Procurement: becoming true business partners

The increased pressure on procurement professionals to contribute strategic value has seen a rise in the need for the procurement function to better align with businesses. The question that rises from this is how do we align ourselves to ensure we become true business partners? 

Dapo Ajayi, CPO AstraZeneca, discusses this topic in the latest episode of our podcast series in partnership with Procurious, ‘Upgrade: become tomorrow’s CPO, today’. In this 15 minute interview with Philip Ideson, founder and host of The Art of Procurement and founder of ProcureChange, Dapo gives her thoughts and insights on how to best align with senior stakeholders and ensure teams are proactively driving the procurement function to become a true business partner.

Click below to listen to the podcast in full – meanwhile, here are some key takeaways:
Organising the procurement function
The shift in views about the procurement function has meant that the structures these functions follow need to change. Traditionally, procurement has been organised around a category structure whereas Dapo believes that: “Going forward, procurement organisations need to be much more business unit aligned.” The key to doing this is understanding the business. 
Business acumen in terms of understanding the business that your procurement function operates within is crucial. Dapo describes business acumen from a procurement perspective as “somebody who understands their business”. She continues: “What are the priorities for the business area that they support? I think, also, it is really important for me in terms of procurement professionals who are able to be agile enough to consider how their procurement agenda is relevant to the business agenda.”
Shifting the mindset within procurement
Another key point to ensure your procurement function is effectively aligned with stakeholders, is the overall mindset of the leaders and individuals within the function – support function vs a function of business leaders. If teams view themselves as an equal and leading function with an expertise in procurement rather than support, they will better engage with the business in terms of challenges and problems.
Dapo explains that this mindset starts at the top. “I'm a big believer in us, as senior leaders, needing to truly lead by example and show the kind of behaviours that we expect of our teams. As CPOs, we need to make sure that we are speaking to the business about business priorities as opposed to, perhaps, our local goals. We are talking to our teams, and our leaders are talking to their teams, about the business, its performance, its challenges, and then making that relevant. What does that mean for us as a function? How can we enable the business to deliver its goals and its priorities?”
For individuals in the function, it’s important that they possess an enterprise mindset. It is important that everyone within procurement views their role in the way we want the overall function to be viewed by the business – strategic and value driven.
Dapo often says to individuals looking to join her team: “I'm looking to create a function of business leaders who happen to have an expertise in procurement.”
The right people
“Procurement is about people,” Dapo asserts. “If you can't create a climate that builds relationships, motivates individuals in your team to give the best, enables you to connect with them and make sure that you're communicating with them really effectively, then in my view, you can't fulfil that role.”
It’s important when hiring into your function that you employ the right people. The right people, with the right skills who possess a wider vision of the procurement function to guide and inspire their teams.
Matthew Friend, Associate Director at Michael Page, highlights that being a business person rather than a procurement professional is what is critical. Focusing on solving business problems and business solutions rather than having a narrow procurement agenda is key to ensure the function is aligned with the overall business strategy.
This podcast is the fourth episode in our series with Procurious. The podcast features an interview with Fabienne Lesbros, CPO Co-operative Group. In episode two, Philip discusses the digital development of supply chain with Ninian Wilson, Global Supply Chain Director and CEO, Vodafone Procurement. Whilst episode three features Barclays’ Managing Director and CPO, Al Williams, providing his insights into how the procurement function should be positioned within businesses and how talented professionals can be recruited, and retained.
About Procurious
Procurious is the world’s largest online network dedicated to procurement and supply chain professionals. It’s a hub to advance your career, develop your skills and expand your global professional network. With 25,000+ members, make Procurious your go-to point for procurement news, eLearning, discussions and market intelligence. 
For more information visit www.procurious.com.