Friday Rant: So You Still Want to be a Buyer -- Pink Slip Strategies
If you haven't noticed, the pink slips are starting to come fast and furious throughout the corporate world. Below are some assorted strategies and collected thoughts if you find yourself out of a job as this recession deepens. Without further adieu ...
1) Most local government procurement is incompetent. If you're acquainted with any local politicians, inquire as to how your city or municipality has responded to the downturn in terms of sourcing/spend and gather what information you can. Tailor your resume to fit an introductory letter about the need for spend enlightenment with real examples of percentage savings in areas where you have reduced costs in your past and current positions with special attention to how you can do this for them.
2) Colleges and universities have had their investment portfolios devastated and are literally holding their breath to see if final tuition payments for the Spring Term come through and how hard they'll be hit by reductions in Fall '09 enrollment. Propose yourself and accumulated sourcing expertise as it would apply to this sector and send it to the appropriate VP's of Operations -- not the current Procurement Director. Think majorly outside the box and be sure to have a close friend or relative with strong writing skills proof and edit your letter and resume.
3) If you've ever thought about working for yourself, now might be the time to experiment. Consider setting up your own small business, establish a web site, and market yourself as an outsourcing alternative for writing RFP's and specializing in your area of expertise with appropriate organizations. This could also lead to future employment opportunities and will keep your head in the game.
4) If you are, or have recently been, employed by an organization that doesn't actively encourage creative thinking and generally has its head in the sand, actively research and seek out organizations that are "taking the bear by the ears" and looking for talented team players in your existing field. There may not be many but they are out there. Show in your cover letter how impressed you are (and why) with their organization and cite specific examples of how you can help them weather the storm and perhaps even take advantage of the current economy.
5) If you are laid off, bear in mind that the decision accrued from crunching numbers. Upon receiving notice, immediately launch your strategy to be re-hired. Call me crazy but stay with me here. Just as an existing customer is a "most valuable asset", so are existing (or just released) valuable employees. Bury your anger, resentment and all that stuff at the moment and tell your boss that you know this was not personal and may you please have a few minutes to chat at her/his convenience. Pledge yourself to the company -- if appropriate, sans the lay-off notice -- sight your accomplishments and value, then propose that you be hired back in some capacity at a reduced salary during these rough times.
This extraordinary tack serves many purposes. Lay-off day for managers is pure hell. You will be exhibiting team spirit in spades, showing incredible fortitude (literally under fire), nailing a great letter of reference and just maybe end up with a job that beats the heck out of unemployment. Currently employed candidates receive the most job offers. At minimum, you'll be on the 'A' list if the company realizes that they cut too deep.
6) Network, Network ... and Network. While you may be tired of hearing this, it's the most generally sage advice you can take. It is possible to find a new position anonymously but not statistically likely. Seeking employment is a full-time job. Some like to benchmark their daily productivity by how many resumes and cover letters they've sent out to the universe. This is not likely to produce positive results on its face. The vast majority of people enjoy helping others but they're not going to call you.
Contact everyone you know, preferably by telephone. Use these calls as rehearsals for actual potential employer contact. Prepare an outline for the call based upon how you think the person might be able to help and don't be shy about asking them to make an introduction for you. This is also why phoning is best. Smile and be up-beat. Know that you will find employment and also know that the time frame is not within your control. Take notes and when you hang-up, rate your impression of that person's value to the search. If it's mid to high maintain contact through emails and follow-up calls -- and of course send "thank you" emails.
Opportunity can be elusive. Call past coworkers, managers, suppliers, providers, other practitioners, friends, acquaintances, clergy, etc. Invite those who are responsive for coffee or breakfast (cheaper than lunch) and use those discussions as mock interviews. Maintaining verbal and face to face contact is essential fuel for the process (i.e., don't permit yourself to become reclusive).
7) It's virtually impossible to not take being laid off as a personal affront. Don't. Of course this is easier said than done. While it's natural to examine your contribution to your current situation, it's only valuable as a learning experience to apply going forward and must never be used for self flogging. Should you find that you're having trouble getting past this phase and do not feel sufficiently up-beat to conduct an aggressive job search, there are many counselors in the market place -- many of whom are slashing fees as a public service -- who can help. Don't put this off if you're stuck in the mud. It can be well worth the investment.
- Jason Busch
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(1) I assume this is a "US only" suggestion and that they should also mention how reducing spend will curry favor with the new Obama administration, because in Canada they don't give a damn about saving money (their mandate is to meet their commitments and spend *all* of their budget so they don't lose it, and the sooner they meet that commitment, the better as that allows them to slack off for the rest of the fiscal year ... and if you do too good a job, and take too much money away from the old boys club incumbents, they just might band together, lobby your boss, and get you fired).
(2) I assume this is only for private Universities, because public Universities, of which I've worked at many, have to jump through many hoops to get any new position approved, which usually takes months and months, and any increases in headcount that are not balanced by teaching positions bring ire from the faculty union, which no University adminitrator wants (because if your faculty walks out, and you can't fulfill your obligations to the students whose tuition you took, that's a lawsuit waiting to happen). So while it's a great theory, not likely to happen.
