Shackleton's Way: Leadership lessons from the great Antarctic explorer - Book review

Shackleton has been 'up there' as one of my heroes as long as I can remember and certainly since back in the late 60s/early 70s when I first took up mountaineering and looked forward to a career on the Navy/Marines - bet that surprised a few of you. So I had a reasonable awareness of his leadership ability.

As a result I actually bought this book for my son who was working on an assignment on Leadership last year - he was looking for exemplars and, to me, Shackleton was an obvious choice. Sadly the book's pristine condition told a story of its own.

Anyway, I retrieved the book and embarked on a journey of reliving Shackleton's adventures - at least that was the hope. Unfortunately the book suffers from a lack of flow and therefore becomes a bit of chore.  Basically every chapter has three sub-chapters: the storyline which often feels contrived and constructed around PowerPoint headings; a summary of the key lessons; and then a sub-chapter on how someone has been strongly influenced by Shackleton's style.  To me the book suffers as a result and becomes laboured through trying to do too many things and none of them particularly well.  The book consequently also suffers from the lack of a narrative - at one stage I wondered if I would enjoy reading the book better by just sticking to the first sub-chapters. The biggest disappointment though is the almost deification of Shackleton - I just don't feel that would be Shackleton's Way and although a great leader he was no saint.

I believe every aspiring CFO needs to understand Leadership and demonstration of Leadership separates the 'great' from the merely 'good' CPO.  Although the key points for CPOs will be found in the book, this isn't the book I would recommend.

Black Box Thinking - book review

How many times have you heard it said "lessons will be learnt" - the mantra often used instead of just saying "sorry, we got it wrong", yet rarely seems to result in any action.  Syed's remarkable book truly addresses, through many examples, the need to learn from when things go wrong.  Syed provides fascinating insights into how different professions tend to address failures, on the positive side, learning and improving, while on the negative side, denial and cover-up. I find myself contrasting this with excuses.

The key message is that if we want to drive improvement and innovations we need be more honest and critical of failures.  We need to understand what happened and what needs to be done differently based on that learning.

Some of the case studies are nothing short of scandalous and yet, I suspect few professionals are entirely innocent. Particularly eye-opening is the example relating to latex gloves and the bravery of the anestistist in challenging the surgeon. The book is also a call for bravery and the need to intervene when it is clear to you a mistake is being made. I will not spoil the book by saying more.

For procurement professionals this critical reflection could address why a key stakeholder didn't seem to welcome your advice, whether a negotiation could have delivered a better outcome, whether the sourcing strategy was optimal, and even if the last interview.  Within the profession we talk a lot about innovation - to me this is a practical book on making innovation happen.

I found the book really easy to read, excellent for the holidays and really thought provoking - it will not be going to the charity shop but added to my 'must keep and re-read'.  I recommend.

Book review: 'Procurement Mojo'

This book has been around for over a year or so but I only got round to reading it after receiving it as a Christmas present from one of my daughters.  To be honest I think it was the title which put me off previously and, to be honest, try talking to a C-level stakeholder about the 'procurement mojo' and I suspect doors will close.

The book is well positioned in a niche which I'm unaware of others having addressed; setting aside procurement technicalities to focus on making the Procurement function more effective. You may well find some of the themes familiar as they are really transferred from the management literature you would expect to find in one of those airport shops - nothing wrong with that and Osagie makes an excellent transfer.  I really can't disagree with anything he says and can't think of any other book which addresses the themes in a Procurement context. Although I did  think the chapter on Branding was weak (I will return to this in a later Blog post). It would be particularly useful for those interested in Procurement Organisation & Management or even Procurement Change Management.

I did find some of the references to Osage's and others' research a bit aggravating since the detail was missing and it tends to be anecdotal - so it wouldn't work as an academic source. I also found the frequent cliches and case studies, which seemed to be more about demonstrating Osage's pedigree, annoying.

Set all those criticisms aside and you have a really good, easy to read book, relevant to all those who want to improve Procurement's strategic positioning as a function. Osage's five step approach  makes perfect sense and I suspect represents his own transformation approach:

1. Build an effective Procurement organisation;
2. Deploy robust fit-for-purpose enablers;
3. Adopt robust supply base management;
4. Apply appropriate performance management; and 
5. Build your Procurement brand.

