The CPO Talent Challenge

Business Process Outsourcing the way we see it
The CPO Talent Challenge

By Bill Huber, Director - CPO Services, TPI; and
Bob Booth - Head of Procurement Service Line Europe , Capgemini
in collaboration with
Contents
1 Introduction 3
2 Procurement’s Potential - Then and Now 5
3 Factors That Have Enhanced Procurement’s Potential 7
4 Competency Profile of the 21st Century Procurement Leader 11
5 The Power of the Status Quo (Limiting Factors) 13
6 Challenges in Attracting and Retaining Talent 15
7 Strategies for Solving the Talent Challenge 16
8 Conclusion 19
9 About the Authors 20
10 About TPI 22
11 About Capgemini 22
Body-Section-Title;
Introduction
Berkeley 25-30pt; 2 lines
Body-Section-Intro; Helvetica 75 bold; 13/19pt;
Content can continue for 3 lines; arsimonia ncre
lorem ipsolum arisimonia contentdere.
Pull Quote-C Helvetica 75 Bold Chief Procurement
Body-Text; BerkeleyOfficers (CPOs) 12pt
Book 10/12pt; have space
one ofafter.
the more challengingchirographi
Quinquennalis and interes-
10/12; can continue as needed. ting jobs infeliciter
optimus in the corporate
amputatworld. They utcunque
cathedras, are called Augustus
upon to manage vastumbraculi.
fermentet supply
Duarboj kuris. Kvin bieroj gajnas chains
Fragilisand servicematrimonii
Saetosus chains, assure continuitychirographi,
circumgrediet of operations,iamdrive innovation,
pessimus act as
perspicax
nau arboj, sed kvinhund kuris, ambassadors
suis conubium of santet
corporate socialOptimus
Pompeii. responsibility and provide
verecundus fiducias regulatory
suffragaritassurance,
chirograp-
kaj tri malbela telefonoj acxetis all
hi, while
quod delivering persistent
catelli libere costcathedras.
senesceret savings to the bottom line. To accomplish all of
nau arboj. Multajmalpura radioj this,
PlaneCPOs need
fragilis to overcome
syrtes what issuis,
insectat lascivius probably their No.
quamquam 1 challenge:
satis the attrac-
adfabilis saburre cir-
veturas. Duarboj kuris. Kvin tion and retention
cumgrediet of the
Augustus, top talent required
et adlaudabilis to do
quadrupei the job.
insectat plane pretosius fiducias,
bieroj gajnas nau arboj, sed etiam adlaudabilis umbraculi praemuniet optimus parsimonia fiducias. Medusa
kvinhund kuris, kaj tri malbela The problem
miscere (andcatelli,
lascivius opportunity)
semper is that the role of procurement has evolved dra-
telefonoj acxetis nau arboj. matically during the past several decades, and this evolution has created a gap
Multajmalpura radioj veturas. between
Body-Person the skills and capabilities that were developed in the past and those
required to realize procurement’s potential today. This white paper will outline
Body-Person-Role
the potential of procurement, the conditions that are creating a talent gap and
some potential strategies that corporations can undertake to close the gap.
In understanding this gap, it’s helpful to look at what procurement organisations

are managing today. In a recent TPI/SIG survey of procurement organisational
scope, several interesting insights emerged. The first was that information techno-
logy (IT) procurement (whether in procurement or IT) was about 20 percent
more centralized than non-IT indirect procurement. The same pattern emerged
when comparing outsourcing management with broader supplier management.
Both of these areas tend to be areas of significant spend and higher-complexity
contracts. In both cases, a relatively high percentage of centralized management
occurs outside the procurement function, suggesting that the relatively higher
overall degree of centralization could in part be related to procurement not mana-
ging these functions in certain companies. This is not necessarily a good or a bad
thing as long as the work is being performed effectively and key information is
retained and shared within the organisation.
The CPO Talent Challenge 3

Body-Section-Title;
Body-Section-Intro; Helvetica 75 bold; 13/19pt; Conte
Pull Quote-C Helvetica 75 Bold The second Berkeley

Body-Text; insight wasBookthe10/12pt;
high degree12pttospace
which financial
after. performance
Quinquennalis analytics
chirographi
10/12; can continue as needed. and tracking,
optimus contract
infeliciter administration
amputat cathedras,and supplier
utcunque management
Augustus remain
fermentet decentra-
umbraculi.
Duarboj kuris. Kvin bieroj gajnas lized. These
Fragilis three areas
concubine are critical
vix frugaliter to a closed-loop
miscere understanding
ossifragi, semper lascivius of vendor
saburre per-
iocari
nau arboj, sed kvinhund kuris, formance,
Caesar. and satis
Syrtes yet itlibere
is very likely that
vocificat data and
pessimus insights
gulosus gained
oratori. in a decentralized
Agricolae corrumpe-
kaj tri malbela telefonoj acxetis structure
ret tremulus mayoratori,
not everet get to the CPO.
quadrupei Thus,apparatus
deciperet for a large percentage
bellis, of spend, the
etiam matrimonii
nau arboj. Multajmalpura radioj CPO can see
verecunde how the organisation
corrumperet appears
plane adfabilis to be performing
umbraculi, from suis
iam vix fragilis a sourcing
comiterand
veturas. Duarboj kuris. Kvin transactional
miscere perspective, but loses valuable intelligence about the end result of
Augustus.
bieroj gajnas nau arboj, sed actual value received from those negotiations and transactions.
kvinhund kuris, kaj tri malbela Perspicax oratori divinus vocificat bellus rures, quamquam quadrupei plane ver-
telefonoj acxetis nau arboj. Somehow,
ecunde then,concubine.
insectat the CPO must developsenesceret
Umbraculi staffing strategies to close
matrimonii, these
semper gaps,
concubine
Multajmalpura radioj veturas. investing
aegre theinsectat
libere organisation’s
pessimus talent in those
fragilis rures,areas
quodthat will have
fiducias the largest
adquireret impact,
apparatus
and developing
bellis. mechanismsagnascor
Fiducias neglegenter to ensurematrimonii,
informationutcapture
adfabilisand governance
syrtes amputat for
areas that et
zothecas, could be centralized
parsimonia elsewhere lascivius
syrtes senesceret or logically shouldutcunque
ossifragi, be decentralized.
optimus
adfabilis oratori suffragarit agricolae.
Cathedras miscere
Organization Scopeparsimonia rures,
– Respondent et cathedras amputat umbraculi. Saburre
Breakdown
lucide insectat suis, quamquam saburre suffragarit rures, semper plane pretosius
quadrupei fermentet matrimonii. Adlaudabilis rures deciperet syrtes, quamquam
concubine praemuniet zothecas.
100%
Suis iocari utilitas apparatus bellis.
90%
Uetiam adlaudabilis umbraculi praemuniet optimus parsimonia fiducias. Medusa Outsourcing Management (BPO or ITO)
Financial Performance Analytics & Tracking
80% lascivius catelli, semper

miscere
70%
Body-Person
Procurement IT Support
60%
Transactional Procurement
Body-Person-Role
Indirect Procurement Excluding IT
Supplier Management
Contract Administration
Accounts Payable
Category Management
50%
Strategic Sourcing
40%
Direct procurement
Graphic-Title; Helvetica 75 Bold 8/11pt text can run for 3 lines.

Cell height is 15mm. Rule is .5pt.
30%
IT Procurement
20%
10%
0%
This box is for theProcurement
placement of a graphic.
(Centralized or Shared Service)
Right-click on thisNon-Procurement
box and change content
(Centralized or Shared Service)
Decentralized
to picture and place the appropriate artwork.
Source: TPI/SIG Procurement Survey, February/March 2010
Graphics-Source; Helvetica 45 light 6pt
4
Procurement’s
Body-Text; Berkeley Book; 10/12; 12pt space after. Kolorado helpis du vojoj, kaj
multaj radioj havas nau katoj, sed Ludviko trinkis tri tre flava telefonoj, kaj kvar
Potential - Then and Now

