Project Management

Please login or join to subscribe to this thread

Procurement team ----a stakeholder on fence.

linkedin twitter facebook  
avatar
Mohan Kulkarni PM Specialist| MBK Consultants Pune, Maharashtra State. India, India
IN most organisations procurement teams are not reporting to Project Manager or Program Manager for many obvious reasons but as a consequence it is experience of many that they act as stakeholder seating on fence.
For their own reasons and KPIs they are keen and aggresive in settling contractors or suppliers who offers the lowest price. On the face it is seen that procurement management process is followed .
In such a case should the Procurement head be a fence sitter or part of the failure also.
Mohan
Sort By:
< 1 2 >
avatar
Thomas Walenta Global Project Economy Expert Hackenheim, Germany
Mohan
why not make them part of the success.

So, understand their requirements and expectations, develop relationships with them, engage by delegating tasks to them and getting their commitment.

Manage their expectations and balance their requirements with the rest like quality, trust, capability of contractors. Practically, as PMBoK says, develop selection criteria upfront, recognizing their input, but making them understand all criteria and agree to a project specific catalog.

Embrace them, motivate them, involve them, try to make them be part of the team.
There is no fence with stakeholder management, it is up to you to pull everybody in or kick them out totally.
...
1 reply by Mohan Kulkarni
Jun 02, 2020 10:16 AM
Mohan Kulkarni
...
Dear Thomas
Thanks for your response.
I have seen some projects suffer on account of rigid approach of Project procurrement head in terms of time taken for finalisation of the supplier ,though selection croteria are firmed up with their timely involvement, as they drag the process till the expected price and in turn the project gets hit both in terms of quality and duration.
As I understand that this is problem of the culture of the organisation which is not groomed to see the overall cost picture including the cost of delays and cost of poor quality and project manager has very minimal voice in the whole process.
I agree with you that all the efforts required to take Procurement team on board since day one of kick off meeting and subsequent motivation and close rapport with them will be certainly helpful
Thanks again
Regards
Mohan
avatar
Kiron Bondale Retired | Mentor| Retired Welland, Ontario, Canada
Mohan -

Totally agree with Thomas on this one. Procurement departments have objectives and KPIs but if you engage them early, treat them as a partner, and try to create shared understanding of what you are trying to achieve they can often find ways to work with you within their policies.

In parallel, try to influence the internal policy makers to get better alignment between procurement and delivery teams. There are some good ideas here on this: https://www.pmi.org/disciplined-agile/process/procurement

Kiron
...
1 reply by Mohan Kulkarni
Jun 02, 2020 10:05 AM
Mohan Kulkarni
...
Dear Kiron
Thanks for your response and the reference.
Regards
Mohan
avatar
Tarun Nair Adoor, Kerala, India
I agree with both Thomas and Kiron.
I agree that there are some gaps. But we can bridge them with early inclusion in project. We are infact doing that with our regular stakeholders engagement meetings and doing good. In my experience, If we involve in time they will support project cause.
Though I also had problems as you indicated, but was able to manage with support from them.
...
2 replies by Mohan Kulkarni
Jun 02, 2020 10:26 AM
Mohan Kulkarni
...
Dear Tarun
Good that you have also experienced these gaps.( in indian context)
The task of bridging the gaps is a skill of a project manager upto a point but beyond that if the organisation is not yet tuned and groomed to a required level of foreseeing the complete cost picture including the cost of poor delivery by the supplier and if the life cycle cost concept is not yet assimilated by procurement team then there is big problem for project manager for successful delivery in spite all the systematic efforts at his end.
I agree with all of you it is an art to win the procurement team and pull on your side for successful but there can be organisational limitaions wher there is absence of professional management.
Thanks once again
Regads
Mohan
Jun 02, 2020 10:26 AM
Mohan Kulkarni
...
Dear Tarun
Good that you have also experienced these gaps.( in indian context)
The task of bridging the gaps is a skill of a project manager upto a point but beyond that if the organisation is not yet tuned and groomed to a required level of foreseeing the complete cost picture including the cost of poor delivery by the supplier and if the life cycle cost concept is not yet assimilated by procurement team then there is big problem for project manager for successful delivery in spite all the systematic efforts at his end.
I agree with all of you it is an art to win the procurement team and pull on your side for successful but there can be organisational limitaions wher there is absence of professional management.
Thanks once again
Regads
Mohan
avatar
Sergio Luis Conte Helping to create solutions for everyone| Worldwide based Organizations Buenos Aires, Argentina
There is not one organization where a team report to the project manager, except for projectized organizations. So, this is "the art" in project management. With that said, one of the teams that the project manager must be keep closer is procurement team for lot of reasons mainly if you are using external people.
...
1 reply by Mohan Kulkarni
Jun 02, 2020 10:19 AM
Mohan Kulkarni
...
Dear Sergio
Thanks for your inputs.
That way the whole project managemen is science upto a point and beyond it is an art of performance.
Regards
Mohan
avatar
Mohan Kulkarni PM Specialist| MBK Consultants Pune, Maharashtra State. India, India
Jun 01, 2020 5:00 PM
Replying to Kiron Bondale
...
Mohan -

