Humility and discovery
The journey of procurement transformation Project partners
Humility and discovery
The journey of procurement transformation Rachel Lemos, Director, Procurement at Canadian Western Bank, shares her experience as a leader in procurement in times of great change...
Written by
Dale Benton
Produced by
Richard Deane
H u m i l i ty a n d di scover y: Th e jour ney of p ro cu rement t ra n sfo r mat i o n
3
W
hy is procurement and
consider, be they amidst a transforma-
procurement transforma-
tion journey or not: what are you trying to
tion, such a leading topic of
solve? The answer is something which
discussion for organisations the world
most, if not all professionals reading this
over? It’s no secret that the last 12 months
will recognise, but few will admit and take
in particular have shone a light on the
the time out to address. “People really
procurement function and all the ways
don't know and they're merely trying to
in which it has allowed many organisa-
copy what somebody else did success-
tions to mitigate the impacts of the global
fully somewhere else,” adds Lemos. “We
COVID19 pandemic, but procurement
are guilty in places of losing sight of what
has been on its own transformation jour-
we really need or what we are trying to
ney for the best part of two decades now.
solve. We’re looking to ride that wave
So, where do we stand on procurement
of procurement transformation and say
in 2021? To borrow a clichéd (and some-
‘Let's do something about it!’, which ends
what blinkered) expression, has it earned
up with us just breaking things that were
its seat at the table?
working instead of solving problems.”
“I truly believe that we still need to move away from the reactive nature
The changing face of procurement
that sits at the very core of procure-
Lemos, a procurement professional with
ment,” explains Rachel Lemos, Director,
more than two decades of experience
Procurement at Canadian Western Bank.
under her belt, started her procurement
“We're constantly trying to solve things,
journey like many almost by accident.
therefore we need to be in a much more
While earning a degree in international
forward looking position in procurement
affairs with plans to be a diplomat, Lemos
in order to be on a transformation journey
found herself working with import and
at the right time, in trying to resolve the
export processes and her eyes were
right problems. The challenge for many is
opened to the world of procurement.
that they are trying to solve problems that
Working for an organisation which was
are not there to solve, or they're not look-
multi-national and multisite, she was
ing into the right space.”
exposed to a lot of the complexity of the
Lemos highlights a key question that all procurement professionals must
supply chain and procurement world. Long story short, she ‘fell in love’ with it.
H u m i l i ty a n d di scover y: Th e jour ney of p ro cu rement t ra n sfo r mat i o n
Rachel Lemos, D i r e c t o r, P r o c u r e m e n t , C a n a d i a n We st e r n B a n k
www.cpostrategy.com
5
Get the 5 steps to revolutionize Accounts Payable Get Steps Now
Elevating the art of procurement with Michael Van Keulen, CPO of Coupa Software The COVID19 pandemic brought disruption that was felt the world over and still remains today. From a procurement perspective, adversity brought opportunity and transformation was accelerated for many, as procurement entered the spotlight of most if not all business conversation. In 12 months, organisations have propelled their procurement functions to levels of maturity that they would not have achieved for another five years. The biggest catalyst for this acceleration is the recognition by the C-suite. “It’s about risk and supply chain visibility. What do we know about our suppliers? What do we know about their relationships? What do we know about contingency to those suppliers, and all business operations?” explains Michael Van Keulen, CPO of Coupa Software. “The C-suite now understands that procurement is here to provide business critical answers.” Where once such things like risk mitigation, visibility, compliance and control were mere necessities, procurement functions are now being positioned to turn those into competitive advantages. Visibility is key to procurement transformation and COVID has catapulted this need for it, but with this acceleration comes the risk of rushing to find an answer to a question we don't actually know yet. It’s important that we
focus on people, process and technology to fully capture the value procurement brings to the table.
“Historically, organisations had a very siloed approach to this thought process. It’s changing and the technology is allowing us to change rapidly,” “Procurement functions need to be built with people from different backgrounds, not just procurement. We’ve spent far too long simply talking to ourselves, NOW is the time to elevate the art of procurement.” This changing profession is signified not only by the traits, but by the process. Procurement is no longer defined by the business coming to procurement, it is now very much part of strategic planning. It connects internal stakeholders and aligns them with suppliers through Strategic Relationship Management. This is procurement of 2021 and technology plays an integral role in enabling this seamlessness. “Procurement should lead the transformation conversation and it’s fundamental that you partner with the business to fully understand what the business needs, what strategic objectives we have as a company and what it means to drive adoption,” he says.
