I read an interesting blog post by Steven Krupp (CEO Magazine) on strategic agility that can be applied to Procurement and Supply Chain leaders. In my 20+ years of consulting, I’ve learned that procurement leaders will fail and lose all credibility and effectiveness if they are not flexible and display strategic agility. It’s a career-ending move to say we don’t do it that way, we can’t do it, we tried it before and it doesn’t work. All of these demonstrate non-openness to change, lack of flexibility and limited strategic agility. Today’s business environment with its uncertain economies, drive for short-term earnings, increasing regulation and unstable markets can threaten the procurement leader who likes the status quo. It takes consistency, a great deal of courage, discipline and tenacity for leaders to be flexible during change and agile in strategy. Good leaders lead their charges to calculate and take the right risks to achieve their goals.
Each Procurement and Supply Chain leader must develop these skills:
- Anticipate changes in the supply chain
Do a minimum review with the team once a quarter to identify where key markets are headed. Be able to anticipate changes in the global economic climate. Review where exchange rates are strong and where they are weak. Be sure that you have a supply chain that is aligned with your business strategy. Work to develop strong supplier relationships that add value that will be seen all the way to the customer.
- Challenge the conventional wisdom
Strategic leaders are not afraid to challenge the conventional wisdom. Rather than having extensive category and industry experience, recruiters and organizations are now looking for a proven track record of conventional challenge. To challenge conventional wisdom, it’s necessary to speak up and voice your opinion on key topics even if not popular to show how ways, processes and opportunities can be met by changing traditional business thinking. Leaders display innovative ideas, strategic plans and solutions to age-old problems.
- Learning from Experience
There is no better teacher than experience. Giving people the responsibility, authority and accountability for decision-making will make them stronger and provide the opportunity for changing the status quo. Of course, there may be mistakes, but good leaders use those mistakes to build a learning organization that takes calculated risks for the benefit of the entire company. A true leader is open to this type of delegation and a culture of learning vs. retribution.
To be successful in this profession, a leader must anticipate changes in the global economy, category markets and integrated supply chain. Leaders of the future are those who challenge conventional wisdom, create new ideas, consistently improve performance and encourage their teams to take calculated risks and rewards, modifying plans as necessary.
How are your strategic agility skills?