succeeded doing so, and
  • are aligned on a successful outcome for the client.

In response to my LinkedIn summary on why you need The A-Team for Proper Selection Advice, someone asked how do you identify the right persons? The answer is, YOU DON’T!

The A-Team is already working together, delivering success. And in the case of the House of Lies, they succeed as a team by using their history together to effectively work together to sell the client a shared vision, even if the vision was one big lie. (So imagine the results you would get if you hired an A-Team to work for you, and not a consultancy that’s also an implementor that wants to maximize billable hours.)

Stop Buying ORCestration. You need Orchestration!

In our last article we told you that the majority of today’s platforms attempting to unify the Procurement application space for you are not Orchestration platforms but ORCestration platforms, integrating your applications in a manner that is forceful, ugly, and impure, to say the least. Definitely not what you need in a modern orchestration platform.

A real Orchestration platform is:

–> Light

They aren’t adding another bulky SaaS platform with its own deep stack requirements, vendor maintenance requirements, data store requirements, and rules engine which must not only be maintained separately, but replicate data and rules across the apps it connects. It’s a truly next gen platform, built up from only the (micro) services necessary to connect the apps and accomplish the tasks. It’s a composable container community, not a 100 room palace with no option in between.

–> Cheap

Next generation platforms, built on modern distributed architectures, and built to work behind the scenes (not in front) to allow the users to access the ecosystems they need to access through the applications they are comfortable with, won’t be million dollar applications. They’ll be a fraction of that as the organizations will be buying just a configurable framework, that they can configure themselves as needed, and not a full, heavy, SaaS application with all of the required support infrastructure just to keep it operational (regardless of whether it integrates any applications or not).

–> Flexible

Workflow can be built up, torn down, and put back together on the fly, as required to support evolving processes. Intake, UI, and integration can all be defined, and redefined, as processes evolve, new applications enter the landscape, and old applications leave. The organization is not restricted to a fixed intake screens with limited configuration, predefined workflows, or limited data formats.

–> Open

Built on composable micro-services, that are fully documented and compatible with modern stacks, they allow anyone to build the necessary integrations, workflows, and data manipulations necessary for true process orchestration. They also support the definition of contexts that allow them to be natively compatible with the data structures of the applications they are integrating. And one definitional mistake won’t bring down the whole platform because it’s not a monolithic megalith built on a house of data cards.

–> Real-Time

Not only are data pushes and pulls accomplished in real time, but the orchestration platform will automatically propagate data updates to all apps that maintain a copy of the data. Moreover, when an input the orchestration platform is an initiator of a process, the entire process will be executed without explicit instructions as each output will trigger the next step and serve as the input for that step.

–> Execution

Real orchestration platforms don’t connect apps in workflows, they execute workflows, and they do so dynamically based upon the inputs and outputs of each step. They adapt, and when transactions occur that cause exceptions that require human intervention, they learn from those interventions and dynamically construct new exception workflows on the fly, ensuring that no specific exception ever has to be manually dealt with twice.

–> Blockchain

It will support blockchain at the core, allowing not only for the integration and processing of arbitrary data records, but for immutable data objects to be input, created, and output — with a full history of what app did which change when. That’s a lot more than you can say about today’s ORCestration platforms.

–> Multi-Protocol

Not only will the orchestration platform be composable from the core up, but the building blocks will be designed in such a way that they can be composed to support all of the standard, obscure, and emerging protocols that might need to be supported. As a result, the platform will be able to integrate not only current apps, but emerging apps as well.

–> Organizational

A true orchestration platform is designed to support organizational processes and applications, not just Procurement, allowing the input (signal) data to come from any organizational system and be pushed to any other organizational system, bridging the gap between sales orders, POS demand signals, and demand planning and supply chain (re)order and logistics systems. True orchestration finally tears down the technology walls holding Procurement back, vs. today’s ORCestration platforms which just strengthen their foundations.

–> Secure

Not only are these platforms built on security at the core, recognizing both security standards AND security policies, including the security policy of each application that is orchestrated by the platform. This means that when a user initiates an action, it only executes if they have the appropriate (data) access in all of the applications on the orchestration platform that are needed to complete the action. No hoping, or praying, that the ORCestration platform encoded the right security checks in its native workflow.

–> Policy (Aware)

As per our last point, modern orchestration platforms will understand the concept of policy at the core, and not just for security — for compliance as well! The orchestration platform will integrate with all of the applications that contain encodings of the organizational compliance requirements, understand those compliance requirements in their native contexts, and ensure that all processes are completed in a compliant process.