Totally agree with Thomas on this one. Procurement departments have objectives and KPIs but if you engage them early, treat them as a partner, and try to create shared understanding of what you are trying to achieve they can often find ways to work with you within their policies.

In parallel, try to influence the internal policy makers to get better alignment between procurement and delivery teams. There are some good ideas here on this: https://www.pmi.org/disciplined-agile/process/procurement

Kiron
Dear Kiron
Thanks for your response and the reference.
Regards
Mohan
avatar
Mohan Kulkarni PM Specialist| MBK Consultants Pune, Maharashtra State. India, India
Jun 01, 2020 1:22 PM
Replying to Thomas Walenta
...
Mohan
why not make them part of the success.

So, understand their requirements and expectations, develop relationships with them, engage by delegating tasks to them and getting their commitment.

Manage their expectations and balance their requirements with the rest like quality, trust, capability of contractors. Practically, as PMBoK says, develop selection criteria upfront, recognizing their input, but making them understand all criteria and agree to a project specific catalog.

Embrace them, motivate them, involve them, try to make them be part of the team.
There is no fence with stakeholder management, it is up to you to pull everybody in or kick them out totally.
Dear Thomas
Thanks for your response.
I have seen some projects suffer on account of rigid approach of Project procurrement head in terms of time taken for finalisation of the supplier ,though selection croteria are firmed up with their timely involvement, as they drag the process till the expected price and in turn the project gets hit both in terms of quality and duration.
As I understand that this is problem of the culture of the organisation which is not groomed to see the overall cost picture including the cost of delays and cost of poor quality and project manager has very minimal voice in the whole process.
I agree with you that all the efforts required to take Procurement team on board since day one of kick off meeting and subsequent motivation and close rapport with them will be certainly helpful
Thanks again
Regards
Mohan
...
1 reply by Thomas Walenta
Jun 02, 2020 10:35 AM
Thomas Walenta
...
Mohan

have seen similar problems and sometimes they become emotional and conflicts. That’s why conflict mgmt and negotiations are key people skills, also in the new ECO.

Which means to establish mutual trust (maybe procurement has been bashed so many times that they are defensive) and mutual purpose (even if there are different targets).

It is a 1:1 and culture must not be an excuse.