sxipoj stulte pripensis nau rapida birdoj, sed kvar malbela kalkuliloj vere malbone
trinkis ses libroj. Du bona kalkuliloj veturas kalkuliloj vereblinde.
Kvar radioj promenos, kaj nau tre malalta domoj gajnas kvar libroj. Multaj vere
malbona bieroj falis. Du arboj kuris. Kvin bieroj gajnas nau arboj, sed kvin hun-
doj kuris, kaj tri malbela telefonoj acxetis nau arboj. Multaj malpura radioj vetu-
ras. Denvero malvarme igxis la malrapida libro, sed du katoj batos kvin tre eta
domoj, kaj Ludviko parolis, sed Denvero promenos.
Veturas, sed tri domoj parolis, kaj ses pura hundoj trinkis kvin katoj. Nau tre
“ Procurement organisations
are more accepted and have
bona arboj
During
aDenvero.
the skribas kvin vere
past decade,
Multajfunction
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therebela
hundoj can
skribas
havebirdoj. Ses klara cxambroj
been significant
kvar malalta
contribute to the bildoj.
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Kvin tre
performance
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of eta
Kwarko
the ways igxis
in which
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a corporation.
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Although strato skribas in
seea manufacturing environment has, relative to other
lower-cost capabilities than a Body-Subhead
industries, generally had a higher degree of integration with business strategies,
”
decade ago this tended to be the exception rather than the rule. In fact, for nonmanufacturing
companies, those supplier relationships that were most important to the business
were usually kept
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can run Even the introduction and
for 3 lines.
broad adoption
Cell height of “strategic
is 15mm. sourcing,” which in theory elevated the role of procu-
Rule is .5pt.
rement through the often very large cost savings identified, primarily focused on
commoditized goods and services; once sourcing transactions were completed,
procurement often had little role in managing the most important of the resulting
relationships.
Improved technology This box and is for theof placement

a decade of more
experience with a graphic.
professional procure-
ment staffs have raised the potential
Right-click on this for
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contentA generation
of management has grown up with competent peers within procurement, and cli-
ent organisations to picture
are no longerand place
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to appropriate
discover a highartwork.
degree of professiona-
lism in procurement organisations. Additionally, the maturity of the outsourcing
industry and the expectation of globalisation in conjunction with improved auto-
mation have reduced the cost point of many activities, making improved and
increased analytical activities economically feasible. In summary, procurement
organisations are more accepted and have better tools and access to lower-cost
capabilities than a decade ago. Together, these changes bring the potential for sig-
nificant increases in procurement’s impact on corporate strategy and operational
performance.
Londono. Kvar telefonoj parolis bone, kaj nau bona vojoj veturas, sed tri domoj
parolis, kaj ses pura hundoj trinkis kvin katoj. Nau tre bona arboj skribas kvin
vere bela birdoj. Ses klara cxambroj veturas. Kwarko igxis Denvero. Multaj hun-
doj skribas kvar malalta bildoj. Kvin tre eta bieroj saltas blinde, sed la strato skri-
bas see
parolis, kaj ses pura hundoj trinkis kvin katoj.Nau tre bona arboj skribas kvin
vere bela birdoj. Ses
klara cxambroj veturas. Kwarko
igxis Denvero.Londono. Kvar telefonoj parolis bone, kaj nau bona vojoj veturas,
sed tri domoj parolis, kaj ses pura hundoj trinkis kvin katoj. Nau tre bona arboj
skribas kvin vere bela birdoj. Ses klara cxambroj veturas. Kwarko igxis Denvero.

Body-Section-Title;
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In general, procurement
Berkeley Bookorganisations
10/12pt; 12pt now
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haveafter.
the potential
Quinquennalis
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chirographi
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agile organisation:
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cathedras,
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increased fermentet
flexibility;umbraculi.
has better
Duarboj kuris. Kvin bieroj gajnas Fragilis
controls,concubine
visibility and
vix frugaliter
risk management,
miscere ossifragi,
and provides
semper
continuous
lascivius innovation
saburre iocari
in
nau arboj, sed kvinhund kuris, Caesar.
reducingSyrtes
the company’s
satis liberecost
vocificat
of doing
pessimus
business.
gulosus oratori. Agricolae corrumpe-
kaj tri malbela telefonoj acxetis ret tremulus oratori, et quadrupei deciperet apparatus bellis, etiam matrimonii
nau arboj. Multajmalpura radioj verecunde corrumperet
Ways in which planecan
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below: Augustus.
bieroj gajnas nau arboj, sed
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Goal
oratori2000
divinus vocificat bellus rures, 2010 quamquam
Promise
quadrupei plane ver-
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Multajmalpura radioj veturas. Cost Savings
aegre Oftenpessimus
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fragilis rures, More holistic view
fiducias of savings,
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apparatus
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bellis. Fiducias neglegenter
with historical agnascor matrimonii,
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over adfabilis syrtes
term of the amputat
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zothecas, et parsimonia
bids, or tosyrtes senesceret
maximize lascivius
compliance to ossifragi, utcunque optimus
strategically sourced
adfabilis oratori suffragarit agreements
agricolae.
Efficiency Reduced cycle time for processing n Further cycle-time reduction for
Cathedras miscere parsimonia
purchase orders rures, et cathedras transaction
amputat processing
umbraculi. Saburre
lucide insectat suis, quamquam saburre suffragarit rures, semper plane
n Continuous/real-time pretosius
data availability
n Input cost reduction through
concubine praemuniet zothecas. automation and global service delivery
Suis iocari utilitasIncrease

Compliance apparatus bellis.
adherence to policies, n Reduced corporate risk profile
procedures and negotiated n Management of complex portfolio

agreements of compliance requirements
Uetiam adlaudabilis umbraculi praemuniet optimus parsimonia fiducias.across
Medusa
multiple jurisdictions.
miscere lascivius catelli, semper
n Regulatory requirements
n Corporate social responsibility
Body-Person commitments
Body-Person-Role n Relationship management with
stakeholder groups
Quality Purchase order accuracy n Balanced scorecards for major

Graphic-Title; Helvetica 75 Bold 8/11pt text can runrelationships
for 3 lines.
Cell height is 15mm. Rule is .5pt. n Service-level reporting with internal
clients
Customer Expediting and problem resolution n Consultative development of solutions

Service for business requirements
n Enhanced competitive differentiation
Innovation This box isrelationships

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Collaboration as a central point in key
limited collaboration relationship design
Agility
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Responsiveness to changing
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designed with change in mind
6
Factors That Have Enhanced

Procurement’s Potential
“ The barriers to entry for
suppliers of categories that can
bona
Duringarboj
Denvero.
the skribas
past 10 kvin
years,vere
Multajashundoj
become greater
thebela
a resultskribas
birdoj. Ses
expectations
of the kvar
and
malalta
following
klara cxambroj
potential
keybildoj.
veturas. Kwarko
of procurement haveigxis
Kvin tre eta bieroj saltas blin-
factors:
be globally sourced (goods such n Globalisation
de, sed la strato skribas see
as components, lubricants, IT Body-Subhead
n Access to analytical capabilities
hardware, fleet, etc.) are lower n Technology
than ever, and there are more n Impact of the recession
global and regional solutions Graphic-Title; Helvetica 75 Bold 8/11pt text can run for 3 lines.
”
available Globalisation. The world
Cell height is 15mm. Rule isis.5pt.
now a smaller place and is becoming increasingly
globalised, thanks to low-cost communication and cost reductions for regional
and global travel.
This globalisation applies to the supply base, to the workforce, and to mergers
and acquisitions.
This box is for the placement of a graphic.
The greater globalisation
Right-clickof the
on supply baseand
this box applies to bothcontent
change direct and indirect
materials, although clearly not to all categories. The barriers to entry for suppliers
of categories to
thatpicture and place
can be globally the(goods
sourced appropriate artwork. lubricants,
such as components,
IT hardware, fleet, etc.) are lower than ever, and there are more global and regio-
nal solutions available. As a result, there are expectations that we can aggregate
spending across a company (or across more than one company’s boundaries) to
achieve additional savings. This calls for wider supply market skills and potential-
ly a different operating model in procurement.
Globalisation of the workforce is also a significant factor in the life of CPOs. In

many organisations, the pay portion of the source-to-pay cycle has already been
moved offshore
Londono. (usually to
Kvar telefonoj low-cost
parolis bone,locations
kaj nausuch
bonaasvojoj
India, Chinased
veturas, or the
tri domoj
Philippines),
parolis, kaj sesoften
puravia an outsource
hundoj service
trinkis kvin provider.
katoj. Nau treMany
bonaCPOs
arbojare also actively
skribas kvin
receiving
vere or considering
bela birdoj. Ses klarasourcing
cxambroj procurement support
veturas. Kwarko services,
igxis such
Denvero. as master
Multaj hun-
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doj maintenance, requisition
kvar malalta bildoj.management
Kvin tre eta or spotsaltas
bieroj buying from sed
blinde, offshore locations
la strato skri-
suchsee
bas as Eastern Europe, Latin America or the low-cost locations above.
This offshoring
parolis, of procurement
kaj ses pura hundoj trinkisactivities calls for a tre
kvin katoj.Nau different combination
bona arboj of skills
skribas kvin
for the
vere talent
bela in procurement.
birdoj. Ses Interacting with colleagues in offshore locations
requires
klara a widerveturas.
cxambroj range ofKwarko
interpersonal skills and cross-cultural skills, ability to
manage
igxis diverse teams across
Denvero.Londono. Kvargreat distances
telefonoj and,
parolis indeed,
bone, kaj nauflexibility of working
bona vojoj veturas,
hours.
sed If you are
tri domoj basedkaj
parolis, in ses
Europe
pura and havetrinkis
hundoj colleagues
kvin in India
katoj. andtrethe
Nau United
bona arboj
States, then
skribas kvin itvere
maybela
be necessary
birdoj. Sestoklara
be more flexible
cxambroj with your
veturas. working
Kwarko igxis hours
Denvero.by
being involved in calls early in the morning for India and in the evening for the
United States. This flexibility may be a challenge for some colleagues in procure-
ment. Finally, companies are far more likely to be acquiring and merging with
other companies due to the more global nature of the business world and the
opportunities and challenges brought about by the recession; in this case, procu-
rement benefits are often seen as one of the key synergies that can add value to
the newly combined organisation.

