Interesting article about current trends in Procurement management by Michael Show via LinkedIn.
Our job is no longer just sourcing, buying, and managing the supply chain — it is much more. Our leaders are involved is every facet of the business and their job is clear. It is to create value. By definition the title of Chief Procurement Officer is no longer accurate or reflective of the job’s responsibilities. The title doesn’t even sound strategic. So I say kill it and demand the correct and more strategic title: Chief Value Officer.
The concept of CVO is nothing new. It has been suggested as a title for a senior level officer position for a number of years. I researched the title on Linked-In and found that there were actually quite a few people with that title across a number of industries and functions. Wikipedia’s definition “business value: is an informal term that includes all forms of value that determine the health and well-being of the firm in the long run.”
The most appropriate use of the title, Chief Value Officer, should be reserved for that senior individual that ultimately affects the creation of the most forms of value and whose responsibility it is to drive significant measurable contribution in each of those areas for their organization. So, I ask where are those areas most organizations measure their value — internally and well as externally?
Cost savings? Yes, but not enough. Revenue, Profitability, Customer Satisfaction, Competitive Advantage, Market Share, Social Responsibility, Diversity, Supplier Relationships, Employee Satisfaction? Yes – to all! What other discipline in a corporate organization touches and directly has the ability to create value in all of these areas. The answer is none.
So why don’t our leaders have this title now? If we haven’t sold our business case for our strategic value contribution then shame on us. If we have successfully made the case and have achieved strategic recognition then, ask for the strategic title- demand it. Chief Value Officer