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Session 1. Leading and Management: Is There a Difference?Successful Leaders: Are They Born or Made?. Learning Outcomes. At the end of this session candidates will be able to:Define the role of a leader and the activity of leadershipDistinguish between a leader as the visionary and direction-setter and a manager, the person who gets things doneIdentify the key traits of a leader and how that is different from a manager's roleDescribe what leaders actually do, using Adair's model of action-ce20

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1. Leading & Influencing in Purchasing Level 6

3. Learning Outcomes At the end of this session candidates will be able to: Define the role of a leader and the activity of leadership Distinguish between a leader as the visionary and direction-setter and a manager, the person who gets things done Identify the key traits of a leader and how that is different from a manager’s role Describe what leaders actually do, using Adair’s model of action-centred leadership Describe the close relationship between leadership and management Describe and assess the role of the visionary in leadership Describe the key components of Emotional Intelligence (Goleman) and outline the strong link with leadership skills Describe the role of ‘Integrity & Values’ within leadership Identify Key Communication Skills for leadership (including promotional, influencing & persuasion and inspirational)

4. Managers and Leaders ‘Managers are people who do things right, whilst leaders are people who do the right thing.’ What is the difference between being efficient and effective?

5. Some Definitions

6. Mission Statements Using your organisation or one with which you are familiar – outline the Mission, Vision, Goals, Objectives, Resource Requirements and Control Features you feel are currently in place.

7. Management Theorists – a recap

8. Management Styles Recap Blake and Mouton`s Grid Is this relevant? Where does your manager/leader fit? Tannenbaum and Schmidt – Leadership Style Continuum – tells, sells, consults, coaches* Ashridge College – tells, sells, consults, joins* McGregor – Theory X & Theory Y* *Will cover these in session 2

9. Behavioural Traits of Successful Leaders Physique Technical knowledge Intelligence Perception and caring Position in the organisation Length of service in an organisation Persistence Courage and risk-taking Innovation and creativity Exercise – Do you agree that these are traits of successful leaders?

10. Behavioural Traits for Leading the Supply Chain Function Commercial awareness Appreciation of the integrative nature of logistics Effective communication Planning and organisation Creativity Ability to develop partnerships Strategic leadership Negotiation skills Awareness of total quality management approach Benchmarking & Performance Measurement Analytical abilities Structured framework for supplier assessment. (Saunders, 1997) Exercise - Are these traits present in your organisation`s leadership?

11. Emotional Intelligence “The leader’s moods and behaviours drive the moods and behaviours of everyone else. A cranky and ruthless boss creates a toxic organization filled with negative underachievers who ignore opportunities: an inspirational, inclusive leader spawns acolytes for whom any challenge is surmountable.” Daniel Goleman.2001, Primal Leadership, Harvard Do you agree? Do teams reflect the nature of their leader? Does your leader influence your work behaviour?

12. Emotional Intelligence Described as emotional awareness or emotional competency – comprising 5 components/domains Self-awareness Knowing what makes you tick and how this impacts on others Self-regulation Ability to control yourself and think before you act Motivation A passion for work unrelated to reward Empathy The understanding of another person’s viewpoint Social skills Building and maintaining relationships Goleman suggests these factors are not necessarily innate and can be learned – agree?

13. Emotional Intelligence (distinguishing characteristics of star teams) Empathy Collaboration & cooperation Open communication A drive to improve Self-awareness (as a team) – knowing what makes you “tick” & how impacts on others Initiative Self-confidence (as a team) Flexibility Organisational awareness (using what the organisation has to offer) Building bonds (to other teams) Do you agree with these? Do you need other factors? Eg Conflict? Change? Trust?

14. Emotional Intelligence Class Exercise Exercise – 1 page summary of your views on Golemans view of E.I.

15. Action-centred Leadership Task The need to accomplish something Team The need to develop relationships within the group Individual The needs which individuals bring with them to the group John Adair Relevant? Useful?

16. Systems and Behaviours Good Leadership - establishes effective systems - demonstrates positive behaviours - see next 2 slides Exercise How do you put each system into place? What are difficulties of adopting these behaviours in practice?

