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.
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