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The Captive Mindset – Part III
January 25, 2008
If you want to raise awareness of the captive mindset topic in your organization, try this test. Pose this scenario (and choice of options) at your next all-hands meeting:
SCENARIO: For sourcing group X (never before strategically sourced), the current contract with a supplier expires in 5 years.
OPTIONS: The appropriate course of action is: (choose one)
a) set a reminder to start work 3 months before contract expiration
b) set a reminder to start work 9 months before contract expiration
c) set a reminder to start work 18 months before contract expiration
d) start work now
e) none of the above
When I use this simple test, it often triggers an interesting discussion among the audience. It has also caused people to realize that the first step in unlocking a captive mindset is to identify its existence. That requires uncovering the assumption(s) that drive it. In the example above, each of the options tends to have certain assumptions driving that choice in someone’s mind.
For example, someone who chose option (a) or (b) might be thinking about a fairly tactical renegotiation with the incumbent supplier. Someone who chose option (c) might be planning on a strategic sourcing effort, commenced a comfortable amount of time in advance of the expiration date. And, someone who chose option (d) might have the attitude that we ought to examine the situation now, since it has never been strategically sourced, and identify the opportunity. If the opportunity merits action, we might engage the supplier well ahead of the normal contract negotiation timetable.
Captive mindsets can exist in many places. It’s one of the reasons why I encourage clients to consider carefully how they select sourcing team members. Some of the most effective sourcing teams I’ve seen involve cross-functional members who bring fresh, diverse perspectives and also fundamental, “naïve” questions to the assignment.
Posted by Robert A. Rudzki on January 25, 2008 | Comments (0)