19. Creating a Virtuous Circle of Leadership

21. Session 2 Different Ways of Leading Effectively: Styles and Approaches Influencing and Power in the Supply Chain

22. Learning Outcomes At the end of this session candidates will be able to: Describe the three main classifications of leadership styles (authoritarian, democratic and laissez-faire) Outline McGregor’s Theory X and Theory Y Identify a continuum of different leadership styles from facilitative through to directive Contrast the methods of ‘tell’ and ‘sell’ and describe the other two broad categories of leadership style (‘consult’ and ‘join’) Describe the four main stages in Hersey’s model of situational leadership and identify when each stage is appropriate to use in a purchasing context Distinguish between transactional leadership and transformational leadership Critically evaluate strategic leadership approaches

23. Learning OutcomesAt the end of this session candidates will be able to: Define what is meant by collaboration and show how this may differ from competition, adversarialism and/or accommodation Distinguish between ‘influencing’ and ‘negotiation’ Describe the importance of ‘rapport’ when influencing and outline the key components of creating rapport Describe key methods of influencing Describe French & Raven’s ‘5 sources of power’ and apply them to the purchasing context Define what is meant by ‘interpersonal sensitivity’ and describe its importance in managing key stakeholders Develop an appropriate stakeholder map for a given purchasing activity and outline how power and dependency issues are identified

24. Interpersonal Leadership Interpersonal leadership is about how we work through and with people. It recognises that people work for people, not organisations. It involves understanding others and knowing yourself. In short, it is about how and who we are, the relationships we form with others and the potential we unlock in them. Do “people work for people”?

25. Key Behavioural Drivers

26. Leadership Theories Tannenbaum and Schmidt Huneryager and Heckman McGregor – Theory X & Theory Y Ashridge Management College Hersheys Situational Leadership Transactional / Transformational Leadership Strategic Leadership

27. Huneryager & Heckman Autocratic Leader makes decisions without reference to anyone else, because they have the authority to do so. There is a high degree of dependency on the leader. Staff are not encouraged to make suggestions or allowed any degree of autonomy. This can create demotivation and alienation of staff, because they are tightly constrained by the autocrat’s style. This may be valuable in some types of business where decisions need to be made quickly and decisively. – examples? This may be acceptable in some cultures which expect leaders to be authoritative and take the decisions. – Hofstede`s cultural model.

28. Huneryager & Heckman Democratic – when appropriate? The leader encourages discussion and debate throughout the group, before decisions are actually made. Decision-making emerges from a consideration of different perspectives – leadership may be emphasised throughout the organisation. Consultative approach: a process of consultation before decisions are taken in order to ensure that a consensus will emerge. Persuasive approach: leader makes the decision and then seeks to persuade others that the decision is correct before proceeding. This approach may well help motive all the staff. Staff can feel ownership of and commitment to the decisions. This can improve the sharing of ideas and experiences within the business. But consultation can delay decision-making, or lead to decisions that are a compromise between differing views, which is not always ideal.

29. Huneryager & Heckman Laissez-faire ‘Let it be’ – the leadership responsibilities are shared by all, and the leader leaves it to the group. This approach can be very useful in businesses where creative ideas are important, and a lack of authority facilitates this. This can be highly motivational, as people have control over their own working life, without ‘restrictions’ from authority. But this can make coordination and decision-making time consuming and lacking in overall direction, since there is a lack of control. This approach relies absolutely on good teamwork, and on good interpersonal relations between the group. When used?

30. McGregor’s Theory X & Y

31. Ashridge Management College Tells – the manager identifies a problem, chooses a solution and announces this to staff. Staff are then expected to implement this solution, as directed. A top-down approach. Sells – the manager identifies the problem, chooses a solution, but recognises that a bald announcement may encounter resistance from staff. He/she attempts to persuade staff to accept the decision, by spending some time explaining the rationale Consults – the manager identifies the problem, but consults staff before making a decision. The consultation involves listening to the advice and options proposed by staff, and taking those views into consideration when making the decision. Joins – the manager defines the problem, and most likely sets some constraints within which the solution is bound (quality, cost and time). The group is then given the responsibility and authority to make decisions. The manager may or may not be available in an advisory role as needed.

32. Hershey’s Situational Leadership All about team “readiness” to perform – see p 25/6 What “qualities” does a team need to have to be ready? Pros Easy to understand Easy to use Provides a clear guideline to leaders Provides clear support mechanism to staff Is sustainable. Cons Is it about leadership or management? Leadership about inspiring people, not decision-making Too focused on change and not about routine day-to-day activities Excess focus on the leader Situational leadership is a truism

33. Transactional Leadership Based on Legitimate Authority within the organisation structure Leader provides group/team with direction Group/team give leader status by accepting their authority (Kartman) Carrot and stick approach to motivation

34. Transactional Leadership Works best when there is – A stable environment A highly regulated industry sector A stable organisational structure and culture A relatively stable competitive situation.

