Orlando, FLApril 7 – 10, 2013

NAEP Annual Meeting

The Magic of Collaboration & Partnership

Collaboration and Partnership

Roy AndersonEVP Procurement Services

470 514-3640 (O)978 857 3868 (C)www.metaprocure.com

Budget Conversation with My Wife

Give up WineGive up ShoppingGive up Salon

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The Modern Chief Procurement OfficerPatrice N. Knight VPIBM Corporation November 13, 2012

Albert Einstein on Collaborative Problem Solving

“One should not expect to solve a problem with the same level of intelligence that caused it.”

Albert Einstein

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Option 1Einstein humbly suggested that the cause of the problem might be in the mirror

Option 2Einstein isn't talking about a "level" of thinking, but rather about a "way" of thinking. We need to adopt a new perspective if we want to solve a problem.

It’s About the People

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“Innovation has nothing to do with how many R&D dollars you have. When Apple came up with the Mac, IBM was spending at least 100 times more on R&D.

It’s not about money. It’s about the people you have,

how you’re led, and how much you get it.” [Fortune, Nov. 9, 1998]

Ben Franklin

Raytheon Savings King

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Strive to be authentic. Be honest with yourself About what you wantWhy you do what you do

Ben Franklin

Build relationships with people you can trust and they can trust you

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Make friends before you need themSpeaker of the House Tip O’Neil

Including but not limited to:Provost, Athletics, Admissions AP, Finance, Audit, Legal, IT, Department heads Facilities, Alumni Relations, Endowment, Core Suppliers

Ben Franklin

Set very few priorities and stick to themPlan time to work on your priorities Turn down things that are inconsistent with your priorities

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Ben Franklin

Get good at saying no

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Do so frequently

Do not practice on your Spouse

"If a man speaks his mind in a forest, and no woman hears him,

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is he still wrong?”

Change the Mind Set

Praise Creativity The team needs to see and believe that creativity is a priority and rewarded

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Be ProvocativeIf you want an inspiring and challenging environment you need to break out of the mundane. Shake your team up

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Procurement Stock

Donate to a Family Homeless Shelter

Change the Mind Set

BrainstormTell the team to come to the meeting with ideasDrives new and radical thoughts

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Liberate creativity by inviting all to attend Every discipline has scope for creativity

Leaders and Partners Need to Know When to

The minute bosses speak, everyone positions themselves in relation to them

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Silence can be golden.

Innovation Drives Success

“The cure for Apple is not cost-cutting. The cure for Apple is to innovate its way out of its current predicament.”

[Apple Confidential: The Real Story of Apple Computer Inc., May 1999]

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Never!

I have to work with

Procurement?

Presentation on Change Management with Engineering and Manufacturing

Is Procurement the problem?

Photo by Wilka Hudson

Burning PlatformCut your Budget 10-30%Build New CapabilitiesBe More ResponsiveMake Business AgileThink StrategicallyDrive InnovationReduce RiskControl Costs

Procurement

CFOSave MoneyFewer people, lower acquisition rate

OperationsOn time, On budget, No errors

AuditEveryone follows the Policy

InnovationIs Innovation in our goals

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Raytheon

Patriot Missile System

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St. Valentine's Day Massacre with Pictures - 1929 - Al Capone True Crime Story

Raytheon Patriot Missile System

Total change of thinkingProvided a 5 year horizon to investA 5 year recoveryNew toolsNew approachSucceed or go Bankrupt

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Mind Sets that block change

Not made hereWinner takes all (eat your young concept)Not in my job description

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Moat Builders

Moat builders

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ALTERNATIVE TO CHANGE

“80% of all professional jobs will change dramatically in the next 15 years”

- Tom Peters Re-Imagine- March 2004

www.scottmcleod.net

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Simplify the process

Eliminate the valueless

Automate the mundane

SEA Change

Raytheon

Electronic Data Interchange

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Give Credit to everyone

It is amazing what you can accomplish if you do not care who gets the credit.

