In this episode, Michiel de Bruijn, a procurement lead at Bloomreach, shares his journey in the field of procurement and discusses the challenges and strategies involved in software procurement. He highlights the importance of understanding the specific needs of the business and aligning procurement objectives with overall business goals. Michiel also emphasizes the significance of cost reduction, turnaround time, and compliance in procurement. Additionally, he explains the complexities of cloud procurement and the need for benchmarking and understanding the metrics and criteria of different cloud providers. Michiel also highlights the need for compliance and privacy considerations when dealing with AI applications. The future of procurement, according to Michiel, lies in direct access to data, community platforms for sharing experiences, and aggregator platforms for standardized pricing and contract terms. He advises aspiring procurement professionals to gain experience through internships and to reach out to industry experts for guidance.

Takeaways

- Align procurement objectives with overall business goals

- Focus on cost reduction, turnaround time, and compliance

- Understand the complexities of cloud procurement and the need for benchmarking

- Software procurement requires Apple-to-Apple comparisons and benchmarking

- Benchmarking is crucial in procurement to ensure fair pricing and transparency

- Compliance and privacy considerations are essential when dealing with AI applications.

- Managing a multifunctional procurement process requires prioritizing risks and customizing the process accordingly.

- Optimizing software contracts involves understanding the scope, documenting requirements, and tracking savings.

- The future of procurement includes direct access to data, community platforms for sharing experiences, and aggregator platforms for standardized pricing and contract terms.

- Aspiring procurement professionals should gain experience through internships and seek guidance from industry experts.

- Success in procurement is defined by making small daily impacts, enjoying the work, and continuously learning and adapting to new challenges.

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Quotes

“Procurement is still such an undersold profession.”

“The great thing about the profession is that everything I do is with people, for people, and yeah, so it's very people-oriented.”

“Ironically… every crisis for procurement is a good one because like suddenly procurement gets a voice.”

“[Cloud spend is] way more about utilization, and optimizing utilization and infrastructure versus the actual negotiation.”

“Without benchmarks, you're just kind of standing out in the street naked.”

“[As a negotiator] don't change too far away from your personality.”

“You're not negotiating with another company, you're negotiating with a person.”

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Where to find Michiel de Bruijn:

LinkedIn: https://www.linkedin.com/in/meldebruijn/

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Where to find Bloomreach:

Website: https://www.bloomreach.com/en

In this conversation, Srini Phatak, the Deputy CFO and Controller at Unilever, shares his journey and insights as a finance professional. He discusses the importance of experiencing different parts of the world and embracing middle-class values. Srini also highlights the compelling combination of hunger, humility, and the art of the possible that drives Indian executives to succeed. He emphasizes the significance of trust, confidence, and meritocracy in career progression.

Srini provides valuable advice on managing multinational companies, including the importance of understanding the business, people, and culture, as well as making choices and simplifying operations. He also discusses the role of the CFO and the finance function in delivering value creation and sustainable cash flows. The conversation with Srini highlights the importance of focusing on key drivers of business success, such as growth, profit, and cash. He emphasizes the need to go beyond just focusing on outcomes and instead focus on the enablers of those outcomes, such as volume growth, penetration, consumption, and premiumization.

Further, Srini discusses the importance of managing risk and making winning choices in business strategy. He explains that risk management is not restrictive, but rather a growth enabler. Additionally, Srini shares insights on organizational design, talent management, and the role of finance in driving value creation. Srini also talks about the importance of understanding consumer habits and preferences in the CPG industry and how they influence brand strategy and innovation. He shares insights on building a strong organizational culture and the balance between global and local cultures. Srini defines success as creating an impact in the business and with people, making a difference in external communities, and making suitable work-life choices.

Takeaways

- The combination of hunger, humility, and the art of the possible drives Indian executives to succeed.

- Trust, confidence, and meritocracy play a crucial role in career progression.

- Understanding the business, people, and culture is essential for managing multinational companies.

- Making choices, simplifying operations, and delivering value creation and sustainable cash flows are key responsibilities of the CFO and the finance function. Focus on the key drivers of business success: growth, profit, and cash.

- Identify and focus on the enablers of the outcomes, such as volume growth, penetration, consumption, and premiumization.

- Risk management is not restrictive, but a growth enabler.

- Make winning choices in business strategy by considering the opportunities and risks involved.

- Finance plays a crucial role in driving value creation by providing a holistic view of the business and being a co-pilot to business partners.

- Attract and retain talent by offering challenging opportunities, personalized development plans, and a stimulating work environ...

The Importance of Decisions in Business

In the fast-paced world of business, decision-making is a critical skill that can significantly impact an organization's success. However, contrary to common belief, effective decision-making isn't about making numerous choices daily but rather focusing on making fewer, yet more impactful decisions. Let's explore the nuances of decision-making in business and why it's essential to prioritize and perfect this process.

Evaluating Upside and Cost

In business, decisions are rarely about finding a single "right" or "wrong" answer. Instead, it's about evaluating the potential upside and the associated costs of realizing that upside. This means that every decision should be weighed carefully, considering both the benefits and the risks involved.

For instance, when evaluating a new market entry, the decision isn't just about the potential revenue but also about the costs and risks, such as regulatory challenges, competition, and operational complexities. The key is to balance these factors to make informed decisions that align with the organization's strategic goals.

The Paradox of Decision Quantity

A common misconception in large organizations is that more decisions equate to better management. However, making too many decisions can stifle innovation and hinder the organization's agility. In reality, successful organizations empower their teams to make decisions at various levels, reducing the burden on top leadership and fostering a culture of autonomy and responsibility.

As a leader, it's crucial to focus on fewer, but more significant decisions. These are the strategic choices that have far-reaching implications for the organization's direction and success. By concentrating on the big decisions, leaders can ensure they have the time and resources to make these choices thoughtfully and effectively.

The Role of Objectivity

Objectivity is a cornerstone of effective decision-making. Leaders must bring a balanced and unbiased perspective to the table, especially when making critical decisions. This involves gathering relevant data, considering diverse viewpoints, and analyzing the situation from multiple angles.

Objectivity also means being aware of cognitive biases that can cloud judgment. By fostering an environment where facts and evidence take precedence over personal opinions or preconceived notions, leaders can make more rational and well-informed decisions.

Enabling Conversations

A significant portion of a leader's role is to facilitate and enable meaningful conversations around important decisions. This involves creating a collaborative environment where team members feel comfortable sharing their insights and concerns. By engaging in open dialogues, leaders can harness the collective intelligence of their teams to arrive at better decisions.

Enabling conversations also means breaking down silos within the organization. Cross-functional collaboration can provide a more comprehensive view of the potential impacts of a decision, leading to more holistic and effective outcomes.

Making Big Decisions Right

Ultimately, the goal is to ensure that the big decisions are made correctly. This requires a deliberate and structured approach to decision-making. Leaders should:

1. Define the Decision: Clearly articulate the decision that needs to be made, including its scope and significance.

2. Gather Information: Collect relevant data and insights from various sources to inform the decision.

3. Evaluate Alternatives: Consider multiple options and weigh their potential upsides and costs.

4. Engage Stakeholders: Involve key stakeholders in the decision-making process to gain diverse perspectives.

5. Make the Decision: Commit to a decision based on a thorough evaluation of the available information.

6. Monitor and Adjust: After implementin...