CIPS Cyber Security for Procurement Professionals - a useful eLearning tool.

I have just become aware that CIPS released a free eLearning course 'Cyber Security for Procurement Professionals'  which was developed with the UK Government.

There are six modules and it is available free of charge regardless of whether or not you are a CIPS member.  The suggested time for completing the eLearning is 75' but you will need longer if you follow the various links.

To me the real value is in Module 3; the others are pretty generic cyber security awareness raising, while Model 3 provides really useful specific advice on what the procurement professional should do, for example, including the need for certifications in bids.  I think it also implies the need to give some thought to the implications of cyber security within S2P processes.

On the downside, there is some infuriating background music - turn it off. The 'Knowledge Check' questions are the end of each module are so basic they are of questionable value. Disappointingly, I found when I followed some of the early document links I ended up having to completely restart the tool as opposed to picking up where I left off.

Nevertheless, I think this is a useful CIPS offer and would recommend it be included as a 'must do annually'.  I wonder why it is not behind CIPS member only firewall?

"Purchasing: Can we bridge the gap between strategy and daily reality?"

A new academic paper is in press at the moment for publication in Business Horizons: 'Purchasing: Can we bridge the gap between strategy and daily reality' by Knoppen and Saenz which I think is worth a read. The paper is based on the survey findings of the International Purchasing Survey - over 600 usable responses from North American and European purchasing professionals - and a few anonymised case studies.

At first I wondered why the paper wasn't published in one of the mainstream procurement journals, then I decided it may be the reported findings quite possibly jar against the message their editors generally want to accept.

Nevertheless the findings are important and certainly merit further debate and validation.

I am not going to steal the paper's thunder, but the key messages include that 47% of the respondents believe Purchasing (I take that also to cover the Procurement function) is not included in the strategic planning process, and 56% the purchasing are not focussed on long-term issues that involve risk and uncertainty. Furthermore that organisational structure tends to be either centralised or decentralised with little development of hybrid models.

Those findings certainly act as a reality check on the rhetoric but, I have to say find some resonance with what I have all too often seen in big household name companies. If the findings are reliable we need to stop the bluff and really get down to asking the serious question of why is Procurement still suffering from an identity crisis, despite almost 30 years of procurement's potential contribution having been identified, the financial crisis, and even the recent spate of procurement related supply chain risks manifesting themselves? Why are simplistic structural models still prevalent despite the benefits of hybrids? Is the problem that with the profession of those who look at the profession?

However, leaving solving the world's problems for another day, and getting back to the paper. In answering the core question the authors pose: Can we bridge the gap between strategy and daily reality? The authors use the case studies to demonstrate the answer is 'yes',  and identify key pitfalls in bridging the gap, namely:

1. No time for reflection;
2. Lack of scale;
3. Lack of scope;
4. Unaligned incentives. 

While I may question some of the content and approach, and feel there may be an over-simplification of the discussion and recommendations,  I encourage you to give some thought to the findings.

CIPS Global Standard for Procurement & Supply gets the thumbs up.

CIPS have firmly positioned themselves in the world of 'Procurement' as opposed to 'Purchasing' with the release of the Global Standard for Procurement & Supply.

Some may argue that it is a bit revisionist to describe this as "the first of its kind" -  I could cite other antecedents, even endorsed by CIPS. Yet, setting that aside, this is a useful resource and credit is due to those who have created, what appears to be a very thorough piece of work.

Sadly though it does little to support the claim that commissioning is synonumous with procurement. Regular readers will know I disagree with that argument anyway. But how do public sector procurers, with social care being a critical spend item relate to the Standard?

I was also surprised, given the rise in Vendor Management Offices in the private sector, that the associated roles, and even the term Vendor Management, weren't included or specifically named within the framework - I think CIPS missed an opportunity there. Yes, I recognise the similarities with Contract Managers but aren't Vendor Relationship Managers slightly different?

Setting those issues aside, one of the great virtues of the Standard is that it can be viewed as objective. So if you first gain acceptance of the Standard, then you can have a more reasoned depersonalised discussion on matching the standards.

I recently had to complete an evaluation of some staff and their competencies, and then develop role descriptions for new posts - the Standard would have helped a lot and I recognise that I will draw on this in the future.  I can also see its role in completion of Training Needs Analysis.

On balance, the Standard gets a 'thumbs up' from me and a thanks to all those involved in its development.

Inside the mind of a project manager: 'Locke' Film review

Last night I was at a preview screening of 'Locke' - one of the benefits of buying an annual subscription to the Times.

A strange film with a cast of one (although others are on the phone). Shot over just two weeks in London last year, all the action takes place during a car journey with non-stop telephone calls. I don't want to spoil the excellent plot but in amongst domestic crisis and confronting demons of the past, is a major construction project being managed. Some of the innovative solutions to ensure the construction project goes to plan found me laughing yet impressed. Then there's the irony over the limitations of Locke's control - a man who thrives on being in control but paradoxically finds so much of what is important to him as beyond control. I liked Ivan Locke, the main character, but my heart also went out to all the other innocent victims whose lives were turned upside down by the unfolding drama.

