Spend Talent Management Matters

Over on E-Sourcing Forum, David Bush wrote a good summary of a recent McKinsey and Supply Management Institute study which found that investing in the job satisfaction and career potential of your team can make a huge difference in overall returns and performance. According to Dave's summary, "purchasing departments staffed with talented, motivated, and interactional personnel achieve, on average, savings that is two-and-a-half times higher than their peers."

Now, reading this, I can't help but wonder whether strong talent management programs are the result of better procurement practices and stronger organizational cultures to begin with at the company level (which in theory would beget better performance) rather than a stated focus on team and skills development within procurement specifically. But still, regardless of whether these results are directly causal or just correlated, I agree that there is something to this whole talent and team development thing. Now, if we could only get the average procurement organization to treat their suppliers like their peers, then we might see even better results ...

Jason Busch

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