Future Purchasing Advent Calendar Window Fifteen

Posted 15/12/2016

“24% of organisations measure the impact of their investments in learning & development”

Overall, only 24% of all respondents strongly agree or agree that they measure the impact of investments in learning and development.

There is only a relatively small difference between leaders and followers for this practice, with 30% of leaders strongly agreeing or agreeing that they measure the impact of investments in learning and development, compared with 22% of followers.

54% of followers disagree with the statement, compared with 33% of leaders.

Our analysis demonstrates that using this practice is a top driver of performance and should be targeted as a priority by the 76% of organisations that have yet to do so.  Kirkpatrick (originator of the most well known learning evaluation model) recognised that competence needs to be pro-actively converted to performance. Measuring the reaction to learning and the competence picked up in the classroom or online is not enough. For learning to be embedded we must measure performance in terms of how competence is applied in the workplace and the results achieved. To maximise impact, learning needs to be immediately transferred to real projects and jobs to deliver meaningful business outcomes.

Rated twelfth in order of importance to category management success, this is a stark measure. It is fascinating to learn that many CPOs and Procurement Leadership Teams could have gone to the trouble of creating a business case for procurement transformation by introducing or updating category management, could have made the case for investment and then may not measure the full impact of their learning & development programme.  This may in part be that organisations may not be familiar with the Kirkpatrick model, and what is possible.

New Year’s Resolution No. 15: Investment in procurement skills development creates the maximum ROI by converting competence improvement into performance outcomes. There are five critical success factors:

Performance outcomes: Confirm the performance outcomes your organisation really needs - at the business, procurement team and category level. Capability development can directly drive non-savings returns such as reduced supply risk, increased supplier innovation & quality and improved stakeholder & supplier satisfaction.

Measurement & ROI: Agree the KPI's to be used and the ROI that can reasonably be expected. The Kirkpatrick model evaluates learning impact at four levels: 1. How the training was received by participants? 2. What has been learned? 3. What behaviours have been changed? 4. What targeted performance outcomes have been achieved?

Blended learning pathways: Use a combination of classroom, coaching, peer learning and real life projects for each team member. Individuals must be supported to practice, use and permanently adopt these new skills and ways of working in their jobs.  Learning sessions should include behavioural aspects and showcase specific real-life scenarios.

Enablers: Fundamental processes, systems and tools need to be in place to allow team members to apply new skills. Leadership, peer support, recognition, relevance and incentives will encourage individuals to apply what they have learned. The motivation formula of mastery, autonomy and purpose provides a structure to drive long term adoption.

Leadership support: Committed support from the procurement leadership team is crucial. Demonstrate this by sharing their own learning pathways with the team and discussing their own learning objectives. Fully support the identification of performance outcomes. Recruit champions to be subject matter experts for key parts of the category management process.

You can click below to download our 2016-17 Global Category Management Leadership Report Executive Summary.

Tagged by topic: Category Group Planning , Category Management , Category Management Survey

  by Allison Ford-Langstaff

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