“The flywheel approach drives a virtuous cycle of continuous procurement improvement and innovation. When you apply this to a category or sub-category of spend, the moment drives the procurement value proposition as one where you may be engaging tactically on a deal for the first time, to where you are fully integrated into the business stakeholder’s decision making process – a true trusted advisor.”
In last week’s podcast, Host Philip Ideson described the concept of the flywheel, a consistent pattern of small but deliberate actions designed to build momentum and deliver business results described in the book Good to Great by author Jim Collins.
This week, we apply that idea to procurement directly to ensure our strategies and tactics become (and remain) aligned with the goals and objectives of the enterprise as a whole.
This focus has to permeate every effort we are involved in and the benefit can drive competitive advantage through cost optimization, risk mitigation, revenue growth, regulatory compliance, or operational agility.
Listen to Part 2 of this series on the flywheel to learn:
- How procurement can apply the flywheel to reposition procurement at the organizational level
- How we can harness the flywheel principles to help build more adaptable project management processes for efforts such as category management and strategic sourcing
- How it is possible to turn seemingly tactical efforts into full strategic alignment with high-level business decision makers
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Links & Resources
- The Procurement, Inc. whitepaper series (Part 4 is focused on the flywheel)
- Applying The Flywheel Effect To Procurement (Part 1)
- The HubSpot Flywheel Model
- The Flywheel Effect by Jim Collins
- The Flywheel (video) featuring Jim Collins