Operations

A leopard, a lizard, and a peacock… Tales of tail spend management by Bertrand Maltaverne

Anyone with a little bit of experience in business has heard of the Pareto (or 80/20) “rule.” And this principle drives how organizations are targeting their efforts towards areas that would maximize results. With limited (finite) resources, it is logical to focus them on activities that have the highest impact/value.

Procurement is no stranger to this approach. Focusing on the 20% of the supply-base that makes 80% of an organization’s spend is a strategy and method that is very common, and that also makes sense from a pure “economical” standpoint.

How to Win at the Digital Transformation of Procurement? by Bertrand Maltaverne

At a function level, what Procurement does (buying goods or services from external sources) hasn’t changed much and will not. What does change is the world that Procurement operates in? Procurement does not operate in a vacuum so how it does the job has to reflect his times (and continuously do so). Also, it has to take into account with/for whom it does it. It is about addressing expectations, serving stakeholders, attracting talent, and much more.

Complexity is a Friend, Once You Understand It by Karen Walker

Complexity as the enemy is a popular catch cry.

So what creates complexity in organisations and should strategies that generate complexity be avoided?

Here’s a quick summary of what is typically described as making organisations more complex.

People; more staff, more staff locations, multiple lines of accountability and responsibility, role duplication, diversity of workforce, more relationships with third parties / business partners / vendors.