“While procurement leads with cross-functional stakeholders, it’s important to recognise that in some instances you don't have all the answers and expertise. This is where you can rely on partners that do have expertise which you can leverage. Digital savviness is something you absolutely need in procurement, but we don't all need to have it. As a leader, working with a partner that can help you access that and implement it across your organisation is critical.” Procurement has, for better or worse, always known the value it brings to a business. The challenge it has and continues to come up against, is storytelling. Results, savings and data speaks the loudest and so procurement has to improve the way in which it communicates its value proposition and why it’s worth investing in now and in the future. “Storytelling is critical and procurement does not do it well enough,” says Van Kuelen. “So what's the secret? Understand what you would tell your CEO, or any key stakeholder, about the value proposition you bring. Understand why procurement is uniquely positioned and qualified to do that better than anybody else.
If you have the right “elevator pitch” and articulate why procurement matters, they will listen.”
“A joke I often tell to other procurement professionals is that I got to spend large sums of money that are not mine to spend,” she laughs. “But there is variety. It's different every day and you're always challenging yourself to see how you can improve, how you can do better.” Fast forward 20 years, and Lemos finds herself in a position where she can call upon these formative procurement years and her diplomacy skills to build a procurement function at Canadian Western Bank from the ground up. Her diplomacy skills have also been in great use over her career, as not only has she witnessed and experienced this great shift in procurement first hand, but she’s also come up against the barriers and the challenges of being a woman in largely
may be experiencing with a lot of diplo-
male dominated industry space. These
macy and be prepared to start difficult
are a crucial part of hers and any female
conversations sometimes, and touch on
procurement professional’s story.
the discomfort of other people when you
“We're far away from where we should be. But we see that there is a change,
are sitting at that leadership table.” A key part of the procurement journey
there's a trend and there's willingness for
is enabling positive change for an organ-
organisations to develop more and more
isation and Lemos recognises the duality
women into leaders,” says Lemos. “My
of her role; to enable positive change for
personal experience has shown that the
a business from a procurement perspec-
more you progress in your career, the
tive, but also to enable positive change as
more challenges you face because you're
a female leader and to open the doors to
dealing with something that people are
future female leaders. “I have a responsi-
just not comfortable with. You have to be
bility to coach, to inspire, to mentor,” she
prepared to deal with the discomfort they
says, “I take personal time to do that. It’s
H u m i l i ty a n d di scover y: Th e jour ney of p ro cu rement t ra n sfo r mat i o n
“ We are guilty in places of losing sight of what we really need or what we are trying to solve. We’re looking to ride that wave of procurement transformation and say ‘Let’s do something about it!’, which ends up with us just breaking things that were working instead of solving problems” — R a c h el Lemo s Direc to r, P ro c ure m e nt , C an adi an We ste rn B an k
not only with my team. Very often I get
itself. Results are not gender based and
people asking me to help them and be
they speak for themselves and they
their mentor. Interestingly enough, I have
speak loud many times. So if you present
also received a few invites from men in
results, if you do your best, you're in the
procurement for mentoring too, which I’m
right place and you will succeed.”
always happy to provide.” “It is a responsibility. You can't just
A journey begins
dismiss that. You're not here just to look
A procurement journey on paper sounds
into your career path, but what you do
fairly simple to some degree. Here is
in your career influences others. My
where you are, here is where you want
advice for females is this: come with an
to be and here is how you’re going to get
open heart and with a winning attitude.
there. But as Lemos has already high-
Give your best, be humble to learn, step
lighted, the why is often something that
back when you need to and be ready to
gets lost and so identifying the why is
advance when the opportunity presents
perhaps the biggest and most important 9
part of the journey. Aside from winning
the data. A centralised function requires a
results of course.
deep understanding of the data. “So, how
For a CPO coming into a business
do we bring this all together under that
looking to deliver real change, Lemos
umbrella of the pre-commencement func-
believes it starts with analytical system-
tion?” adds Lemos. “You begin with that
atic process review. She is humble
systematic approach to learn and to see
enough to admit that as a CPO ‘you don't
what you are trying to establish and what
know a lot of things once you join any
you are trying to solve.”
