42© 2016 Copyright Denali Group. All Rights Reserved.
• Category Management – defined
• What makes a good Category Manager – key imperatives and soft skills
• Category Management Journey – a fundamental change to the way organizations approach procurement
• Key Enablers – to become truly strategic
• Training and CategoRise game
1
2
3
4
5
43© 2016 Copyright Denali Group. All Rights Reserved.
Expanding Procurement’s Value for The Global 1000 Since 1996
Direct-hire placement of supply chain professionals
Procurement Transformation, Assessment & Strategy, Technology Strategy, Change Management
On-demand high-end supply chain talent for project-based work. Temp-hire conversions
Subscription and Custom Supply Market Intelligence
Learn, Play and Reinforce: Category Management and Strategic Sourcing Training
Category Management, Analytics and Managed Source to Pay Programs
ROBUST
FOCUS ONLY ON
PROCUREMENT
156%3 YR GROWTH RATE
300+
GLOBAL TEAM MEMBERS• US• INDIA• CHINA• TURKEY• IRELAND
45© 2016 Copyright Denali Group. All Rights Reserved.
Category Management is a strategic, end‐to‐end procurement approach to more holistically manage how companies buy goods and services. Category Management aligns a company’s vision and business objectives with external market factors and capabilities, and seeks to consider long‐range value to decision‐making.
What Is My Project Prioritization? What Resources Can I Use? How Do I Deliver Against Goals? How Can I Increase My Value Delivered? Where Did We Spend Yesterday? Where Will We Spend Tomorrow? Who Are Our Top Suppliers? What is the Market Doing?
Who Owns the Spend? What Drives Them? How Can I Add Value? What Do They Care About?
Understand Your Categories
Know Your Stakeholders
Deliver Results
47© 2016 Copyright Denali Group. All Rights Reserved.
An end‐to‐end owner, the Category Manager is someone who is in charge of defining a strategy for the category, a market intelligence expert in this category, and is capable of communicating this strategy for implementation in a regional or global level. He or she should work in a cross‐functional manner with stakeholders to influence important decisions gathering important input from internal and external sources for strategy definition.
Know your Stakeholders Understand your Categories Deliver Results• Relationship
Building• Influencing• Integrity• Adaptability
• Analytical Thinking• Conceptual Thinking• Planning & Organizing• Innovation• Problem Solving
• Change Management
• Initiative/Leadership• Decision Making• Communication
Skills Aligning to Key Imperatives
48© 2016 Copyright Denali Group. All Rights Reserved.
One way to identify whether a Category Manager has the necessary soft skills is through competency based interview techniques using the STAR or SHARE approach.
• It’s a well known fact that looking at a candidate’s past behavior is the best way to predict their future performance.
• Behavioral interview questions will let you understand in detail how a candidate has acted in specific situations.
• First, identify the core behaviors you’d like your candidates to demonstrate. Then, you can select your specific questions.
• Remember to assess all candidates against the same behavioral criteria.
Core Competency Key Actions QuestionDecision Making • Uses sound judgment to make
good decisions based on information gathered and analyzed
• Considers all pertinent facts and alternatives before deciding on the appropriate action
• Commits to decision
• Give me an example of a time when you had to be quick in coming to a decision. What obstacles did you face?
OR• Give me an example of a
business decision you made that you ultimately regretted. What happened?
50© 2016 Copyright Denali Group. All Rights Reserved.
Business Results
Time
Build Foundation 3‐5 year Procurement Vision and Roadmap Clear Org Roles, Aggressive Yet Achievable Targets CM Process, Tools and Templates Established Category Roadmaps, Multi‐year Project Portfolio Assess CM Capabilities, CM Competency Plans CM Foundations Training, eLearning, Exercises Category Coaching, Application Workshops Intentional Comm & Change Mgmt. (ongoing)
Failure to Launch
Accelerate & Consistently Apply High Business Engagement & Decision Making Updated Vision/Roadmap, Linked to Bus. Objectives Enablers / Core Foundations Improved, Optimized Global Multi‐Year Category Roadmaps, Pipeline Robust Strategies, Deep Market Understanding CM Excellence Training, CategoRise CM Game Category Coaching, Targeted Skill Development CM Cross Training Modules, Role Plays
Failure to Sustain
Scale & Globally Optimize Collaborative, Results Oriented Culture Fully Integrated Business Planning, Budget Cycle Advanced Strategies Drive Lifecycle Alignment Globally Aligned Process, Technology, Knowledge Global Category Councils Manage All Spend CM Mastery Training, Project Competition Category Coaching, Targeted Skill Development Developing Business Leaders, Category Expertise
Failure to Scale
Transforming procurement to a category management‐based approach is leading practice and drives significant benefits. Successful companies use a multi‐year vision and address the key elements below to build, scale and sustain Category Management competencies within their organizations.
51© 2016 Copyright Denali Group. All Rights Reserved.
