3 Ways CPOs Can Get Ahead in 2020 and Beyond
3 Ways CPOs Can Get Ahead in 2020 and Beyond
The business landscape in 2019 is a more complex place than ever before: Between trade “wars,” the ever-increasing pace of technological change, global economic and political uncertainty, and the ongoing struggle to find and retain the best talent, Chief Procurement Officers (CPOs) around the world face a litany of new, challenging risks.
Yet there is also virtually unparalleled opportunity to master that complexity in the new year, obtain a competitive advantage, and turn these challenges into opportunities. So where does the modern CPO start?
Deloitte’s 2019 CPO Survey has uncovered three key areas where CPOs can invest smartly in their businesses, make strategic changes, and move forward with confidence to thrive in an uncertain world. By partnering effectively with the business as a whole, embracing disruptive digital technologies, and addressing talent challenges, CPOs can become masters of complexity.
Work With – Not Just For – Business Leaders
Business partnering is not just a key priority for technology leaders, human resources, or other relevant stakeholder relationships CPOs have. Increasingly, the procurement function – which connects the business to suppliers in every corner of the globe and is more entwined than ever with business strategy – has begun to lead business strategy and take a vocal role in the C-suite. Where ten years ago procurement was often not even considered a component of the C-suite, let alone a leader, today’s CPOs are more influential than ever before.
Significant challenges accompany that responsibility. Only 26% of CPOs surveyed described themselves as “excellent” internal business partners, a slight increase from 24% in 2018. IT, finance, and operations were most likely to rate procurement effectiveness as “excellent,” which demonstrates some strength in key business functions. For others, business partnering can open the door to more effective procurement strategies and wider business value.