new organisation’. Day one must be a day of learning, what works, what does
You don't know what you don't know
not work and what's missing. The next
Lemos is a firm believer of recognis-
key step is answering the question: how
ing that you don't know what you don't
does that interlink and interface with
know, and when given the keys to the
the existing processes that procure-
procurement kingdom you need to find
ment and other areas of the organisation
out and find out fast. The systematic
already has in place?
approach will allow you to get so far, but
“How am I responding regularly to a
there will come a time when you need to
requirement, as opposed to creating
bring in expertise from market leading
things that I just like, and were successful
vendors who can help you on this jour-
in my previous role,” says Lemos. “You will
ney of discovery and benchmark against
get nowhere believing that your process
the best of the best. “You have to go to a
is bulletproof. So you have to look at what
source that you can trust, right? There
you have and think about how about you
are a lot of good sources out there that
partner with the business to align the
can be fantastic today and then be your
procurement function. It becomes a case
disaster tomorrow. You really need to
of, we're solving our problem and helping
know where you are looking for infor-
you in solving yours, together.”
mation,” she says. “I wanted to run an
As seen in many procurement organ-
analytical process to find the best solu-
isations the world over, a centralised
tion for us, but I was trying at the same
function works. But one cannot advance
time to be very efficient, not go out and I
the function without a system, such as an
know that there's like thousands of soft-
ERP system, that allows all of the busi-
ware solutions. I was looking not for a
ness to look at the spend knowledge and
solution,but for a partner in that journey
H u m i l i ty a n d di scover y: Th e jour ney of p ro cu rement t ra n sfo r mat i o n
C h r i s F o w l e r, President and CEO, C a n a d i a n We st e r n B a n k
to be with me and provide the guidance
to be there, but this is balanced against
that I was seeking.” Here Lemos speaks
the need for a true partner. But what
of COUPA and how a partnership with
makes a true partner? And what makes
the company brought clarity. This is
a partnership count?
where we're going. As a procurement
“It starts with very candid communication
professional, one must consider the
between both parties, creating that rela-
ROI, and the key benefits it brings to the
tionship where you really feel that there's
organization. Cost benefit analysis has
a true partnership there,” affirms Lemos. 11
Global Business Spend Management Advisory & Implemention Experts Our Services • Digital Transformation & Customer Strategy • Post Merger Integration • New Product & Service Development
Our Expertise
• Legal Spend Optimization
• Analytics & Reporting
• Procurement & Strategic Sourcing
• Change Management • Operational Strategy
• Travel, Expense & Meetings Management
• Process Engineering
• Shared Services
• Program & Project Management
• Technology Solutions
• Systems Implementation
Think+Do
www.acquisconsulting.com Spend follows the path of least resistance. For that reason, transforming the procurement function is something more and more organisations are beginning to embrace. Similar to recent transformations in the IT space, in which technology and organizational structure were once roadblocks to progress, procurement is beginning to evolve. Often seen as a blocker to end-user comfort, procurement wasn’t customer focused or customer facing. The procurement arm was seen as a hard stop from a buying perspective. “Procurement is now evolving to focus on end-user experience. Their end customers are users and employees of the organization, as well as vendors,” explains Tyson Moore, Spend Management Leader and SVP at Acquis Consulting Group. “The conversation and focus is beginning to shift from strict compliance to compliance-with-ease. Meaning, let’s ensure that we’re getting the best price possible, establishing and maintaining the best vendor relationships and focus on how our employees can effectively be good stewards of the organization. It all starts with making the process easier for them.” This is where technology and software plays a key role. Implementing focusing on user experience, that once arduous process is transformed into something that users can follow
with relative ease and even enjoy it in the process. With transformation, the benefits may be clear to see from a procurement perspective, but change management is vital in making those benefits visible to the wider organization. It is no secret that some organizations will struggle. “Why do we need to focus on procurement if we’ve never issued requisitions or POs before? What’s the benefit?” - these are key questions that procurement leaders continue to face. Without proper communication and training, your answers will fall flat. “We help our customers focus on the change assurance components of deploying their procurement policy, as well as the technology, to provide a holistic, executable plan of success,” explains Moore. “Instead of driving policy and communicating that you’re going to start requiring requisitions and PO’s for business spend, using that as the lever to ensure compliance, we help clients re-focus that conversation to highlight different areas where the transformed procurement process is actually faster and easier to use than the status quo.” The idea is to sell the benefit of the transformative procurement process to users and suppliers with data and clear examples of why this new process will
actually be better for them, turning them from blockers to evangelists. Transformation is nothing new, but it is unique to every organisation in its own way. To approach transformation with a one-size-fits-all approach is to fall at the first hurdle. Every organisation has its own goals and own view of what procurement transformation means to them. “When somebody like Acquis partners with an organization on its procurement transformation journey, we feel like they should really focus on the why more than anything else,” he says. “The key is to find the right partner to help your organisation reset that understanding and explore the conversation in both quantitative and qualitative ways in order to identify the why. The how then comes organically. What really makes this type of transformation and partnership truly successful is looking at it as a conversation between friends and allies, and engaging the right partner as your trusted advisor. You need a partner to be focused and obsessed with your organisation’s success.” Tyson Moore Business Spend Management Leader and SVP
Certified Partner
“Partnership is kind of a buzzword that
other: how can you fit into this? How do
sometimes people use in different ways,
you think you can help me with this? How
but we are talking about a relationship
do we fit together in this journey?" she
that's fluid and real.” She continues:
says. “That's how you build partnerships.”
