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Jennifer Ulrich is an Associate Director at Source One, a Corcentric company. Ulrich is a Procurement Transformation and Strategic Sourcing Expert and Supply & Demand Chain Executive Pro-to-Know, with extensive experience leading large-scale sourcing initiatives in both direct and indirect spend in industries including biotech, medical devices,... pharmaceuticals, CPG, and more. Trusted advisor with cross-functional knowledge of Procurement and Supply functions. Develops Transformation Roadmaps as well as provides customized training on Strategic Sourcing, Contracting & Negotiations, Spend Analytics, Category Management, Procurement Process Improvement, and Supplier Relationship Management. More

Broken Procurement Theory

I recently read about ‘Broken Windows Theory’ from a 1982 Atlantic article by George L. Kelling and James Q. Wilson. It is a criminological theory that suggests small but visible signs of public disarray, such as broken windows, abandoned vehicles, litter, and disorderly behavior, create an environment that encourages more serious crime and a systemic breakdown in orderly conduct. Kelling and Wilson note:

“This is as true in nice neighborhoods as in rundown ones. Window-breaking does not necessarily occur on a large scale because some areas are inhabited by determined window-breakers whereas others are populated by window-lovers; rather, one unrepaired broken window is a signal that no one cares, and so breaking more windows costs nothing.”

This means that no matter how affluent or destitute the neighborhood, no matter who inhabits it, a non-compliant action will inevitably inspire further non-compliance.

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How to Maintain Your Seat at the Table (Even if you aren’t there yet)

Procurement organizations often note one pursuit above all else: getting a seat at the table. I think we have coined this phrase more than any other in the procurement space in the last decade. If you’re not familiar with this concept, it is the desire for procurement to been viewed as a valued asset in strategy building and decision making by its customers: the broader organization. Put simply, procurement wants to be heard early and clearly by their internal peers.

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Establishing Trust in Transformation

When working with transformation advisory clients, we often talk about the role of procurement and the need to change how they are perceived within the organization. Changing stakeholder perceptions is not an easy task, nor does it happen overnight.

So where do we begin? Stakeholder relationship management.

To effectively and efficiently run a business, you need two simple elements – someone to spend the money and something to spend the money on. In other words, your stakeholders and your suppliers. There are many other complexities to be ironed out, like where the money comes from (revenue) and who assigns the authority to spend it (governance). Procurement acts as the liaison in this process, serving as the key intermediary between stakeholders and the suppliers.

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