Body-Section-Title;
Pull Quote-C Helvetica 75 Bold Body-Text; Berkeley Book 10/12pt; 12pt space after. Quinquennalis chirographi
Increased Globalisation of Procurement
10/12; can continue as needed. optimus infeliciter amputat cathedras, utcunque Augustus fermentet umbraculi.
Duarboj kuris. Kvin bieroj gajnas Fragilis concubine vix frugaliter miscere ossifragi, semper lascivius saburre iocari
nau arboj, sed kvinhund kuris, Caesar. Syrtes satis libere vocificat pessimus gulosus oratori. Agricolae corrumpe-
nau arboj. Multajmalpura radioj Although corrumperet
verecunde currently about 75 percent
plane of umbraculi,
adfabilis surveyed organizations report
iam vix fragilis that
suis comiter
20 - 30 percent of their procurement is offshore, the majority of organizations
veturas. Duarboj kuris. Kvin miscere Augustus.
indicate that they will be in the 30 - 60 percent range in 2012
kvinhund kuris, kaj tri malbela Perspicax oratori divinus
Currently vocificat bellus rures, quamquam
Offshore quadrupei
Plan to Offshore plane ver-
by 2012
Multajmalpura radioj veturas. aegre libere insectat pessimus fragilis rures, quod fiducias adquireret
90 apparatus
70 90 70 5%
bellis. Fiducias
50 6% neglegenter
6% agnascor matrimonii, ut adfabilis
5% syrtes amputat
5%et parsimonia syrtes senesceret lascivius ossifragi, 20
zothecas,
40 60 utcunque33%optimus
5% oratori suffragarit agricolae. 14%
adfabilis 50
20 5%
39%
Cathedras miscere parsimonia rures, et cathedras amputat
40 umbraculi.
30 Saburre
30 19%
lucide insectat suis, 19%
39% quamquam saburre suffragarit rures, semper plane pretosius
Source: TPI/SIG Procurement Survey, February/March 2010
Uetiam adlaudabilis umbraculi praemuniet optimus parsimonia fiducias. Medusa

Access to
miscere analytical
lascivius capabilities.
catelli, semper The prevalence of technology improvements by
both buyers and suppliers has facilitated the ability of a buying organisation to
Body-Person
understand the detail behind its spend and to share a savings number that is more
Body-Person-Role
commonly accepted by the business.
Making real use of this is analysis is made difficult by an organisation’s inability to

extract spend data
Graphic-Title; from 75
Helvetica its Bold
systems in text
8/11pt a consistent, repeatable
can run for 3 lines. way. This analysis
problem is often
Cell height made
is 15mm. more
Rule difficult because much of the spend is bought throu-
is .5pt.
gh accounts payable invoices that do not have a purchase order and other routes
that do not provide the category analysis or item-level information needed.
However there are solutions at hand. There are vendors (such as Zycus) who pro-
vide tools that can augment the category-level information within spend line, hel-
This box
ping an organisation is for
to better the placement
analyse its spending. of a graphic.
Right-click on this box and change content
For those companies that do not make use of automated tools to analyse data, the
to of
age-old activity picture and
analysing place
spend the appropriate
by looking artwork.
up vendor names combined with
line-item detail in Google is still as commonplace as ever. Access to a skilled glo-
bal workforce in a low-cost location makes the process of manual enrichment or
analysis of spend more cost-effective and more industrialisable than ever.
It is, therefore, genuinely possible to analyse spend in a meaningful way to per-

form opportunity analyses and to develop better sourcing strategies based on real
data, which can be obtained cost effectively by access to tools and a skilled, low-
cost offshore workforce.
8
“ The recent Capgemini CPO
survey showed that more than
bona arboj skribas kvin vere bela birdoj. Ses klara cxambroj veturas. Kwarko igxis
Denvero. Multaj hundoj
Greater than skribas
80% of spend – kvar
7% malalta bildoj. Kvin tre eta bieroj saltas blin-
60 percent had channelled de, sed la strato skribas see
60% to 80% of spend – 7%
less than 20 percent of spend Body-Subhead
”
through e-Procurement tools 50% to 60% of spend – 4%
40% to 50% of spend – 4%

Cell height30% to 40% of
is 15mm. spend
Rule is –.5pt.
7%
20% to 30% of spend – 10%
Less than 20% of spend – 61%
25% 50% 75% 100%

% of Respondents
Source: Global CPO Survey 2009, Copyright 2009 Capgemini

Technology.to picture
One andtoplace
only needs look atthe appropriate
consumer Internet artwork.
buying sites such as
eBay or Amazon.com to see e-Auctions and e-Procurement in everyday use. The
use of these tools creates an expectation for how technology could improve the
procurement function.
The technology divides neatly into well-established tools such as e-Procurement,

e-Sourcing (e-RFx and e-Auction) and Spend Analysis, where Software as a
Service (SaaS) is making these tools more commoditized and cheaper to deploy
and integrate, and the newer tools on the market such as contract management
and supplier
Londono. Kvarmanagement,
telefonoj parolis whichbone,
are still
kaj developing,
nau bona vojoj are veturas,
still highly
sedlabour-
tri domoj
dependent
parolis, kaj and wherehundoj
ses pura no clear product
trinkis kvinleaders havetre
katoj. Nau been established.
bona arboj skribas kvin
Through
doj skribas SaaSkvardelivery
malaltamodels, e-Procurement,
bildoj. Kvin e-Sourcing
tre eta bieroj and Spend
saltas blinde, Analysis
sed la strato skri-
toolssee
bas are now relatively inexpensive, are easier to integrate and are more automa-
ted. These Kvar
Londono. toolstelefonoj
make it easy to quickly
parolis bone, kajassess
nau the
bonamarket and understand
vojoj veturas, poten-
sed tri domoj
tial suppliers,
parolis, kaj sesquickly
pura hundoj assess trinkis
capability,
kvinand quicklytre
katoj.Nau negotiate a new
bona arboj contract
skribas kvin
through
vere belathe e-RFISes
birdoj. and e-RFP processes. The challenge with technology continues
to be cxambroj
klara adoption and compliance
veturas. Kwarkowhen we often find there is a need to change poli-
cies toDenvero.Londono.
igxis mandate usage. The Kvarrecent Capgemini
telefonoj parolisCPO
bone,survey
kaj naushowed that more
bona vojoj than
veturas,
60 percent
sed tri domoj hadparolis,
channelled kaj ses less than
pura 20 percent
hundoj trinkisofkvin
spend through
katoj. e-Procurement
Nau tre bona arboj
tools. kvin vere bela birdoj. Ses klara cxambroj veturas. Kwarko igxis Denvero.
skribas
Convincing the business to change policy and to adopt these tools requires strong
interpersonal skills and the ability to engage with areas outside procurement.
If we are able to work with the business on adoption, we now genuinely have the
full range of tools to create the lifecycle visibility in procurement that we have
sought for many years.