(3) I, like a few of my colleagues North of the Border, have declared myself to be an outsourcing alternative for writing RFPs. Guess how much new business it's gotten me since an all-out declaration six (6) months ago? That's right, Zip, Zero, and Zilch. Yes, I do help with RFPs, but its primarly from companies that know I have expertise in the area and seek me out because I have helped them, or a company they know of, on an IT or supply chain project. Again, great in theory, but you're just setting yourself up for failure ... especially when there are so many organizations out there that think they can get by with one of the dozens of free RFP templates out there and their current (Big 5) consulting firm.
(4) This is a good suggestion, but only the innovators are hiring now, and they account for at most 1 in 10 organizations. And, because they know they have their "pick of the litter", they'll only be looking to hire those individuals they believe are "A" players.
(5) While it's always good advice to bury your anger, resentment, and other feelings when going through the exit, and, most importantly, the severance interview, I have to totally disagree with your suggestion to ask to be hired back at a reduced salary. What's the first question your next job will always ask you? "What were you making at your last job." And what offer will they make you? At most, one that's just a little bit more than what you were making. As all of the recruiting firms are quick to point out, once you lose salary, it's almost impossible to make it back. A much better suggestion is to ask if it would be possible to be brought back as a Consultant for a limited time and/or part-time. It's better to work 3 days a week at 100% daily income than 5 days a week at 60% daily income. Much better. First, you don't lose your market value when the market swings back and, second, it gives you time to look for more permanent work AND, as per your own suggestion (6), network.
(6) This is the first piece of advice that I fully agree with. I think it should be your #1 suggestion. In fact, networking is something you should be doing even when you're employed.
(7) Another great suggestion. Experts can always help.
In short, while I applaud what you're trying to do for our readers, in trying to be too helpful, I think you may be misdirecting them to phantom opportunities. Governments are quick to slash budgets when tax revenues fall, and "savings" is an afterthought for the average government department or organization. Some of the most backwards thinking I've ever encountered in operations is in Academia. And people aren't looking for RFP help in this market, they're looking for instant ROI. The consultancies that are doing well (and, in some cases, doing so well that they can't keep up with the projects they have already lined up) are doing (a) spend analysis, (b) cost-saving category sourcing, and, usually (c) doing it on a cost savings / delayed payment (we save, then you pay) basis.
What I'd like to see is a post that really dives into how buyers can present themselves as "A" players and get the attention of those innovative organizations that know that it's easier to save than sell. (And much more productive too, since each dollar saved equates to somewhere between $5 and $20 of revenue on the bottom line.) Based upon the posts you made in the past on EQ, and how they were some of the best pieces out there on EQ, I think you could do a really good job of such a post, and that it would be immensely useful to your readers.
Then, if you so desired, you could follow it up with a post on how to set up your own cost-savings niche category consultancy until markets improve and you again have your pick of employment opportunities.
It's a harsh reality out there, let's not sugar coat it.
We hugely appreciate your suggestion and greatly hope that our use of informal adverbs is of minor consequence ;-)
Most buyers are up to the neck with work that they don't even have time to do a formal and thorough RFQ process. I know several Buyer that have told me that they "hate RFQs because it takes so much of their time". In consecuence, most of them only quote 2-3 suppliers and some times all they are able to do are just single-source RFQs, because of lack of time.
Trust me, I have been hired, exclusively, to do this exact job for an automotive supplier in support of their Sr./Commodity Buyers. After I was hired, to more persons were hired to do the same thing I was doing. Guess what happened, all of a sudden additonal savings started to realize just by introducing more competition to the RFQ process (no wonder it is also called "competitive inquiry").
In average, I was helping the Buyers include and quote anywhere from 10 up to 30 companies on the bidder's list, from the company's approved vendors list for Global Sourcing initiatives, depending on the size of the project and commodity.
Thank you both for your detailed thoughts, ideas and points of agreement and disagreement. This is a topic which unfortunately is one that I think we'll all need to revisit again and again throughout 2009. I personally plan to write quite a bit more on it in the coming weeks and months and these are excellent jumping off points and themes that you bring up.
Most buyers, sourcing managers, commodity managers, purchasing managers, etc., don't have time to competitively source ALL categories of spend. At least that's what I've found, in the various supply chain positions that I've held.
So ... sell yourself as a 'spend reduction' expert, work on contingency, and focus on those organizations with immature sourcing expertise.
For me, this has worked well. For most, however, they'll never take the risk and work on contingency. This includes ALL consultants, who have the distinction of never taking any risk.
Give it a try. Focus on a niche of companies that you know well, and sell yourself.
I beg to differ. Check out our website (www.PaladinAssociatesInc.com). We Sell Results . . . Not Just Time! We offer Spend Analysis, Strategic Sourcing and other cost reduction initiatives on a gain sharing basis. This has been a very fruitful model for both Paladin and our clients.
Barb, you guys are different, which is why you're willing to embrace the model. The firm DNA is not consulting! Which is why you're willing to balance the risk and reward of such a model.