35. Transformational Leadership Focus is on engendering higher levels of group motivation Developing vision and team spirit 4 I`s – Idealised influence – role model - Inspirational motivation - Intellectual stimulation - Individualised consideration See p27

36. Transformational Leadership Works best when there is – An unstable external environment A highly deregulated or growing industry sector A fluid, de-layered organisational structure A highly competitive situation A high level of technological innovation.

37. Strategic Leadership What is strategy? How is it formulated? By whom? Read Michael Porter 5 Forces analysis How to achieve “competitive advantage” Low Cost, Differentiation, Niche Market.

38. The Basics of Strategy

39. Strategic Leadership Approaches (Johnson & Scholes) see p28/9

40. “Influencing People” Applying some form of pressure to change other people`s attitude or behaviour Apparent ability to use power to establish some form of compliance, obedience, conformity or commitment - continual process - may be subconcious - can be one-way - no explicit agreement - get them to adopt your viewpoint

41. Positive or Manipulative Influencing Gillen - Positive – treat people openly and honestly - using empathy - educate and inform - invites other party to agree Manipulative – dishonesty, fear, guilt - dismiss other persons views - use bullying, false logic, bribery, emotional blackmail

42. How to Create Rapport to exert Influence in the Supply Chain Posture – look at and match the position of the other persons body language etc and how the head and shoulders are held. Expression – notice and match the direction of the look and movement of the eyes. Ensure that you make and keep eye contact. Voice – think about the pace, volume, and intonation of their voice. Listen to the type of words being used. Try to use a similar voice and words. Use of language – technical phrases, colloquialisms, metaphors – use same language Topics of common interest – avoid issues of contention eg politics

43. Building Trust Do what you say you will do and do not make promises you can’t or won’t keep. Listen to people carefully and tell them what you think they are saying. People trust others when they believe they understand them. Understand what matters to people. People trust those who are looking out for their best interests.

44. Building Relationships Successful when - able to talk to each other and are willing to listen to each other; respect each other and know how to show respect in ways the other person wants; know each other well enough to understand and respect the other person’s values and beliefs; are honest and do not hide your shortcomings. This may improve your image but does not necessarily build trust; don’t confuse trustworthiness with friendship. Trust does not automatically come with friendship; do you agree with this viewpoint? tell the truth!

45. Competence/Care matrixScholtes 1988

46. Other Types of Behaviour Collaboration is essentially individuals or organisations working together for mutual benefit. There are a whole range of reasons and contexts where collaboration can usefully occur. Does this happen well in your organisation? Competition is essentially the normal state of business between organisations in a free market economy. It is believed by many that the free market is the best way to ensure efficient utilisation of resources through market forces in competition with each other. In relationship terms – it`s about getting your own way

47. Behaviours 2 Adversarialism is more or less the norm in competitive situations. Win–lose is largely the ‘rule’ under which business is undertaken. At the same time there is often a logic in making accommodations with competitors for mutual benefit, or where competition could be harmful or excessively costly. Care what are issues here? Competition Act, Cartels etc – supermarkets, banks – any others?

48. Behaviours 3 Avoidance – deny or conceal incompatibility of interests Why would you do this? How effective is this approach? Accommodation – maintain harmonious relationship – albeit at a cost to yourself When and why might it be appropriate?

49. Sources of Power(French & Raven) Remember power is not same as authority – (Kartman) It is ability to persuade, induce or co-erce others – Johnson & Scholes Legitimate power – position/status Reward power – authority to reward Coercive power – threat of sanctions Referent power – charismatic, personality Expertise power – skill, knowledge Finlay adds – Personal power – a power base built on colleagues support - Connection power - networking

50. Stakeholder Power/Interest Matrix - Mendelow

51. Managing Stakeholder Expectations Key players are of major importance because they are interested and powerful. We need therefore to ensure that they are on our side, or at the very least they are not against us. Keep satisfied the stakeholders who need to be kept satisfied. They are powerful, but not that interested at this stage. We need to make sure that they stay that way, since if they were to be upset they could use their power to make life difficult. Keep informed applies to stakeholders who are interested but not very powerful. Let’s keep them informed so they stay happy and supportive. They may become powerful in the future, so we don’t want to antagonise them. Minimal effort is applied to low-power, low-interest stakeholders. They are not important and not interested particularly. Let’s do nothing to antagonise them and they’ll stay uninvolved.