2013
2013o CM Excellence Trainingo Refine Process, provide guidanceo Initial Tools, Templateso Quick Wins / Strategic Projects
2014o Joint Targets establishedo Workshops build multi‐year portfolios, improve strategieso Tools & Templates improved; Training on CM Imperatives,
Business Case Development, Templates/Toolso Category Coaching continued to reinforce CM mindseto Category Roadmaps assess priorities, drive alignmento CM Maturity Model helped internalize CM Imperativeso Initial CM Dashboard, natural category hierarchy
2015o Proactively develop and prioritize portfolio, capacity plano 1:1 Category Coaching support at all levels for prioritized
categories, overall strategy and approach, global integration o Applied learnings, developed recommendations to
accelerate and improve quality of strategies and processo Skill Development ‐ targeted training
2016o Continuing 1:1 Coaching support at all levels for prioritized
categories, new team members, overall strategy and approach, global integration efforts
o Implementing recommended opportunities to accelerate and improve quality: Spend Analytics Dashboard, Market Intelligence Planning, and Standardized Market Summary
2014 2015
Build Foundation Accelerate & Consistently Apply
2016
2015 Results:• Exceeded Savings Target by 24% (2.2X baseline)• Expanded multi‐year rolling portfolio• More than 90 Category Strategies completed• Focus on core fundamentals to enable acceleration / sustain change; continued development of ‘best practice’ training/tools
2014 Results:• Exceeded Savings Target by 20% (50% over baseline)• Accelerated Portfolio Development – Built 1.5X 1yr project portfolio, 1.9X 3yr portfolio
• 61 Category Strategies Completed• Delivered thought leadership and CM best practice awareness; support to implement and drive change
53© 2016 Copyright Denali Group. All Rights Reserved.
Market Intelligence Spend Analysis
Training & Coaching
Processes & Tools
Execution Support
Category Strategy Network
54© 2016 Copyright Denali Group. All Rights Reserved.
Category Management Process Fundamentals / Advanced Applied Learning Approach Ongoing support and reinforcement
Category Manager Training
Category Plan / Playbook Development Development of category project portfolios and joint target setting Support client Category Managers or Denali drives Category Strategy
Category Coaching Category Manager Engagement Category experience to augment client category knowledge Category Strategy level or Sourcing Project level support
Category Strategy Support
54
Category Management Planning, Processes, Tools Vision, Strategy, Governance Structure Category Planning and Road Mapping Category Manager Imperatives and maturity development
55© 2016 Copyright Denali Group. All Rights Reserved.
Stakeholder Engagement
Supply Base Review, Profile
Supplier Landscape and Profiles
External Market Assessment
Category Risk Assessment
External Assessment
Category Maturity Assessment
Category Positioning SWOT Analysis Finalize Category
Objectives and Strategy
Strategic Review
Category Vision & Strategy
Category Plan Documentation
Category Vision & Strategy Project Portfolio
Category Opportunity Analysis
Develop Prioritized Portfolio of Projects
Develop Category Playbook
Internal Assessment
Stakeholder Mapping Business Requirements
Assessment (AQSCI) Category Scoping and
Segmentation Category Spend Review Category Supplier and
Contract Review
Category Plan Development Tools & Templates
Stakeholder Map AQSCI Requirements
Template Baseline Stakeholder
Questions Category Summary
Template Spend Analysis Dashboard Contract Summary
Template
Market Profile Templates
Category Discovery Questions
Porters Five Forces, Kraljic Matrix
SWOT Analysis Sourcing Levers
Category Plan Template (brief/full)
Category Dashboards Category Roadmaps Business Case
Framework
Opportunity Assessment
Visual Project Timeline Template
56© 2016 Copyright Denali Group. All Rights Reserved.
Phase I
Scope and Plan Project
Phase II
Analyze (Spend and Market)
Phase III
Set Sourcing Strategy
Phase IV
Execute (Source and Negotiate)
Phase VSustain
(Contract and Transition)
Phase I
Internal Assessment Assessment
Phase II
External Market
Assessment
Phase III
Strategy Development
Phase IV
Category Planning
Source‐to‐Contract
Supplier Management Procure‐to‐Pay
Category ManagementPlanning
Execution
57© 2016 Copyright Denali Group. All Rights Reserved.
CM Foundation
elearning Exercises Webinar
CM Excellence
Role Plays CategoRise
CM Mastery
Coaching
ProjectCompetition
Work Shops
58© 2016 Copyright Denali Group. All Rights Reserved.
Covers Procurement Workflows / Processes• Category Management• Strategic Sourcing, Negotiation, Contracting• Supplier Relationship Management
Integrates Soft Skills that are Critical Success Factors for Category Managers• Stakeholder Engagement, Change Management• Effective Communication, Influencing Techniques
Uses a Blended Learning Approach• eLearning modules teach process, methodology, terminology “what is it?”
• Classroom training focuses on application, interaction, exercises and role play: “how to do it”
• CategoRise – Denali Category Management board game reinforces CM principles in a fun way
Reinforced with Applied Learning and Coaching• Follow‐up in Application Workshops / Webinars and helps change behaviors, embed learnings
• 1:1 Category Coaching with experienced CM’s builds actual category strategies and accelerates portfolio development
Category Management Curriculum:• Modular and holistic approach• Progressive classes include CM Foundations, CM Excellence and CM Mastery classes
• Category Management methodologies, tools and frameworks
• Discussion to change mindset and behaviors• Tools and Templates are delivered as part of the training
Example CM Training
Building Procurement Competencies