On the recent episode of the Procurement Reimagined podcast, host Daniel Barnes engaged with Rachel Hassall, a prominent procurement leader and Board Member at RiteSize. Their conversation unveiled a profound reflection on the common pitfalls within the procurement profession. Hassall’s candid acknowledgment of her “biggest mistake” struck a chord: she focused excessively on payment terms and savings targets, neglecting the broader business outcomes that her role could foster.
This realisation emerged when she transitioned into a managerial position, compelling her to quantify her contributions and those of her team. The exercise illuminated a significant oversight—her narrow framing of procurement’s impact on the organisation. “I underestimated the value that I brought to the organisation … I didn’t articulate it,” Hassall remarked, highlighting a struggle that many procurement professionals experience.
The conversation has wider implications for the procurement field. A sole emphasis on cost reduction can obscure valuable opportunities for fostering growth and innovation. Indeed, as executives increasingly prioritise revenue generation, innovation, and speed to market, the procurement narrative must evolve. By recalibrating their approach, procurement teams can assert themselves as integral partners in driving business development rather than mere back-office cost cutters.
A transformative mindset is essential, shifting from viewing savings as an end goal to recognising them as vehicles for reinvestment into critical growth initiatives. Hassall advocates for positioning savings as enablers for marketing campaigns, research and development projects, or new product launches. This perspective not only elevates the role of procurement but also enriches the dialogue with other departments.
To operationalise this shift, Hassall suggests conducting what she terms a “Goal-Swap” conversation with cross-functional counterparts in Marketing, R&D, and Operations. By aligning goals and understanding the pressures each function faces, procurement professionals can identify areas for collaboration. Key questions to guide these discussions might include, “What targets are you chasing this quarter?” and “Which initiatives are non-negotiable for you right now?” Documenting these insights allows procurement strategies to be fine-tuned, ensuring alignment with broader business objectives.
The importance of this shift is further underscored by the gender dynamics present in procurement. Hassall points out that social conditioning often discourages self-promotion, particularly among women. As a result, many professionals may downplay their contributions, inadvertently reinforcing a narrative that diminishes their perceived value. To counter this, she encourages procurement practitioners to frame their achievements in terms of business outcomes, showcasing how their work contributes to organisational success.
For teams looking to enhance their impact, three quick wins are proposed: translating metrics into business language—for example, framing “£2m in savings” as “£2m reinvested in product innovation”—showcasing success stories through short case studies, and encouraging every team member to articulate how their category supports corporate objectives.
This conversation is reflective of a broader movement within procurement as professionals strive to transcend traditional roles and cultivate a value-centric mindset. According to various industry insights, including those from leading firms and analysts, procurement must not only align with executive priorities but also embrace technology, foster collaboration, and cultivate skills that resonate with the evolving business landscape.
As procurement evolves from a perceived cost centre to a dynamic value creator, the imperative to articulate its contribution becomes ever more vital. When procurement leaders and teams successfully translate their efforts into strategic business outcomes, they solidify their roles as essential partners in steering their organisations toward future growth and innovation, firmly embracing the nuanced value they provide.
Reference Map
- Procurement Reimagined podcast episode featuring Rachel Hassall.
- Strategies for transforming procurement into a strategic business partner.
- Tactics for rapidly enhancing procurement performance.
- Steps for enabling procurement teams to become business partners.
- Overcoming resistance to change within procurement teams.
- The evolving role of procurement as a value driver.
- Managing innovation through strategic procurement practices.
Source: Noah Wire Services
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