Harry S. Truman

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http://www.brainyquote.com/quotes/keywords/credit.html#ZFsb1lRxmriokPIv.99

Credit you give yourself is not worth having. Irving Thalberg

Change Enablers

1.Leadership Team 2.Organization /Infrastructure

- Category expertise- Analytics- OGSM

*Sourcing Interest Group (SIG) Procurement Transformation on the Fast Track: Doing More with Less, February, 2010 Denali Group John Evans Managing Partner, Alpar Kamber Partner

Common Language

ObjectivesLong term solution

GoalsDate and NumberMerit Review and Bonus

StrategiesSpecific actions that you take to meet the Objective

MeasuresMeasure the changeReward the driversGive credit to everyone

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Change Enablers

1.Leadership Team 2.Organization /Infrastructure

- Category expertise- Analytics- OGSM

3.Clear Vision and Mission

*Sourcing Interest Group (SIG) Procurement Transformation on the Fast Track: Doing More with Less, February, 2010 Denali Group John Evans Managing Partner, Alpar Kamber Partner

VISION

Trip to moon and safely backHighway systemRural electrificationEducational system K-12E bay

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Vision

Vision

Wireless Laptop on the Beach in Maui

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Change Enablers

1.Leadership Team 2.Organization /Infrastructure

- Category expertise- Analytics- OGSM

3.Clear Vision and Mission4.Personal Development

- Organized internal and external training program- Give them a place to go

*Sourcing Interest Group (SIG) Procurement Transformation on the Fast Track: Doing More with Less, February, 2010 Denali Group John Evans Managing Partner, Alpar Kamber Partner

Top 10 Skills in 2015

Kay Bayen (kbayen@eipm.org) is people development adviser at the European Institute of Purchasing Management, based in Archand, France

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Lower Impact- Negotiation- Cost Management- Transaction Process

Rising Impact- Strategic Thinking- Team Work- Market Knowledge- TCO- Influencing- Change Management

Change Enablers

5. Data and Information- Accurate, Complete- Readily available, Actionable

*Sourcing Interest Group (SIG) Procurement Transformation on the Fast Track: Doing More with Less, February, 2010 Denali Group John Evans Managing Partner, Alpar Kamber Partner

Management by Embarrassment

Four Tests

Crush Test, EmotionWould I feel crushed if I was responsibleRight size the problem into "challenging but possible"

Results testLarge enough problem and resolution to make an impact

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Impact

High impact and high ability to impact prioritization model.

Impact

To

the

Company

Ability to Impact

AB

CD

NO one Cares IT doesn’t matter

Made your careerHit your headagainst the wall

Four Tests

Crush Test, EmotionWould I feel crushed if I was responsibleRight size the problem into "challenging but possible"

Results testLarge enough problem and resolution to make an impact

Amen Test, ExcitementIs the team excited to solve this problemGet results to the user fast

Sandbox Test, PoliticalDo you have the right partners collaborating with you

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Giant Sucking Sound

Coined during the 1992 U.S. presidential campaign, referred to the sound of U.S. jobs heading south for Mexico should the proposed free-trade agreement go into effect.Ross Perot lost the electionNAFTA went into effect on January 1, 1994.

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VISIONFree Trade is GOOD For Everyone

Giant Sucking Sound Result

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Mexico has built a strong middle class40% of the goods sold are US madeCompared to 4% for ChinaSupporting 6 million US jobs

Procurement Imperatives

Value Creation-Focus on value creation that impacts organizational successBe Innovative-Create, enable and develop innovation from the supply baseMassive Skill Improvement -Radically improved Procurement skills embedded in the LOBUnderstand Risk-End to end risk aware supply chain ecosystemTechnology- On the cloud

Share your Ideas

https://twitter.com/#!/procureguyvp http://www.linkedin.com/in/royranderson

randerson@metaprocure.com1-470-514-3640

Roy Anderson

Roy AndersonEVP Procurement Services

470 514-3640 (O)978 857 3868 (C)www.metaprocure.com

Orlando, FLApril 7 – 10, 2013

NAEP Annual Meeting

The Magic of Collaboration & Partnership