I particularly liked the section on leadership but was surprised, when discussing processes, he didn't really explore the need to sort out processes only after you have define the new structure and roles. 

At only £14.99 Procurement Mojo is particularly good value (there has been a recent trend in over-pricing Procurement books lately) and an easy read. I think I will use aid memoire. 

My 10 Desert Island Books on procurement

A number of blogs (for example Stephen Ashcroft's) have appeared on favourite procurement reads. Often the books which have really influenced my thinking aren't mentioned. So, I thought I would take a slightly different line and list the 10 books I would take with me to a Desert Island to read again based on the assumption that I plan to return and be better at procurement - something I've been working at since 1973.

When I started to think what the Desert Island list would look like I realised that it to a certain extent it reflected my own journey too. Don't be surprised that this spans a long period and that some of the books are probably out of print as I have included my 'golden oldies' too'. Here's my choice and why:

1. Purchasing Principles and Management
2. It's a Deal
3. Beyond Partnership
4. Strategic Procurement Management in the 1990s
5. Revolution in Purchasing
6. Profitable Purchasing Strategies
7. Business Success
8. Transform your Supply Chain
9. Strategic Procurement in Construction, and 
10. Complex Contracting.

Sourcing Portfolio Analysis: Book review

This is not bedside reading material though it is a book every procurement professional should read.

Set aside any preciousness you have for Krajlic, Porter's 5 Forces, and Category Management, be prepared to be challenged, and read this with an open mind. Here you have a hefty academic critique of existing ways of procurement thinking. It is a logical discussion which leads you to a better way.

I'm not sure how much rigour Kraljic put into setting out his model which is at the core of so many procurement strategies but Cox doesn't spare any punches in highlighting its weaknesses. To me, Kraljic works best as a simplistic approach to differential procurement management and is useful for engaging senior stakeholders. Procurement managers need to recognise that it is part of a toolkit as opposed to the only tool. I think Cox assumes that procurement professionals have actually taken the time to read and digest Kraljic's original paper - to me that is an unjustified assumption. So, for many, Cox's actual explanation of the Model may well be new. Disappointingly, at times Cox's critique looks very like 'cut and paste' and becomes a bit tedious - a little more focus on the narrative would have avoided what sometimes has the appearance of lazy writing.

Having said that, Cox appears 100% correct. He reiterates and expands on many of his previous discussions on Power and the need to recognise that an understanding of relative power is fundamental to effective procurement strategy - I agree with him. Sadly I rarely find practitioners demonstrating a thought process which considers power.  He sets out a matrix of strategies which flow from relative power positioning - this isn't the traditional 2x2 but 4x4 - that's a lot of positioning. I think I understand what Cox is saying but then ask myself how robust and objective the user's mapping can be anyway. Is it not true that although his method is robust and scientific, if the basic information which feeds it is lacking then there is no sound foundation.

I found the detailed setting out of his sourcing strategies exceptionally thorough and can't find any fault with what he says. Cox acknowledges the difficulties which practitioners face and sets out a good justification for pursuing his decision rules. Having said, that I would like to see some evidence that applying the approaches outlined deliver real tangible benefits beyond the existing rule of thumb approach used by many which is at the heart of his critique.

Where I really struggle is with the application of the detailed approach within a regulated public procurement environment. If I am correct, Cox is arguing that the relative power of all those the buying organisation considers to be 'the market' be established. Therefore multiple suppliers and the development of discrete strategies for each of them.  But within a regulated procurement, would that mean each of the potential bidders is subjected to relative power positioning, which then shapes the 'tender approach' within the competitive requirements of legislation? Perhaps, a way round that is better understanding of the relative power of the market per se, then developing an overall approach, then, for those who successfully navigate the competition, post-award discrete strategies tailored to the relative power? I could of course be wrong. Nevertheless, even if the detailed application isn't easily transferable to a public procurement environment, the need for understanding the relative power positioning is and managing suppliers conscious of that positioning and aspired to positioning is too.

