The Dangers of Not Understanding Procurement
How to Foster Procurement Learning in Your Company
If your boss does not understand your procurement position, they likely do not place much value on it either.
While procurement is a major contributing factor to a company’s financial health, 48% of procurement professionals report their bosses do not understand procurement, according to Win that Bid.
Some workers may find it appealing to be able to work without interference, but they are ultimately at risk if their boss does not understand and value the procurement department.
As a procurement professional, you may run the procurement department, but you also answer to an executive team about your successes and failures as a department. This is where helping your boss’ understanding is key. Here are a few tips for helping your boss value your role.
Take charge of procurement understanding.
Recognize that as a procurement leader it is your responsibility to help your leaders and the rest of the company understand your role and the value you bring to the company. If you wait for your superiors or peers to educate themselves on your role, it is not going to happen.
Simplify what you do into benefits that are relevant to your audience.
Your boss does not have time to sit through a procurement lecture, but teaching the value of procurement is still possible.
First, focus on the benefits that will directly affect your boss or whomever you are speaking to.
Understanding every detail of procurement is not what is important, but understanding the value that procurement adds will help the whole organization comply with procurement goals.
Teach through stories and examples.
One major barrier to understanding procurement is the technical nature and jargon that stops outsiders from really grasping what procurement is. Teaching through stories and examples helps people relate to what you are teaching.
Tell about specific instances where procurement really made a difference. Illustrate exactly why it matters that you can see your spend in real-time.
Use easy-to-read charts to express statistics.
To quickly demonstrate what you have achieved for the company through procurement goals, use charts and graphs.
Visually explaining the benefits is stickier and will help your boss quickly recognize the importance of procurement. Even if your boss doesn’t know every detail of what you do every day, seeing the charts that simply illustrate daily spend, spend against budget, etc., will help him see why procurement is so important.
With the right tools, you can quickly and easily teach your boss and others about the value of procurement. Better understanding will improve your interactions with other departments and compliance as a company.