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July 04, 2009

 

Friday Rant -- Avoiding the Axe

It's almost Christmas time. But the holiday spirit is not exactly alive and well this year for many companies faced with downsizing in the New Year. Even procurement and supply chain jobs will not be spared. Still, at least we can all drink the eggnog before we make our redundancy decisions public in January -- I love that British phrase "to make redundant". But many of us are thinking through these types of decisions now. It's not a pleasant experience. Later today, I'll offer a few thoughts on who you should axe. That's right. A downturn can be a good excuse to get rid of Spend Management resources that are holding you back. But in this post, I thought I'll offer up some advice on avoiding the axe.



First of all, if you're trying to justify your job, it's probably too late. Spike the eggnog, touch up the resume and make sure your bank is stable enough when you need to make a personal run on it in the New Year. But for others who think their job is more than safe thanks to the value and savings you're creating, don't be too sure. It's important to not only get results, but to market those results. At this point, arse-kissing -- at all levels of the Spend food chain, up to the CEO -- is not exactly the best way to do this.

But giving credit to your team members for work and savings performed is (you'll shine in the process). So one idea to help you avoid the axe -- not to mention your direct reports -- is to prepare a savings/value summary that goes beyond the standard BI mumbo-jumbo that you've got to prepare anyway. And make it pretty. We all like pretty. Executives especially like pretty -- especially after that holiday punch. Besides excelling at the internal marketing of results, it's important to come up with a list of priorities and creative ideas for cost cutting in 2009 that go beyond "the plan". Don't wait for that consulting firm to do it for your management team -- do it yourself.

One last piece of advice comes courtesy of one Spend guru -- or should I say lackey -- who has a certain technique that he shared with me for breaking the benchmark. That's right. When Hackett or some other firm comes in under the guise of benchmarking for process improvement in this market, chances are they're really coming in to make heads fly. So figure out how to game the benchmarking survey work they do. There are creative ways of providing data back (after all, that IT report is taking too long to run, right?). Now, not that I condone this type of behavior, but if you're really watching out for your own butt over the company's, my mischievous colleague would suggest that you take some creative license in the data reporting process.

Cynicism aside (just for a moment), career HR types will tell you that most axees know the pink slip is coming before it arrives. If this is true, you already know if you're on the short list. As an avid reader of SpendMatters, your thirst for world-class spend knowledge will hopefully keep you above the fray. The good news is that even if you're at the top of your game, the same factors that drive lean staffing are most likely at work within companies to find best-in-class personnel like you. Still, scrutinize your organizations overall performance and commitment to Spend Management. If you don't like what you see, it might also be a good time to go fishing.

- Jason Busch

Comments
One last thought: if you really do need to find another position, sometimes your spend management vendors can help make a connection for you. I talk to people in the space all the time, and despite the doom-and-gloom nature of the above post (and of this post over at Sourcing Innovation (http://blog.sourcinginnovation.com/2008/12/05/dead...) -- are you guys in cahoots??), there is hiring going on, and there are companies that are doing well.

I can't resist pointing out, also, that BI is hardly "mumbo jumbo," as Jason jokes above. Careful data analysis is the only way to save money, and it's the only way to prove to anyone else that you've saved it. I see great data analysts rising to the top of this job market, and rightly so.
# Posted By Eric Strovink | 12/5/08 5:48 AM
Yes, there's hiring ... and yes, there are a select few companies doing well ... but considering that more and more companies, often backed by not-too-bright VC firms, are failing the CIRCUIT rating (http://blog.sourcinginnovation.com/2008/11/07/how-...) and adopting the strategies of Dumb Companies (http://blog.sourcinginnovation.com/2008/11/14/dumb...) every day ... I'm sad to say that these companies are currently few and far between.

Like a few other bloggers (including Bob Ferrari, Torbjorn Thorsen, and Daniel Roth), I've tried again and again to explain that downturns can create great companies if those companies just step back, take a deep breath, bring in and empower the right talent (includng expert consultants), and take the right approach ... but I have to admit that lately I've had a lot of days where I don't think anyone's listening because, for every company that is doing something smart, I look around and find five doing the exact opposite.

[Posts:
Bob Ferrari: http://www.theferrarigroup.com/blog1/?p=222
Torbjorn Thorsen: http://purchasingtransformation.ibxeurope.com/2008...
Daniel Roth: http://feeds.wired.com/~r/wired/topheadlines/~3/465157578/st_essay
the doctor: http://blog.sourcinginnovation.com/2008/02/25/the-...
http://blog.sourcinginnovation.com/2008/04/07/its-...
etc.
]

In other words, for a lot of people out there, this is an important post. Hopefully some companies will see it as a wake-up call to get innovative ... but only time will tell.
# Posted By the doctor | 12/5/08 9:04 AM
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