This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
Explore the Procurement Maturity Model developed by ex-McKinsey & Big 4 consultants. Understand strategic evolution from transactional to competitive advantage. Procurement Maturity Model is a 22-slide PPT PowerPoint presentation slide deck (PPT) available for immediate download upon purchase.
The Procurement function has advanced tremendously since 1980s. Starting with fulfilling a simple "buyer" function in the 1980s, to now playing a strategic role in prominent organizations. Procurement has come a long way over time and continues to grow increasingly sophisticated.
This PowerPoint presentation discusses a 3-phase Procurement Maturity Model, capturing how the Procurement function evolves from a transactional, centralized function, focused on Cost Reduction, to a strategic function, embedded within the business units, and a driver to Competitive Advantage. Each developmental procurement stage is marked by specific characteristics and milestones.
The 3 developmental phases of the Procurement Maturity Model are:
1. Inception – The first developmental phase is typically symbolized by centralization and a low level of trust in the Procurement system.
2. Development – At the Development stage, senior management (CEO, CFO and CPO) understands the importance and the need for change, and endorse the way forward, for Procurement to evolve into a strategic function
3. Agility – By this stage, Procurement & Sourcing resources and processes are integrated into the business so that they lie close to the pulse of the organization. Procurement best practices are truly embedded in the organization’s culture and business functions, in the form of a continuous cycle.
These sourcing maturity stages are discussed in depth within this framework presentation. By understanding the nuances of this Procurement Maturity Model, we can conduct a Procurement Maturity Assessment. Furthermore, this 3-phase approach can be leveraged as a Procurement Transformation framework, as the series of transformations from one stage to the next significantly increase the ROI of the Procurement & Sourcing function.
Additional topics discussed in this Sourcing Maturity Model presentation include the "Push" model, "Pull" model, "Embedded" model, among others.
This deck also includes slide templates depicting the 3-phase Procurement Maturity Model, Procurement Maturity Model Curve, Push Model, Pull Model, and Embedded Model for you to use in your own business presentations.
This presentation delves into the "Push," "Pull," and "Embedded" models, providing a comprehensive understanding of each. It also includes templates for the Procurement Maturity Model, aiding in the creation of your own business presentations.
The "Inception" maturity stage of the Procurement function is marked by centralization and a lack of trust. Only 20% of savings achieved are reflected in budgets, indicating a disconnect between procurement activities and financial recognition. Performance metrics are loosely tracked, suggesting inadequate oversight. The transactional nature of Procurement limits its role to downstream activities, hindering effectiveness and isolating it from core business functions. This isolation restricts insights related to needs and consumption, narrowing Procurement's focus to negotiating supplier margins. Transformation is necessary; Procurement should broaden its scope upward to engage leadership and sideways for cross-functional collaboration, enhancing its strategic value and moving beyond transactional tasks.
The "Inception" or "Push" model represents the first maturity stage of the Procurement function, characterized by a top-down approach where senior management sets performance goals and savings targets. This model illustrates a unidirectional flow of directives from senior management to stakeholders, including the Procurement Director and Buyers, indicating a reactive Procurement function with limited autonomy. Trust in the Procurement system is low, which can hinder initiative effectiveness as stakeholders may resist directives. Transitioning to a collaborative model may enhance trust and engagement, leading to improved procurement performance outcomes. Recognizing the limitations of a purely push-driven approach is crucial for organizations evolving their procurement functions.
This PPT slide outlines the third maturity stage of the Procurement Maturity Model, known as the "Agility" or "Embedded" model. At this stage, procurement is fully integrated into the business framework, operating collaboratively with organizational components. Key elements include the roles of senior management, country/business unit directors, and procurement directors, driving ambition and strategic alignment. This structured approach creates a funnel effect, ensuring alignment with organizational goals. Continuous improvement plans are central, indicating that procurement evolves through regular assessments. The diagram illustrates a virtuous cycle where prescribers, users, and buyers interact, emphasizing procurement as a collaborative effort crucial for leveraging savings and achieving shared ambitions. Organizations at this stage can expect sustainable value creation through enhanced operational efficiency and strategic decision-making capabilities.
