Climbing the Ladder: How to Get Noticed for Your Performance and Become the Next Chief Procurement Officer
With a wealth of experience in procurement transformation and digitalization, I am a seasoned Chief Procurement Officer, author, and thought leader. I have authored two books on procurement (available on Amazon) and share my insights through a popular LinkedIn newsletter. I am dedicated to helping professionals excel in procurement and achieve their career aspirations.
In this article, I will share key strategies to help you climb the ladder and become the next CPO while getting noticed for your performance.
Understanding the Role of a CPO
A Chief Procurement Officer (CPO) is more than just the top authority in the procurement department; we are a pivotal force in driving the company's overall performance and strategic direction. The CPO is responsible for making strategic decisions, managing the procurement team, and ensuring that the company's procurement processes align with organizational goals. However, to truly understand the depth and impact of this role, it's essential to recognize how the CPO can challenge the organization and transform procurement into a key driver of revenue growth, innovation, cost efficiency, and better business integration.
Driving Revenue Growth: Procurement is often seen as a cost center, but a visionary CPO can turn it into a revenue generator. By negotiating favorable terms, securing quality supplies, and fostering strong supplier relationships, the CPO can ensure that the company not only saves money but also gains competitive advantages. For instance, I have negotiated exclusive supplier agreements that provide the company with unique products or services that competitors cannot access. This exclusivity can drive sales and enhance market positioning.
Fostering Innovation: Innovation in procurement can lead to significant improvements in product development and service delivery. If we actively seek out innovative suppliers and cutting-edge technologies, it can bring fresh ideas and processes into the organization. This proactive approach can lead to the development of new products, improved quality, and faster time-to-market. In one of my previous roles, I set up a small and highly experienced procurement team which unique role was to work on supplier’s innovation. My first book is dedicated to this subject as I see it as a critical value driver.
Achieving Cost Efficiency: Cost savings remain a core focus, but achieving true cost efficiency goes beyond negotiating lower prices. It involves optimizing the entire procurement process, from supplier selection to payment. A visionary CPO must be able to set up an organization with strong analytical skills which can identify inefficiencies and implement process improvements that reduce waste and lower costs. Implementing digital procurement tools, such as e-procurement platforms, automated invoicing systems, AI-enabled RFQ automation, etc… can streamline operations, drive additional competition and reduce administrative burdens, leading to significant cost reductions.
Enhancing Business Integration: Effective procurement is not an isolated function but a well-integrated part of the overall business strategy. We must ensure that procurement activities are aligned with the company's broader objectives, such as sustainability, risk management, and corporate social responsibility. This alignment requires close collaboration with other departments, such as finance, operations, and marketing. It goes beyond supporting the company's financial goals but extend to being the key links in between the different part of the organization
The Pivotal Role of the CPO
To lead procurement to achieve these goals, you must possess strong leadership, sound financial judgment, exceptional negotiation skills, and a strategic mindset. Here’s how a CPO can embody these qualities:
-Strong Leadership: The CPO must build, inspire and lead a diverse procurement team, fostering a culture of continuous improvement and innovation. This involves setting clear goals, providing ongoing training and development, and recognizing and rewarding achievements.
-Sound Financial Judgment: Understanding the financial implications of procurement decisions is crucial. It involves a balanced approach to managing costs, assessing risks, and making strategic investments that support the company’s long-term financial health. The CPO must lead his team into optimizing spend, conducting thorough cost-benefit analyses, implementing risk mitigation strategies, investing in technology, assessing supplier stability, and aligning procurement with financial goals,
- Exceptional Negotiation Skills: Negotiating favorable terms with suppliers is a core responsibility of the procurement function. The CPO must build strong relationships with the largest and most critical suppliers, understand their motivations, and support his team to negotiate contracts that deliver value to both parties.
- Strategic Mindset: We must align procurement strategies with the company’s long-term goals. This involves thinking beyond immediate needs and considering the future direction of the company and the industry. For example, investing in sustainable procurement practices can enhance the company’s reputation and appeal to socially conscious consumers.
Steps to Becoming a CPO, getting ready !
To become a Chief Procurement Officer, it's essential to expand your horizons, get qualified, develop strong analytical skills, and embrace digital transformation.
Start by taking on diverse roles within your organization, such as finance, operations, and sales, to gain a broad perspective. Even without rotating in different functions, use your role in procurement to learn and absorb the knowledge of all the teams you will be interacting with.
Seek opportunities in different industries to understand varied procurement challenges and strategies. I worked in different industries (airline, baby food, sport nutrition, information services & technology, telecom,..). This move allowed me to bring innovative procurement strategies from one industry to another, resulting in creating different and more value into each role.
Network widely by joining industry groups, procurement conferences and use all opportunity to engage in discussions. It helped learn about different procurement practices and apply them to your own work.
Pursue relevant certifications and participate in training programs to stay updated with the latest trends and tools. I took all possible opportunities to learn soft and hard skills. Additionally, I enrolled in a Master in Strategic Business Management and developed broader operation capabilities and general management knowledge across all core functions of an enterprise (Sales, marketing, Finance, Supply Chain,...).
Stay informed about the latest digital tools in procurement and propose new technologies within your organization. It is important to build a robust foundation of diverse experiences, qualifications, analytical skills, and digital expertise, positioning yourself to become an effective and impactful CPO.
Those are just a few points, but they are important ones and will help you to build the right expertise and experience. Additionally, you need to have some more building block and get noticed to make it into a leadership role.
Getting Noticed for Your Performance
To get noticed and demonstrate readiness for a Chief Procurement Officer role, a procurement manager should focus on showcasing their impact and leadership capabilities.
Begin by delivering exceptional results through strategic procurement initiatives, achieving significant cost savings, improving supplier relationships, and streamlining procurement processes. Actively seek out opportunities to lead cross-functional projects demonstrating your ability to manage diverse teams and align procurement strategies with broader business goals.
Get a senior mentor, seek feedback and refine your approach. Regularly communicate your achievements and the value you add to the organization, leverage your mentor as well to get access to more senior leaders to showcase your achievements and get more insight on the organization’s priorities. Additionally, embrace continuous learning by pursuing relevant certifications and staying updated with industry trends, further proving your commitment to professional growth.
By following these strategies, you can climb the ladder to become the next Chief Procurement Officer and get noticed for your performance.
Remember, the journey to the top requires dedication, continuous learning, and a strategic approach to procurement.
Piece by: Nicolas Passaquin, CPO, Telia