“There’s an old mindset when it comes to suppliers. One that says if you don't
The challenges of change
work within my boundaries, within my
It goes without saying that a journey of
rules, then you're not for me. That's not
change involves a great deal of challenge.
the way you build a relationship with your
The last 12 months and the COVID19
suppliers. That will never become a part-
pandemic have undoubtedly presented
nership.” So what does she advise? Talk
some of the greatest challenges for us all
constantly, not when a supplier issue
and while procurement has found itself in
arises. Remove the belief that it’s an obli-
an increasingly elevated position thanks
gation of the supplier to start a conversa-
to the success stories, it has not been
tion and challenge one another as much
without its difficult moments.
as possible. “You have to be asking each
It is natural to celebrate the successes
H u m i l i ty a n d di scover y: Th e jour ney of p ro cu rement t ra n sfo r mat i o n
and to shine a light on the moments of real
Lemos examines the internal factors
achievement, but what can we learn from
that we can control and we can avoid if
it? As Lemos has already highlighted,
we simply take a step back and look at
success can often breed a misguided
them differently. A common challenge
demand for repetition in places where it
that many CPOs face is that once set out
simply cannot be replicated. So how do
on a roadmap, things within their project
we learn? “You have to take the opportu-
timelines do not perfectly align with other
nity to learn from the failures and believe
people's timelines. Why? Because you
me, there are always failures,” she laughs.
need the input and involvement from
“I tell my team It's OK to make mistakes
those other people and other business
provided that we're learning from them.
lines. “You have to create that wiggle room
If you're not learning, then you're not
to accommodate this and deal with these
making yourselves any favour.”
self-imposed deadlines that we place
Challenges, and indeed failures, can
upon ourselves as you navigate through
come from a number of different factors.
changes,” she says. “Just step back, talk
These can be external or internal and
about it, figure this piece out and set a
“ Results are not gender based and they speak for themselves and they speak loud many times. So if you present results, if you do your best, you’re in the right place and you will succeed” — R a c h el Lemo s Direc to r, P ro c ure m e nt , C an adi an We ste rn B an k
15
new date when need be. No problem.” So it’s as simple as that then? She
procurement journey is the people. There are many platitudes spoken of how
continues; “Easier said than done. It’s
people make procurement and how a
not an easy exercise for me as I'm a
function is nothing without it’s team. But
very goal oriented individual, but I have
what is actually being done, as opposed
learned that we make mistakes when we
to simply being said? Lemos is quick to
pay more attention to the deadlines than
inform that as a leader she has a respon-
trying to do the right thing. Give yourself
sibility to take the proper time to assess
time to do those things. There's a lot of
her teams and to understand and support
silent fear in the workplace. Fear of fail-
their career goals. Talent is crucial and
ing. As a leader, it’s important to empha-
when change is constant it can be easy
sise that we learn from any mistake we
to lose that talent as you focus too much
make. Remove the fear and you get a
on what can be, rather than what it is. “You
much more productive and bolder team.
should always keep an eye on and review
That’s how we grow, that’s how a leader
what type of talent you have and how you
helps their teams to flourish.”
are working to retain those talents,” she says. “It’s really the responsibility of the
The people in your procurement
leader to assess, understand, see what
Something that often gets lost in the
the gaps are in your people. Can we build
H u m i l i ty a n d di scover y: Th e jour ney of p ro cu rement t ra n sfo r mat i o n
Rachel Lemos Director, Procurement, CWB Rachel is a strategic and highly results-oriented procurement leader with over 20 years’ experience in international companies in the North and South America. With a diverse experience both in public & private environments, Rachel has dealt with the complexity associated with supply chain operations, procurement, with proven ability to deliver a world-class procurement, driving results that directly affect the top and bottomline of highly-regulated organizations. Credentials include: MBA in Supply Chain & Logistics, Bachelor’s degree in International Relations, professional designation as a Certified Professional in Supply Management (CPSM) & Executive Business Leadership certified.