–> Collaborative

The core of the orchestration backbone is designed to not only support application collaboration, but user collaboration across the organization, and even with connected parties in the supply chain, through the native support of internet communication protocols as well as all standard application messaging protocols. Collaboration will never be easier than with a true orchestration platform.

–> Resilient

Since it’s not just another megalithic SaaS app, but instead a (micro-)service platform built up from building blocks, one failed integration and even one failed block will not bring down the whole platform, the rest of the platform and apps will still work.

–> Process (Focussed)

Modern orchestration platforms are designed to support organizational enterprise processes end-to-end, not departmental functions end-to-end. They can integrate and orchestrate any application in the organization’s software ecosystem (all 1,000+ in a large enterprise) as well as any partner systems the organization has access to.

–> Exception (Orientation)

Modern orchestration is designed to quickly identify exceptions, invoke exception processes, and ensure humans are only involved for a here-to-forth unforeseen exception. Moreover, it will allow for the human instructions and guided process to be automatically captured and encoded to make sure that humans never have to teach the system twice.

Unlike yesterday’s ORCestration platforms, today’s (and tomorrow’s) true orchestration platforms are built on modern technology stacks, and future-proofed for tomorrow’s applications, not just yesterday’s.

Breaking Down The Barriers: Data Integration/Management/Analytics

We’re continuing our foray into the top barriers to success that we outlined in our top barriers post that chronicles the barriers that keep coming up over and over again in every Procurement survey in our effort to ensure that you don’t have to read another state of procurement study for the next 5 years. Today we turn to one of the biggest barriers in any organization, and especially if they don’t realize it. Data*

A Brief History …

Unlike all of the other barriers on this list, this is the one barrier that is relatively new. Up until the introduction of computers in the average business, the only real data that was maintained was the accounting data. Orders, and costs, sales, and revenues. That’s it. Other than that, the
“data” of the business was its contracts (on paper), its product designs (on paper), and its processes (on paper).

But with the introduction of modern computing into the average business in the 1980s, a lot of this data became computerized. Plus, the amount of data collected, and maintained, started to increase significantly over time. In addition to costs you could maintain quotes. In addition to revenues, you could maintain sales volume by product and location. In addition to current designs, you could maintain historical designs and alternate designs being considered.

You could start to collect and maintain market data on commodity costs and availability. You could collect and maintain data on currencies and exchanges and markets. You could build your own database of global logistics options instead of relying on suppliers and trading partners to select local carriers for you. And so on.

As time went on the average business unit went from having essentially no data when computers were introduced in the 80s to having lots of data as the internet took over in the late 90s to having a combinatorial explosion of data by the 10s when there was a SaaS app for everything!

The Problem

As data exploded, a number of problems arose.

  • How do you manage and maintain the data?
  • How do you analyze the data?
  • How do you integrate data from other departments? partners? the internet?
  • What data do you need for a meaningful analysis to make meaningful decisions?
  • What data do you need to send to other departments? partners?

And the reality is that as the data exploded, the need to understand the data exploded, and the need to integrate the data exploded

  • training and technical competence fell behind with each advancement
  • data formats and models exploded (as SaaS apps exploded)
  • internal and external data needs exploded, but the ways to easily get and send the right data at the right time shrank

The Necessary Realization

The data explosion that was supposed to be the blessing has instead become the curse.

  • Every system uses its own storage formats behind it’s own data models — so you need to obtain custom middleware / iPaaS to integrate data between systems, and often services to link in all the systems not supported out of the box
  • Back office analytics software has not kept up — most of the big name software is ROLAP, Relational Online Analytical Processing — where you are limited to drilling down in pre-defined cubes (and it’s not easy to create new cubes to power new reports)
  • Analytics capability has not kept up — the average employee doesn’t know what can be done (and what techniques to use to do it)
  • AI is more of a curse than a blessing — sure it can uncover interesting trends, outliers, deviations, etc. — but it doesn’t really understand the data, whether its prediction on what should be done is accurate (as AI is NOT intelligent), or how to guide you on what additional analysis to do to figure out what to make of its “discoveries”

This means that to make progress you need to understand:

  • what modern analytics is (and what AI is not)
  • what systems support it
  • what systems you need for integration and transformation of data
    (even though most analytics can do all the necessary data transformations, some systems still require proprietary integrations to get that data)

And there is very little education out there on all of this. (A lot of marketing, but not a lot of real education.)