Nevertheless, the book is a bit of a slog demanding a lot of thought but worthwhile. The book shouldn't sit on a shelf looking good but be used as a route map constantly referred to. I would like to see the paradigm shift which Cox calls for as the profession needs this sort of smart thinking.  Having said that, my experience is that many are still struggling with what to do after the completion of a spend analysis and Kraljic is only grasped at a high-level. We need the rigour of thinking which Cox applies and we need to apply his approach.  If power positioning and the associated strategies were applied I honestly believe better outcomes would be achieved and the profession would reach a new level.

While the book is remarkably cheap at £20 and certainly worth a buy, if you would prefer a taster have a look at Cox's white paper available at: http://www.iiaps.org/pdf/WP-PowerPositionSPA.pdf

NB I am grateful for receiving a complimentary copy of the book on which this review is based. 

'Cut the Cards: making SAP work' - Book review

At first glance you may wonder what relevance this book could have to you. Don't be put off by the title as it is not a book for SAP 'techies'; it is much more and I would view it as recommended reading for anyone on an MBA course or with an interest in PRINCE2. I suspect those who would benefit most though would be those designated as Sponsor of an ERP implementation and those charged with an oversight or scrutiny role.

Donnelly has produced an easily readable book on what could be a very dry subject and his black humor works very effectively. Having said that, assuming there is a second edition, I think the addition of section headings would be beneficial.

In a forensic analysis of public and private sector IT implementation disasters, Donnelly provides a diagnosis of what he believes really went wrong: cash-flow, poor leadership, self-serving partners, poor project management, poor risk management, and poor contract management are all there.  Key lessons for me are the need to modify SAPs standard processes as little as possible, so change management should be concerned with moving from the As-is to the correct SAP process, having the correct governance in place and use PRINCE2 methodology.

Also covered, although indirectly, is SAP's marketing strategy - a good case study in itself.

But what's there for a procurement practitioner? If there's an ERP project the CPO needs to have a seat at the table as part of the business case development, specifying, contract drafting, selection, risk management, change management and contract management. Then the CPO needs to be engaged with Blueprinting the To-Be - I have previously discussed how that should be an opportunity for procurement transformation, yet too often is missed through automating the existing, yes, that still happens!

'The Value Chain Shift: Seven future challenges facing top executives' - Book review

The sub-title of this book is really the important point to consider with this book - it is targeted at 'top executives'. An impressive list of contributors set out to answer the 'seven challenges' against a timeline of 2020.

So what are the seven 'future' challenges identified?

1. Measuring corporations' cost and contribution to society; 
2. Managing resource scarcities; Scale and speed; 
3. Traditional multinationals versus emerging market firms; 
4. Optimising IT-enabled process and systems in the value chain: 
5. The role of governance; The organisation design shift; 
6. How speed affects risks, opportunities and new business models in the value chain; 
7. Corporate social responsibility: Moving from compliance to value creation in value chain relationships. 

Are these really future challenges, and if they are, are they the biggest challenges? Actually I recall some of them being included in Farmer and Taylor's 'Corporate Planning and Procurement' published in 1975, yes, 39 years ago! More recently we could compare New and Westbrook's (2004) 'Understanding Supply Chains', and Brindley's (2004) 'Supply Chain Risk'. So I would have liked to have heard the authors views on what they would put as a compelling argument, to the sceptical top executive on: "if these challenges have been around so long, and a laissez-faire approach has worked so far, what's so different?"

Setting that aside, let's consider some of the chapters. Say the chapter on IT. While I recognise the problems of geographic standardisation of processes and systems, and am currently working on a similar problem, I am really surprised that the whole digital agenda with the imbalance between marketing's adoption and that of the supply chain isn't viewed as a challenge.

I did, however, find the chapter on 'optimal speed' thought provoking and something I hadn't previously considered.

Sadly, I found many of the chapters more like an introduction and lacking in depth - I wanted more.  
You could classify them into three categories: 'A statement of the blindingly obvious', 'We wanted to create a model, so we created a need', and the really valuable, 'Have you thought about this?'.

In fairness, let's remember the book is targeted at top executives. If the book is read by top executives and they progress to addressing the challenges, then it will be really beneficial, but for me, and the average procurement specialist, I doubt it is worth £22.15?

Complex Contracting - Book review

Brown, et al. (2013) have pulled off a remarkable coup with this book in that it provides something of real value for procurement practitioners, those managing and leading major projects, academia and students. It is easy to read too and virtually free of jargon.

