The
Hidden Specification
23
April 2015, Iain C. Steel
Using an entirely unscientific
method (asking the small handful of people sitting in my
immediate vicinity) I discovered that a recurring frustration
amongst procurement professionals is that we are regularly
still having to fight for our profession to be invited to the
table sufficiently early to really make an impact to the
outcome of a project.
Sure, there are many organisations where a policy specifies
that the Procurement Department ‘must’ be involved in supplier
selection and that (based on specified values) tenders or
quotes ‘must’ be sought to justify expenditure, however, the
fact that these policies exist shows that getting the
procurement department involved is still not seen as a normal
part of doing business with a supplier.
Most of us will have, at some point, discussed or even
bemoaned ‘maverick’ spend by our colleagues, the term itself
conjuring up images of someone going against the grain or
fighting the orthodoxy, but why is it that this is the default
state of our professional colleagues? After all these
years of professionalising the procurement function, why are
we still an afterthought? Surely, the stakeholders
should be knocking down our doors for our invaluable advice
and guidance?
Is it personal?
In a word – yes, I believe it is, but not personal about
procurement. It’s the personal that’s the problem -
we’ve forgotten how real people actually buy.
We are, all too often, trying to take the ‘personal’ out of
the selection process. We will legitimise this as a part
of the process by discussing “objectivity”, “need verses
want”, “not going for the gold plated versions”, or even “good
verses good enough” but by doing this we the ones going
against the grain as to how people make a buying
decision. We’re the mavericks.
In our real lives, I suspect that most of us would happily ask
for a couple of quotes for work to be done in our homes, but I
wonder how many procurement professionals would consider it
‘normal’ to write a tender document to buy a kitchen or a send
a PQQ before deciding which company was right to provide our
new car. I suspect not many, it would just feel a bit,
well, wrong…
How would our significant others and loved ones react if we
said that they couldn’t know how much the new bathroom was
going to be before they had evaluated and scored the response
to the 25 page document covering the installation, ease of
use, CVs of the sales team and the quality of their reference
sites? The evaluation criteria? That was all determined
and documented up front when we got a ‘bathroom user group’
into a couple of meetings ‘round the dining room table to
determine how important the noise of the flush was relative to
the speed of toilet lid closure. Again; wrong, wrong,
wrong!
Outside of the office when make a purchasing decision, we do
still use buying criteria but they are more intangible and
difficult to pin down. The ‘normal’ buying decisions are
more about how we feel about a product or service, how it will
impact us directly, our perception of the product, whether it
is considered ‘cheap’ or ‘prestige’ and so on. At face
value, these more personal criteria may not seem useful or
sufficiently objective to make good a buying decision, but,
back in the office, these are the criteria that correlate to a
hidden specification that the stakeholder is really
using to judge the success of the buying process. By
ignoring these normal, personal buying criteria we are at risk
of not fully understanding what is important to our
stakeholder.
So, can we bring the personal back into our impersonal
processes?
As a profession, we need to step out from behind our RFPs,
RFQs, SLAs and ERPs and start to talk - using real words -
with our colleagues about their world (OMG!). We need to
stop talking about specifications and criteria and get good at
listening to what actually matters to the people themselves.
If your stakeholder has a preferred supplier for something –
instead of treating this with suspicion and assuming that this
is a ‘pet’ supplier and ‘too comfortable’ a relationship - ask
your stakeholder why their supplier is so good. Once
they’ve told you about the warm, fuzzy feelings they get from
being looked after, ask them specifics; How do they know they
are being looked after? What traits are particularly
valuable from the relationship? How often does the
supplier need to show that they’ve done what they’ve
asked? How often does it happen? What would happen
if they didn’t? What would they see if things weren’t
going so well? How do you know? What extra
measures would your stakeholder have to do to cover for what
they’re not getting from the supplier? And so on, and so
on.
By speaking on a personal level, what you are starting to
build is not only a more detailed understanding of the
specific thing you are helping to buy, but you are also
building a description of the anticipated service levels your
stakeholder really needs to experience and getting the
specifics of the minimum acceptable criteria before the
stakeholder needs to take action. Yes, you’re building
rapport and trust and in so doing, a professional relationship
with the real people behind the technical spec but you’re also
getting a better spec. This isn’t just about building
relationships; it’s also about doing good procurement.
There’s another plus point. Procurement should be about
getting the best supplier at the best price – not about
getting the supplier who is best able to respond to another
technical spec tender. The hidden specification will
allow you to better evaluate what is really the best supplier
for your organisation. It won’t be just a cut and paste
from their last tender response – they need to give you the
specifics against what your stakeholders really need to make
them feel cosy with their suppliers and, by adding a little
procurement expertise to the mix, it’s likely to be specific,
measurable and well documented, too.
So, next time you have a stakeholder or internal customer who
is less than enthusiastic about the procurement process, why
not make it personal. They probably have a good reason
for why they want the Rolls Royce over the Mini and, being a
procurement professional, it’s up to you to find out what the
hidden specifications are that make the difference between
your internal client seeing you as an annoying and disruptive
box ticking exercise and a value-adding business partner who
deserves their place at the table.
(This
article was first published in the April 2015 edition of
In-procurement Magazine, pgs. 37-38).
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