How to achieve results in strategic sourcing projects by building the Stool of Success.
Brian Bahnsen
Sourcing and Vendor Management Consultant
John, a friend and strategic sourcing colleague, was struggling with how to finish vendor negotiation with a positive outcome. He was struggling to guide the business stakeholder (the businessperson in his company responsible for that particular vendor relationship) to the right outcome. John is a good at what he does. He is technically proficient in strategic souring and has a lot of experience.
In our conversation, he asked for suggestions about what to do to help the business stakeholder see the total value of the potential outcome. He was frustrated that a good deal was within reach, but the client just couldn’t see it like he could. It was clear the stakeholder was opposed to really working a deal that may result in change for he and his team; But he couldn’t seem to figure out why he was operating that way.
The answer for John, and for all of us negotiating deals on behalf of our colleagues on the business side of things, goes beyond applied technical strategic sourcing skills. The bigger picture is around some of the less technical, yet incredibly important, elements (or competencies) as seen through the eyes of our business colleagues.
Remember, business colleagues are often people that do some of what we do (work deals). We are there to augment their team in times of heavy workloads. Candidly, they have much less interest in our technical ability as a strategic sourcing pro. So, we have to work to look beyond that and focus on their priorities. What matters to them?
Working a successful strategic sourcing outcome stems from a proficiency in understanding and achieving the full value proposition. It’s like sitting on a 3-legged stool. There’s a balance to it. If one leg is too short or even missing, the stool doesn’t work. Practically speaking, that means we have to be able to see beyond indemnification clauses and limitations of liability. We have to see beyond price and consider total cost of ownership and/or the cost of change. And it means that things like relationships and good communication matter as much as what is traditionally defined as technical proficiency in strategic sourcing.
How can we expand on that in practice?
Let’s stay with the stool metaphor to keep things tangible…the Stool of Success! Let’s start with the end in mind. The seat. Success is the seat, the top of the stool and is what we all are striving to achieve: a firmly grounded and stable place from which to position ourselves, perhaps take a break, enjoy our wins, or study opportunities. Again, you will only achieve this if the legs are equally solid and provide the stability and strength necessary to hold you up.
So, we need 3 legs, or areas of focus to support the seat of success:
Communication. This is the first leg of the stool. Communication is curious as it takes many forms. Not all are effective. The important part here is that you have established an approach for what people in your project should expect from you, when they should expect it, and possibly what they should do if they feel that something is amiss. Good communication sets the tone for the second leg of the stool of success.
Expectation. Many people simply want to have the expectation that something will be delivered and, most importantly, the who/what/when/why/where/how of the matter. The key to getting this leg put into place is to deliver on what you say with your project teams, your leadership, whomever fills in your “blank” in this scenario. While it may seem that this is not always possible, I would suggest that it is possible if you have implemented the communication leg effectively.
So, you ask, what does that mean? It is rare air when things go exactly as planned in a strategic sourcing project. Yet, by proactively setting and managing expectations of all project stakeholders along the way, the actions being taken, the challenges presenting themselves, and the adjustment to the original plan, stakeholders have situational awareness in “real time.” As a result, regardless of the delivery date, stakeholders see that you: 1) care; 2) follow thorough; 3) communicate; and 4) provide a means to react.
Absent this, human nature is to make something up and, I don’t know about you, but when I make something up…it generally has a bit of the dramatic included. I mean, who likes to see a boring movie or read a book with no plot twist! So, all I am saying here is, do not give a person an opportunity to “fill in the blanks” with a rogue narrative. By proactively communicating and managing expectations, you will undoubtedly develop the relationship!
Relationship. It’s exciting to see it all come together! Relationship is the third leg in the stool of success. This leg cannot be underestimated. And it’s a tough thing to get right…especially in the workplace. Remember this…we generally awake in the morning with good intentions. We, regardless of the company we work for or the person we report to, want to accomplish great things with our business partners, and make a positive impact on what is good for those with whom we collaborate.
When you effectively communicate and set expectations…and then deliver on said expectations, you will set the foundation for a solid relationship. However, if you don’t succeed in doing what you say, you will damage your credibility and possibly that of your organization. This is easy, yet so many people either fail to do it or simply don’t try. The answer: Say what you will do and do what you say you will…easy as that!
To bring it full circle, the seat of the stool is “Success”. The three legs are: “Communication”, “Expectation”, and “Relationship”. If you communicate the expectation, you will develop the relationship. Be sure and consistently monitor all 3 legs. Seek feedback from your project stakeholders as part of that effort. If any leg is short, make adjustments to rebalance. You can manage through a temporary wobble, just don’t lose a leg!
So, how did John’s story end? Well he managed to apply the Stool of Success to his situation and managed to achieve a win-win for all project stakeholders. John also has been able to achieve more value on other projects too.
One final note about the impact of the Stool of Success…because it works to earn and nurture trust and good will; strategic sourcing professionals inevitably develop deeply rooted relationships for future projects. This is particularly valuable when the team journeys through uniquely challenging projects.
Build your Stool of Success with intention and you will rest in the seat of success!
Seprio University Announcement
The true depth of the aforementioned best practice is too much to bite off in a blog post or you’d see more here. In fact, it’s why Seprio University is soon to launch the SCN (Seprio Certified Negotiator) and SMCN (Seprio Master Certified Negotiator) education paths. Based on the state of the union with respect to professional proficiency in strategic sourcing negotiating, it’s a market imperative. We all have to raise the bar in protecting business priorities and contracting better. To get shortlisted for the pilot, click here.
About the Author
Brian Bahnsen
Sourcing and Vendor Management Consultant
Brian’s relationship with Seprio goes all the way back to 2006. During his career, he has established himself as an expert in the areas of: Risk Assessment, Risk Mitigation, Outsourcing, Strategic Sourcing, Supplier Relations, Supplier Diversity, Contract Negotiations, Contract Administration, Procurement, Vendor Management, Governance and International Regulatory Affairs.
As a Sourcing and Vendor Management Consultant for Seprio, he brings his vast knowledge to our team. Brian’s interactions among a diverse group of individuals within compliance, PMO, legal, audit, and strategic sourcing, provides a consultative leadership approach to our clients regarding complex initiatives impacting their organization. Working to evaluate current practices and serving as a thought leader recommending “best in class” programs, processes, and agreements make him the perfect fit.
Brian has a BA and has held a variety of roles in management. He has been a member of Sourcing Interests Group, International Association for Contract and Commercial Management, holds his Certified Contract Management Expertise classification, and served almost 10 years on the Iowa Chapter of the Leukemia and Lymphoma Society’s Board of Trustees.
In his free time, he and his wife enjoy spending as much time as possible traveling in their RV, seeing their kids, and experiencing all of the many vineyards and breweries in Iowa and beyond.