MISSION, STRATEGY AND ORGANISATION

THE MISSION

The Mission is measurable. It describes what the organization as a whole will achieve and the overall time-scale for achieving it. The Mission does not deal with how the end is to be achieved nor who will be the key players in it's delivery.

For example, if Moses had a Mission, it might have been: “Everyone arrived in the promised land in ten years' time.'

For a company, a procurement mission could be:

By 2012, we will have
•savings of DCF 30 million €
•increase rotation of capital with 90%
•improve time to market of new products to 5 months

The mission will have to be linked to the corporate mission. Your acid test is quite simple: if the CEO does not get excited, you probably have not linked the procurement mission very well.

THE STRATEGY

Having decided what the mission is, the next step is to decide how to achieve it. The strategy is still a fairly high level look at the key milestones which need to be achieved if the mission is to be accomplished. The strategy explains how the organization as a whole will do it. Within WINS, the strategy process is straightforward and often the same, regardless of the company you are in[1]*.

For a good strategy, the following questions will be asked:

  1. Which major steps are planned?

Within WINS, this is often “a simultaneous improvement of skills and coverage”

  1. How will each step be achieved?

WINS: Via a careful measurement, planning and execution. What is achievable, given the resources and skills we have at a given moment?

  1. What are the key responsibilities?

Manage x% of spend (ref. mission) in better way. The latter can range from larger savings to better internal communication etc., in line with procurement mission.

  1. Time-scales

WINS: in yearly cycles, there will be an improvement of both skills and coverage.

  1. Agreed measures of success

WINS: An improvement in WINS benchmark, approaching the procurement mission

THE ORGANISATION

To achieve a mission and enable a strategy, you will need the appropriate organisation structure.

In procurement, there are 3 broad structures possible:

-Central organisation

-Hybrid organisation

-Decentral organization

More information on organization to follow soon

Depending who is responsible for supplier selection process, as part of the tactical procurement process (specifications, RFQ, negotiation, contract), your procurement organisation will be labelled central, hybrid or decentral.

Structure / Spend Control Procurement / Organigram
Central / >60% /
Hybrid *1 / 20-60% /
Decentral / < 20% /

*1: For a number of categories, procurement is responsible. For other categories, the local department is responsible.

TMP Mission, Strategy and Organisation V1.01

[1]The mission and organisation structure will often be different, the strategy process however remains largely the same.