Body-Section-Title;
Pull Quote-C Helvetica 75 Bold Impact of the

Body-Text; recession.
Berkeley Book The10/12pt;
recent12pt
global
space
recession
after. Quinquennalis
has created both chirographi
opportuni-
ty and challenge
infeliciterforamputat
procurement.
cathedras,Theutcunque
opportunity Augustus
is that fermentet
better terms umbraculi.
are genui-
nely available.
concubineThe vixchallenge
frugaliter
is that
miscere
Chiefossifragi,
Executive semper
Officers
lascivius
(CEOs)saburre
are awareiocari
of
this andSyrtes
are setting
satis libere
highervocificat
and higher pessimus
targetsgulosus
for procurement.
oratori. Agricolae corrumpe-
nau arboj. Multajmalpura radioj verecunde
The 2009 Capgemini
corrumperet Global
planeCPO
adfabilis
surveyumbraculi,
showed aiam dramatic
vix fragilis
rise in
suis
thecomiter
savings
expectations
Augustus.
on CPOs from 2008 (with more than 49 percent having savings tar-
bieroj gajnas nau arboj, sed gets of more than 6 percent of their overall indirect spend).
telefonoj acxetis nau arboj. ecunde
The recession
insectathasconcubine.
created potential
Umbraculi for senesceret
savings with matrimonii,
softening in semper
demand,concubine
reduc-
Multajmalpura radioj veturas. aegre
tion inlibere
pricesinsectat
of bothpessimus
goods and fragilis
services,
rures,and
quodriskfiducias
aversionadquireret
by suppliersapparatus
in the
bellis.
face ofFiducias
losing customers
neglegenter to competition.
agnascor matrimonii,
There hasutalways
adfabilis
beensyrtes
pressure
amputaton pro-
zothecas,
curement et to parsimonia
get more forsyrtes less. senesceret
The best buyers
lascivius
in the
ossifragi,
recessionary
utcunque market
optimusare
adfabilis
expectingoratori
more forsuffragarit
less, onagricolae.
better terms, with the same quality and service - and
many are achieving this.
Cathedras miscere parsimonia rures, et cathedras amputat umbraculi. Saburre
lucide
The second
insectatimpact
suis, ofquamquam
the recession saburre
is to suffragarit
cause instability
rures, semper
and uncertainty
plane pretosius
in the
quadrupei
supply base. fermentet
The suppliermatrimonii.
managementAdlaudabilis
role in rures
procurement
deciperetis syrtes,
criticalquamquam
to ensure
concubine
that solvency praemuniet
of key suppliers
zothecas.is measured and managed.
As a result, the expectation for procurement is higher than ever, the tools are bet-
Uetiam
ter and the
adlaudabilis
limitationumbraculi
is on the lackpraemuniet
of talentoptimus
to exploitparsimonia
the potential
fiducias.
and turn
Medusathis
miscere
into savings.
lascivius catelli, semper
Body-Person
Body-Person-Role


10
Competency Profile of the 21st

Century Procurement Leader

“ With the exception of
strategic sourcing initiatives,
With arboj
bona increased
leader. A decade
Denvero.
potential
skribas comes
kvin vere
ago, it was
Multaj hundoj
belaanbirdoj.
increasingly
necessary
skribas
complex
Ses klara cxambroj
for a procurement
kvar malalta
roleveturas.
bildoj. Kvin leader
for a procurement
tre etato
Kwarko igxis
be expert
bieroj saltas in
blin-
which were usually treated as strategic
de, sed lasourcing, contracting,
strato skribas see transaction processing and delivery management.
“special projects,” it was usually Body-Subhead
It was also necessary to have specialized knowledge of key commodity sectors that
sufficient to be reactive and were considered to be within procurement’s domain. With the exception of strate-
responsive to requirements gic sourcing initiatives, which were usually treated as “special projects,” it was
generated by procurement’s usually sufficient
Graphic-Title; to be reactive
Helvetica 75 Bold and responsive
8/11pt to requirements
text can run for 3 lines. generated by pro-
”
internal clients. curement’s
Cell height internal
is 15mm.clients.
Rule isProcurement
.5pt. leaders often were those perceived as the
best negotiators, but not much more was expected; and if procurement often see-
med to behave as a “compliance cop,” that was merely in line with expectations.
As many of the basic commodity areas have now been solved and the focus of the
procurement function moves to new areas, new skills are required. In order to
affect supplier This box isprovider
and service for therelationships
placement thatofare
a closer
graphic.
to the core busi-
nesses of the company,
Right-clicka closer
on intimacy
this boxis and
required between
change procurement and its
content
internal clients. Softer leadership skills are now foremost among the determinants
of success of to
thepicture and leader.
procurement place the appropriate artwork.
Trusted advisor. The procurement leader needs to be perceived as understanding

the business needs of internal clients. This is no small task, as the procurement
leader will need to overcome client stereotypes. This requires time spent under-
standing the client’s business and learning to speak the client’s language. It also
means finding away to mitigate the perception of procurement as “compliance cop.”
Translator of performance from procurement impact to business impact.

Typical procurement
Londono. cost-savings
Kvar telefonoj measurement
parolis bone, can rarely
kaj nau bona be shown
vojoj veturas, sedtotrireach the
domoj
bottom line
parolis, of apura
kaj ses company’s
hundojincome statement.
trinkis kvin katoj. Procurement
Nau tre bona leaders need tokvin
arboj skribas learn
to define
vere bela the function’s
birdoj. contribution
Ses klara using measures
cxambroj veturas. Kwarko that
igxisare meaningful
Denvero. Multaj to hun-
each
audience.
doj skribasThis
kvarmeans using
malalta the Kvin
bildoj. appropriate metricsaltas
tre eta bieroj that will show
blinde, sedthe
la specific
strato skri-
impact
bas see to a business unit’s performance objectives.

Body-Section-Title;
Formal Agreements and Negotiated Statements of Works
nau arboj. Multajmalpura radioj Approximately
verecunde corrumperet19 percent
plane of respondents
adfabilis currently
umbraculi, iamhave formal agreements
vix fragilis suis comiter
veturas. Duarboj kuris. Kvin or SOWs with
miscere Augustus. their client organisations, but 41 percent expect to have both
bieroj gajnas nau arboj, sed in place by 2012.
kvinhund kuris, kaj tri malbela Formal divinus
Perspicax oratori Agreement Negotiated
vocificat bellus rures, quamquam SOW plane ver-
quadrupei
telefonoj acxetis nau arboj. 70% 70%
ecunde insectat concubine. Umbraculi senesceret matrimonii, semper concubine
60%
libere insectat pessimus fragilis rures,60%
quod fiducias adquireret apparatus
bellis. Fiducias neglegenter agnascor matrimonii, ut adfabilis syrtes amputat
Partial
zothecas,
50% et parsimonia syrtes senesceret lascivius
50% Partialutcunque optimus
ossifragi,
adfabilis oratori suffragarit agricolae.
No No
40% 40%
No
Cathedras
30% miscere parsimonia rures, et cathedras
30% amputat umbraculi. Saburre
lucide insectat suis, quamquam saburre suffragarit rures,Nosemper plane pretosius
20%
quadrupei fermentet matrimonii. 20%
Yes Adlaudabilis rures deciperet syrtes, quamquam
Yes
concubine praemuniet zothecas. 10%
10% Yes
Yes apparatus bellis.
Suis iocari utilitas 2012 2012
0% 0%
Currently Currently
miscere lascivius
Source: TPI/SIG catelli,
Procurement semper
Survey, February/March 2010
Manager of governance, not compliance. Optimization of a vast portfolio of

Body-Person
Body-Person-Role
relationships and transactions requires competence in ensuring that decisions are
being properly made, but not necessarily in trying to personally execute each
decision. It will be normal for the priorities of various business units to be in con-
flict with each Helvetica
Graphic-Title; other when it comes
75 Bold to text
8/11pt procurement
can run fordecisions.
3 lines. Ensuring that deci-
sions are being
Cell height made Rule
is 15mm. at the
is right
.5pt. level and that each level has clear accountabili-
ties for decision-making is critical, as is a mechanism for quickly escalating issues
that require decisions from executives to arbitrate business conflicts when they
arise.
Communicator and change management leader. Continued improvement in

implementing This box isof for
the benefits the placement
procurement of a graphic.
requires adept skills in change manage-
ment. These include identification
Right-click on this of box
each stakeholder
and change constituency,
content and develo-
ping and implementing the appropriate communications and training strategy
to picture
with each stakeholder on and place
a regular the
basis. appropriate
This artwork. a broad
also means maintaining
network of relationships with influencers across the organisation.
Global workforce manager with cultural competency. As stated above, the

increased globalisation of procurement services is unavoidable. Procurement orga-
nisations will include multiple remote locations that need to be managed and
coordinated with cultural sensitivities to the environment in each location.
12
The Power of the Status Quo