52. Kraljic Matrix

53. Sourcing Strategies - Kraljic Non-critical – where both the supply market and our organisation is relatively weak and the product to be purchased is non-critical. Purchase as efficiently as possible, seeking the best way to purchase under the best terms that we can. Eg - the purchase of low-value items of a generic nature. Leverage – where we are a key purchaser and the market is relatively weak, because there is plenty of competition. We should use our buying power to get the best prices and most advantageous terms. Eg - the way the large UK supermarket chains use their power to leverage best prices from farmers who are mostly small-scale and in fierce competition with each other. Bottleneck – where the market is controlled by a few very strong suppliers, and we are relatively weak. We could be put at a serious disadvantage, if we don’t ensure supply, so we seek continuity by entering into long-term contracts or paying premium prices. Eg - almost any organisation who deals with Microsoft. Strategic – is the situation where we are strong and so are key suppliers to the market. Essentially we need each other, so it is to mutual advantage that we cooperate with strategic partnerships over the long term. Eg - the mutual dependency of the major branded products to retail supermarkets. Nestle and Tesco need each other so they seek a cooperative relationship for mutual benefit.

54. Session 3 Leading and Influencing in Four Directions Influencing the Supply Chain: Tactics

55. Learning Outcomes At the end of this session candidates will be able to: Understand what is meant by the term ‘manage your manager’ and identify key methods for managing in 4 directions including ‘managing upwards’ Identify a range of influencing styles for leading direct reports and teams, and understand what is meant by the term ‘readiness’ in relation to individuals being led (Hersey & Blanchard) Identify a range of influencing styles for cross-functional leadership, both within and outside the bounds of formal teams Identify a range of external stakeholders (including suppliers, customers, collaborators and other third parties) and suggest effective influencing styles Develop a range of tactics and definitions to effectively influence the supply chain

56. Managing in 4 Directions Buchanan & Boddy

57. Influencing ‘Upwards’(Buchanan & Boddy) Firstly – need to “know your manager” – what are their priorities, motivations, style? Process is about managing & aligning expectations and reducing downwards interference Need good communication skills to help in following:- Political Awareness in identifying potential coalitions, and in balancing conflicting goals and perceptions within a complex organisational setting; Demonstrating Clear Influencing skills – to gain commitment to your plans and ideas from potential sceptics and resisters; a “Helicopter Perspective” – to stand back from the immediate task and take a broader view of priorities. Create & sell your vision of future and secure resources

58. Influencing the Team/Staff Key issue is participation – involving staff in any change, using their skills & experience, identifying problems early, recognising new ideas Change Staff briefed in a consultative format. Staff actively take part in demonstration of new systems. Demonstration designed to highlight not just features, but benefits for staff.

59. Team continued Process Staff able to discuss in small groups what change might mean. Staff able to express personal anxieties about the change. Staff given degree of choice over when or whether they personally had to be part of the change. Notification Implementation staff present at meetings, to ensure accurate information is passed out. Staff told in advance about surveys, visits from consultants, deliveries of equipment, and so on. Staff given significant influence over working methods and aspects of change design.

60. Managing Colleagues (Cross Functions) Cross – Functional Groups e.g. – Projects - Problem solving - Diverse groups Forming into effective teams / balance of skills etc Content agenda - systems expertise - strategic and policy awareness - technical and operating knowledge

61. Colleagues 2 Process agenda - team building skills - aware that how things are done may be critical - cultural issues - time and commitment Control agenda - “helicopter view” - time control re overall progress - report administration Consider networking issues

62. Managing Across (Suppliers) Consider – mapping create “ownership” of issues recognising problems at early stage negotiation skills Suppliers – key focus see p57 Customers – see p58

63. Different Levels of Stategy Corporate Strategy – considers overall areas of Business Operations Tactical/Business Strategy – product or department level – improving competitive positioning Functional/Operational Strategy – day to day operational efficiencies

64. Tactics for Influencing the Supply Chain Rational persuasion – logic/facts Inspirational appeal – values/ideas/emotions Consultation – invites participation Ingratiation – praise and flattery Exchange – offers reward in return Personal appeal – favour/friendship Coalition – get others to help you to persuade Legitimating - establish your authority (the office) Pressure – threats and demands

