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EntreprocurialTM is the idea that procurement should behave like an entrepreneur in order to help deliver an organisation's growth ambitions.
It is a mindset that procurement professionals should adopt to stay relevant in today's changing world.
There are 3 Rs in Entreprocurial, literally as well as figuratively, that provide a framework for procurement to think in this way:
1. Stake your Reputation: Entrepreneurs stand by their ideas and the decisions they make, even in the face of pressure to do otherwise.
2. Be Ruthless: Successful entrepreneurs focus only on four or five things that make a difference.
3. Stay in the Room: A phrase heard often from the mouths of innovators, this involves making difficult and objective decisions and not taking the easy option.
iInnovation is a top investment priority across all sectors of procurement, according to PA Consulting's 2016 Procurement and Innovation Report.
However, 90% of innovations fail, with financial constraints during development cited as the main reason. Procurement is in a uniquely influential position as regards to these financial constraints and, in turn, the success or failure of innovation, through its management of third party spend and those relationships.
Yet, often, procurement's role is one of unfulfilled potential, where it stays in its comfort zone of contributing bottom line savings.
In a world where the pace of innovation is unprecedented and is necessary for survival, procurement must be flexible and agile. Adopting an Entreprocurial approach pushes the function towards that all-important top line contribution.
Procurement can continue to stay in its comfort zone. However, adopting new behaviours and focusing on the top line gives vital innovations a better chance of succeeding. It's time for Procurement to get Entreprocurial.
Co-written by Natalie Henfrey and JJ Van Der Meer, procurement experts at PA Consulting Group.
This contributed article has been written by a guest writer at the invitation of Procurement Leaders. Procurement Leaders received no payment directly connected with the publishing of this content.
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