But what is meant by ‘complex contracting’? This is a book about contracting in uncertainty when there is a requirement for a level of buyer and seller investment that makes exit difficult. It is the degree of uncertainty that makes a contract complex, not the size of the budget.  The book will be relevant to all those contracting in “the fog of uncertainty” (p.49).

It deals with the US Coast Guard’s approach to using a new integrated strategic approach to procuring, over 30 years with an anticipated expenditure of $24bn, boats, planes, helicopters and an IT system. An exceptionally ambitious undertaking, with a steep learning curve and, as almost every aspect of the procurement was new for both the buyers and the providers, significant risk.

N.B This is an extract from my full review which can be read in Local Government Studies.

Procurement 20/20: Supply Entrepreneurship in a Changing World - book review

A new book on procurement is always of interest but too often takes on the 'emperor's new clothes. Unfortunately, even though this is a book written by four McKiksey consultants, little is new. 

For example, the authors take Lamming's suggestion of purchasing needing to become External Resource Management (1993) and provide examples that becoming a reality. Sadly Lamming doesn't get an acknowledgement of the rebranded concept. That would be understandable if it were not that McKinsey's father of the Kraljic model is used as a springboard for the book.

Great examples are trotted out, but yet a blindspot exists by not recognising the problems Apple and others encountered through using Foxconn. Instead Apple's outsourcing to Foxconn is viewed as exemplar! So, for example, "Apple maintains control over nearly every step along the value chain. ... The orchestration is so tight and extensive that Apple places electronic monitors into some parts boxes at supplier sights to allow remote monitoring of production speed and discourage product theft". Then think of the problems I've highlighted in this blog previously encounered by Apple and Foxconn!

Negotiation for Purchasing Professionals - Book review

It's over 20 years since I l bought Steele, Murphy and Russill's handbook on negotiation, 'It's a Deal'. I found that book really helpful and practical. 20 years is a long time, so I didn't think I was being too extravagant investing in Jonathan O'Brien's 'Negotiation for Purchasing Professionals'. To be honest I needed no persuasion given that O'Brien's previous book, 'Category Management in Purchasing' is the definitive text on the subject.

'Negotiation for Purchasing Professionals' does not disappoint. What we have is a toolkit ready for use. The book effectively outlines the 'Red Sheet' method, complete with all the templates. Don't get me wrong though, this is not one of those clumsy, disjointed clutter of diagrams and models; no it is comprehensive and yet easy to read.

Working in a multi-cutural organisation I found the chapter on 'Negotiating across cultures' particularly good. While not the focus of the chapter, in many of today's businesses, with cross-functional teams drawn together across the globe, who have to negotiate as one-team, I thought the chapter made a useful contribution to effective team working.

I thought O'Brien was also excellent on 'power' and 'game theory'. While these chapters are written in the context of negotiation, I think they are useful reading, regardless of whether or not negotiation is in your mind. I suppose the same could be said for the chapter on body language which could provide many hours of enjoyment in 'people-watching' but just as easily a complex. O'Brien has a real skill in making concepts and theories pragmatic. Having said that, O'Brien has also creating a step-by-step guide to stacking the odds in your favour, right down to meeting and greeting!

Without doubt this is a book for every procurement practitioner.
   
Now just in case you want to get a copy of the book for yourself, at a decent price, order direct from Kogan using the code NPP and you'll save 25%!

Relationships First: The new relationship paradigm in contracting - Book review/critique

This a very strange book or is it a manifesto? It argues that something new has been developed and applied, yet I see little new from what was discussed in the mid-1990s. Does it justify the subtitle 'The New Relationship Paradigm in Contracting'? Sorry, it doesn't.

It is printed double-spaced, why? The appearance creates the assumption that this was a MBA project re-shaped as a self-published book. If it is a repackaged MBA project the potential reader should have been warned prior to purchase.

Five chapters of the author talking about his experience before you get to an explanation of what the 'new' model is about - actually I can't see what the new model is.

Business school models are drawn on, for example, 5 Forces and 7 S's. Yes, this definitely has the feel of an MBA project. Now why was Peter Kraljic's seminal 1983 paper was missed - didn't it have the same message that strategic contracts need to focus on relationships?