65. Tactics How effective are each of the approaches discussed in improving supply chain performance internally? Which would you use? When? In what circumstances? Give specific examples. How about effectiveness externally? Which? When? What circumstances? Examples. Yukl 2001

66. Session 4 Influencing the Supply Chain Successfully People Factors: Individuals and Teams

67. Learning Outcomes At the end of this session candidates will be able to: Critically assess the outcomes of attempts to influence the supply chain eg Internalisation Compliance Resistance Describe a range of personal preferred styles for working effectively (including introversion and extraversion) and evaluate the relative merits in the workplace – different psychological types Outline team models of the ‘solo leader’ and the ‘team leader’ Evaluate Herzberg’s motivational and hygiene factors for leadership

68. Factors Impacting on Effectiveness of Influencing Tactics Relative status of the leader and staff The normal use of the particular tactic within the prevailing culture of the organisation Sufficient power in the leader to reinforce the tactic * Care authority without power scenario – implications? Also power without authority? How much resistance is encountered Cost/benefits of particular tactics

69. Influencing Processes Kelman (also Boddy) Instrumental Compliance – worker carries out task for some benefit/reward/avoid punishment. Minimal effort/reluctance. Internalisation – worker supports task request – it is correct in their view. Personal Identification – worker wishes to obtain approval of leader and gain self-esteem (STI?) – worker identifies with success of outcome.

70. Influencing Processes 2 What are “influencing” outcomes? Yukl Commitment – worker agrees request and tries hard to complete task. Compliance – willing but not enthusiastic – behaviour influenced but not attitude – what will be outcome if task is difficult? Resistance – oppose request and actively try to avoid it – scale of resistance may vary from “refusal” to “agree but sabotage”. In between – excuses, delay, change task, appeal to higher manager. What are implications for leaders?

71. Learning Process and Styles Kolb`s Learning Cycle – how people learn Honey and Mumford – learning styles Jung`s Psychological Types – personality issues Belbin – Solo/Team Leader – similarity to theory X and Y Herzberg – motivation factors Why is study and knowledge of such concepts important? How can they be utilised in practice?

72. The Learning Process

73. Learning Styles (Honey & Mumford) ACTIVIST - learns best from active involvement in the task, such as participating in business games and team competitions – “do something” REFLECTOR - learns best by reviewing what has happened, likes to stand back and listen – think about what has happened on a personal basis

74. THEORIST - learns best when new information can be linked to theoretical contexts, absorbs new ideas when they are distanced from real life – likes to use any basic rules or theory to improve performance PRAGMATIST - learns best when there is a link between new information and real life, such as case study and role play – attempt task in different way – try to change part of method of doing task – does it work? Learning Styles (Honey & Mumford)

75. Extravert & Introvert - Jung

76. Sensing & Intuitive

77. Thinking & Feeling

78. Perceiving & Judging

79. Psychological Types Individual Exercise What are you? 16 possible permutations Is such knowledge important? Important to whom?

80. Solo Leader & Team Leader - Belbin

81. Belbin Solo Leader - similar to Theory X Team Leader – similar to Theory Y Can you think of examples of each type – public figures & own personal experience Recap Belbin`s team roles p87

82. Herzberg’s Two Factor Theory

83. Herzberg’s Motivational Factors Achievement Recognition Work itself Responsibility Advancement All these impact on positive motivational factors – satisfiers Do they apply to everyone?

84. Herzberg’s Hygiene Factors Company policy Administrative policies Supervision - too much or too little Salary Interpersonal relations – don`t we like to work in team environment? Working conditions These determine our levels of dissatisfaction Herzberg suggested job enrichment, job rotation, job enlargement to help overcome these factors – also Belbin

85. Session 5 Teamwork - How to do it Successfully and Dealing with Conflicts

86. Learning Outcomes At the end of this session candidates will be able to: Evaluate the merits of cross-functional teams and describe the role of sponsorship Describe the key stages of team development Describe the typical roles/responsibilities of a work-based team in a purchasing project Outline classification of team roles Evaluate the merits of diversity within teams Evaluate the merits of ‘leaderless’ teams (for example, T-groups or others) Develop a consensus on how to work together, identifying potentials for pitfalls and conflicts within the team

87. Cross-Functional Teams Refresh definition of teams/groups –p80 Belbin argues teams are more “context-specific” Do all teams need strong senior management support? Sheard & Kakabadse – argue they do! Group discussion – agree? Justify your answer – one page individual exercise.

