How To Convince Senior Management Of Your Sourcing Proposal
there is a common understanding and agreement as to what the opportunity and project is about.
One method of achieving this is called Situation-Target-Proposal or STP for short.
The STP is a succinct and accurate statement that describes the current Situation, paints the vision of the Target, and lists the proposed elements to move from the current Situation to the Target. In other words, the STP is a succinct way to communicate the current state, a vision for the desired state, and the key elements of a plan necessary to move from the current to the envisioned state.
The STP also deals with incentives to move away FROM an as-is state and incentives to move TO a to-be state.
The specific steps in forming your STP are:-
o Brainstorm and list everything you know about the current situation. This includes how much you spend and with whom, known supply problems, upcoming changes in legislation etc. This is done with your project team colleagues and is a pooling of all of your current knowledge - it doesn't require collecting any new information (that comes later).
o Set a Target. As the name suggests, The target is a description of where you want to be. You should be careful here in not jumping to a solution to the situation and calling it a target. So, for example, if your situation is that you have no money, a target is not to get a better paid job (that is a solution) but to become wealthier. The target can then be quantified using SMART objectives (the acronym stands for Specific, Measurable, Achievable, Realistic and Timelined).
o The third step is to produce a Proposal or Plan for getting from where you are now to where you want to be (the target).
o The fourth step is to summarise all of this into a succinct statement that encapsulates your current situation, the target for where you want to be and your outline plan for getting there.
Here is an example.
Problem definition: The cost of providing homecare services to older people in the County is more than the budget available.
Situation: 25 homecare suppliers used. Average spend with them is £150,000. Average profit margin is 6%. The County accounts for no more than 5% of any supplier's business. Average quality rating is "adequate."
Target: Achieve same range and quantity of home care services in the next 12 months for 10% less cost than now. Improve average quality rating to "good."
Proposal: Produce a category strategy that reduces the number of suppliers used to increase the value of the County's account to them but commensurate with achieving defined outcomes. Implement quality improvement programme.
Do you want to learn more about gaining procurement skills?
If so, download my brand new free ebook "The 10 Best Ways to Upskill Yourself and Boost Your Job prospects" here:
hand-held refractometer supplier
high-frequency sieve shaker supplier
analysis sieves supplier
One method of achieving this is called Situation-Target-Proposal or STP for short.
The STP is a succinct and accurate statement that describes the current Situation, paints the vision of the Target, and lists the proposed elements to move from the current Situation to the Target. In other words, the STP is a succinct way to communicate the current state, a vision for the desired state, and the key elements of a plan necessary to move from the current to the envisioned state.
The STP also deals with incentives to move away FROM an as-is state and incentives to move TO a to-be state.
The specific steps in forming your STP are:-
o Brainstorm and list everything you know about the current situation. This includes how much you spend and with whom, known supply problems, upcoming changes in legislation etc. This is done with your project team colleagues and is a pooling of all of your current knowledge - it doesn't require collecting any new information (that comes later).
o Set a Target. As the name suggests, The target is a description of where you want to be. You should be careful here in not jumping to a solution to the situation and calling it a target. So, for example, if your situation is that you have no money, a target is not to get a better paid job (that is a solution) but to become wealthier. The target can then be quantified using SMART objectives (the acronym stands for Specific, Measurable, Achievable, Realistic and Timelined).
o The third step is to produce a Proposal or Plan for getting from where you are now to where you want to be (the target).
o The fourth step is to summarise all of this into a succinct statement that encapsulates your current situation, the target for where you want to be and your outline plan for getting there.
Here is an example.
Problem definition: The cost of providing homecare services to older people in the County is more than the budget available.
Situation: 25 homecare suppliers used. Average spend with them is £150,000. Average profit margin is 6%. The County accounts for no more than 5% of any supplier's business. Average quality rating is "adequate."
Target: Achieve same range and quantity of home care services in the next 12 months for 10% less cost than now. Improve average quality rating to "good."
Proposal: Produce a category strategy that reduces the number of suppliers used to increase the value of the County's account to them but commensurate with achieving defined outcomes. Implement quality improvement programme.
Do you want to learn more about gaining procurement skills?
If so, download my brand new free ebook "The 10 Best Ways to Upskill Yourself and Boost Your Job prospects" here:
hand-held refractometer supplier
high-frequency sieve shaker supplier
analysis sieves supplier
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