17
“ Success is borne out of the people surrounding you. You cannot think of success by looking to one person, one leader - that’s a failure right there” — Rach el Lemo s
D i re c to r, P ro c ure m e nt , C an adi an We ste rn B an k
H u m i l i ty a n d di scover y: Th e jour ney of p ro cu rement t ra n sfo r mat i o n
in time to develop? Do those individuals
our resilience and our ability to adjust and
want to develop? Because you can’t just
adapt to new things,” says Lemos. “We
assume they are open to change.”
were all forced not just in procurement,
This isn't the sole responsibility of
to adjust and to adapt to the realities.
Lemos, or other CPOs, alone. It’s a shared
There’s no human contact at the moment,
responsibility of all levels of the leader-
so how do we keep our presence and
ship team to get together and have what
how do we keep our delivery to a level
she describes as “mature and honest”
that we can show our true value. That's
conversations that identify what the
where I say that it's our moment to shine.
endgame is, what’s needed to get there,
Reach out to the vendor, let's start having
and identify any gaps in our teams that
the conversation. Let's look at ways we
need to be addressed. “Success is borne
can prove the value that you bring to
out of the people surrounding you. You
their organisation, even though we have
cannot think of success by looking to
to work differently. Adapt together and
one person, one leader - that's a failure
shine together. With your teams and with
right there,” she says. “It's becoming rare
your vendors.”
to see leaders taking interest in people's
It goes without saying that the world
journeys and career goals. You need to be
has changed and the way that we as
candid. You need to be honest, and you
people, as well as procurement profes-
need to be having those conversations
sionals, go about our daily lives and
and that’s how you grow your team and
approach our jobs and our teams. What
achieve any form of success.”
once was perhaps considered a sure
The focus on people has shifted further
fire way to success, if such a thing ever
in light of the last 12 months. Perhaps now
existed at all, has been ripped apart over
more than ever before, leaders have been
the last 12 months. One could argue that
forced to rethink the way in which they
procurement was already ripping apart its
engage with their teams on an emotional
own rulebook long before COVID, but it’s
level as well as a professional level. The
undeniable that the pandemic has indeed
pandemic has been a leveller and a reset
exacerbated it. So what does a CPO
button, as we have all been forced to shift
like Lemos do now? What does she call
and adapt to a new environment entirely.
upon to help guide herself and her teams,
“It has been an opportunity for procure-
forward into this new world? “I really
ment to shine and it speaks a lot about
believe in three things that have certainly 19
helped me in my journey in a way that I feel is successful,” she says. “Be humble to learn, be a good listener and be creative. I think being a good listener is something that a lot of people are lacking and that can be a career rendering element. You need to listen, you need to rethink how you listen to people and before you put your ideas out there, digest what you heard, reformulate your thoughts and then present.” This is perhaps the most important advice Lemos would give to any procurement professional and certainly something she would tell her younger self during her formative procurement years. And as procurement journeys continue to formulate all over the world, in every industry at every turn, she feels this humbleness to learn may very well be the one key to success as these journeys continue to take hold, continue to explore new opportunities and continue to evolve. She continues: “Keep a constant open and innovative mindset. There's always something new and always something to learn about. You can always be learning something new right now and finding entirely different ways to approach your everyday life and job.”
H u m i l i ty a n d di scover y: Th e jour ney of p ro cu rement t ra n sfo r mat i o n
2021 Women of Inspiration™ Nominee Rachel has been nominated as a 2021 Woman of Inspiration, run by The Universal Women’s Network. An WmA is an extraordinary woman who leads by example, lives on purpose and inspires others to be more and do more. She is a modernday hero, game-changer, mover and shaker, and role model who leads by example. With courage, confidence, commitment, and integrity, she inspires others to go further, making a ripple impact across her community and around the globe. We are moving the needle to recognize the achievements of women making an impact locally, nationally and globally. Recognize the leaders within your organization and champion to advance women in business.
21