The Undercover Economist Strikes Back (Book review)

I'm a great far of Tim Hartford and his skill for making economics real and relevant to the man-in-the-street. I also thought Adapt, his previous book, was a 'must read'.

So I purchased this book as soon as it was published and looked forward to an excellent read. Unlike his other books this one is concerned with macroeconomics, something which I think virtually every foundation business studies course must cover in some way. Perhaps the book is targeted at that readership, and if that is the case, it is an excellent introductory text. It would also be ideal for anyone trying to get behind the jargon of current news stories.

However, the book just didn't work for me. It is comprehensive and Hartford, as usual, manages to demystify some big issues. But I found the style of writing irritating - it takes the form of an imaginary character conversing with Hartford and posing questions which he answers. That may appeal to some but I hope Hartford drops that approach.

'Adapt' was an excellent book and I could visualise myself reading it again. That's not an accolade I think 'The Undercover Economist Strikes Back' shares. Nevertheless, given Hartford's previous excellent track record as an author, I still expect to buy his next book.

PS I noticed that it's available as an airport edition at a significantly reduced price - so if you're travelling soon you could pick up lower price version on your travels.

'Smaller, Better, Faster, Stronger' - Raises the bar for public procurement?

Today's Times declared "Switching from paper to online might save Government £70bn" and there was mention made of procurement. The Title: 'Smaller, Better, Faster, Stronger: Remaking government of the digital age"  was captivating, and Twitter implied the Policy Exchange's report was a must read for anyone interested in public procurement. The scene was set of a document raising the bar for procurement.

Set aside that the Foreword is filled with political point-scoring. You discover in the Executive Summary there are three big opportunities espoused, one of which is electronic purchasing. Reference being made so early to 'purchasing' should have rang warning bells, but hey, we're still talking about BIG OPPORTUNITIES in the government use of digital and this "is primarily concerned about the big-picture priorities for the 2015 parliament" (p.14) regardless of who governs.

A fairly selective literature review comprises Chapter 2 - strange not much reference to the body of knowledge. policy and strategy relating to eProcurement in the public sector!

76 pages - yet really only page 36 and part of page 37 discuss the BIG OPPORTUNITY of 'purchasing'!

The New Digital Age - book review

There is absolutely no doubt that digital will reshape the way we live and work. So the subtitle of this book 'Reshaping, the future of people, nations and business', by two of the gurus of digital, was of immediate interest.

It is a very readable book and does provide a vision of the future. Yet, to me, it said little about how business would be reshaped - reshaping procurement doesn't feature at all. There is little which would justify the book being located on the 'business and management' shelves in a library or bookshop (even on line). It could be used as a stimulus for discussion along the lines of 'so how would this translate to the procurement world?' - sadly that answer is not found in this book.

Procurement does however get a very brief mention, specifically on p.205, but don't get excited - unfortunately the authors discuss the inflexibility of defence procurement and how users are adapting by 'flying below the procurement radar' and work-arounds. If that is the view of two influencers it is a sad reflection on strategic, agile procurement!

One thing did strike me was the narrow vision of our two friends - for example, they still view a world of nationality based on physical land boundaries. Why should that constraint of birth place, whether for individuals or companies remain in the future - in the future, could we not opt to have nationality based on some form of virtual affiliation, say something like the old EEC or Commonwealth with laws which dictate how those of that 'national' affiliation chose to trade and do business, why not? If such virtual nationalities were created you would have transformed the rules of trade and could opt to have trade with only 'virtual states' able to trade in their own currency, tariffs, licences, language, and laws.

However, if you want some more grounded ideas on how digital can reshape procurement now, I suggest you look beyond The New Digital Age , perhaps even my own white paper on how procurement strategy needs to address digital.

'The CPO: Transforming Procurement in the Real World' - Book Review

This was truly a first for me - a novel written on procurement transformation. Yet, as a novel it also crosses the boundary of a text book with most of the chapters cleverly summarising the key 'CPO Best Practices'. It is written by four A.T. Kearney consultants - a very clever marketing ploy.

As a novel it's not going to win the Man Booker but it is an easy read and does have a reasonable narrative. Sometimes contrived, yet I found myself wanting to keep reading to find out what happened next.