The Technological Requirements

The technological requirements are considerable and require supply chain aware sourcing and sourcing aware supply chain and expertise from source to sink and back again on both sides.

A continuing reminder that if you want guidance in the short term, hope that your favourite provider reaches out to Bob Ferrari of Supply Chain Matters or the doctor and enables us to focus on writing the series (or in-depth e-book) explaining what modern Procurement and Supply Chain Tech needs to look like (and how it needs to be implemented) to address the challenges, reduce the risks, and address the priorities versus just dripping out tidbits as free time permits.

* Remember every office worker’s favourite song!


Well …
I have a little data
I store it on my drive
And when it’s old and flawed
The data I’ll archive

Oh, data, data, data
I store it on my drive
And when it’s old and flawed
The data I’ll archive

It has nonstandard fields
The records short and lank
When I try to read it
The blocks all come back blank

I have a little data
I store it on my drive
And when it’s old and flawed
The data I’ll archive

My data is so ancient
Drive sectors start to rot
I try to read my data
The effort comes to naught

Oh, data, data, data
I store it on my drive
And when it’s old and flawed
The data I’ll archive

If You Want Proper Solution Selection Advice — Hire the A-Team!

In 1972, a crack commando unit was sent to prison by a military court for a crime they didn’t commit. These men promptly escaped from a maximum security stockade to the Los Angeles underground. Today, still wanted by the government, they survive as soldiers of fortune. If you have a problem, If no one else can help and if you can find them. Maybe you can hire, The A-Team.

Forty years ago, if you had a problem, you could hire the A-Team, and get a solution. They did what they were supposed to. That’s because there were only a few solutions; developers, implementors, and consultants worked under the same roof on the same team; and, due to the high price tag, the vendors worked hard on delivering enough value to keep their clients and get referrals for new clients.

But then the World Wide Web was invented in 1989 and by 1999, corporations were starting to embrace it not only for online business but for app delivery. SaaS startups burst onto the scene and we went from a few options to a few dozen to a few hundred options for standard office applications within a decade. At the same time, many doubled down on development, not implementation or integration, and implementation shops sprung up. Then consultancies decided that, no matter where they started (strategy, finance, operations management, etc.) they were all going to be technology advisory experts and opened big technology consulting and implementation shops, because they had the size, and the cash, to hire lots of warm bodies fresh out of university desperate to work for a renowned firm.

This is where and when solution selection and advisory began to break down. First of all, the consultants had no deep knowledge of the solution. Second, they had no deep knowledge of the domain. Third, the selection and advisory consultants had little understanding of the implementation requirements. And, due to a lack of deep economic and supply chain knowledge, they all ignored the increasing complexity of global business, the increasing complexity of the software solutions designed to support global business, and the increasing complexity of interaction across platforms and systems.

That’s why you need … The A-Team!

THE BRAINS

First and foremost you need someone who understands the big picture. The domain, the core processes that power the business functions, the levels of operational maturity and how to assess them. Someone who knows how to get to the core of the problem and what is needed in a solution and can lead the team to successful execution. This person ensures the focus is on what’s needed, which is often different than what you might think you want. That the inputs to each successive phase of the selection process are the right one. That the requirement strands flow from initial collaborative root problem identification all they way through final solution implementation and integrations. Someone who ensures every step of the process is designed to maximize your chance of success while being as efficient as possible. Someone who’s always thinking about you.

THE SMOOTH TALKING FACE MAN

Secondly, you need someone who can converse with all of the stakeholders in their language, put their fears at ease, and foster the necessary collaboration between themselves and the solution selection A-Team to help ensure a successful project. Someone who can is capable of securing the data and resources that are needed when they are needed and navigating the tough scenarios when vendors who don’t want a fair and unbiased selection process decide to get down and dirty and bypass the CPO and go straight to the CFO or CEO with fear tactics or unreasonable ROI promises. Someone who’s always there when the client needs someone to be there.

