How a Target Operating Model can Help Procurement Leaders
As leaders look to undertake transformative efforts on their procurement teams, many may lack the expertise of executing such a project, given their background. But Oliver Jones, who has almost two decades of experience in procurement across a range of industries, has offered his support.
Oliver is the Director of Procurement at Ingram-Jones Value Management as well as a Director at H&Z Management Consulting.
Writing on his LinkedIn profile, the FCIPS chartered status and management degree qualified leader shared his view on Target Operating Model (TOM) and how it could help.
He wrote: "It's not an easy ask in the current climate when risk-taking feels... well... risky. Many Procurement Leaders have come up through sourcing and category management without deep transformation expertise, however, no one is the complete package. We're all on a journey.
"Call me crazy, but if we're good at sourcing perhaps we should consider SOURCING support? It only has to start with awareness and insight (which costs nothing across a great network of experts).
"There are many dimensions to a Target Operating Model, and it must be tailored to the business and objectives. Here are a few things I'd recommend procurement leaders wanting to 'level-up' consider for the future and no, this isn't just for big teams."
Transforming procurement: Where to begin
Objectives
Oliver states it is clear to define your objectives: is it savings, is supplier performance or risk jeopardising revenue and the reputation of the business? If hiring great people, do you have the tools to enable them and will they stay on? It is vital that leaders are crystal clear on their short and longer-term goals.
Proximity
Oliver asks if the stakeholders and operations are scattered across the globe, is it even possible to recruit and develop capabilities in all regions? Does the business have a culture of virtual or hybrid working?
Building an effective operating model
Centre-led
Oliver suggests that growing a team which can do everything centrally could provide a costly resource. But a shift to an oversight and centre-led approach with the right foundations could work. Can leaders leverage a smaller team to still obtain their goals?
Tech & Tools
Oliver asks businesses if they can bring people together through technology which would minimise the headcount. Is the leader and its company digitally ready for the future â while also knowing what the best practice tools are available for the team?
Strategic implementation for success
Roadmap
Oliver suggests that a map of some variety should be created in order for businesses to understand what it is they need to do, and in what order, as they work to reach their goals.
RoI
Oliver asks the business, is there a desire for some early wins to invest in the long-term? Does the leader need help in writing cases for business and investment – while also being ready to shuffle the team around to hit these objectives?
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