Some of my stakeholders were baffled wondering why they can ask the same question but be given different answers. They would ask various procurement managers for advice but often got a different response depending on who they ask. For context the stakeholder is asking for procurement advice set within the rules for public sector buying and a UK regulatory framework. If all the procurement managers are operating within the same set of rules why are there different shades of grey when responses are dished out?
Though the regulations are set there they can govern any type of purchase with lots off different operating factors, there each procurement manager to a certain extent will apply their own views including their training (when I say training the organisations where they worked previously) and their own interpretations. Typically a procurement manager will rely on a) the regulations b) case law, c) their direct experience and learnings. The last element to be added which may account for the differences in the advice given is the personalities , this can lead to stakeholders receiving mixed messaging or different guidance depending on who is making the decisions.
The Big Five personality traits, also known as the Five Factor Model (FFM), include Openness to Experience, Conscientiousness, Extraversion, Agreeableness, and Neuroticism (often remembered by the acronym OCEAN). These traits can influence various aspects of decision-making, including procurement decisions in businesses. Here’s how each of these traits might influence procurement:
Openness to Experience:
- Innovation Preference: Individuals high in openness tend to be more open to new ideas, technologies, and approaches. In procurement, they might be more inclined to adopt innovative solutions or new suppliers that offer unique products or services.
- Risk-taking: High openness can also lead to a greater willingness to take calculated risks. This might mean trying out new vendors or negotiating non-traditional contracts to achieve better results.
More likely to offer alternative solutions or more willing to try different procurement procedures that allow innovation, dialogue, negotiation and risk taking.
Conscientiousness:
- Attention to Detail: Conscientious individuals are typically organized, detail-oriented, and responsible. In procurement, this trait can lead to careful evaluation of contracts, terms, and conditions to ensure compliance and minimize risks.
- Reliability: Procurement professionals with high conscientiousness are likely to be dependable and thorough, ensuring that orders are placed accurately and on time.
More likely to prefer the detail, to pour over their work so that it’s finely tuned before presenting it back to their stakeholders. The upside is that the work may be near perfect, the downside is that they lose the stakeholders on the way because it’s too lengthy or too technical
Extraversion:
- Relationship Building: Extraverted individuals excel in social interactions and networking. This can be beneficial in procurement when building relationships with suppliers, negotiating deals, and resolving conflicts.
- Communication: Good communication skills are often associated with extraversion, which can aid in conveying requirements clearly to suppliers and understanding their offerings effectively.
More likely to be a big personality that likes to get outcomes by talking to people and networking within an organisation.
Agreeableness:
- Collaboration: Agreeable individuals are typically cooperative and empathetic. In procurement, this trait can foster collaboration with suppliers, leading to mutually beneficial agreements and long-term partnerships.
- Conflict Resolution: Agreeable individuals are also adept at resolving conflicts in a diplomatic manner, which can be crucial when dealing with disagreements or issues with suppliers.
More likely to back down when challenged by stakeholders. With this trait the procurement manager might have their own initial thoughts on how to proceed but if pushed is more likely to fold to the stakeholders demands
Neuroticism:
- Stress Management: Neuroticism is associated with emotional instability and stress sensitivity. Procurement professionals with high neuroticism might find it challenging to manage stress associated with negotiations, supplier issues, or tight deadlines.
More likely to have imposter syndrome and doubt themselves. Though we may all possess an element of neuroticism too much of it will be detrimental as it will make stakeholders lose faith in the guidance and advise being offered
Risk Aversion: High neuroticism can lead to a more cautious approach to procurement decisions, as individuals may be more concerned about potential negative outcomes or risks.
More likely to stick to the book. It could be argued that this is a good thing especially in a highly regulated environment but being too risk averse may be detrimental when there are opportunities for interpretation blurring the lines between black and white. If those opportunities are missed, stakeholders may be lost due to the inflexibility where there may have been an opportunity to choose different outcomes
It’s important to note that while these personality traits can influence procurement decisions, they are just one of many factors that professionals consider. Other factors such as company policies, budget constraints, market conditions, and previous experiences also play significant roles in procurement decisions. Additionally, individuals can have a combination of these traits to varying degrees, leading to a unique approach to procurement that reflects their personality and professional expertise.
What are the key factors for different procurement managers that supports colliding views?
Different procurement managers may offer differing views due to a combination of factors, including their personality traits, experiences, education, company culture, objectives, and the specific context of their organizations or projects. Here are some reasons why different procurement managers might have varying perspectives:
Personality Traits:
As discussed earlier, personality traits from the Big Five (Openness, Conscientiousness, Extraversion, Agreeableness, Neuroticism) can influence how individuals approach and perceive procurement decisions. For example, a manager high in openness might be more inclined to embrace innovative solutions, while a highly conscientious manager may focus more on compliance and risk mitigation.
Experiences and Background:
- Procurement managers come from diverse backgrounds with varying experiences in different industries, companies, and roles. These experiences shape their perspectives and approaches to procurement. Managers with experience in industries like manufacturing may have different views compared to those from the service sector due to the unique challenges and requirements of each industry.
Education and Training:
- Formal education, training programs, and professional certifications can also influence a procurement manager’s views and methodologies. Managers with advanced degrees or specialized training may employ different strategies and best practices compared to those without formal education in procurement or supply chain management.
Company Culture and Objectives:
- The culture and objectives of the organization can significantly impact procurement strategies and priorities. Companies that prioritize cost-saving may have procurement managers who focus on negotiating the best prices and terms, while organizations that value innovation may emphasize collaboration with innovative suppliers.
Market Conditions and External Factors:
- External factors such as market conditions, economic trends, regulatory changes, and supplier landscapes can influence procurement decisions. Managers may adjust their views based on these external factors to adapt to changing circumstances and optimize procurement outcomes.
Personal Interests and Values:
- Personal interests, values, and beliefs can also influence procurement managers’ views. For instance, managers who prioritize sustainability and ethical sourcing may have different perspectives on supplier selection and contract negotiations compared to those who prioritize cost-efficiency above all else.
Communication and Influences from Stakeholders:
- Communication with internal stakeholders, including executives, department heads, and end-users, can also shape procurement managers’ views. Stakeholder input, expectations, and feedback can influence procurement strategies and decisions.
Risk Appetite and Management Approach:
- Differences in risk appetite and risk management approaches can lead to varying views on procurement decisions. Some managers may be more risk-averse and cautious, while others may be more willing to take calculated risks to achieve strategic objectives.
In summary, the differing views of procurement managers are shaped by a complex interplay of individual factors, experiences, company culture, market conditions, and external influences. Embracing diversity of thought and perspectives can be beneficial for organizations, as it can lead to more innovative solutions, better risk management, and improved overall procurement outcomes.
You might also like the article on neuroplasticity and When Procurement Bear Fruit or check out more on the Big 5 Personality Test