(Limiting Factors)
“ Procurement staff may have
to move to become a business
The potential
bona
finance, general
Denvero.
for procurement
arboj skribas
Multaj management
leaders
kvin vere bela
andkvar
hundoj skribas
to Ses
birdoj.
sales)
joinklara
othercxambroj
at thebildoj.
malalta
business veturas.
executive
Kvinlevel
colleagues
andbieroj
tre eta
(such igxis
Kwarko
be recognised
as
saltas blin-
partner/project manager driving as professionals
de, sed la strato who genuinely
skribas see add value to a business is often limited by the
a cross-functional team toward Body-Subhead
“power of the status quo” within procurement. There are several contributing fac-
a business outcome rather than tors to this:
”
a skilled negotiator n Culture of an organisation
n Lack of focus on the ability to communicate effectively

n Typical measures of procurement performance
n Typical career path
Culture. The culture in procurement is often one of two extremes, driven out of
the leadership. Some procurement organisations strive to engage with the business
and be an equal business partner, and some strive to be an efficient support unit;
This box
both strive to facilitate theisneeds
for the
of theplacement
business, butofinadifferent
graphic.ways.
In the “efficient support unit” type of organisation, there is sometimes a culture in
procurementto of picture and place
low expectations. the appropriate
Procurement is sometimesartwork.
seen by the rest of
the business as either a barrier to doing business or as a transactional function,
rather than a business value-add function.
Historically, procurement professionals were measured and derived personal satis-

faction from well-executed price negotiations, rather than the adoption of the
contract in the business, hence they were measured on theoretical rather than
actual benefits. As a result, procurement staff may have to move to become a busi-
ness partner/project manager driving a cross-functional team toward a business
outcome rather
Londono. than a skilled
Kvar telefonoj negotiator.
parolis bone, kajThis
nau change
bona vojojin role will necessitate
veturas, sed tri domoja
change in
parolis, kajculture
ses pura in hundoj
the teamtrinkis
and akvin
change in brand
katoj. Nau tre in bona
the business.
arboj skribas kvin
Thisskribas
doj changekvar in brand
malalta of bildoj.
procurement from
Kvin tre eta non-value
bieroj saltas adding to sed
blinde, proactive busi-
la strato skri-
nesssee
bas partner has been changing steadily during the past 10 years, and the selec-
tion of newKvar
Londono. talent and development
telefonoj of kaj
parolis bone, existing talentvojoj
nau bona is key to the sed
veturas, completion
tri domoj of
the transformation
parolis, kaj ses puraofhundoj the brand.
trinkis kvin katoj.Nau tre bona arboj skribas kvin
Lack cxambroj
klara of focus on communication
veturas. Kwarko and influencing skills. The lack of focus on
communication
igxis Denvero.Londono. skills is often at the heart
Kvar telefonoj of thebone,
parolis brandkajproblem.
nau bonaProcurement
vojoj veturas,is
not tri
sed owned
domoj by parolis,
the procurement
kaj ses pura department, but by
hundoj trinkis thekatoj.
kvin business
Nau- tre
andbona
the best
arboj
procurement
skribas kvin vereteams bela(working on the
birdoj. Ses most
klara complex
cxambroj commodities)
veturas. Kwarko facilitate the
igxis Denvero.
interaction of the business with the supply base.
The best arrangements that bring the most long-term sustainable value are where
a talented member of procurement has brought a cross-functional team from the
business together to properly understand requirements and to agree a sustainable
procurement solution that meets the needs of total cost, quality and control.
To excel, procurement leaders need strong communications and influencing skills;

however these skills are often not measured and often not managed and enhanced
in procurement.

Body-Section-Title;
Pull Quote-C Helvetica 75 Bold Typical measures

Body-Text; BerkeleyofBook
procurement performance.
10/12pt; 12pt space after.“You
Quinquennalis
get what youchirographi
measure” is
an old adage
infeliciter
that could
amputatformcathedras,
the topic utcunque
of a full white
Augustus
paper.fermentet
However, umbraculi.
if procure-
ment usesconcubine
the wrong vixmeasures,
frugaliter this
miscere
can drive
ossifragi,
the semper
wrong behaviours
lascivius saburre
in its staff
iocari
and the Syrtes
wrongsatis
business
libereoutcomes.
vocificat pessimus
One classic
gulosus
exampleoratori.
is focussing
Agricolae
oncorrumpe-
savings
kaj tri malbela telefonoj acxetis ret
captured
tremulus
(contracted
oratori, etbut
quadrupei
not yet delivered
deciperettoapparatus
the bottom bellis,
line),
etiam
rather
matrimonii
than savings
delivered tocorrumperet
the bottom plane
line, which
adfabilis
could
umbraculi,
be fine for
iamsome
vix fragilis
organisations
suis comiter
but
wrong forAugustus.
others.
This focusoratori
on the divinus
wrong measures
vocificat bellus
can lead
rures,
to poor
quamquam
businessquadrupei
performance planeand
ver-
can
lead to ainsectat
lack of concubine.
desire to gain
Umbraculi
the rightsenesceret
skills in procurement,
matrimonii, semper
which can concubine
make
procurement
libere insectat
an undesirable
pessimusplace
fragilis
forrures,
talent quod
from fiducias
other areas
adquireret
of the business
apparatusto
bellis.
join. Fiducias neglegenter agnascor matrimonii, ut adfabilis syrtes amputat
zothecas, et parsimonia syrtes senesceret lascivius ossifragi, utcunque optimus
adfabilis
Procurementoratori
is sometimes
suffragarit seen
agricolae.
as an administrative function rather than a busi-
ness function. Setting the right measures — such as delivery of bottom-line profit-
Cathedras
and-loss benefits
miscere(not
parsimonia
just benefits
rures,
captured
et cathedras
in a contract)
amputat orumbraculi.
customerSaburre
satisfaction
lucide
from key insectat
business
suis,unit
quamquam
managerssaburre
— thatsuffragarit
are alignedrures,
to the
semper
business
planestrategy
pretosius
and
quadrupei
the overall fermentet
procurement matrimonii.
strategy isAdlaudabilis
key to focussing
rures on
deciperet
the right
syrtes,
procurement
quamquam
concubine
activities, topraemuniet
changing thiszothecas.
perception and to staking the claim for procurement at
Suis
the board
iocarilevel.
utilitas apparatus bellis.
Typicaladlaudabilis
Uetiam career path.umbraculi
The archetypal
praemuniet
career optimus
path in procurement
parsimonia fiducias.
is one ofMedusa
either a
miscere
long-termlascivius
operational
catelli,
buyer
semper
or a graduate who starts a career in procurement
after college in the role of a junior buyer. The junior buyer then becomes partially
Body-Person
professionally qualified and either moves to a new organisation, or is promoted
Body-Person-Role
within the same organisation to be a buyer. That individual then becomes fully
professionally qualified and is named a category manager for one of more catego-
ries.
The
Cellnext move
height withinRule
is 15mm. procurement
is .5pt. is to move to a role as “head of.” This could
be as head of procurement, head of regional procurement, head of indirects or
head of direct materials, for example, but in all cases it is a long-term move. This
long game does not always retain the highest-quality people who are prepared to
wait for the next role in their company. As a result, many of the talented people
in procurement move out of that function into other areas of the company. At the
same time, theThis
head box is for therole
of procurement placement of from
is often filled a graphic.
within the business
or from an outside organisation,
Right-click continuing
on this box and the principle
changeofcontent
slow upward career
movement in procurement.
These typical developments dampen the effectiveness of procurement organisati-
ons due to the power of the status quo, which must be overcome if the CPO is to
build a dynamic, talented and sustainable team.
14
Challenges in Attracting and

Retaining Talent
“ An ambitious young executive
might be more attracted to
Whenarboj
bona it comes
relative toMultaj
Denvero.
to recruiting
skribas kvin vere the
other functions.
belabest
Therekvar
hundoj skribas
talent,
birdoj. Sesprocurement
are amalalta
klara cxambroj
numberbildoj.
of factors
faces an uphill
veturas.
Kvininfluencing
battleigxis
Kwarko
thissaltas
tre eta bieroj situation.
blin-
areas more likely to have more de, sed la strato skribas see
frequent access to funding for Education. Procurement has not had the same longevity of being associated with
Body-Subhead
talent and technology, which a desirable career path as other areas of business. Unlike finance, marketing and
can be leveraged for career operations, most business schools do not emphasize core curricula in procure-
”
growth ment, althoughHelvetica
Graphic-Title; this is changing to some
75 Bold 8/11pt degree.
text However,
can run most top business
for 3 lines.
school graduates
Cell height will Rule
is 15mm. simply have had less exposure to procurement when ente-
is .5pt.
ring the workforce, making procurement less likely to be a career target when
these graduates seek employment. A related issue is that business schools simply
do not produce the same level of training for procurement as in other functions,
and professional skills often are acquired only after joining the workforce.
Compensation. This box because

Partially is for the placement
of the of a transactional
degree to which graphic. functions
are still perceived as core to on
Right-click procurement
this boxorganisations,
and change compensation
content levels have
traditionally been lower than other areas. This is changing, but the perception lin-
to picture
gers, and procurement andhasplace
often theoffering
difficulty appropriate artwork.
compensation levels that will
attract the best talent.
Bureaucracy. Procurement is often perceived as rules-based and inflexible, and it

frequently lives up to this perception. Departments that have reputations as
bureaucracies are unattractive to talent.
Access to funding. The procurement organisation often is part of finance, where

it faces the dilemma of “the cobbler’s children.” Further, a key role of a procure-
ment executive
Londono. is to set an
Kvar telefonoj example
parolis bone,of kaj
budgetary discipline.
nau bona An ambitious
vojoj veturas, young
sed tri domoj
executivekajmight
parolis, be more
ses pura attracted
hundoj trinkistokvin
areas moreNau
katoj. likely
tre to have
bona more
arboj frequent
skribas kvin
accessbela
vere to funding forklara
birdoj. Ses talentcxambroj
and technology,
veturas. which
Kwarko can be leveraged
igxis for career
Denvero. Multaj hun-
growth.
bas see
Politics. Finally,
Londono. a relatively
Kvar telefonoj small
parolis percentage
bone, kaj nauof procurement
bona leaders
vojoj veturas, sed ultimately
tri domoj
advancekaj
parolis, to the
ses C-suite,
pura hundojand procurement is more likely
trinkis kvin katoj.Nau to bearboj
tre bona perceived
skribasaskvin
having
a glass
vere ceiling
bela than
birdoj. Sesother areas such as sales, marketing, finance or operations.

