Amidst the corporate politics of business, effective planning and robust project management can be used not only to promote successful on-time project delivery, but to ensure that procurement professionals are recognised as the driving force behind it.
Whilst the lion's share of Buyers create procurement phase plans for their projects, many aren't harvesting all of the benefits that they can bring.
Often, valuable time is invested in the creation of a procurement plan only for it to be either scrapped as inevitable delays happen or meticulously tracked without visibility within the wider project team.
By borrowing and applying some robust project management principles from our project management colleagues, procurement practitioners can unlock the true value of their project plans, cementing their position at the beating heart of the project.
Becoming a fully fledged PRINCE2 practitioner isn't necessary - nor is adopting all the fundamental principles - but translating the ethos into procurement-relevant key aspects can transform the humble plan into a powerful project management operation.
Don't go it alone
Engaging key business stakeholders is a must before any project plan can be drafted.
It isn't enough to find out their requirements. Yes, it is essential to understand their key dates, if they had planned (as customers all too frequently do) when the sourcing project would be launched to market, how long they feel suppliers will need to respond, when they need their contract to go live and any other relevant time information.
The insight is however, the crux of the engagement. Why do they feel suppliers will only require 3 weeks to respond? Why must a contract begin on the 21st December? Why don't they feel time should be allowed for negotiating Terms and Conditions?
Take time to understand the stakeholder's real project needs. Does a contract require a handover period? Is there a critical supply date for manufacturing? Is the project part of a wider delivery? What are the key deliverables?
Understanding this and showing appreciation will engage the stakeholder in the project plan and allow buyers to influence it to ensure its feasibility. Meeting a critical customer date, for example, is an excellent driver behind a plan. Meeting the expectation of an ill-informed director is not - not at the expense of the potential success of the project.
Keep it lean(ish)
Resist the temptation to build in 'fat' to the plan. This 'fat' truly represents inefficiency. Which can not only impact bottom line but erode the efficacy of the plan in the eyes of onlookers.
Including time risk allowance at a realistic level is ok - nobody expects all activities to run 100% smoothly - but elongating the duration of tasks opens up the avenue for stakeholders to challenge and belittle the plan in its entirety.
Don't skimp on detail (but don't overdo it)
Using the right level of detail in the procurement plan really helps it stand up to scrutiny. Mainly, however, it proves an immensely valuable tool for structuring the project and identifying any inter-dependencies between activities.
Don't overlook this as a source of value - identifying that a task or process needs to be brought forward - or can be pushed back - in a timeline not only ensures a smooth route to market for the project but helps stakeholders plan their resources effectively.
The detail level should be appropriate - which usually means very granular - for the upcoming phases of the plan, with less detail attached to subsequent phases. This is so as to avoid aborted effort when timelines shift or goals change. Be sure to granularise the next section of the plan well before reaching it.
Build in flexibility
Planning for the unexpected is obviously an impossible feat, but this doesn't mean that change won't happen.
Combat this by building a plan that can accommodate changes and deal with emergencies.
One of the easiest ways to build flexibility into a plan is to utilise recognised project management software, such as MS Project or Primavera. These both allow the planner to connect and sequence activities so that one change in duration or a delayed start will update all corresponding linked activities.
This is also very useful as a decision making tool when assessing the impact of a delay or adjustment to a timing. Updating a draft plan with the potential change will quickly show the impact to the overall project.
Issue regular project bulletins
Continue the theme of stakeholder engagement by issuing regular one-page updates to the wider stakeholder team and, if appropriate, management chain. This can encompass multiple projects if the stakeholder group is similar, and should provide updates on the progress of the sourcing project, key upcoming milestones, any differences to plan, and most importantly and issues which need resolving.
Using this update to raise issues provides visibility to all involved and prevents regular business issues being seen as a 'nasty shock' from the procurement department.
This process will also serve the purpose of flagging and agreeing any impact to the project as a result of timeline changes and articulate the reasons why decisions are taken.
Adopting sound project management for sourcing events will enable buyers to deliver effective solutions for internal customers. It might just earn them some credit for it in the process.
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