88. Benefits of Cross-Functional Teams Productivity improvements – agree? Why? Better quality of products and services – why? Creativity and innovation in products, services and processes – what brings this about? Linking into technological advances to facilitate team operations – how? Improvements in motivation and commitment through team dynamics – always? Tangible competitive benefits for the organisation and the team members – examples? Harness diverse skills – focus on shared goals

89. Matrix Structure for Supply Project – example of cross functional project team

90. Team Development (Tuckman and Jensen) STAGE 1 - Forming STAGE 2 - Storming STAGE 3 - Norming STAGE 4 - Performing Tuckman (1965) STAGE 5 - Adjourning Tuckman and Jensen (1977)

91. Belbin’s Team Roles see comments re Tuckman Coordinator - ensures everyone understands what needs to be achieved and encourages participation by all. Shaper - acts as a driver, urging other members to complete a task, especially when deadlines are approaching. Plant - comes up with lots of ideas about what should happen, but tends to leave others to develop them. Completer/Finisher - meticulous about detail, so ensures that the team considers every option from all angles. Resource investigator - a good net-worker both internally and externally to the organisation. Monitor/Evaluator - the team's critic and stops it reaching too hasty a decision. Team worker - works hard to ensure that people work in harmony. Implementer (used to be called the Company Worker) - a practical person who likes to look at how to achieve the task.

92. Team Decision Making Teams tend to make riskier decisions – agree? Why? Is this good? Individual feelings of responsibility may be diffused within a team – is this good? Decisions may be made by authority, consensus or majority – advantages/disadvantages of each method? Decision making may be a negative process - by minority or abdication

93. Size of Team Optimum size for effectiveness is 5 –7 – agree? Why? The larger the group, the more complex the communication process Small groups limit the range of skills and experience available Do larger groups need more rules and procedures? What factors might determine the need for rules?

94. Team Cohesiveness Clarity of individual and team objectives Effective leadership – plus senior management support Members listen to each other and pass on ideas Easier for small teams to be more cohesive Cohesion enhances individual satisfaction – does it? why?

95. Self Managed Teams Group exercise Can such a concept work? How? What would be needed for such an arrangement to be effective? What might be the problems associated with such an arrangement?

96. Features of Self-Managed Teams Goals are set for the group, but the members determine processes – realistic? Members have discretion about planning, implementation and controlling tasks Members have the variety of skills and technical knowledge to undertake the tasks External supervision is mostly facilitative and supportive Feedback and evaluation is holistic

97. Conflict 3 approaches to conflict - Unitary perspective – integrated and harmonious organisation – “happy family” Pluralist perspective – conflict inevitable – has to be managed – “natural conflict” Radical perspective – conflict is natural and is source of change – “gradual and evolutionary”

98. Pitfalls – Conflict within the Team - Causes Power – too much / too little – issues? Politics - internal Position – protect own territory Lack of resource – internal competition Poor communications – why? Poor leadership – inherent in UK (IMO) Interdependencies Sub-optimalisation What are the symptons of conflict? – group exercise.

99. Strategies for Conflict Management – Mullins 2005 Clarification of goals and objectives avoids misunderstandings and provides a clear common focus for all. Resource distribution to be clearly justified so that people understand why and how resources have been allocated throughout the organisation. – fair share of resources HRM policies and procedures which are fair and equitable. Clear job analysis, recruitment, selection, rewards and punishments, help to create a level playing field for all staff. – fair to staff Non-monetary rewards can be emphasised through challenges, delegation and empowerment and so on. – allow some autonomy

100. Strategies 2 Development and training in group process skills, such as communication, problem solving and so on. – train people skills Group activities and careful team selection reduces role/style conflicts.- teamworking Leadership and management to be more participative and supportive. Demonstration of respect, trust, developing people and so on. – don`t behave like a dictator Creating appropriate infrastructure processes to reduce unnecessary bureaucracy. – cut the crap A system approach which encompasses the social and psychological aspects of work as well as the structural aspects.- a happy workforce is more productive