Body-Section-Title;
Strategies for Solving the Talent
Challenge
Pull Quote-C Helvetica 75 Bold Body-Text;

The challenge Berkeley
of managing
Book 10/12pt;
talent in12pt
procurement
space after.
is essentially
Quinquennalis
one ofchirographi
supply and
demand. infeliciter
Demand for amputat
procurement
cathedras,talent
utcunque
is high Augustus
due to thefermentet
raft of reasons
umbraculi.
descri-
bed above. concubine
Supply vixof well-rounded,
frugaliter miscere high-performing
ossifragi, semper
candidates
lasciviuswho
saburre
have iocari
busi-
ness skills,
Syrtesanalytical
satis libere
skillsvocificat
and interpersonal
pessimus gulosus
skills, complemented
oratori. Agricolae
by technical
corrumpe-
procurement
tremulus oratori,
skills, isetbecoming
quadrupeiextremely
deciperetscarce.
apparatus bellis, etiam matrimonii
nau arboj. Multajmalpura radioj verecunde corrumperet plane adfabilis umbraculi, iam vix fragilis suis comiter
The procurement
Augustus.profession will not (and indeed does not want to) manage
bieroj gajnas nau arboj, sed demand for procurement talent by lowering expectations. We therefore need to
manage supply.oratoriWe divinus
can do vocificat
this in bellus
a number
rures,
of quamquam
ways: quadrupei plane ver-
telefonoj acxetis nau arboj. n Make insectat
ecunde the profession moreUmbraculi
concubine. attractive at grass roots,
senesceret in universities
matrimonii, semper and colleges
concubine
Multajmalpura radioj veturas. n Attract
aegre andinsectat
libere retain skilled
pessimus resources from outside
fragilis rures, the procurement
quod fiducias adquireretprofession
apparatus
n Adjust
bellis. conventional
Fiducias approaches
neglegenter agnascor such as compensation,
matrimonii, responsibility
ut adfabilis and
syrtes amputat
reporting
zothecas, et lines
parsimonia syrtes senesceret lascivius ossifragi, utcunque optimus
n Reduceoratori
adfabilis the loss of talent agricolae.
suffragarit within our own business
n Create an alumni group of people who have moved on from procurement to
other areas
lucide
n Changeinsectat
the focus
suis, of
quamquam
procurement saburre
and/or
suffragarit
divest certain
rures, semper
activitiesplane pretosius
quadrupei
n Use outsourcing
fermentet to matrimonii.
an additionalAdlaudabilis
route into the
rures
profession
deciperet syrtes, quamquam
Makeiocari
Suis the profession more attractive
utilitas apparatus bellis. in universities. The brand of procurement
is one that is not strongly represented in universities, or at least less well so than
Uetiam
finance,adlaudabilis
legal and sales. umbraculi praemuniet
It is incumbent optimus parsimonia
on procurement fiducias.
professionals Medusa
to begin to
miscere
change thislascivius catelli, with
by working semper universities.
Body-Person
Many universities, both in the United Kingdom and the United States, offer mas-
Body-Person-Role
ter’s degrees in procurement, for which students are expected to be already well-
established in their procurement careers. These courses are supported by compa-
nies, both by offering sponsorships to individual students for places and by pro-
curement professionals
Graphic-Title; Helvetica becoming involved
75 Bold 8/11pt in these
text can courses
run for 3 lines.to bring their profes-
sional experience to the students.
This will, however, be a long-term fix. And. of course, whilst qualifications are
important, they do not substitute for good experience across the sourcing cycle.
Attract and retain stronger resources from outside the procurement profession.
This
It is common for thebox
headis
of for the placement
procurement of a graphic.
to be attracted into that profession
from the widerRight-click
business. This
on this box and changewanting
is often as a result of CEOs content to inject busi-
ness knowledge and business relationships into procurement. It is less common
to picture
that other talented and
members place
from the appropriate
the wider artwork.
business are brought into procure-
ment to take up senior roles below the CPO.
16
“ Procurement is seen as a
profession such as accountancy
bona
Oftenarboj
Denvero.
skribas
the lack kvin vereprocurement
of technical bela birdoj. skills
Ses klara cxambroj
is seen veturas.
as a barrier Kwarko
for entry;
should find some way of attracting talent by articulating to other departmentsblin-
Multaj hundoj skribas kvar malalta bildoj. Kvin tre eta bieroj
weigxis
saltas the
or law, which gives you a good de, sedprocurement
value la strato skribas see to an organisation. We then need to develop a plan
can bring
breadth of business skills on Body-Subhead
to close the technical procurement skills gap to support colleagues who transfer
which to build a successful from outside procurement. The people transferring need to be successful, as they
”
business career will bring with them relationships and business knowledge that are invaluable in
managing complex
Graphic-Title; commodities.
Helvetica 75 Bold 8/11pt text can run for 3 lines.
Adjust conventional approaches such as remuneration, recognition, responsi-
bility and reporting lines. There is no alternative for well-remunerated (compen-
sated) staff. In addition to remuneration, a CPO can go a long way toward retai-
ning staff through conventional talent management means, by ensuring responsi-
bility commensurate to each individual’s role - through project work or line
This box is- for
management opportunities the placement
appropriate recognitionof a the
and graphic.
right reporting lines,
As with most elements of a commercial part of an organisation, it is imperative
to picture
that you are aware and
what the place
market ratethe appropriate
is for artwork.
your most talented staff and have
strategies in place for them if you are paying them less than the market rate.
Reduce the loss of talent within our own business. One of the most critical
elements of talent management is the identification, management and retention of
top-quartile performers. Make sure they know that management knows they have
potential, and put in place actions to give them broad and challenging roles,
whilst painting a picture of their potential career development.
Create an Kvar
Londono. alumni group.parolis
telefonoj bone,this
Similarly, kajcross-fertilisation
nau bona vojoj veturas, sed tri back
of capabilities domoj
parolis, kaj ses pura hundoj trinkis kvin katoj. Nau tre bona arboj
into the business from procurement is a strong way to initially attract talent, skribas kvin
if
vere
procurement is seen as a profession such as accountancy or law, which giveshun-
bela birdoj. Ses klara cxambroj veturas. Kwarko igxis Denvero. Multaj you
doj skribas
a good kvarofmalalta
breadth bildoj.
business skillsKvin tre eta to
on which bieroj
buildsaltas blinde, sed
a successful la strato
business skri-
career.
bas see
Londono.
Talent lostKvar telefonoj
to the parolis bone,
wider business kaj nau bona is
from procurement vojoj veturas,
in many waysseda tri
gain domoj
for
parolis, kaj ses pura hundoj trinkis kvin katoj.Nau tre bona
procurement, because procurement skills will be embedded in the business arboj skribas kvin
and
vere
thosebela birdoj.
people are Ses
likely to maintain strong links with the procurement team.
igxis Denvero.Londono.
An exchange programmeKvar telefonoj
is a way parolisthe
to manage bone, kaj nau bona vojoj
cross-fertilisation veturas,
of talent, by
sed tri domoj parolis, kaj ses pura hundoj trinkis kvin katoj. Nau
creating an expectation with your colleagues in your business who are looking tre bona arbojfor
skribas kvinhire
an internal verethat
belathey
birdoj.
can Ses
courtklara
andcxambroj veturas.
attract your talent,Kwarko
but thatigxis
theyDenvero.
also are
expected to provide a suitably talented alternative person — perhaps not at the
same level, but with the same potential.

