Today I ran into this inspiring research paper from the Hacket Group describing their model of assessing the capabilities to deliver procurement value. The model is based on the assumption that procurement organizations will only manage to increase value by increasing their influence on different target groups.
- Customers
-
Suppliers
-
Shareholders, Board of Directors, Regulators
-
Employees
-
Requisitioners
The circle of influence describes 5 different levels of influence ranging from “Assurance of supply” (Level 1) to real “Value Management” (Level 5) for each target group.
So go ahead and do a quick benchmark for your organization. Knowing your level of influence will definitely help you to focus on the right next steps in your purchasing transformation program.
You can download the research paper with the circle of influence thru this link http://www.thehackettgroup.com/research/capabilitymodel/ (registration is required but really worth it).
