A.T. Kearney released a white paper for new chief procurement officers (CPOs) to quickly make a mark in their new role by listening, shaping, and delivering.
Drawing on their experience working closely with chief procurement officers (CPOs) across various industries as well as several interviews, A.T. Kearney has compiled a comprehensive framework to set senior leaders on a course for success.
The procurement industry white paper titled “The LSD Framework: How to Succeed in the First 100 Days as a CPO” summarises this framework and provides three steps for CPOs to follow: namely, listen so as to understand the environment they are entering, shape a vision and plan, and deliver against expectations. A.T. Kearney has also designed a useful tool to guide and support CPOs as they tackle the most challenging time of their new role.
The average tenure of the CPO is less than four years. So, for any new incumbent, the first hundred days in the role are particularly vital when it comes to enabling future success. 1 in 3 CPOs don’t have a structured 100-day plan, 1 in 4 believe what worked in their last role will work in their new one, and 1 in 5 don’t take the initiative to move the organisation forward.
The LSD Framework addresses all the above by breaking down the first 100 days into three 30-day segments to Gather Knowledge, Become Data-Rich, and Begin Developing a Vision; Gain Approval of That Vision, Think About Measurement, and Assess Training Needs; Identify Blockers, Gain Confidence Through Delivery, and Move Forward.
“The procurement role has grown from back-office purchasing to strategic sourcing to encompass executive-level strategy formulation and wealth creation across all spend. This development has further thrust the role of the CPO into the spotlight, with companies now seeking to attract and develop the best talent to deliver this,” said Enrico Rizzon, Partner at A.T. Kearney.
The white paper outlines what recognised procurement leaders from QBE Insurance, Boral, FCIPS, Coca-Cola Amatil, The Star Entertainment Group, and other global companies have to say about the first 100 days. Apart from summarising what successful CPOs wish they had known before they started in a role, it also lists the five CPO success factors.
Whether in centralised or decentralised, local or global procurement functions, A.T. Kearney encourages CPOs to adopt and tailor The First 100 Days Framework to their specific situation, and consider how they would need to adapt specific elements to ensure success for themselves, their new team, and their business.