advancing procurement through effective employee performance management
TRANSCRIPT
ADVANCING PROCUREMENT THROUGH EFFECTIVE EMPLOYEE PERFORMANCE MANAGEMENT
EFFECTIVE EMPLOYEE PERFORMANCE MANAGEMENT
How to advance the procurement profession?
Alignment of procurement goalsCommitment to achieving goalsSustaining that commitment
The performance of procurement team is essential to success.
Where do we start?
• Understand the strategic plan of your institution• Align procurement goals to what is important to your
institution
• What is important to your institution?– Increase research funding– Recruit & retain top faculty– Provide experiences for students– Innovation
How does Procurement fit into this ?We maximize resources and minimize risk.
SUPPORT
Procurement Strategic Plan
• Develop & strengthen business processes to support the planned growth in research, international programs & entrepreneurial activities
• Implement enhanced administrative systems and associated processes
• Manage risk & demonstrate accountability for university assets
• Generate revenue to support core operations• Implement sustainable strategies that promote
university as environmental leader
Procurement Strategic Plan
• Partner with all university units & provide assistance for their continued success
• Enhance cooperative efforts to increase efficiency & productivity
• Foster a culture of work life balance• Pursue competitive compensation & job structuring• Strengthen professional development opportunities
for employees• Provide experiential learning opportunities for
students
You can’t do it without great employees and clear expectations
Share your Strategic Plan
AndYou can’t do it without effective
performance management
EFFECTIVE PERFORMANCE MANAGEMENT
1. Determines organizational goals based on strategic plan
2. Transfers goals to functions3. Sets & aligns goals of employees with goals of
organization4. Creates opportunity to build employee commitment5. Sets individual performance expectations6. Provides guidance on goals & coaching7. Aligns employee performance & goal attainment with
promotion & career opportunities
EFFECTIVE PERFORMANCE MANAGEMENT
• Other benefits:• Enables employees to own their performance
and career development within the organization• Links results to outcomes
Developing talented procurement professionals is the foundation for
advancing the procurement function
EFFECTIVE PERFORMANCE MANAGMENT
• STEP #1: HIRE THE RIGHT PEOPLE
– Develop appropriate/strategic job descriptions– Identify the necessary skills
Too often job descriptions are unclear, generic or outdated.
Have you updated yours lately?
Skills/Knowledge
• Analytical skills• Judgment• Innovation/creativity• Knowledge/experience w/specific commodities• Communication skills• Collaboration• 4 yr. DegreeAccording to Georgetown Univ. Ctr. on Education & the Workplace by 2020 65% of all jobs in U.S. will require post-secondary education (up from 28% in 1973)
Skills/Knowledge
Experience in procurement in not on this list – why?
• Severely limits the applicant pool• Experience may not be the best fit• Experience may not be successful experience
EFFECTIVE PERFORMANCE MANAGEMENT
• STEP #2: RETAIN THE RIGHT PEOPLE
– Develop a career path in procurement• PA I• PA II• PA III• PA IV• PA V• Associate Director• Director
CAREER PATHS
Career paths must contain clear level of responsibility and authority to progress to the next level:
• Experience• Complexity of duties/projects• Impact• Leadership• Freedom of Action
Note: This cannot be accomplished in a transactional environment
EFFECTIVE PERFORMANCE MANAGEMENT
• STEP #3: DEVELOP PEOPLE TO ACHIEVE THEIR CAREER GOALS
By implementing effective performance management.
PERFORMANCE REVIEWS
Study finds that basically every single person hates performance reviews.
The Washington Post 1/27/2014
PERFORMANCE REVIEWS
• Annual performance reviews are a time for feedback.
Study by psychologists Kansas State , Eastern Kentucky, and Texas A &M- how people respond to negative feedback in performance reviews.
Even top performers don’t take constructive criticism well and are often discouraged.
PERFORMANCE REVIEWS
• Other research – Zlatan Krizan, Assoc. Professor (ISU)– People think they are good because they receive vague or not accurate
feedback– “Empty praise of telling someone they’re great, or pretending there are
not skill differences when there are, can really become a problem.”
– “Setting specific measures for evaluation and feedback will lead people to consider their performance and outcomes versus broad ideas of competency.”
– “If people are evaluating themselves in terms of very specific criteria, they’re going to have better self-insight.”
PERFORMANCE ASSESSMENT CRITERIA
• Cost Savings/Value Added– Dollars saved/value of value-added services– Opportunities analyzed– Innovation leading to cost reductions
• Collaborative Agreements– Number of new opportunities analyzed/established– Quality of new contracts established
• Customer Service– Successful public relations/business liaison activitie4s– Outcomes from dept. visits/feedback– Timely response to customer needs
PERFORMANCE ASSESSMENT CRITERIA
• Economic Development– Volume of business with small businesses, women-owned,
minority-owned, disability-owned, veteran-owned.– New businesses (above) identified
• Teamwork– Positive interaction with mgmt./peers– Timely submission of substantive reports– Participation in team projects
• Supplier Relations– Absence of problems– Vendor feedback– Innovative solutions
ANNUAL REVIEWS
• Reasons they don’t work:Time consumingHesitate to be honestNo follow-up Sounds like a personal competency assessmentTalking about performance once a year is a waste of timeDon’t’ tie performance review to salary review
PERFORMANCE REVIEWS
• How to make them work:– Each person should assess their performance against the
specific performance criteria– Set goals: Each person should establish professional goals
for the next year AND– Establish realistic career goals– Identify knowledge or skill gaps to achieve career goals– Create action plan to acquire necessary skills
PERFORMANCE MANAGEMENT
• Manager’s responsibilities for success;– Build trust– Align organizational and individual expectations– Coach for success– Evaluate results– Recognize & reward success– Provide opportunities for employees to gain skills needed
Performance Management should not be the once-a-year dreaded
activity
SUMMARY
• Effective Employee Performance Management– Drives organization performance through goal setting and
alignment with institutional goals– Provides performance and development plans, commitment
and action steps to support/guide employee career growth– Increases retention & engagement of employees– Reinforces a high-performance culture
Departmental goals aligned with strategic goals of institution
+All staff are working toward those goals
Positive & effective contributions of procurement to the institution
Advance the
Procurement Profession
QUESTIONS?