July 2011 |
Steve Bagshaw
The third CIPS
Middle East Conference took place in Abu Dhabi on 22 May and attracted 200
delegates.
‘Achieving
Excellence in Procurement and Supply Chain’, sponsored by KPMG, attracted
buyers from the UAE as well as Saudi Arabia, Qatar, Oman and Egypt.
Speakers came
from across the region and Europe with the full spectrum of regional industries
including telecommunications, heavy industry, defence as well as the oil and
gas sector represented.
CIPS CEO David
Noble opened the event with an examination of the challenges facing the
profession and the opportunities for it in the region in the face of global
economic circumstances.
The event, held
at the Crowne Plaza Hotel, Yas Island, Abu Dhabi, reflected the growing
influence of the Gulf region and the increased prominence of procurement for
organisations in the region.
Messages from a keynote speaker
The key to a
successful procurement transformation is the credibility of people leading it
and urgency according to, Gerry Tominey, CPO at Associated British Foods.
“Change is
built on a solid business case and assembling a group with power to make that
change,” he said.
He added that
in order to guarantee co-operation and increased effort, qualities of the group
leading the change should include: the power to stop internal blocks,
credibility and leadership.
“You must have
a change vision to describe how the future will be different from the past and a
strategy for achieving the vision. And, he added: “This should be repeatable
and not contain jargon.” And you “should take every vehicle to communicate the
new vision”.
In addition,
the team must be empowered to remove obstacles to the implementation of the
vision, he said, even if that requires changing systems or structures that
undermine it.
“Risk taking
and non-traditional ideas should also be encouraged,” he said.
Another key
element to sustaining a transformation’s momentum is generating short-term wins
that create excitement and recognise improvement. And once that has been
achieved you “should not let up as that credibility enables further change”.
Finally he said
that in order for the new structure to stick, leaders “must articulate the
connections between behaviour and success”.
Key quotes from the event
“Excellence is
not a skill. It is an attitude,” Mike Webb, functional head, BAE Systems Saudi
Arabia Procurement.
“You can’t
improve what you can’t measure,” Anis Tabka, VP supply chain management, Du.
“We have to be
masters of post contract,” David Noble, CIPS chief executive.
“Seventy per
cent of all major change efforts fail,” Gerry Tominey, CPO, Associated British
Foods.
“We have to
have the capability to demonstrate that we have the value add, not just save
money. We have to demonstrate better that we have it,” Jamal Al-Anbari,
business support manager, RasGas.
“We have seen a
range of companies at various stages on the journey towards excellence. Not
everybody is there, but those who have had made a huge difference to their
organisations,” Steve Bagshaw, conference chairman.