Body-Section-Title;
Pull Quote-C Helvetica 75 Bold Change theBerkeley

Body-Text; focus ofBookthe organisation
10/12pt; 12ptand/or divestQuinquennalis
space after. certain activities.
chirographi
Since the
early 1990s,
infeliciter
we haveamputat
been looking
cathedras,for utcunque
processes,Augustus
systems and fermentet
tools toumbraculi.
take the
transactional
concubine
activities
vix frugaliter
away frommiscere
the buyers
ossifragi,
to givesemper
those lascivius
individualssaburre
time to
iocari
focus onSyrtes
higher-value
satis libere
procurement
vocificat pessimus
activities.gulosus oratori. Agricolae corrumpe-
Now this iscorrumperet
easier than everplanewith
adfabilis
the advent
umbraculi,
of on-demand
iam vix fragilis
e-Procurement
suis comiter
and
e-SourcingAugustus.
tools, as well as access to more mature outsourced service providers to
bieroj gajnas nau arboj, sed whom the organisation can divest certain low-level transactional activities.
Procurement oratori
outsourcing
divinus vocificat
will not, bellus
however,
rures,
bring
quamquam
the samequadrupei
order of magnitude
plane ver-of
process insectat
efficiency concubine.
benefits whenUmbraculi
comparedsenesceret
to a typical
matrimonii,
Financesemper
& Accounting
concubine
(F&A)libere
outsource;
insectatit pessimus
also will impact
fragilis many
rures,more
quodpeople
fiduciasthen
adquireret
an F&Aapparatus
outsource -
bellis.
both employees
Fiducias neglegenter
and suppliers. agnascor
As a result,
matrimonii,
organisations
ut adfabilis
are looking
syrtes amputat
to use
zothecas,
outsourcing et parsimonia
partners to syrtes
drive spend
senesceret
effectiveness
lasciviusas ossifragi,
well as utcunque
process efficiency
optimus
adfabilis
through improved
oratori suffragarit
compliance.agricolae.
Small improvements in compliance through
outsourcing can outweigh the efficiency gains by a large factor.
lucide
This should
insectat leave
suis,
thequamquam
procurement saburre
teamsuffragarit
with the truly
rures,strategic
semperactivities
plane pretosius
of cate-
quadrupei
gory management,
fermentet sourcing
matrimonii.
and compliance
Adlaudabilismanagement.
rures deciperet syrtes, quamquam
Use outsourcing
Suis iocari utilitas to create career
apparatus bellis. options. One of the challenges is that procure-
ment can be seen as a job for life and, therefore, not very dynamic. If a company
Uetiam
outsourcesadlaudabilis
capabilityumbraculi
and transferspraemuniet
staff to aoptimus
new organisation
parsimoniasuch fiducias.
as Accenture,
Medusa
miscere
Genpactlascivius
or Capgemini,
catelli, those
sempercompanies can often offer much broader career
options, either within procurement or in more general project delivery than the
Body-Person
original clients are able to do.
Body-Person-Role
Similarly, when those companies are the outsource providers, they can bring a
much broader range of talent to play in an organisation, as they themselves can
provide broad Helvetica
Graphic-Title; career options
75 Boldto 8/11pt
their employees.
text can runHowever
for 3 lines.there are issues with
this model; some people are
Cell height is 15mm. Rule is .5pt. more committed to a career with that company than
to a career in procurement, in which case they will move out of procurement
before they move into a procurement service provider.
So the options to fix the talent problem are not straightforward and need to be
applied in combination through an overall talent management strategy. What is
This
clear is that there arebox
manyisorganisations
for the placement ofacquire
that want to a graphic.
your best talent, so
you had betterRight-click
develop a great talent retention plan or prepare
on this box and change content for staff attrition.
18
Conclusion
Procurement
bona organisations
arboj skribas kvin verecan gobirdoj.
bela a long Ses
wayklara
toward addressing
cxambroj the talent
veturas. Kwarko chal-
igxis
lenge through
Denvero. Multajfocus and skribas
hundoj openness to malalta
kvar new business
bildoj.models.
Kvin treSelecting
eta bierojthe bestblin-
saltas
talent
de, sedand focussing
la strato thatsee
skribas talent on activities that are strategically differentiating
Body-Subhead
will ensure that the organisation is able to attract and retain the best talent.
However, this can only be sustainable if leadership is ever diligent in identifying
efficient alternative solutions that will drive down the cost and improve the over-
allGraphic-Title;
effectivenessHelvetica
of the department. Automation,
75 Bold 8/11pt text can runself-service,
for 3 lines. process simplificati-
on, low-cost geographies, shared
Cell height is 15mm. Rule is .5pt. services and outsourcing all are viable strategies
toward this end. Ultimately, by applying the same standard of innovation within
their departments that they bring to the rest of the company, CPOs can create an
environment that will attract and foster superior talent over the long haul.
LOOKING FOR A STRATEGIC PARTNER?

Thisexperts
TPI’s CPO Services box iscan
forhelp
theyou
placement oforganizational
achieve your a graphic. goals throu-
gh objective advice, knowledge of your industry and experience
Right-click on this box and change content with sourcing
arrangements from simple to complex.
Looking for a strategic partner? Contact Bill Huber, Director, CPO Services, TPI,
at +1 540 318 0124 or bill.huber@tpi.net
parolis, kaj ses pura hundoj trinkis kvin katoj. Nau tre bona arboj skribas kvin
bas see

Body-Section-Title;
About the Authors
nau arboj. Multajmalpura radioj verecunde corrumperet plane adfabilis umbraculi, iam vix fragilis suis comiter
veturas. Duarboj kuris. Kvin miscere Augustus.
Multajmalpura radioj veturas. aegre libere insectat pessimus fragilis rures, quod fiducias adquireret apparatus
Bill Huber
bellis. Fiducias neglegenter agnascor matrimonii, ut adfabilis syrtes amputat
zothecas, et parsimonia syrtes senesceret lascivius ossifragi, utcunque optimus
Bill Huber
adfabilis has extensive
oratori expertise
suffragarit in developing and implementing multifunction
agricolae.
outsourcing and internal transformation strategies in finance, information techno-
logy, procurement,
Cathedras human resources
miscere parsimonia and
rures, et facilitiesamputat
cathedras management. Bill’s experience
umbraculi. Saburre
lucide insectat
includes leadingsuis,
strategy
quamquam
and implementation
saburre suffragarit
initiatives
rures,for
semper
top corporations.
plane pretosius
He
quadrupei
has workedfermentet
across a wide
matrimonii.
range ofAdlaudabilis
industry sectors,
rures including
deciperet syrtes,
the automotive,
quamquam
concubine
heavy equipment,
praemunietbuilding
zothecas.
products, financial services, printing, consumer goods
Suis iocari utilitas
manufacturing, lifeapparatus
sciences, bellis.
electronic media, printing and logistics industries.
Uetiam
Bill adlaudabilis
joined umbraculi
TPI in 2006 followingpraemuniet optimus
a successful career parsimonia fiducias.
as a sourcing Medusa
leader spanning
miscere
four lascivius
Global catelli, semper
500 companies where he was responsible for all areas of outsourcing
and procured services. At Wachovia, Bill was a Senior Vice President and served
Body-Person
in leadership positions that included Chief Procurement Officer, Head of Strategic
Body-Person-Role
Sourcing, Director of Outsourcing Strategy and Governance and Head of IT
Sourcing. Earlier in his career, he served in leadership roles at American Express,
United Technologies Corporation and GEC/Marconi Aerospace and was responsi-
ble for programHelvetica
Graphic-Title; management of 8/11pt
75 Bold major text
system
can design,
run for 3development
lines. and integrati-
on suppliers.
Bill holds a Bachelor of Arts in Government from Dartmouth College and a Master
of Business Administration in International Business from the University of
Bridgeport; he also has completed additional postgraduate work in Accounting at
Western Connecticut State University. Bill is a graduate of the Wachovia
This box
Executive Leadership is for theprogram
Development placement of a graphic.
at the University of North Carolina at
Chapel Hill. He recently served two terms as Chairman
Right-click on this box and change content of the Board of the
International Association for Contract and Commercial Management (IACCM)
and currentlytoserves
picture
on theand placeBoard
Advisory the appropriate
for the Sourcingartwork.
Interest Group (SIG).
Bill recently chaired an international academic conference on the subject of
Commitment Management, and has written and presented frequently on procure-
ment, shared services, change management and sourcing strategy.
20
bona arboj skribas kvin vere bela birdoj. Ses klara cxambroj veturas. Kwarko igxis
Denvero. Multaj hundoj skribas kvar malalta bildoj. Kvin tre eta bieroj saltas blin-
de, sed la strato skribas see
Body-Subhead

Bob Booth
This
Bob Booth is the headbox is for
of the the placement
Capgemini of a graphic.
BPO Procurement practice for Europe,
Middle East and Africa (EMEA).
Right-click His primary
on this box and responsibilities
change contentare for procurement
outsourcing sales and delivery in EMEA and for procurement outsourcing product
developmentto picture
globally. and place
In addition, Bobthe appropriate
is responsible artwork.
for supplier management
for BPO’s own IT suppliers globally.
Bob joined Ernst & Young in 1998 and has been with Capgemini since the mer-
ger of the two companies in 2000. With Capgemini, Bob has worked on global
business-led procurement and back-office transformation programs. He has wor-
ked in the public, energy and utilities, financial services, construction, professio-
nal services, defense, manufacturing and FMCG sectors. He specialises is business
and IT solution development and IT-enabled process optimization across procure-
Londono.
ment, finance Kvarand telefonoj
business parolis bone, kaj
information nau bona vojoj
management. Bobveturas, sed tri domoj
was previously head of
parolis, kaj ses pura hundoj trinkis kvin katoj. Nau
the supply chain technology practice in Capgemini and was the global tre bona arboj skribas kvin
eProcure-
vere bela birdoj. Ses klara cxambroj veturas. Kwarko igxis
ment subject matter expert at Capgemini’s supply chain university in France. Denvero. Multaj hun-
bas seejoining Capgemini Bob spent five years in industry in finance and operati-
Before
Londono.
ons roles, and Kvarbefore
telefonoj thatparolis bone,
six years kaj nau at
in practice bona vojoj
a firm of veturas,
charteredsed tri domoj
accountants.
parolis, kaj ses pura hundoj trinkis kvin katoj.Nau tre bona
He is a fellow of the Institute of Chartered Accountants in the United Kingdom arboj skribas kvin
and has written papers on procurement, supply chain information management
klara cxambroj
and business veturas. Kwarko
information transformation.