101. Session 6 People and Diversity: Virtue out of Necessity Developing People

102. Learning Outcomes At the end of this session candidates will be able to: Define what is meant by the terms ‘equality and diversity’ and “equal opportunities” Assess the benefits of diversity to a high-performance culture and evaluate the advantages and disadvantages Identify potential areas of discrimination in the workplace and the regulatory framework to protect against it (including gender, race, religion, disability and age) Outline the potential consequences of failing to pursue a proactive approach to equality and diversity Explain why it is important to develop people in the workplace Explain the purpose of Training Needs Analysis Compare and contrast ‘training’ and ‘development’

103. Diversity - Mullins Existence of a variety of – Cultures, Ethnic groups Physical features, especially if they are recognised by members of that population to constitute characteristics of a race Socio-economic backgrounds Opinions Religious beliefs Sexuality Gender Identity

104. Diversity 2 Research – obtain copy of your organisations “Equality & Diversity” policy Compare to that of a different organisation Group exercise – Argue the case for diversity in the workplace.

105. Demographic Changes An ageing workforce – issues for business? Devolution and regionalisation – growing share of national economy from City of London Multicultural groups - issues for employers? Religious, cultural and ethnic diversity – integration, assimilation, seperation? What legislation in place? – group exercise

106. Equality & Diversity - Advantages Broad base of culture, attitudes and behaviours – reflect customer/client base Different talents and experiences – why limit your organisations opportunities? Opportunity for synergy, creativity and innovation Inclusive and wide spread range of skills

107. Equality & Diversity - Disadvantages Needs a broader range of management skills Cultures, attitudes and behaviour can clash, leading to overt conflict, or isolation and polarisation Loss of focus of organisational goals in favour of specialist interests Divisive and energy sapping with disagreements and misunderstandings.

108. Equal Opportunity Commission – Vision Women and men valued equally. Fair treatment, not discrimination. Caring roles shared. Equal choice, not stereotypes. Different lives, equal services. Equal power. Women safe from violence. Does the “glass ceiling” still exist?

109. Discrimination What is discrimination? Gender – direct, indirect, victimisation, harassment Race Disability Age Read Profex p104/8 – individual exercise Give examples of measures an organisation could take to avoid discrimination on grounds of religion, disability, and age.

110. Training Staff – a cost or an asset? What are the advantages of learning to individuals and the organisation? - enhanced skills - greater workforce versatility - encourages empowerment - assists in change management - reduced supervision needs - improved employer status in recruitment

111. Training Needs Analysis What are the needs of the business? What are the short-, medium- and long-tern strategies? What are the performance gaps? Which are best met by training? What type of training? How can the effectiveness of training be evaluated?

112. Training Plan Consider: Training required – what type? What level in the organisation? Number of people who need to be trained – may determine in-house or external training Time scale ) Resources available ) phased Budget ) Assessment of learning – how evaluate success?

113. How to Train From “training” to “learning” Research – check CIPD website for definitions Different approaches - Classroom - “On the job” - Outdoor – “Outward Bound” – out of comfort zone - Others?

114. Organisational Learning Experiences Planned experiences outside department – team building – when? where? Additional responsibilities – job enlargement/enrichment, empowerment Problem-solving groups Quality circles Special projects Developing new activities

115. Organisational Learning Experiences 2 Coaching – skills based – support career transitions Mentoring – usually in-house Continuous Professional Development Distance Learning E-learning

116. Dimensions and Skills of Purchasing & Supply Activities Technical dimension – functionality, specifications and quality of purchased products Commercial dimension – managing relationships with suppliers and the contractual conditions which must be negotiated and maintained Logistics dimension – all activities relating to the optimisation of incoming materials from the supplier to when and where they are consumed Administrative dimension – relating to efficient order handling, expediting and follow-up and handling of invoices. Individual exercise – note format. How do you best train for these? What skills and attributes are required?

117. Session 7 The Vision Thing…

118. Learning Outcomes Define what is meant by the team vision Describe the need for strategic alignment between mission, objectives, strategy and tactics Outline how a vision can be created and the actions required to gain ‘buy-in’ (education & communication, participation & involvement, facilitation & support, negotiation & agreement, manipulation & cooperation and explicit/implicit coercion) Explain the need for vision to be ‘compelling’ Describe how a vision should be communicated and reinforced Outline what is meant by the term ‘culture’ in the context of the purchasing function Identify an appropriate range of values for the purchasing function and explain the benefits of having explicit value statements Explain the importance of CSR and ethics in building sustainable values within the purchasing function

119. Strategic Planning Remember – 3 levels of strategy - Corporate – overall purpose & scope of organisation - Business/Tactical – competing in specific markets Operational – delivery re use of resources Use of strategic tools – Pestle, Swot, Porter

120. The Planning Process

121. What is “vision”? Nanus – definiton – “A realistic, credible, attractive future for the organisation” Johnson - talks more of the mission statement – The organisations “Raison d`etre” – but there is no real distinction from its vision What is your organisation`s vision? Do you have a clear, memorable mission statement?

