Sourcing - Knowledge and Skill Acquisition

Introduction

As sourcing (strategic sourcing and outsourcing) organizations attempt to move from transaction based to strategic business partner and beyond, the most significant issue they face is developing the internal skills and competencies required to make that dramatic shift.  No longer purchase order processors, world-class sourcing organizations recognize the need to reduce their dependency on external consultants and develop a higher level of sustainable internal capabilities.

To sustain the benefits realized through sourcing, high-performing organizations must be created and staffed with skilled resources that are able to break down the barriers of change and move with agility through the company.  These resources need to be savvy enough to work in organizations that may want to realize the gains without recognizing and dealing with the pain.   

The Challenge

Most traditional purchasing functions play a more tactical role than strategic. The role of the sourcing function is dramatically different and should be aligned with the organization’s strategic goals and objectives, in many cases reporting to the CEO.

In addition, sourcing requires a set of skills that are more in-line with a consulting practice. Keep in mind sourcing emerged from the consulting world.  Therefore, sustaining the benefits of sourcing requires consulting skills to be embedded in your internal organization. The sourcing professional needs to be an analytical thinker, proactive communicator, negotiator, salesperson and most especially a change agent.  Sourcing is a dramatic change for any company and as such, the sourcing resources must be equipped with skills, tools and processes to lead that change. 

Observation

A carefully crafted knowledge and skills acquisition program can create world-class sourcing professionals.  Such a program enables an organization to reduce its dependence on external consultants and boosts its own organization’s competitive advantage.  A combination of action learning and on-the-job reinforcement characterizes a strong knowledge and skills acquisition program.  Such a program emphasizes:

The world class sourcing professional requires three sets of skills:

• Strategic sourcing process skills

• Change management skills

• Consulting skills

These skill sets comprise a holistic approach to knowledge and skill acquisition for the premiere sourcing organization that creates value for its enterprise.  A strong knowledge acquisition program can provide sourcing professionals the skills and competencies to lead change and be recognized as world-class resources. 

Anne M. Kohler is EVP  & COO of The Mpower Group.  Anne built her own sourcing organization from scratch and has worked with multiple Fortune 100 companies to develop Knowledge Acquisition programs for their sourcing organizations. Anne can be reached via email at annek@thempowergroup.com.