Do you have a plan for how your team will add value to your business’ objectives in 2012? I don’t mean serving user requirements or meeting their expectations. I mean helping them achieve their end goals. The chances are good that your business executives have some hot priorities for next year that include initiatives like grow faster than their key competitors, bring new products to market, acquire or divest a business unit, serve customers better, and be more profitable.
And whether they succeed or fail at those initiatives could depend on what sourcing and vendor management does. Pick the wrong suppliers, and the initiative doesn’t get implemented properly. Sign a bad deal, and the ROI your executives were counting on evaporates. Manage the supplier relationship ineffectively, and the initiative stalls.
That’s a lot of pressure for sourcing and vendor management (SVM) professionals. It also explains why all of the SVM pros I know are smart and tough – SVM is not the place for wimps.
As the leader of Forrester’s SVM Council, which will meet at Forrester’s Sourcing & Vendor Management Forum next month, I get to see first-hand how senior SVM pros take that responsibility seriously and how they work every day to bring more value to their organizations. We recently as a group spent time discussing 2012 strategic priorities. While there was a fair amount of detail, here are the top-level priorities for SVM executives in 2012:
· Delivering Cost Savings
· Reassessing Outsourcing Strategies
· Achieving Breakthrough Vendor Governance
· Rethinking Core Activities
· Addressing Emerging (And Not So Emerging) Technologies
· Managing Vendor Risk