Here's your weekly briefing of thought leadership, networking events and training. We hope to see you at one of our new Regional SIGnature Events taking place across North America this year. Can't make it to an in-person event? Join us online for a webinar covering the latest trends, topics and solutions.
A Turn of Events in 2019
The new Regional SIGnature Events are designed as exciting, one-day “mini-Summits” to help you connect to one another on a deeper level, learn from each other and grow your professional network beyond your city limits. These events are always free for buy-side members and are built around team engagement. Director-level and above attendees will participate in an Executive Roundtable while your team spends the morning in a deep-dive learning exercise with an expert on a top-of-mind issue. Visit our website to learn more about what to expect, see who's speaking and when we'll be in a region near you!
When critical supply chain partners are financially weak, they become more likely to be the source of unpleasant surprises. Such supplier problems can damage a company’s brand reputation and sales. To avoid surprises, companies can leverage risk management strategies and predictive analytics to gain visibility into latent supply chain risks.
Edward J. Hansen brings more than 20 years of experience representing clients in technology transactions that involve significant business change. If you’ve attended a SIG Summit, then you are likely familiar with Ed and his work. In addition to being an active speaker at industry conferences, he has authored and presents the “terms and conditions” module of the SIG University certification program, regularly conducts contracting master classes (including for SIG’s Executive Immersion Program), serves on the advisory board of the Shared Services and Outsourcing Network, and is a regular guest lecturer at New York University’s Executive Master of Business Administration program.
You have a lot of experience representing clients in technology transactions. What are some examples of how technology has changed or impacted the way you approach your job?
The technology in place at any given time actually has little impact on how I approach my job. What does impact my job is the fact that the technology landscape when the deal is two years old may not be the same as it was when we went out to RFx.
I started working in the technology space in 1993 and spent almost a decade working with companies who were undertaking reengineering efforts. What I learned, mostly through trial and error, is that the process you go through in procuring and contracting for transformational technology is at least as important as the contract that emerges. Because of the velocity of change, the relationship you form during the process is often what carries the deal, and the contract has to reflect that.
Do you ever get that funny feeling in your chest, like butterflies, when you are really excited that something is about to happen? You know, when you can’t help but smile and feel a little giddy? Well, that is happening to me right now and has happened pretty much every single day since we started 2019. I am so excited about all the new changes we are bringing to SIG.
You Spoke, We Listened
I am thrilled to announce that we are going from over 35 live, networking events per year to four one-day events, while still hosting our two Global Executive Summits and Executive Immersion Training Programs (the next one is February 7 in New York City). After two years of going to cities all over the U.S. multiple times a year, you get to know the locals really, really well. And while the nearly three dozen annual events provided incredible benefits to our members, we realized that some of our “regulars” were not attending as frequently.
It's a new week with new priorities! Have you mapped out what you want to accomplish this week? To help you achieve your goals and get to Friday, here's a run-down of what's happening in sourcing and procurement.
One week to go! Next Monday, we have a fantastic group of students preparing to start their journey to certification in sourcing, supply management and third party risk. Enterprises such as Fidelity Investments, Florida Blue, Honda North America, Moody's, USAA and more are participating. You still have time to join them, but don't delay!
Is supplier diversity a priority in your organization? Are you interested in learning how your program compares with peers? Hackett Group invites you to participate in the 2018 Supplier Diversity study and gain key insights into how organizations are managing their supplier diversity programs.
Hundreds, thousands, or even tens of thousands of third parties power your company every minute of every day, in all your markets and geographies, for every product and service. Third parties are everywhere, in virtually every part of your business. You have less control over third parties than over your internal operations, so getting this right is essential for your company’s success.
Third-party relationships are complicated. But the “right” third parties, if thoughtfully evaluated, managed and controlled, deliver what you contracted for and serve up many opportunities to be better. Better means new products, services and markets. Better means access to specialized top talent, processes and technology. Better means less risk.
Unfortunately, risk is everywhere and even though technology is advancing in leaps and bounds, operational ecosystems are growing more complex every day. Consequently, risk events, cyber attacks, fraud, data corruption and privacy breaches are becoming commonplace, and are too often the fault of a careless third party. The proliferation of third-party relationships and new technologies means that it’s hard for companies to stay on top of third-party risks, and even harder to implement effective controls, monitoring and oversight.
Management of third-party risk is a relatively new discipline – involving a new set of skills, rigorous methodologies, well-crafted tools and advanced technologies. But proactive professionals need to learn the language of risk and learn it quickly because everyone is now a risk manager and everyone is responsible for effective and efficient risk management, particularly for critical third parties.
Linda Tuck Chapman, Third Party Management advisor, author, popular speaker & President, Ontala
It's the first full week after the holidays and you've undoubtedly got a full inbox and busy schedule. Here's a run-down of the resources, events and deadlines that help SIG delegates do their jobs better.
New York City Executive Immersion Program
When: February 7, 8:30 a.m. - 4:30 p.m.
Where: Morgan Lewis Offices, New York, New York
Our Executive Immersion Program agenda topics include contract drafting, negotiation techniques and automation in sourcing. This program is highly interactive and your team will come away with immediately implementable takeaways. Register in advance to attend.