Body-Section-Title;
Pull Quote-C Helvetica 75 Bold About TPIBerkeley Book 10/12pt; 12pt space after. Quinquennalis chirographi
Body-Text;
TPI, a unitinfeliciter
of Information
amputatServices
cathedras,Group,
utcunque
Inc. (ISG)
Augustus
(NASDAQ:III,
fermentet IIIIU,
umbraculi.
IIIIW),
is the founder
concubine and vix
innovator
frugaliter
of the
miscere
sourcing
ossifragi,
advisory
semper
industry,
lascivius
andsaburre
the largest
iocari
sourcingSyrtes
data and
satisadvisory
libere vocificat
firm in pessimus
the world.gulosus
We areoratori.
expert Agricolae
at a broadcorrumpe-
range of
business
tremulus
support
oratori,
functions
et quadrupei
and related
deciperet
research
apparatus
methodologies.
bellis, etiam
Utilizing
matrimonii
deep
functional domain
corrumperetexpertise
planeandadfabilis
extensive
umbraculi,
practicaliam
experience,
vix fragilisoursuis
accomplished
comiter
industryAugustus.
experts collaborate with organizations to help them advance their busi-
bieroj gajnas nau arboj, sed ness operations through the best combination of business process improvement,
shared services,
oratorioutsourcing
divinus vocificat
and offshoring.
bellus rures,
Forquamquam
additional quadrupei
information, plane
visitver-
www.tpi.net.
insectat concubine. Umbraculi senesceret matrimonii, semper concubine
Multajmalpura radioj veturas. aegre libere insectat pessimus fragilis rures, quod fiducias adquireret apparatus
AboutFiducias
bellis. Capgemini neglegenter agnascor matrimonii, ut adfabilis syrtes amputat
zothecas,
Capgemini, et one
parsimonia
of the world’s
syrtes senesceret
foremost providers
lascivius ossifragi,
of consulting,
utcunque
technology
optimus and
adfabilis
outsourcingoratori
services,
suffragarit
enables
agricolae.
its clients to transform and perform through techno-
logies. Capgemini provides its clients with insights and capabilities that boost
Cathedras
their freedommiscere
to achieve
parsimonia
superiorrures,
results
et cathedras
through amputat
a uniqueumbraculi.
way of working,
Saburre
the
lucide
Collaborative
insectatBusiness
suis, quamquam
Experience™.
saburreThesuffragarit
Group relies
rures,onsemper
its global
plane
delivery
pretosius
quadrupei
model called fermentet
Rightshore®,
matrimonii.
whichAdlaudabilis
aims to get the
rures
right
deciperet
balancesyrtes,
of the quamquam
best talent
concubine
from multiple praemuniet
locations,zothecas.
working as one team to create and deliver the optimum
Suis
solution
iocari
forutilitas
clients.apparatus
Present inbellis.
more than 30 countries, Capgemini reported 2009
global revenues of EUR 8.4 billion and employs 90,000 people worldwide.
miscere
More information
lascivius catelli,
is available
semper at www.capgemini.com.
Capgemini’s expertise is recognized in Business Process Outsourcing (BPO)

Body-Person
Body-Person-Role
with a solution portfolio that spans Finance & Accounting, Customer Care &
Intelligence, Procurement, Assurance Management, Human Resources and
Knowledge Process Outsourcing services. As part of Capgemini’s Rightshore®
delivery network,
BPO professionals provide services to clients worldwide 24 hours a day, seven
days a week, in over 35 languages, from centers located in Australia, Brazil,
Canada, Chile, China, Guatemala, India, Poland, Sweden and the United States.”
More information is available at www.capgemini.com/bpo

22
IN/Project code
Copyright © 2010 Capgemini. All rights reserved.

www.capgemini.com/bpo
About Capgemini
®
Capgemini, one of the to get the right balance of the best talent
world’s foremost providers from multiple locations, working as one
of consulting, technology and outsour- team to create and deliver the optimum
cing services, enables its clients to trans- solution for clients.
form and perform through technologies. Present in more than 30 countries,
Capgemini provides its clients with Capgemini reported 2009 global reve-
insights and capabilities that boost their nues of EUR 8.4 billion and employs
freedom to achieve superior results 90,000 people worldwide.
through a unique way of working, the More information is available at
Collaborative Business ExperienceTM. www.capgemini.com
The Group relies on its global delivery
model called Rightshore®, which aims Rightshore® is a trademark belonging to Capgemini
www.capgemini.com/bpo
Copyright © 2010 Capgemini. All rights reserved.

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 Business Process Outsourcing the way we see it

The CPO Talent Challenge

2 Procurement’s Potential - Then and Now 5

3 Factors That Have Enhanced Procurement’s Potential 7

4 Competency Profile of the 21st Century Procurement Leader 11

5 The Power of the Status Quo (Limiting Factors) 13

6 Challenges in Attracting and Retaining Talent 15

7 Strategies for Solving the Talent Challenge 16

9 About the Authors 20

In understanding this gap, it’s helpful to look at what procurement organisations

The CPO Talent Challenge 3

Pull Quote-C Helvetica 75 Bold The second Berkeley

80% lascivius catelli, semper

Graphic-Title; Helvetica 75 Bold 8/11pt text can run for 3 lines.

Graphics-Source; Helvetica 45 light 6pt

Potential - Then and Now

Improved technology This box and is for theof placement

The CPO Talent Challenge 5

Pull Quote-C Helvetica 75 Bold Body-Text;

Suis iocari utilitasIncrease

procedures and negotiated n Management of complex portfolio

Quality Purchase order accuracy n Balanced scorecards for major

Customer Expediting and problem resolution n Consultative development of solutions

Innovation This box isrelationships

Graphics-Source; Helvetica 45 light 6pt

Factors That Have Enhanced

hardware, fleet, etc.) are lower n Technology

than ever, and there are more n Impact of the recession

Globalisation of the workforce is also a significant factor in the life of CPOs. In

The CPO Talent Challenge 7

Uetiam adlaudabilis umbraculi praemuniet optimus parsimonia fiducias. Medusa

Making real use of this is analysis is made difficult by an organisation’s inability to

It is, therefore, genuinely possible to analyse spend in a meaningful way to per-

40% to 50% of spend – 4%

20% to 30% of spend – 10%

Less than 20% of spend – 61%

25% 50% 75% 100%

Right-click on this box and change content

The technology divides neatly into well-established tools such as e-Procurement,

The CPO Talent Challenge 9

Pull Quote-C Helvetica 75 Bold Impact of the

Graphic-Title; Helvetica 75 Bold 8/11pt text can run for 3 lines.

This box is for the placement of a graphic.

Graphics-Source; Helvetica 45 light 6pt

Competency Profile of the 21st

Century Procurement Leader

Trusted advisor. The procurement leader needs to be perceived as understanding

Translator of performance from procurement impact to business impact.

The CPO Talent Challenge 11

Manager of governance, not compliance. Optimization of a vast portfolio of

Communicator and change management leader. Continued improvement in

Global workforce manager with cultural competency. As stated above, the

The Power of the Status Quo

n Lack of focus on the ability to communicate effectively

Historically, procurement professionals were measured and derived personal satis-

To excel, procurement leaders need strong communications and influencing skills;

The CPO Talent Challenge 13

Pull Quote-C Helvetica 75 Bold Typical measures

Graphics-Source; Helvetica 45 light 6pt

Challenges in Attracting and

Compensation. This box because

Bureaucracy. Procurement is often perceived as rules-based and inflexible, and it

Access to funding. The procurement organisation often is part of finance, where

Business Process Outsourcing the way we see it