NAEP Annual Meeting The Magic of Collaboration & Partnership

1. NAEP Annual MeetingThe Magic of Collaboration & Partnership Orlando, FL April 7 – 10, 2013

2. Collaboration and Partnership Roy Anderson EVP Procurement Services 470 514-3640(O) 978 857 3868 (C) www.metaprocure.com

3. Budget Conversation with My Wife Give up Wine Give up Shopping Give up Salon

5. The Modern Chief Procurement Officer Patrice N. Knight VP IBM Corporation November 13, 2012

6. Albert Einstein on Collaborative Problem Solving Option 1 Einstein humbly suggested that the cause of the problem might be in the mirror Option 2 Einstein isn't talking about a "level" of thinking, but rather about a "way" of thinking. We need to adopt a new perspective if we want to solve a problem. “One should not expect to solve a problem with the same level of intelligence that caused it.” Albert Einstein

7. It’s About the People “Innovation has nothing to do with how many R&D dollars you have. When Apple came up with the Mac, IBM was spending at least 100 times more on R&D. It’s not about money. It’s about the people you have, how you’re led, and how much you get it.” [Fortune, Nov. 9, 1998]

8. Ben Franklin • Strive to be authentic. • Be honest with yourself • About what you want • Why you do what you do Raytheon Savings King

9. Ben Franklin Build relationships with people you can trust and they can trust you

10. Make friends before you need them Speaker of the House Tip O’Neil Including but not limited to: Provost, Athletics, Admissions AP, Finance, Audit, Legal, IT, Department heads Facilities, Alumni Relations, Endowment, Core Suppliers

11. Ben Franklin Set very few priorities and stick to them Plan time to work on your priorities Turn down things that are inconsistent with your priorities

12. Ben Franklin Do so frequently Do not practice on your Spouse Get good at saying no

13. is he still wrong?” "If a man speaks his mind in a forest, and no woman hears him,

14. Change the Mind Set • Be Provocative • If you want an inspiring and challenging environment you need to break out of the mundane. • Shake your team up • Praise Creativity • The team needs to see and believe that creativity is a priority and rewarded

15. Procurement Stock Donate to a Family Homeless Shelter

16. Change the Mind Set • Liberate creativity by inviting all to attend • Every discipline has scope for creativity • Brainstorm • Tell the team to come to the meeting with ideas • Drives new and radical thoughts

17. Leaders and Partners Need to Know When to • Silence can be golden. The minute bosses speak, everyone positions themselves in relation to them

18. Innovation Drives Success “The cure for Apple is not cost-cutting. The cure for Apple is to innovate its way out of its current predicament.” [Apple Confidential: The Real Story of Apple Computer Inc., May 1999]

19. Presentation on Change Management with Engineering and Manufacturing I have to work with Procurement? Never!

20. Is Procurement the problem?

21. Burning Platform Cut your Budget 10-30% Build New Capabilities Be More Responsive Make Business Agile Think Strategically Drive Innovation Reduce Risk Control Costs Photo by Wilka Hudson

22. Procurement • CFO • Save Money • Fewer people, lower acquisition rate • Operations • On time, On budget, No errors • Audit • Everyone follows the Policy • Innovation • Is Innovation in our goals

23. Raytheon St. Valentine's Day Massacre with Pictures - 1929 - Al Capone True Crime Story Patriot Missile System

24. Raytheon Patriot Missile System Total change of thinking Provided a 5 year horizon to invest A 5 year recovery New tools New approach Succeed or go Bankrupt

25. Mind Sets that block change • Not made here • Winner takes all (eat your young concept) • Not in my job description

26. Moat Builders • Moat builders

27. Alternative to Change

28. “80% of all professional jobs will change dramatically in the next 15 years” - Tom Peters Re-Imagine- March 2004