Buying Technology in a Time of Disruption -- Ed Hansen, Partner, Morgan Lewis
In this workshop, paradigms will be discussed that leverage the “business value–deal process–negotiation–contract” connection; encourage sourcing, technology, and business alignment; and improve deal ROI, while minimizing and managing the risks that matter most. This program will be presented against the backdrop of complex ITO and BPO, digitization, automation, and the move to new delivery models, such as DevOps and hybrid cloud.
Innovation and transformation were dominant themes in the industry in 2018, so it only makes sense to move forward with those concepts in 2019. This month, SIG presents a new events format to help your team cultivate innovation and foster teamwork throughout 2019, enrollment is open for SIG University’s online certification programs and we have two new webinars that will help jumpstart your 2019 goals.
Save the Date for These 2019 Events
After feedback from the SIG Advisory Board, event attendees and our delegates, this year’s SIG events will follow a new format to give you and your team a fresh perspective and space to develop new strategies.
The most transformative change is the Regional SIGnature Events, which are one-day events for executives and their teams to network, swap ideas, engage in interactive discussions, participate in training workshops, and learn from industry analysts and experts who promote innovation and work to solve key challenges in the industry. Separate, concurrent roundtables for executive-level and delegate-level attendees will put you and your team in the company of peers from that region’s Fortune 500 and Global 1000 companies.
Mark your calendar for these events that break the cycle of dry, traditional training and will get your team excited and engaged.
Earlier this year, SIG launched The Sourcing Industry Landscape with the Art of Procurement, a podcast dedicated to furthering thought leadership and conversations with innovators who embrace technology to improve, influence and inspire procurement professionals.
Delivered through iTunes, the Art of Procurement website or your favorite podcast app, The Sourcing Industry Landscape has produced over 30 podcasts this year with CPOs, CEOs, company founders, product innovators, Rising Stars, Future of Sourcing Awards winners and finalists, procurement industry titans, technologists, entrepreneurs and the list goes on. Their breadth of knowledge, commentary on the industry and, perhaps most importantly, their hindsight and lessons learned throughout their career are all laid bare in these interviews.
After sorting through a year of podcast data and analytics, we’ve compiled a list of the five most popular episodes of The Sourcing Industry Landscape and they all have a common theme: elevating the role of procurement as a value-added strategic partner to the business. Whether you’re traveling by plane, train or automobile over the holidays, or staying home wrapping presents and prepping for holiday dinners and parties, download these episodes for the doses of inspiration and motivation that will take you into 2019 with a fresh outlook on your role and the changes that are becoming possible in the industry.
Risk…it’s a four-letter word. And while it is not as offensive as others, it can have a far worse and much longer-lasting impact on an organization. What is most challenging though is that it can come in many forms, making risk mitigation difficult at best and financially devastating at worst. Geopolitical risk, third party vendors, hackers, terrorists, natural disasters, poorly or inadequately trained staff and other circumstances make the global supply chain vulnerable to disruption, costing businesses millions of dollars annually. This is never so apparent as it is after tragedy strikes an area. Consider Hurricane Florence or the Northern California “Camp Fire”— the damage from these devastating events will be long lasting to the communities they impacted and the businesses that supported them.
According to Resilinc’s Eventwatch report, nearly 2,000 supply chain events took place in 2017, representing a 30 percent increase over 2016. Put in context, this translates to roughly five events per day with approximately 25 percent of them requiring an impact notification. Four of the five most significant 2017 supply chain events (in terms of number of supplier sites impacted, number of parts impacted and average time to recovery) were from extreme weather conditions and include late winter storms in the northeast as well as Hurricanes Harvey, Irma and Maria. More than a year later, Caribbean islands like Puerto Rico and the U.S. Virgin Islands are still trying to recover and will likely see years pass before their economies rebound.
“It’s not just about cost savings--which was the traditional mindset of the Procurement function. It's about continually improving and re-evaluating how we’re buying to make sure we’re getting the best business outcomes.” - Neil Aronson, Head of Global Strategic Sourcing for Uber
Across all industries, margin and growth pressures are heating up. By 2021, 55 percent of technology procurement staff will require additional digital and analytical skills to enable their desired business outcomes (Gartner 2017). To succeed in this environment, CPOs must focus on closely aligning their team’s strategy and objectives with broader company goals. That requires changing the way their procurement and sourcing teams operate.
Changes of this nature call for a clear blueprint for transformation. And it starts with taking a closer look into current Procurement processes--and determining how success is being measured. A key insight: when organizations evolve alongside new technologies and market trends, so must the metrics needed to track performance.
Evolving Beyond Cost Savings to Accelerate Change
Historically, Procurement and Sourcing teams have been accountable for cost savings as the ultimate measure of success.
But as teams look to transform, they need to reshape their success metrics to chart a path forward. While anecdotal and periodic measurements are helpful, they are forgotten without a consistent stream of key performance indicators (KPIs) to indicate the overall direction of progress.
In fact, without clear, effective KPIs to back up these plans, securing executive support for transformation becomes unlikely. When executives understand how metrics and ongoing improvements directly align with the business, they’ll confidently support an initiative that delivers real value to the company.
Stan Garber, President and Co-Founder at Scout RFP