The "Development" stage of the Procurement Maturity Model focuses on shared objectives between business stakeholders and the Procurement function. This phase emphasizes enhanced cross-functional collaboration and a "Pull" mindset to achieve savings targets. Senior Management aligns objectives across stakeholders, with both the Country/Business Unit (BU) Director and Procurement Director responsible for driving savings. The roles of Prescribers/Users and Buyers are crucial in executing the "Pull" strategy, shifting from a transactional approach to one fostering collaboration. This transition is characterized by aligned objectives and teamwork on a project basis, indicating a move towards integrated procurement strategies while still limited to specific initiatives. Strategic alignment is essential for operational efficiencies and cost savings.
Source: Best Practices in Maturity Model, Procurement PowerPoint Slides: Procurement Maturity Model PowerPoint (PPT) Presentation Slide Deck, LearnPPT Consulting
This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
For $10.00 more, you can download this document plus 2 more FlevyPro documents. That's just $13 each.
ABOUT FLEVYPRO
This document is part of the FlevyPro Library, a curated knowledge base of documents for our FlevyPro subscribers.
FlevyPro is a subscription service for on-demand business frameworks and analysis tools. FlevyPro subscribers receive access to an exclusive library of curated business documents—business framework primers, presentation templates, Lean Six Sigma tools, and more—among other exclusive benefits.
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.
Trusted by over 10,000+ Client Organizations
Since 2012, we have provided business templates to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
"The wide selection of frameworks is very useful to me as an independent consultant. In fact, it rivals what I had at my disposal at Big 4 Consulting firms in terms of efficacy and organization."
– Julia T., Consulting Firm Owner (Former Manager at Deloitte and Capgemini)
"As an Independent Management Consultant, I find Flevy to add great value as a source of best practices, templates and information on new trends. Flevy has matured and the quality and quantity of the library is excellent. Lastly the price charged is reasonable, creating a win-win value for
the customer, Flevy and the various authors. This is truly a service that benefits the consulting industry and associated clients. Thanks for providing this service.
"
– Jim Schoen, Principal at FRC Group
"As a consultant requiring up to date and professional material that will be of value and use to my clients, I find Flevy a very reliable resource.
The variety and quality of material available through Flevy offers a very useful and commanding source for information. Using Flevy saves me time, enhances my expertise and ends up being a good decision."
– Dennis Gershowitz, Principal at DG Associates
"If you are looking for great resources to save time with your business presentations, Flevy is truly a value-added resource. Flevy has done all the work for you and we will continue to utilize Flevy as a source to extract up-to-date information and data for our virtual and onsite presentations!"
– Debbi Saffo, President at The NiKhar Group
"I have used Flevy services for a number of years and have never, ever been disappointed. As a matter of fact, David and his team continue, time after time, to impress me with their willingness to assist and in the real sense of the word. I have concluded in fact
that it is not at all just a repository of documents/resources but, in the way that David and his team manage the firm, it is like dealing with consultants always ready to assist, advise and direct you to what you really need, and they always get it right.
I am an international hospitality accomplished senior executive who has worked and lived during the past 35 years in 23 countries in 5 continents and I can humbly say that I know what customer service is, trust me.
Aside from the great and professional service that Flevy's team provide, their wide variety of material is of utmost great quality, professionally put together and most current.
Well done Flevy, keep up the great work and I look forward to continue working with you in the future and to recommend you to a variety of colleagues around the world.
"
– Roberto Pelliccia, Senior Executive in International Hospitality
"[Flevy] produces some great work that has been/continues to be of immense help not only to myself, but as I seek to provide professional services to my clients, it gives me a large "tool box" of resources that are critical to provide them with the quality of service and outcomes they are expecting."
– Royston Knowles, Executive with 50+ Years of Board Level Experience
"As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value."
– David Coloma, Consulting Area Manager at Cynertia Consulting
"Flevy is now a part of my business routine. I visit Flevy at least 3 times each month.
Flevy has become my preferred learning source, because what it provides is practical, current, and useful in this era where the business world is being rewritten.
many challenges and there is the need to make the right decisions in a short time, with so much scattered information, we are fortunate to have Flevy. Flevy investigates, selects, and puts at our disposal the best of the best to help us be successful in our work.
Download our free compilation of 50+ slides and templates on Organizational Design, Change Management, and Corporate Culture. Methodologies include ADKAR, Burke-Litwin Change Model, McKinsey 7-S, Competing Values Framework, etc.
Click main image to view in full screen.
