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Services Spend Compass
Making Procurement a Services Spend Ally: Tips and Tactics for Winning over Business Stakeholders and Spend Owners
Jason Busch, Executive Editor, Spend Matters
Spend Matters analysis suggests that procurement organizations that market themselves effectively drive greater identified and implemented savings across both simple and complex services categories. More important than getting initial savings to stick, companies that successfully market procurement will succeed in creating a virtuous cycle that sparks enthusiasm for new and existing programs. When it comes to both contingent and non-contingent spending categories, procurement organizations are always most effective at winning over business stakeholders when they change their orientation from one as function to one as service provider.
Companies measure services providers such as IBM, Infosys and EDS based on their ability to deliver upon a variety of contracted expectations including price, quality, on-time performance and compliance. Businesses should measure procurement groups in the same way—and procurement should take the lead in inviting this type of examination, especially when they’re involved in taking ownership of services spending categories. In their approach, procurement teams must think of themselves as ambassadors, conducting positioning and marketing campaigns accordingly. But getting the right type of attention from finance, operations, and P&L owners is not simply as easy as parading in a ROI model to justify incremental head count or the latest and greatest technology. This Spend Matters Compass series brief provides tips and tactics for winning over stakeholders.
Download the third paper in the Services Spend Compass series to learn more about how to accelerate services program success by building excitement and momentum for your procurement programs. Much of the underlying philosophy — though not the examples — within this brief are also relevant for procurement organizations seeking to build momentum for their services in general (outside of just services categories), not to mention HR, IT and other constituents seeking to drive services procurement success as well.