Understanding how human capital can positively impact on successful Procurement functions

ARTICLE ONE

Introduction

This topic is presented as a series of sub- articles pragmatically exploring the reasoning why an empowered quality-based HC component of your Procurement Management Portfolio, is vital to you the manager.
Tech companies naturally tout the benefits of their technological solutions within Procurement, and they do have a genuine sales point.
However human ability and knowledge most certainly still forms the core of anything that is accomplished by any organisation anywhere.
Understanding the impact of Human Capital (HC) on departmental efficiency and effectiveness, is a 101-management requirement for any Procurement Manager.

Point One: Management Impact

Taking a pragmatic view, having a capable and tactically empowered team is invaluable to any manager as it:
• reduces, or hopefully eliminates, the frustrating time required to micro- manage people and associated tasks, which consequently improves both your team, and your personal operational effectiveness. Consequently, your satisfaction with ‘another day at the office’ is vastly improved.
• builds reciprocal confidence, trust, mutual respect and overall positive professional branding between team members and you, their manager, and your various internal and external stakeholders.
• builds trust and confidence in your personal management abilities with your own superiors.
• because of all of the above mentioned, an effective professional and respected team is built with undoubted career opportunities for yourself and those within your team.

Point Two: Operational Impact

Managing an initiative-taking and professional team has the obvious operational result of:
• each member becomes an empowered self-managing professional in their own area of speciality, capable of tactical decision making and confident of those decisions they make, thus improving operational efficiency.
• reducing operational “stall outs” because of the individual member’s ability to make value adding tactical decisions.
• resulting in an intellectual resource pool that can be managed to ensure optimum and continuous operational efficiency of the overall procurement functionality.
• Building unity, confidence, and respect amongst the various team members and with management, which has an enormous impact on overall operational efficiency and effectiveness thru improved personal and team esteem.

In Article Two, I shall be covering Points Three and Four that deal with” Internal stakeholder and vendor perceptions” and” Product & Bottomline Impact” and how Procurement team members influence these both positively and negatively.

Please join me next time.