Issue 6, January 2012

Looking at the Bigger Picture

“Keeping in mind that procurement is part of a process, and not the whole activity, is critical in delivering successful project outcomes,” so says Category Master Nick Milani, a highly experienced Program Director at Worley Parsons. 

Nick, speaking at The Faculty’s Capital Projects Council, went on to add, “Category Managers must always be clear on the project model and procurement’s place within it. Too many projects fail due to a lack of communication or misalignment of project delivery and procurement teams and Category Managers cannot afford to take stakeholder relationships for granted.” 

Undertaking stakeholder engagement exercises with key project leaders is one of the most effective ways to identify information gaps, expectations and the overall project KPIs, and Nick challenged the group to return to this core ‘first principle’ of Procurement at the start of any project. Building strong stakeholder relationships will not only allow Category Managers to drive additional value outside of Procurement’s traditional role, but will also strengthen relationships in the long term for future projects. 

Once the fundamental objectives of the project are clear to the broader team and Procurement’s roles and responsibilities have been agreed upon, Category Managers are then free to focus on other factors that could have a valuable impact on projects such as organisational ‘habits’, decision making hierarchies, industry trends and market conditions.