Management consultants received a poor press during the late 1990’s and early part of the 21st Century. Originally they had been viewed as some kind of God, then some kind of pariah, who were often out of touch with some of the more recent thinking and innovative management techniques. The often stated criticism was that they would charge a lot of money to tell you what you already knew.
However, management consultants soon ‘wised up’ to the challenge of being a management consultant in the 21st Century and started to specialise, many having particular skills or training in some specialised fields of management.
For example, it is now possible to secure a management consultant who is a logistics expert. They can help you to look at the way that you organise logistics and suggest areas for improvement. This can reduce the costs associated with logistics, streamline the processes used and ensure that performance is maximised; all in one go!
Management consultants can also establish performance metrics for the organisation and then go on to look at the Key Performance Indicators that can really help to establish exactly how your organisation is performing.
Some management consultants specialise in procurement, so they are able to advise on the best way that procurement can happen and often have experienced change and resistance to change in organisations, so they are able to work with all departments to help implement some of the changes that may be required, following changes to the way that procurement is made.
Specialists In Software and Technology
Many management consultants now straddle a fine line between being IT literate, to a very high degree and being management consultants. However a good management consultant will now be able to look at the problems that an organisation has, or at its performance and make recommendations on how technology can be applied to standardize and simplify.
This can be invaluable, because it is almost like having an IT specialist and a traditional management consultant all wrapped up into one person. However, it also helps the organisation on different levels, because it isn’t just about management and it isn’t just about IT; it is about both together and that is of critical importance.
A Fresh Pair Of Eyes
One great thing about a management consultant is that they offer a fresh pair of eyes, looking at your organisation in a way that you probably would like to, but find it difficult. The management consultant is independent (in a sense) and objective, so he or she will not be swayed by personal history or by internal politics. They don’t know the history and they won’t be involved in the politics, so they can simply come in and see what is going on and then report back with suggestions for improvement. The fact that they have typically experienced a variety of businesses also helps achieve senior buy-in for change as they represent a much more credible voice to senior stakeholders.
Assistance and Collaboration
The management consultant is ideally placed to facilitate between organisations who wish to work collaboratively. Often it can be difficult for companies to approach each other, but the management consultant is independent enough to make this relatively easy. So they can set out the process for collaboration in a way that is not threatening to either of the parties.
Managing Change
The final real benefit of management consultants is that they can help organisations to cope with change. Often the best plans in the world are thrown out because the staff are so resistant to change that the new plans are simply rendered unfeasible. However, a good management consultant will help to alleviate this resistance and ensure that the service improvements that are required, can be implemented in a way that is smooth and hassle free!
Corporate responsibility has recently garnered much interest amongst consumers. Of particular interest are strategies that focus on the environment and sustainability aiming at reductions in the environmental footprint of the corporation. As a result of this, the supply chain world has seen significant development of procurement strategies that support corresponding corporate goals.
However not all companies are focusing on sustainability and green buying. Does that matter? And what is the relevancy of non participation for those that work in those organizations supply chain teams.
Pressures behind corporate responsibility.
Firstly lets take a look at what drives corporate responsibility. It can be driven for a variety of reasons for example as a result of
• Philanthropy/Ethics
• Legislative
• Customer driven
• Shareholder driven
• Employee driven
Where there is not sufficient pressure in one of these (or other) areas to drive change or where there are more prominent pressures and priorities, focus on corporate responsibility or sustainability can be minimal (there may be a mission statement but little corresponding action). Where there is a lack of strategy there is likely to be minimal drive for change on the supply chain functions and in particular those of procurement.
But what are the key differences? For those companies that have adopted corporate responsibility strategies and sustainability targets they are likely to have developed
• Key targets to be achieved (i.e. CO2 reductions, recycling rates)
• Have key projects underway
• Have developed policies and processes
• Have measures in place to monitor success
• Have people in the organization who have responsibility for delivering the strategy
Buying is buying isn’t it?
Sustainability doesn’t necessarily turn procurement on its head. The key buying stages typically remain largely unchanged i.e.
• Identify the need
• Source a supplier
• Establish a contract/place an order
• Receive the goods
• Pay the supplier
However sustainability does bring with it changes on selection criteria at key stages. For example product specifications and supplier sourcing processes will place significant scrutiny and weighting on factors other than the typical Cost Quality and Delivery (QCD). Where sustainability targets exist commodity managers will need to place significant focus on
Total Life costs (as opposed to initial acquisition cost)
Establishing rules and policies?
Spotlighting suitable products (eg recyclable paper)?
Sourcing alternatives
Working closely with the end users to review requirements in line with sustainability criteria
Benefit measurement
Sustainable procurement requires closer attention to procuring against the corporate policy and rules rather than a particular focus on just cost and/or quality.
With greater significance being placed on green procurement there are understandably a greater number of roles becoming available that have an appreciation of the concept. It’s unlikely that an absence of sustainability on your resume will cause your career any detrimental effects but its probably a safe bet that it wouldn’t do it any harm to have them on it either.
Influencing your organization
Of course just because your company might not have a strategy doesn’t stop you from influencing your organization and suggesting it- there are many online tools you can use to get you started. Indeed of particular importance is the ability to use sustainability to facilitate cost reduction (check out how Indiana University saved money through CO2 reduction as an example).
Sustainability is hear to stay – sure some markets may be sheltered from this for a time but its likely that all markets will have to adopt sustainability practices to an extent at some stage in the future so now is as good a time as any to think about how your businesses will adapt.