122. Envisioning(Johnson & Scholes) Strategic Intent – overall role & expectations of organisation – their vision Focus: Because in the absence of clarity it is likely that the corporate parent will undertake activities and bear costs that have nothing to do with adding value to the business units, and are therefore just costs which diminish value. – who pays corporate costs? Clarity to external stakeholders: Because corporate managers need to make clear to stakeholders what the corporation as a whole is about. Who are shareholders? – Why important? Clarity to business units: Internally, if business unit managers are not able to make sense of what their corporate parent is there for, they inevitably feel as though the corporate centre is either little more than a cost burden, or that corporate executives lack clarity of direction.

123. Building a Compelling Vision Assess what is happening around you – business environment, market place, competition  Look for trends.  Think Big – is this always appropriate? “Niche” markets.  Think long term. Dream your vision. Have passion and persistence   Access the available resources – what are they? Invite others in. Who?  Balance conviction vs openness.  Keep objective.

124. Getting ‘Buy-in’ – managers/leaders need to develop some of following issues Education – what skills are needed in the business? Communication – who needs to know and how do we tell them? What is communication like in your org? Participation and involvement – who do we wish to involve in the consultation, and how do we obtain that involvement? How open can this process be? Facilitation – how do we organise consultation and open debate? Support – tangible and intangible resources that will be needed

125. Getting “Buy - in” 2 Negotiation – how to we negotiate with a variety of stakeholders? Do all stakeholders wish to be involved? Agreement – consensus, majority-rule, collaboration, how do we decide to agree, and how can we be sure that we are agreed? Is consensus best way forward? Are we being idealistic in this approach? Group discussion. Manipulation, cooperation, explicit/implicit coercion – what is the balance between the ‘tender and the tough’ approaches that are required? Refer back to the sessions on influencing and power.

126. Mission Statement Include: Overall purpose Commitments to stakeholders Identification of main services Identification of markets Organisation ethos and values Exercise – What is difference between org. with mission statement (vision statement) and one with a clear sense of vision? What are the benefits of a mission statement?

127. Developing a Values Statement Major focus on org. culture – what is it? Values represent the core priorities in the organisation’s culture, including what drives people’s priorities and how they truly act in the organisation. Values are increasingly important in strategic planning. They often drive the intent and direction for strategic planners. Developing a values statement is a quick way of making the broad goal and objective of the organisation culture-specific. Therefore people may create value statements that vary from highly analytical and rational to highly creative and divergent.

128. Values - 2 Establish four to six core values from which the organisation would like to operate. Consider values of customers, shareholders, employees and the community. Notice any differences between the organisation’s preferred values and its true values (the values actually reflected by members’ behaviours in the organisation). i.e. official core values v staff behaviour (actual culture) Incorporate into the strategic plan, actions to align actual behaviour with preferred behaviours. i.e. – how you resolve issue above. Consider diff. cultural styles Harrison/Handy – Deal & Kennedy – p158 – also national cultural issues - Hofstede

129. Corporate Social Responsibility What is it? Sustainability Environmental Issues Ethical trading Social awareness Mintzberg – p161 –business has relationship with society beyond purely economic Friedman – enlightened self-interest only. Group exercise – is CSR part of your role as professional buyers? Is so, to what degree?

130. Session 8 Approaches to Change: How Will it Affect Us? Getting Support for Change: Leading and Managing

131. Learning Outcomes At the end of this session candidates will be able to: Identify the factors driving change and describe their effect using appropriate tools (for example, Lewin’s force field analysis) Describe Lewin’s model for planned change and outline the three key stages of unfreezing, movement and refreezing Describe the action research model and outline what is meant by cyclical change Outline Crainer’s 7 skills required for managing change Outline the importance of stakeholder consultation and identify key stakeholders who should be consulted when leading change in the purchasing function Identify principle methods of consultation and engagement of stakeholders and explain the need for communication as a vehicle to assist the change process Identify ways and means of resolving conflict with stakeholders using the Thomas-Klinman conflict model as a framework.

132. Drivers for Change Technology. What forms? