Why does procurement need to work in a physical “in-person” company office?

Posted on March 10, 2024

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“We don’t decide whether we are a hybrid, remote or in-person company. We are everything, in the same way that we are everything on several fronts of the business. We just decide what our people management model is,” says Daniel Knopfholz, vice-president of People and Technology at Grupo Boticário.

EDITOR’S NOTE: Sometimes, the best way to tackle a subject isn’t to write about it but to share the actual discussion regarding the important topic of who has to work, from where, and when; this is exactly what I am going to do this morning. If you want to join the actual discussion to add your thoughts, here is the link—all are welcome.

(JWH) – The above statement is at the intersection of common sense and good business. Imagine if companies told their customers they could only buy their products through a visit to a physical location versus on-line. How would that fly?

One of the many great quotes I have heard over my 40-plus years in high-tech and procurement is by Eric Hoffer: “In times of change, learners inherit the earth, while the learned find themselves beautifully equipped to deal with a world that no longer exists.”

What do you think of Grupo Boticário‘s “people management model?”

(Canda Rozier, Procurement Evangelist)Jon W. Hansen, I think Grupo Boticário‘s approach is pragmatic and reasonable – and in that, should be a model for success!

(JWH)Canda Rozier, Procurement Evangelist, in your empirical experience, what percentage of companies are using a similar model to Grupo Boticário?

(Canda Rozier, Procurement Evangelist)Jon W. Hansen I think it’s not a lot – and it’s far less than the number of companies who say it’s how the operate!

(JWH)Daniel Knopfholz, in addition to Canda Rozier, Procurement Evangelist observations, the article states that “Grupo Boticário is going against the market: with around 70% of administrative employees working remotely,” with the company “investing in strategies to maintain all work arrangements, in accordance with the needs of each area.”

This flexible work strategy concept appears to be part of the company culture long before the pandemic. You have been with the company for more than 16 years, joining as an intern in internal communications.

What really stands out is that of your “14,000 employees, 60% are women, with 40% of them in leadership positions.”

Your company also has an “overall (Glassdoor) rating of 4.5 out of 5, based on over 4,793 reviews left anonymously by employees.”

Grupo Boticário is now on my radar screen!

Given the above Canda, why aren’t more companies following the same model?

Tagging some of the industry thought leaders for their thoughts?

(Canda Rozier, Procurement Evangelist)Jon W. Hansen, as it usually does, the data speaks loudly! I’m just speculating (perhaps cynically) but I think too many companies don’t want to step out of “how they do things”. And as you’ve heard me say in the past, “if you always do what you’ve always done, you’ll always get what you’ve always gotten. “

(Carlos Martin)Jon W. Hansen thanks for the tag. I had the good fortune to work for Dell Technologies and we were doing hybrid way before it became a thing. I am a firm believer in the model and agree with their vision. People are more productive when they have more tools to balance their personal and work life.

Switching to Portuguese: parabéns, Grupo Boticário ! Essa visão e execução são bem necessárias. Estão mudando a indústria. Sucesso para vocês.

(JWH)Carlos Martin, I remember when Dell Technologies started in 1984 and Gateway in 1985. By the way, there is some talk that Acer, which bought Gateway in 2007, is bringing back the brand. It will be sold exclusively through Walmart.

To your point, Michael Dell created a powerful, personalized brand, stepping out from behind the logo to create something more than bits and bites but a “lifestyle.” Unsurprisingly, the company was one of the early next-gen rebels – including flexible working conditions.

By the way, do you remember CP/M and the Kaypro? How about the Osborne and Compaq “luggable” PCs? I think my right arm is still a bit longer than my left after carrying those “portable” computers around. Those were great days!

(Dr. Thierry Fausten) – Why would one put barriers where they are not needed, Jon W. Hansen?
Many talk about “empowerement” and “enablement” management styles, it looks like Grupo Boticário has found a way to also positively impact its employees lives too.

(JWH)Dr. Thierry Fausten, why, in your opinion, are 70% of companies still doing it the “old-fashioned” way?

(Dr. Thierry Fausten) – I don’t know the accuracy of the “70%” mark, Jon W. Hansen – I would say it is likely higher in reality. Many organizations, and managers talk, and don’t walk.
The “old-fashioned” way is perceived to be easier, less risky, and with a higher control on indivuals’ time and tasks. And it takes time to change, too.
Still, even “old-fasioned” firms like (not to say push) when you work from home during a sick leave, or on vacation… ironic, isn’t it?

(Paulo Roberto Bertaglia)Jon W. Hansen, thanks for including me.
We have many fantastic companies in Brazil. Times have changed and in my view, Daniel Knopfholz‘s approach to the work model reflects an open, agile, and adaptable mentality, recognizing the complexity of the current business environment. By stating that the company does not rigidly fit into a single model – hybrid, remote, or in-person – but rather adopts a flexible approach that embraces all possibilities, Daniel demonstrates to me a deep understanding of the dynamic nature of operations. In my opinion, this stance reflects a philosophy of being open to innovation and change, adapting to the needs of employees and the business in different contexts. Leaders are under extreme pressure in their actions, and initiatives like this one should be valued. This flexibility is crucial for promoting an inclusive and productive work environment, where diversity of thought and individual needs are valued and integrated into the company’s DNA. Congratulations on the initiative.

(JWH) – I could not agree more, Paulo Roberto Bertaglia!

What is somewhat confusing is that, like my reply to Carlos Martin in this same discussion stream about Michael Dell and the early days of Dell Technologies, Daniel Knopfholz‘s approach is representative of the exception rather than what should be the rule.

Why?

(Discussion Still In Progress)

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Posted in: Commentary