Global Leaders in Procurement & Negotiations (

Procurement Leaders – Take This Performance Test

If you are a procurement leader, the onus is on you to make a difference.  I’m seeing a lot of CPOs getting better results at traditional activities, but is that what we really want?  Just meeting and exceeding cost savings goals is a very 1990’s accomplishment. 

Here’s a quick questionnaire (Yes = 3 points, Sometimes/Maybe = 2 points, No/Unlikely = 1 point)

  1. Does your company have a CPO, and does that CPO report to a CXO, giving procurement a seat at the table with the C-Suite?
  2. Is your organization viewed and minimally funded like a cost center, or more fully funded as a profit center, such as the with the sales organization in your company?
  3. Do the business units pull you into deals early not because they have to, but because they see the tremendous value that procurement brings to the table?
  4. Sales people spend 20% of their time in training.  Is your organization, who is negotiating with sales, keeping up with this in a fashion that systematically elevates organizational capability?
  5. Are your procurement professionals adept at driving influence of product and service designs for cost and total cost reductions with the business units?
  6. Are your procurement professionals trained in how to architect Value Creation negotiation strategies through investigative negotiations, allowing them to achieve greater savings than through traditional supplier profit compression strategies?
  7. Are you soliciting innovation ideas from your suppliers as a regular course of business, including inviting feedback on every spec and SOW to see if they know of a better way to solve that problem at a lower total cost? 
  8. Have you transformed your procurement processes/templates/tools from end to end to negotiate and contract for PERFORMANCE RESULTS instead of goods & services? 
  9. Do your procurement professionals know how to surgically identify and remove unnecessary costs from the supply chain?
  10. Are your procurement high level strategies, savings, and accomplishments clearly listed by the CEO in your company’s annual report?

How to score:

25 – 30: World class procurement organization with a CPO that is driving a leadership agenda

20 – 24: Above average procurement organization with CPO leadership results and opportunities.

15 – 20: Improvement required procurement organization with CPO needing to take significant actions to elevate organizational capability.

< 15: Back-office procurement organization with legacy practices and legacy results.  Overhaul required on all fronts.  

These 10 areas above are the core focus areas of the CPSCM™ Certification Program, which almost half of the Fortune 100 have invested in over the past 5 years. 

How did you score, and what are your learnings from taking this quiz?

Now go off and do something wonderful.  Be your best!

Omid G. “THE Godfather of Negotiation Planning” ~ Intel Corp  

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