Leadership Corner: 3 Fresh Ways to Lead Your Procurement Organization
Procurement leaders have long had to focus almost entirely on savings. But in recent years, procurement executives have become strategic leaders themselves, coordinating efforts with other departments within the organization to unlock value.
According to Harvard Business Review, "As companies focus less on efficiency and more on resilience, procurement becomes central to strategy. That’s because it is uniquely positioned to orchestrate long-term value-creating systems that can accommodate incompatible value holders, withstand exogenous shocks, share loads, and grow dynamically."
Leadership styles tend to be unique to the leader and are constantly changing, but they are also dependent upon the times in which the leader operates. Here are three ways procurement leaders can lead their organizations into the future.
1. Digital-First Leadership
Procurement leaders must prioritize digital innovation and digital transformation to thrive in today’s economy. Organizations that aren’t leveraging automation, analytics, and transparency tools to gain insights and reach optimal efficiency risk losing ground to their competitors.
One of the most significant barriers to achieving digital transformation is internal adoption and buy-in. In multiple WBR Insights reports, we’ve learned that procurement leaders often struggle to convince other stakeholders that new procurement technologies are worth the investment, and they sometimes struggle to convince users within the company to adopt new tools.
Procurement leaders must be able to set the pace for transformation. Digitally savvy and aware executives are often on better footing when negotiating technology investments. Leaders must also familiarize themselves with the digital tools that the company uses, so they can serve by example.
Doing so will encourage others within the organization to adopt the tools. It also makes it easier for leaders to demonstrate the value those tools create once they are implemented.
2. Collaborative Leadership
Procurement leaders are now playing an important role in generating the organization’s core strategy. As such, they are already aware of the importance of collaboration. But collaboration as a leadership style can extend beyond the organization, to suppliers and other partners as well.
According to Northeastern University, collaborative leadership is "a management practice in which members of a leadership teamwork together across sectors to make decisions and keep their organization thriving." It is a successor to traditional top-down leadership, which has long dominated the business world.
Procurement leaders can engage in collaborative leadership to expose themselves to new ideas. This leadership style can foster a sense of unity among company leaders, and it can encourage inputs from external partners who might have objective views on how the organization can improve.
3. Values-Based Leadership
Values-based leadership is based on the concept that leaders should draw upon their values and the values of others for their strategic direction. This leadership style is becoming increasingly important in today’s market. Most organizations now have a set of core values when it comes to sustainability, equality, and governance—the tenants that make up the organization’s environmental social, and governance (ESG) policies.
Values-based leadership can also be inspired by personal values, such as hard work, responsibility, and selflessness. Procurement leaders who favor this leadership style are often viewed as "hands-on" leaders by their peers. They also tend to inspire others to stay true to the organization’s principles and values.
Learn from the Best at the Next Virtual Event
Procurement leaders have an important role to play in the direction of their organizations. Every leadership style is unique. But by following the ideas listed here, procurement leaders can prepare for a more connected and collaborative future.
If you’d like to know more about the latest ideas in procurement leadership, don’t miss the next ProcureCon Supply Chain Virtual Event, happening online at noon ET from January 19th to January 20th.
Register now to reserve your spot.