The Hackett Group Global Communications Director Gary Baker talks with Principal, Procurement Advisory Kurt Albertson and Associate Principal, Procurement Advisory Mélani Flores about the findings from our 2022 Digital World Class Procurement research.
Welcome to The Hackett Group’s Business Excelleration Podcast, where week after week we hear from experts on how to avoid obstacles, manage detours and celebrate milestones on the journey to world-class performance. Today’s episode is hosted by The Hackett Group’s Communications Director Gary Baker, and features as guests two of The Hackett Group’s procurement experts: Principal Kurt Albertson and Associate Principal Mélani Flores. The conversation centers on the topic of Digital World Class performance, and explores both what the category of Digital World Class means and what The Hackett Group has determined sets procurement organizations apart in this category from their more typical peer.
The Hackett Group has long studied what it looks like for a company to achieve a world-class standing; however, in recent years, the company has expanded the drivers associated with determining world-class companies to take into account such things as automation, a broader definition of business value and operational excellence. As The Hackett Group examines the procurement function, in particular, it weighs matters of experience (for stakeholders and users), digital business enablement, and efficiency (including automation). There are significant gaps in performance levels in these areas between procurement organizations that attain Digital World Class status and their peers. Digital World Class organizations drive digital strategy, and also capitalize on opportunities to adopt new technologies.
Leaders of Digital World Class procurement organizations leverage not only technology, but data analytics and talent. In terms of technology, they focus on an end-to-end process in their tech strategy, and see the need for a broader ecosystem of technologies with best-in-class functionalities. In the analytics space, leaders use data visualization as a way to best understand and apply data. Given its overall operating model, the procurement function is able to start coordinating on key business objectives, using enterprisewide resources and making some of the procurement roles more specialized. In this agile and responsive environment, leaders have taken steps to upgrade procurement staff and manage talent.
Moving forward into the latter half of 2022, procurement organizations need a robust response to the context of the moment, especially in terms of widespread digital transformation. They need to prioritize aims, keep the needs of the future in view, and work to both understand where they are and make course adjustments as required. As they go through the journey of adaptation and growth, organizations should also be sure to bring key stakeholders into the journey with them.
- 01:08 – Welcome to this episode with Gary, Kurt and Mélani.
- 01:35 – What does Digital World Class mean, and what are its key drivers?
- 04:22 – What metrics separate leaders from peers, specifically on the business value side?
- 08:16 – The conversation shifts to metrics on the operational excellence side.
- 11:51 – Trends leaders are leveraging, with a focus on tech and analytics.
- 17:26 – Operating model developments and talent trends.
- 22:19 – How should procurement organizations be moving forward?
- 25:20 – Bring key stakeholders into the journey.