Identify Key Initiatives: Turning Procurement Strategy into Reality

Continuing our Procurement Excellence series, we've covered quite a journey - from understanding business context to developing category strategies. Today, let's talk about something that often makes the difference between a great strategy and an actual success: identifying and implementing key initiatives. And yes, I know what some of you are thinking - "not another project list!" Bear with me, because this is about much more than just creating a to-do list.

Why Key Initiatives Matter More Than Ever

How many strategic plans are sitting in our drawers because we never properly translated them into concrete initiatives? In today's turbulent business environment, having a great strategy isn't enough - we need to turn it into actionable, value-driving initiatives.

The reality is that a strategy without concrete initiatives is just a wish list. Your initiatives are the bridge between ambitious goals and actual results. With limited resources, they help us focus on what really matters. And perhaps most importantly, concrete initiatives make your strategy real for stakeholders - they can see exactly how you plan to achieve those ambitious goals.

Key Types of Initiatives

When we talk about procurement initiatives, there are several key areas that deserve our attention.

• Process optimization is often at the forefront - whether it's implementing digital workflows or streamlining approval processes. But remember, any process change must create real value, not just change for change's sake.
• Technology adoption is another crucial area, but please, don't fall into the trap of implementing technology just because it's trendy! Whether it's AI for spend analysis or new contract management systems, technology should solve real problems and create tangible benefits.
• Supplier development initiatives often hold the most potential for long-term value creation. Think about innovation workshops, joint improvement programs, and capability building. This is where real partnership value comes into play, and where procurement can truly demonstrate its strategic importance.
• And yes, we need to talk about risk management initiatives. I know these might not be the most exciting projects, but in today's volatile world, programs focusing on supply chain resilience, supplier financial monitoring, and ESG implementation are absolutely crucial.

Identify the Right Initiatives

But how do we define the right initiatives? It all starts with honest gap analysis. Where are you now? Where do you need to be? And most importantly - what's really stopping you from getting there? You'd be surprised how often we misidentify these gaps.

I like to think about initiatives in terms of impact versus effort. The quick wins are great - high impact with low effort - but don't ignore those strategic projects that might take more effort but could transform your procurement function. Just be honest in your assessment - we often underestimate effort and overestimate impact!

Then comes the reality check about resources. And this is where I often see teams stumble. Do you have the right people? The necessary budget? The required capabilities? If the answer to any of these is no, you need to either adjust your initiative or plan for additional resources. There's no point in starting something you can't finish properly.

What to Avoid

In my opinion an initiative overload is probably the most common problem. I always say it's better to deliver three or even one initiative successfully than to have ten half-finished projects. I've seen too many project teams (not only in procurement) try to do everything at once, only to end up achieving very little and very often revising all the plans.

Dependencies are another critical factor that often gets overlooked. Your initiatives don't exist in isolation - they impact each other and other parts of the business. Understanding and planning for these dependencies can make the difference between success and failure. We still sometimes have a tendency to think and plan our initiatives in silos. However, Procurement is a function that is inevitably involved in a wide network of connections with other processes and areas. Examples: Accounting, legal, security, quality management, risk management, etc..

And please, let's not forget about change management. It's not just a buzzword - it's crucial for initiative success. I've seen technically perfect projects fail simply because the human factor wasn't properly considered. I will perhaps write a separate article on this, because this point is essential, but is often underestimated.

Making Your Initiatives Successful

Success in implementing initiatives comes down to three key elements.

1. First, ownership needs to be crystal clear. I always say, if everyone's responsible, no one's responsible. Each initiative needs its dedicated owner who feels personally invested in its success.
2. Second, planning needs to be realistic. Oh God, each of us could probably point out thousands of examples here where it was clear right from the start that this project couldn't work. So break down your initiatives into manageable chunks, set clear milestones, and always - always - plan for contingencies. And yes, add some buffer - things rarely go exactly as planned. And we must not be shy about pointing out these risks to our top management. Some may think that this is a sign of weakness. NO! That's exactly what we are paid for, to flag such things and bring them to the fore. Top management will trust us all the more to act with consideration, knowledge and experience.
3. Finally, regular review and adjustment is crucial. The business environment changes rapidly, and your initiatives need to adapt. Monthly or weekly progress reviews and quarterly strategic alignment checks aren't bureaucracy - they're essential tools for ensuring your initiatives stay relevant and valuable.

The Dynamic Nature of Initiatives

Remember, your list of initiatives shouldn't be set in stone. As business conditions change, be ready to add new initiatives, stop those that no longer align with objectives, and adjust priorities based on emerging opportunities or challenges. The goal isn't to complete a list of projects - it's to drive real value for your organization.

What are your experiences with procurement initiatives?

How do you ensure they deliver the promised value?

I'm particularly interested in hearing about initiatives that really moved the needle for your organization.