THE HOWLING MAD CRAZY TECHIE
(WHO CAN BUILD AND OPERATE ANYTHING)

You need someone who has a deep understanding of the technology to identify vendors that supply tech that match your should haves, to help you script the demos, to rip apart the RFX responses and demo claims, and give you real, unbiased, solution — and not marketing — based advice. Understanding that goes well beyond the limited knowledge you get as a solution implementor where all you do is set configuration options. You need someone who was trained in tech (not operations, or psychology, or “business” or whatever else gets them into consulting), who built tech from the bottom up, who understands not only what stacks can deliver but what algorithms can deliver, and can assess not only what the tech does now but what it will actually be capable of with further development (as many vendors will claim anything you need is on the roadmap, even though they know that they are not capable of building some of the promised technology as their architecture just wasn’t built to support it).
In addition, this is someone who has spent a large amount of time reviewing and studying every solution they can get their eyes and hands on, not just a small set of clients or the big vendors that dominate every big firm analyst map. Some who loves tech and has lived tech their entire career from even before they entered university/college and through at least a decade of hands on experience (and at least five years of broad space review and experience).

THE TOUGH ONE

When the going gets tough, you need someone who can do the heavy lifting and brute force the project to conclusion. The critical support person who helps the brains with all the stakeholder interviews, ensures the crazy techie has everything he needs, makes sure the vendors get their responses in on time, and runs the project, through fear and intimidation if it comes to that, but usually with a strong, silent, honest-to-goodness resolve to get the project done right, no matter what. Someone who pities the fools not wise enough to engage the services of a team who’s only goal is solving your solution selection problem and moving on to the next engagement after a job well done (and not trying to find ways to hold you hostage and add endless billable hours to the project). Someone who alone has more heart then you will find in entire implementation teams.

But if you don’t believe me, go ahead and keep hiring The F Team. You might be part of the 12% they succeed for (or 6% if its a Gen-AI project). That’s at least a one in ten chance of success for a regular technology selection and implementation and one in twenty chance of success for a Gen-AI technology selection and implementation. Still better odds than the lottery, right?

Myself, I’d prefer odds of success of at least 4 in 5. But, as they say, you do you.

The Seven Step Process for Vendor Assessment and Selection

In our last posting we told you that solution selection is a seven stair methodology, and that the vendor assessment step was itself a seven step process. It’s not just as simple as taking a vendor pool, pulling five names out of a hat, and issuing an RFP, even though some consultancies would like you to believe that it is. But all that does is get you to a wrong conclusion fast.

Vendor selection takes time, sometimes longer than you want, but when you get the right solution, it’s always worth it in the end. Here’s the process outline.

1. RFI Creation

The first step is to create an RFI that accomplishes two things:

  1. verifies the vendor has the necessary must-have functionality to meet core needs
  2. collects the necessary information for rapid fire vendor elimination so you don’t waste time on a vendor that the business can’t accept

2. Collaborative RFI Review

Once the consultant or the analyst does their initial review, does their initial scoring, draws their initial conclusions and documents the rationale, the next step is to work through the RFI collaboratively with the client to make sure that every vendor invited back is not only acceptable to the client, but both parties understand the reason why vendors were cut.

3. Qualifying Demo

Before the full RFP, a demo verifying the promised must-have functionality must be taken to make sure what was written is currently in production and that the vendor truly understood the requirements. This can be considered phase two of the rapid fire elimination phase and strengthens the reasoning for any vendors pushed forwards.

4. RFP Creation

The next step is to create a full RFP that:

  • goes beyond the core and includes questions related to the should-have and value-add functionality appropriate to your needs (not some random feature list)
  • allows all organizational requirements for vendor onboarding to be evaluated
  • allows for an assessment of the depth and breadth of services and training provided by the vendor
  • contains additional questions designed to elicit the input necessary to answer any questions that come up from the RFI and initial demo review
  • address all of your business requirements (not just the ones that permit rapid fire vendor elimination)

5. Collaborative RFI Review

Once the consultant or the analyst does their initial review, does their initial scoring, draws their initial conclusions and documents the rationale, the next step is to work through the RFI collaboratively with the client to make sure that the client’s final two/three vendors are not only appropriate, but all of the strengths and weaknesses that can be assessed are understood.

6. Deep Demo Specifications

You need to give each vendor their own demo script that you want them to execute because it’s your problems you need to see solved, not their best whizz-bang features that look good but function poorly.

7. Decision

After the consultant provides their deep dive analysis of the demo and their overall vendor assessment, using all the information at your disposal, you make a decision that you believe will best serve your organization.

In other words, it’s a methodical, deliberate, process that takes what it takes because that’s the only way to ensure you get the right solution. But it will be worth it because the right solution will bring an ROI of at least 5X while increasing efficiency between three-fold and ten-fold once adopted, but the wrong solution will be an albatross around the necks of every employee that depends on it.