I thought this was a really good film and it left me wanting to know 'what happened next?', yet I had no doubt what was going to be the answer in delivery of the project. It may have worked well as a radio programme too but that may have deprived us of some of the tension.

Suggestions from China on combating construction fraud

It's not often I refer to Chinese authors, indeed I think this is a first. Deng, Wang, Zhang, Huang and Cui have published an interesting paper in the latest issue of Public Money and Management which discusses fraud risk in public construction projects in China.

You may not think that recommendations from China are transferable, yet I have been asked about how to combat construction fraud in a number of countries which really struggle with corruption and fraud in construction procurement - amazingly those asking the questions seem to ask the question in private and expect a one-line, off the cuff answer. The recommendations of the authors may help those facing that challenge so I thought they were worth sharing:

Strangers on a Train - Procurement Theatre review

Yesterday, I took on the role of procurement theatre reviewer with 'Twelve Angry Man'. Unfortunately, it's not a role I envisage being able to do often and I am unlikely to be able to justify giving up the day job, not least as I am so rarely in London now. 

However, I recently also had the good fortune to see 'Strangers on a Train' - £11.50 for a £63 ticket seemed a remarkably good start to the night. The joys of buying a cheap deal and receiving an upgrade.

As with 'Twelve Angry Men' I could see procurement lessons. 

The story is that of a causal encounter on a train journey. Two strangers fall into conversation. One of the strangers falls into the trap of saying more than he should to his fellow traveller, who of course entrapped him and he never thought he would see again. In a bizarre twist he then finds himself blackmailed and obliged to act in a way which would have previously have been inconceivable. 

The play is set in the days before mobile phones and those 'private and commercially sensitive' telephone calls which are effectively 'broadcast' in train carriages and executive lounges all over the world. The procurement message is that 'careless words can cost dearly' so be cautious what you say and of your boasts, but equally, be wary of entrapment.

While not as good as 'Twelve Angry Men' I did find myself gripped by the play and drawn in to the extent I actually jumped at one stage. An excellent thriller. While I felt Laurence Fox was really good I just couldn't get past Lewis' sidekicks accent; to me, it was Jack Huston who really shone - an excellent performance. Sadly the benefit of a great set was sometimes detracted from by some of the action being  blocked by the ceiling of the rear stalls.    

Twelve Angry Men - Procurement Theatre review

The film version of 'Twelve Angry Men' was released the month I was born, yet I have never seen it. Yes, I am of the vintage which remember Robert Vaughan when he was 'The Man from U.N.C.L.E.' and Martin Shaw as one of The Professionals. Perhaps that was why I couldn't resist the opportunity to see the stage version at The Garrick tonight.

The high-level story is a comparatively well known court drama played out in the Jury Room. One Juror isn't prepared to go with the pack and eventually the pack go with the original solitary Juror. It is brilliantly played out at the Garrick by Shaw, Vaughan, et. al., and I couldn't recommend it highly enough.

But it struck me that the procurement lessons didn't just lie in getting a good deal from Lastminute.com but in the play itself.

The Jurors each bring their own personal judgements to the Jury Room. Some were formed by the appearance and pedigree of the defendant. Some were based on racial prejudice. Some were influenced by the urgency of prior commitments and a preference to be somewhere else. Some too strongly influenced by others 'opinions'. Some even viewed changing their initial impressions as something to be defended, as if in a competition. Having said that, this is a play which will have you laughing out loud - it actually makes use of some brilliant irony and comedy.

It stuck me how effective questioning led to a better decision as the lack of robust evidence was highlighted.

However, it also struck me that this was a bit like some of bid evaluations I have witnessed. The need for a quick decision and pre-conceived ideas led to a poor decision, if not, wrong decision. The dominant voice for a strong individual subtly, and sometimes not so subtly, bullying others into a decision. I could go on with the parallels. But, if, instead of a Jury Room drama, this was recast as a Tender Evaluation Panel, I wonder which character would represent the CPO?

Twelve Angry Men may be a great play, but I think a DVD of the film would be a useful procurement training resource the next time a complex contract award is being approached. Come to think of it, it would be a very useful procurement training resource (full stop).

Reflections on eWorld Purchasing & Supply

Today I attended the eWorld Purchasing & Supply event. You wouldn't be surprised if I said a free conference was good value - well, to me there's no such thing as a free conference as there is always the opportunity cost of how you could have otherwise have spent your time. There's also the reality, that now, in many organisations, even justifying the costs of attending an event in London is a battle some feel just isn't worth fighting. But to me this was well worth attending and actually staying the whole day. (As an aside, it never ceases to amaze me that so few delegates have the good manners and ethics to stay the whole day!)