It is certainly a case study in procurement transformation and a good catch-up/revision for practitioners. It would be a useful 'book club' discussion topic for any procurement team. Ideal as a introductory text for a Strategic Procurement degree. With some useful tools in performance management and category management  outlined. I can't see me recommending it to a CX though.

It's a bit misleading to say the book has 226 pages. Deletion of the many blank pages and excessive 'comic strip abstracts' to each of the 39 very short chapters, you may really only have somewhere around 175 pages! That raises another point: what purpose do the abstract/comic strip sections serve? I felt they broke the rhythm of the book and after the first few chapters opted not to read them - that provided a better read.

I will not remotely share any of the plot as the book is worth reading and with the benefit of online purchasing you can pick it up for less than £10 including postage and receive within a week. Yes, it is worth a tenner.

Bad Pharma - procurement book review

I suspect that Ben Goldacre's 'Bad Pharma' would not immediately come to mind as a recommended procurement read. Let me correct that misconception. While the book is primarily about the pharmaceutical industry, it has a sub-plot of market manipulation of buyers. It highlights how sales-forces, conferences, professional bodies, advertisements, magazine articles, and even academic journals are used to manipulate, within strategic marketing plans, to deliver sales. It is a book which should be read by every procurement manager, regardless of industry - all those who touch the edge of procurement decision making need a healthy level of scepticism, if we are to deliver the best deal. If you are in doubt about its relevance, then I would ask you: 'how have you have formed opinions about the percentage savings anticipated, the basis for selecting some procurement solutions, and the judgements on perceived 'best practice?'

However, the book, like Goldacre's earlier 'Bad Science', should also be on the reading list of anyone undertaking research or involved in the peer review process. I have no doubt that rigour, reliability and validity in research would be improved. A good thing all round.

On the downside

Doctor in Commissioning

How long has GP commissioning been argued about?  How long has it been implied that GPs and their group practices could take on a wider commissioning role with assumed procurement expertise?

Today we hear that GPs have a tendency to hand out anti-depressants too hastily.  Meanwhile I'm reading Ben Goldacre's excellent book on Bad Phama which suggests that decisions by GPs are frequently distorted by skewed information from journals and the market which shape their decision making.

To me these are both indicative of poor procurement practice and, to use a widely used medical term, question the efficacy of GP commissioning. Why?

1. Good procurement is concerned with seeking out that best whole life cost solution.  Prescribing  drugs unnecessarily doesn't sit well with that as it suggests a narrow options appraisal, a lack of Whole Life Costing for patient, the NHS and even the GPs surgery;
2. Good procurement is about challenging potential requisitioners (patients) and whether there is need to consume (buy), albeit via the NHS, anything at all;
3. Good procurement is about ensuring the best possible unbiased search of the market and avoid being swayed by the marketing (see Goldacre's analysis of the existing pharma marketing).

The pursuit of GP commissioning may well be on a sound foundation of trying to get as close to the patient needs as possible, but there are some fairly basic procurement principles which need to be more generally practiced too.

Now, since it's the weekend a loosely relevant good ol' YouTube:

    

Adapt (book review)

Tim Harford has written a number of excellent, easy read, economics books; possibly the most famous being The Undercover Economist.  I have a preference to Harford's style than the Freakonomics school.  It was against that background I ordered Adapt. I wouldn't describe it as an economics book, but I was not disappointed and would certainly recommend it. I would catalogue the book under 'business improvement philosophy' - is there such a library section?

I don't plan to provide a summary of the book as the sub-title provides as reasonable enough steer. However, an alternative precis could well be the misquote of Mao Zedong's, 'Let a thousand flowers bloom'. 

The key message to me is the need to encourage risk managed experimentation. I would like to see that practiced more within the procurement world. Accept that some experiments just won't work.  But some experiments will work and some will even delivery beyond our wildest expectations.  Equally some experiments may not deliver in the way we expected but may nevertheless yield desirable outcomes.  Nevertheless failure provides useful lessons to be learned. That's how we can deliver stepped change in cost reduction, quality improvement and social value. That's how we can deliver innovation in procurement. It's also how we can see improvement in strategic commissioning and public services delivery. The trick is to think of managed risk and the use of 'decoupling'.

A review isn't the place for more of Harford"s ideas, suffice to say that I think if you want to make improvements, you could do a lot worse than dip into your pocket and get a copy.