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Organisations often neglect to involve talent when thinking about their annual plans – leaving undeveloped talent and unachieved objectives.
So, you’re starting to think about next year…The plans, processes, programmes and activities that will drive you closer to meeting or exceeding your targets and objectives. Building an annual plan, is never easy. It must identify potential risks as well as assess how procurement can help the business meet its strategic objectives.
Market-leading organisations typically have a clear strategy and procurement teams have a clear view of the role they will play in delivering on those objectives.
Commitment from the top executive team is central to building and maintaining this business-first mindset. These leaders not only excel at articulating the importance of talent management but are also heavily engaged in their functions’ practices. They demand that their line leaders be accountable for spotting, developing, and retaining the next generation of leaders.
That commitment is essential to recruitment — the next important building block in a superior talent strategy. HR executives often have little patience for executives who talk a good game about the importance of their teams but then cut management and professional development at the first sign of thinning margins. Leaders who are sceptical about making substantial and continual investments in their people have already lost the war on talent.
Procurement chiefs have long been advocates of talent management and enhancing leadership skills within the function. However, Procurement Leaders’ Leadership in procurement strategy report showed a perception of weakness in this area over the last few years. In fact, 88% of purchasing executives said the function lacked leadership skills while 34% said that there was a significant skills gap, which proves that further investment is needed in these areas.
CPOs and HR managers need to work together, to make sure their talent policies are built to support the organisation’s annual plan. But, like an annual plan, these policies need to be continually reviewed, to ensure they can respond to changing conditions.
Getting this right can make all the difference. It creates an authentic connection between how a company presents itself as an employer and how it seems on the inside to its employees.
It gives a sense that promises made are promises kept. Authenticity paves the way for transparency. This is not an easy place to get to, but when employees know what it takes to perform, develop, grow, and succeed, they trust that their organisation can and will support their needs.
Teams are the backbone of any organisation. The better a team, the better the product or service that the company sells.
To get that strong team in place, a leader needs to invest, plan and develop individuals.
According to Forbes research, the talent management market is currently valued at $5bn, with a growth rate of approximately 17%.
This investment in performance management is unsurprising, according to the Deloitte Global Human Capital Trends study, which cited the top three challenges for organisations as retention, engagement, and culture; building a global leadership pipeline; and the need to revamp and improve employee learning.
Procurement Leaders’ research shows that organisations who are weak at planning are, typically, also unclear on their priorities and strategies, and so strategic decisions are reactive rather than proactive and have a far too narrow focus on procurement.
So as you start to plan for the year ahead, it’s important to both get your talent policies in place, and use the talent you have at your disposal to help ensure your plans succeed.
This article is a piece of independent writing by a member of Procurement Leaders’ content team.