The Leadership Imperative: A CPO’s View (Part II)

Dealing with the Pressure for Quick Wins

In the current challenging business environment, the CEO and CFO are under a lot of pressure to enhance corporate performance. That often translates to extra attention for the CPO. And that often leads to a shift of focus from strategic initiatives (ones that optimize Total Cost of Ownership and Total Value through strategic sourcing), to a preoccupation with delivering “Quick Wins” (often based on supplier price concessions achieved without a good sourcing process).

If you're faced with that situation, I encourage you to develop a “hybrid plan” composed of Quick Wins AND Strategic Projects. The quick wins provide the short-term “fix” that everyone desires, while the Strategic Projects keep the focus on those initiatives that should not be shortchanged. Combined with the actions outlined below, you can literally advance your leadership and transformation agenda regardless of the business environment.

Communicating for Success

Let me boil down the essential learnings of how a CPO can get senior management's attention and support.

• You need to adopt and speak the language of the executive suite (the “financial language” of the CFO) in order to be effective in your communications
• Arrange for a candid, independent assessment of your current state, and lay out your transformation plan and roadmap (based on procurement transformation best practices)
• Develop a vision with BOLD objectives that directly to senior management's interests and objectives (e.g. improvements in EPS, ROIC, cash flow, risk management, etc.)
• View technology as an enabler of your transformation plan and stretch objectives, not an end to itself
• Build your business case (what you expect to deliver, in exchange for resources and budget). This should be expressed in dollars, for each year over the next 3 to 5 years. Vague promises just don't do the job.
• Be willing to make a firm commitment on expected results in order to gain top management's commitment and support, including additional internal and external resources
• Lead and make it happen

A Final Thought About Successful Leaders

This subject came to mind recently as a result of a conversation I was having with a client of our firm. During the course of that conversation, an old saying came to mind. That saying succinctly summarizes what we all know implicitly, but too often forget.

In its short form, the message is simple:

Visions are good
Objectives are good
Strategies and plans are good

Teams are good
Studies are good
Consensus is good

Skills and competencies are very good
Thinking is also very good

But, only doing the right things creates value

As a leader, you not only have the opportunity – but also the obligation – to ensure that your resources are focused on the most value-creating activities. And if you need more strategic resources – follow the recommendations in this article and get them!

(Note: a portion of this article was adapted from the leadership book Beat the Odds: Avoid Corporate Death & Build a Resilient Enterprise, Robert A. Rudzki, 2007, J. Ross Publishing.)

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