Mckinsey's Drew Ungerman and Chip Hardt recently penned a great story in Supply Chain Management Review on talent management in procurement. Citing their firm's own research and that of the Supply Management Institute, the authors show just how critical talent is in the Spend Management equation. According to Ungerman and Hardt, "So just how important is talent in purchasing? Our experience and research suggest that it is the deciding factor separating the financial performance of top purchasers from ordinary ones ... The payoff? Top purchasers annually save more than twice as much as do low performers." Talent management in procurement and supply chain is a topic that I've been fascinated by for years and have spoken about quite a bit this spring at various events. In my view, this McKinsey study is really just the latest to confirm the correlation between hiring right and developing the team with higher overall Spend Management ROI. Look for further discussion of talent management on Spend Matters throughout the summer.
- Jason Busch