29. www.scottmcleod.net

30. SEA Change Simplify the process Eliminate the valueless Automate the mundane

31. Raytheon Electronic Data Interchange

32. Give Credit to everyone • Credit you give yourself is not worth having. Irving Thalberg http://www.brainyquote.com/quotes/keywords/credit.html#ZFsb1lRxmriokPIv.99 It is amazing what you can accomplish if you do not care who gets the credit. Harry S. Truman

33. Change Enablers • Leadership Team • Organization /Infrastructure • Category expertise • Analytics • OGSM *Sourcing Interest Group (SIG) Procurement Transformation on the Fast Track: Doing More with Less, February, 2010 Denali Group John Evans Managing Partner, Alpar Kamber Partner

34. Common Language • Objectives • Long term solution • Goals • Date and Number • Merit Review and Bonus • Strategies • Specific actions that you take to meet the Objective • Measures • Measure the change • Reward the drivers • Give credit to everyone

35. Change Enablers • Leadership Team • Organization /Infrastructure • Category expertise • Analytics • OGSM • Clear Vision and Mission *Sourcing Interest Group (SIG) Procurement Transformation on the Fast Track: Doing More with Less, February, 2010 Denali Group John Evans Managing Partner, Alpar Kamber Partner

36. Vision

37. Vision Trip to moon and safely back Highway system Rural electrification Educational system K-12 E bay

38. Vision Wireless Laptop on the Beach in Maui

39. Change Enablers • Leadership Team • Organization /Infrastructure • Category expertise • Analytics • OGSM • Clear Vision and Mission • Personal Development • Organized internal and external training program • Give them a place to go *Sourcing Interest Group (SIG) Procurement Transformation on the Fast Track: Doing More with Less, February, 2010 Denali Group John Evans Managing Partner, Alpar Kamber Partner

40. Top 10 Skills in 2015 • Lower Impact • Negotiation • Cost Management • Transaction Process • Rising Impact • Strategic Thinking • Team Work • Market Knowledge • TCO • Influencing • Change Management Kay Bayen (kbayen@eipm.org) is people development adviser at the European Institute of Purchasing Management, based in Archand, France

41. Change Enablers • Data and Information • Accurate, Complete • Readily available, Actionable Management by Embarrassment *Sourcing Interest Group (SIG) Procurement Transformation on the Fast Track: Doing More with Less, February, 2010 Denali Group John Evans Managing Partner, Alpar Kamber Partner

42. Four Tests • Crush Test, Emotion • Would I feel crushed if I was responsible • Right size the problem into "challenging but possible" • Results test • Large enough problem and resolution to make an impact

43. Impact • High impact and high ability to impact prioritization model. Hit your head against the wall Made your career • B • A • Impact • To • the • Company • C • D NO one Cares IT doesn’t matter • Ability to Impact

44. Four Tests • Crush Test, Emotion • Would I feel crushed if I was responsible • Right size the problem into "challenging but possible" • Results test • Large enough problem and resolution to make an impact • Amen Test, Excitement • Is the team excited to solve this problem • Get results to the user fast • Sandbox Test, Political • Do you have the right partners collaborating with you

45. Giant Sucking Sound Coined during the 1992 U.S. presidential campaign, referred to the sound of U.S. jobs heading south for Mexico should the proposed free-trade agreement go into effect. Ross Perot lost the election NAFTA went into effect on January 1, 1994.

46. Free Trade is Good for everyone vision

47. Giant Sucking Sound Result • Mexico has built a strong middle class • 40% of the goods sold are US made • Compared to 4% for China • Supporting 6 million US jobs

48. Procurement Imperatives • Be Innovative -Create, enable and develop innovation from the supply base • Massive Skill Improvement -Radically improved Procurement skills embedded in the LOB • Understand Risk -End to end risk aware supply chain ecosystem • Technology - On the cloud • Value Creation -Focus on value creation that impacts organizational success

49. Roy Anderson randerson@metaprocure.com 1-470-514-3640 https://twitter.com/#!/procureguyvp http://www.linkedin.com/in/royranderson Share your Ideas

50. Roy Anderson EVP Procurement Services 470 514-3640(O) 978 857 3868 (C) www.metaprocure.com