On the other discussion with Sergio: project management is neither science nor art but a religion. We believe in success by PM but were not able to prove it.
avatar
Mohan Kulkarni PM Specialist| MBK Consultants Pune, Maharashtra State. India, India
Jun 02, 2020 9:26 AM
Replying to Sergio Luis Conte
...
There is not one organization where a team report to the project manager, except for projectized organizations. So, this is "the art" in project management. With that said, one of the teams that the project manager must be keep closer is procurement team for lot of reasons mainly if you are using external people.
Dear Sergio
Thanks for your inputs.
That way the whole project managemen is science upto a point and beyond it is an art of performance.
Regards
Mohan
avatar
Mohan Kulkarni PM Specialist| MBK Consultants Pune, Maharashtra State. India, India
Jun 01, 2020 6:28 PM
Replying to Tarun Nair
...
I agree with both Thomas and Kiron.
I agree that there are some gaps. But we can bridge them with early inclusion in project. We are infact doing that with our regular stakeholders engagement meetings and doing good. In my experience, If we involve in time they will support project cause.
Though I also had problems as you indicated, but was able to manage with support from them.
Dear Tarun
Good that you have also experienced these gaps.( in indian context)
The task of bridging the gaps is a skill of a project manager upto a point but beyond that if the organisation is not yet tuned and groomed to a required level of foreseeing the complete cost picture including the cost of poor delivery by the supplier and if the life cycle cost concept is not yet assimilated by procurement team then there is big problem for project manager for successful delivery in spite all the systematic efforts at his end.
I agree with all of you it is an art to win the procurement team and pull on your side for successful but there can be organisational limitaions wher there is absence of professional management.
Thanks once again
Regads
Mohan
...
1 reply by Tarun Nair
Jun 03, 2020 9:51 AM
Tarun Nair
...
I had one experience with procurement team working from europe as well. It is common as mostly the procurement people deals with multiple projects and everyone goes to them with high priority, so it becomes difficult for them where to give priority until they are very much connected to project. If they are involved they will also support for possible process tweaks to ensure project is on time.
I had some very good experience as well, in parallel to few bad ones.
avatar
Mohan Kulkarni PM Specialist| MBK Consultants Pune, Maharashtra State. India, India
Jun 01, 2020 6:28 PM
Replying to Tarun Nair
...
I agree with both Thomas and Kiron.
I agree that there are some gaps. But we can bridge them with early inclusion in project. We are infact doing that with our regular stakeholders engagement meetings and doing good. In my experience, If we involve in time they will support project cause.
Though I also had problems as you indicated, but was able to manage with support from them.
Dear Tarun
Good that you have also experienced these gaps.( in indian context)
The task of bridging the gaps is a skill of a project manager upto a point but beyond that if the organisation is not yet tuned and groomed to a required level of foreseeing the complete cost picture including the cost of poor delivery by the supplier and if the life cycle cost concept is not yet assimilated by procurement team then there is big problem for project manager for successful delivery in spite all the systematic efforts at his end.
I agree with all of you it is an art to win the procurement team and pull on your side for successful but there can be organisational limitaions wher there is absence of professional management.
Thanks once again
Regads
Mohan
avatar
Thomas Walenta Global Project Economy Expert Hackenheim, Germany
Jun 02, 2020 10:16 AM
Replying to Mohan Kulkarni
...
Dear Thomas
Thanks for your response.
I have seen some projects suffer on account of rigid approach of Project procurrement head in terms of time taken for finalisation of the supplier ,though selection croteria are firmed up with their timely involvement, as they drag the process till the expected price and in turn the project gets hit both in terms of quality and duration.
As I understand that this is problem of the culture of the organisation which is not groomed to see the overall cost picture including the cost of delays and cost of poor quality and project manager has very minimal voice in the whole process.
I agree with you that all the efforts required to take Procurement team on board since day one of kick off meeting and subsequent motivation and close rapport with them will be certainly helpful
Thanks again
Regards
Mohan
Mohan

have seen similar problems and sometimes they become emotional and conflicts. That’s why conflict mgmt and negotiations are key people skills, also in the new ECO.

Which means to establish mutual trust (maybe procurement has been bashed so many times that they are defensive) and mutual purpose (even if there are different targets).

It is a 1:1 and culture must not be an excuse.

On the other discussion with Sergio: project management is neither science nor art but a religion. We believe in success by PM but were not able to prove it.
< 1 2 >

Please login or join to reply

Content ID:
ADVERTISEMENTS

ADVERTISEMENT

Sponsors