Post on 31-May-2020
transcript
Building SRM Capabilities in Your Organization and Yourself
©2016 IACCM
Envisioning Commercial and SRM Success
IACCM research shows:
9.15% profit improvement can be captured through improved contracting and commercial
relationships
©2016 IACCM
Recurring Challenges: The Ten Pitfalls of Contracting
Lack of clarity
on scope and
goals
1
Result: Cause of
claims/disputes
3Failure to
engage
stakeholders
Result: Misaligned
interests and future
opposition
Negotiations focus
on the wrong
terms and risks
Result: Performance
management dominated by
blame/fault
7Contracts
difficult to use
or understand
Result: Users see contract
as irrelevant to business
needs
9Limited use of
contract
technology
Result: Inefficiency and
loss of quality in
performance and analysis
Average value
erosion 9.15%Legal/contract
team not
involved early
enough
2
Result: Wrong form
of contract &
extended lead time
4Protracted
negotiations
Result: Competitive
exposure & delayed
revenues
6Contracts lack
flexibility.
Insufficient
focus on
governance
8Poor handover
from deal team
to
implementation
teamResult: commitment &
obligations missed &
misunderstood
10Poor post
award
processes and
governance
Result: Repetitive issues
and errors causing value
loss
Result: Loss of
economic benefit;
contract a weapon
5
©2016 IACCM
From Goods to Services
©2016 IACCM
Contracts and Relationships Need to be Integrated
New skills are needed
©2016 IACCM
Positioning on the Collaborative Value Curve
©2016 IACCM
Contracts and Relationships Need to be Segmented
Segmentation is central – requiring new skills
©2016 IACCM
The Skills Development Journey
©2016 IACCM
Envisioning SRM Success
What roles can the SRM professional embrace?
• Capture and ensure the purpose of the contract
• Identify and promote the roles of those involved
• Ensure the expectations of the parties are met
• Fulfill the mission, vision and values of the joint enterprise
• Serve as a conduit to connect the commercial parties
©2016 IACCM
Envisioning SRM Success
The function that seeks to develop successful, collaborative relationships with key suppliers for the delivery of significant tangible business benefits for both parties.
©2016 IACCM
Skills focus – the Skills Needed for IR 4.0
In 2020:1. Complex Problem Solving2. Critical Thinking 3. Creativity4. People Management5. Coordinating with Others6. Emotional Intelligence7. Judgment and Decision Making8. Service Orientation9. Negotiation10. Cognitive Flexibility
In 2016:1. Complex Problem Solving2. Coordinating with Others3. People Management4. Critical Thinking 5. Negotiation6. Quality Control7. Service Orientation8. Judgment and Decision Making9. Active Listening10. Creativity
Source: World Economic Forum
©2016 IACCM
Transformation of Approaches
Key approaches for improved impacts on contracted relationship outcomes:• Risk allocation• Problem solving• No-blame culture• Joint working• Communication• Gain and pain sharing• Mutual objectives• Performance measurement• Continuous improvement
©2016 IACCM
Overview of SRM Certification Program
• Assessment, content and examinations• Presentations, written resources and message
boards
14© 2016 State of Flux Ltd
:
IACCM provides a comprehensive SRM Training and Certification learning program
15© 2016 State of Flux Ltd
Program Benefits
FOR EMPLOYERS
✓Confirm and benchmark employee
credentials.
✓Make visible commitment to
employee growth and excellence.
✓Provide positive benefit for new
hires and support employee
retention.
✓Achieve a compelling return on
investment from improved
performance.
✓Enhance functional status and
influence through unique reporting
and competitive insight.
✓ Achieve world recognised
accreditation.
✓Gain detailed knowledge of leading
SRM practices and apply it on a
real supplier relationship.
✓Raise personal status and career
path opportunities.
✓Join one of the fastest growing
global communities.
✓Demonstrate your commitment to
excellence and world-class
standards.
FOR INDIVIDUALS
16© 2016 State of Flux Ltd
What will I learn? - PractitionerP1 Introduction:Two introductory e-learning modules:
Introduction to SRM
Defining SRM and its value
P2 Principles of SRMFive e-learning modules focused on the
core principles of SRM:
Sourcing options
Who are your suppliers
Segmentation models
Creating the agreement
Understanding the base principles for
delivery of your SRM program.
P3 Building and Deploying SRMFive e-learning modules focused on the
business case and deployment:
Benchmarking
The business case for SRM
Stakeholder management
Implementing your SRM program
Communications management
P4 Managing SRMFive e-learning modules focused on
operational aspect of SRM:
Measuring success
Balanced scorecard
Governance
Personal attributes of a supplier
relationship manager
Culture and ethics
P5 SRM and Contract ManagementFive e-learning modules focused on the
link between contract management and
SRM:
The supplier view of SRM
Claims and disputes
Contract change management
Exit strategy
Bringing it all together
17© 2016 State of Flux Ltd
What will I learn? – Advanced Practitioner
AP1 The Lifecycle approach to supplier managementExamines the total lifecycle from supplier on-boarding, management through the life of the
contract and exit and the how value is optimised in each phase.
AP2 Cross-business stakeholder engagementStakeholder mapping that encompasses the key interests on both the buy and sell side of the
relationship; Building the relationship plan.
Leading cross-functional cross business teams and the dealing with influence without
authority;
AP3 Contract and performance managementContracts as a basis for performance management. The role of SLAs. KPIs for driving
continuous improvement through balanced (two way) scorecards.
AP4 Risk Management in the supplier management contextIdentifying and calibrating supplier risks. Transforming inherent risk into actioned and residual
risk; Risk reporting and using key risk indicators in managing the supplier relationship.
18© 2016 State of Flux Ltd
What will I learn? – Advanced Practitioner
AP5 Driving collaboration through joint account planningUnderstanding the objectives of the key account manager and account planning. Evaluating
how you are being account managed. Identifying where to collaborate (and where not) in joint
account planning scenarios.
AP6 Implementing value release programsIdentifying and leveraging buy-side and sell-side value drivers and benefits. Creating a
quantified value release plan.
AP7 Influence, trust and communications skillsStakeholder dialogue methods – structuring communications for influence and persuasion in a
conversational, presentation and written communications context.
Building trust and collaboration.
AP8 Stimulating and managing supplier innovationThe key elements needed to manage a pipeline of ideas and keep suppliers engaged. Building
an idea screening process. The key elements of a joint business case.
19© 2016 State of Flux Ltd
Timescales and learner commitment by level
ELAPSED TIMELEARNER INVESTMENT
1 to 3 hours per week per module
4 to 12 months (depending on individual
circumstances)
Minimum of 24 hours
12 months (can be
shortened if done in-house)
Case study and coaching driven - no prescribed timings
12 months
©2016 IACCM
Thank you!
How does the SRM program differ from the CCM program?
What is the value to go through the SRM program?