Having said all that, I found almost all of the sessions I attended of excellent quality and a really good opportunity to learn. So in a nutshell some interesting learning:

1. Eva Wimmers from Deutshe Telecom, in an excellent keynote, reflected on the reality that a short-term focus on paying less is probably detrimental to the procurement 'brand' and improved strategic contribution, particularly in an environment of decreasing volumes. Procurement needs to reposition itself and lead on demand shaping and spend management - what she referred to as moving beyond procurement.
2. Eva also told us there's a word in Germany for saving money but hurting the business. Don't ask me what the word is but I think there's a real problem that procurement people sometimes are their own worst enemies in doing just that, regardless of what the word is.
3. Another of Eva's gems was that "procurement is only as strong as the relationships with functional colleagues". I think that's very true but there's a real problem with procurement suffering from poor stakeholder engagement and management - the focus on technical know-how, to me, is distracts from the increasingly required soft skills.
4. There was a recurring theme from many of the speakers of splitting strategic procurement from operational buying. Their message about devolving to the right level or even outsourcing, effective use of P2P systems and pCards - in theory, that is all very simple but few really spoke of how they'd managed to get operational ownership. There is of course an interesting lesson here for those in the public sector who have been very cynical about the benefits of pCards!

The Collaborative Organization (Book review)

An excellent, pragmatic book for anyone concerned with Digital Strategy and particularly Social Media (Web.2/E2.0) Strategy. While presented as focusing on intra-organisational collaboration, I feel that doesn't do the book justice, since it also addresses customer-facing dimensions.

I particularly liked the maturity model and could see that being of great use for baselining and also developing an incremental route-map.  My only word of caution relates to the Framework for Feature Adoption - while it is useful, it is just one route-map and my experience suggests there is no 'one-size-fits all'; what is important is to work with the culture of the organisation and the primary business outcome you're aiming to achieve.

The book was an easy read, well structured and something I could see being dipped into time and again.

Thoughts on reshaping the procurement paradigm and 'The Elastic Enterprise' (Book review)

It's not often I come across a book which really makes me wonder are we looking at the early signs of a new procurement paradigm - well The Elastic Enterprise does.  However, before I get to the procurement implications ...

The book would sit comfortably beside Porter's 'Competitive Strategy',  Lamming's 'Beyond Partnership' and Sandel's 'Justice' as saying something worth dipping into and mulling over, time and time again.

Strangely, I can't remember how I came to receive this book but I'm fairly sure it was through responding to a social media invitation. I'm not going to name the organisation, but thanks RA and LM for the book, yes, it was excellent.  As a one sentence summary, The Elastic Enterprise is a descriptive account of how organisations such as Apple and Amazon have been successful based on five dynamics, namely, Sapient Leadership, Business Ecosystems, The Cloud, Universal Connectors, and Business Platforms.

I actually read the book out of sequence, starting with Chapter 3, 'Creating the elastic enterprise'.  I thought this was one of the clearest explanations of digital strategy I have come across - the section on Cloud was particularly good but perhaps more could have been said about the implications of BYOD and social media.

Having said that, it was Chapter 4, 'People Unlimited' stirred my imagination.  Yes, I recognise and have long argued for supplier integration and co-production to deliver innovations through procurement.  I have also been advocating social media and recognised the role of ecosystems for some time - indeed spent two years working on a social media as a tool for efficiency improvement. However, prior to reading the book I hadn't made the connection between the two or how firms, like Apple and Amazon, lead an ecosystem in which suppliers provide, at a cost to themselves.  To me the ecosystem represents a new procurement paradigm: many small innovative providers working individually within a structure orchestrated by a leader. SCM thinking needs refreshed. The traditional idea of competing for contracts needs refreshed. The traditional model of contracting needs refreshed. Procurement's approach to M&A needs refreshed. That's quite a shift.

The Fifth Witness (Book review)

Straying from my usual territory with this book from the Fiction shelves as I’m on holiday.  A big book which I found difficult to set down and sped through.  I was quickly drawn into the plot based on the impact of the financial crash on individuals.  The whole book is on the ‘Lincoln Lawyer’s’ defence of a murder case. Along the way Facebook is weaved in with an implied warning of how sharing may be high-risk.   Although early on I was convinced the plot was a bit too obvious, it wasn’t long before I realised how wrong I was, indeed I was completely wrong.  Even the twists of the final chapters threw me and I actually re-read a few pages to be sure.  Great holiday reading, and although contracts are mentioned you can safely escape procurement for a few days.  

End This Depression Now! (Book review)

I suspect some of my regular readers may wonder what sort of person takes a book on holiday with this title and then recommends it.

This book, by Paul Krugman, is not about a psychological condition but about the current economic condition – Paul Krugman being a heavyweight economist who is able to clearly explain the current euro crisis and the financial woes facing most western economies.

Krugman’s core argument is that there is plenty of evidence that current economic policies are hostage to a political philosophy as opposed to being shaped economic ‘know how’.  Current economic policies are not working, even though a shift could bring a speedy end to the misery being experienced by so many. The shift advocated is a U-turn on austerity and speedy public spending.

It may be difficult for politicians to make yet another U-turn but I think it is a debate worth having and, if that switch takes place, it could have a big impact on procurement policy.  Of course public spending options go beyond procurement and could be through increased spending on benefits, etc.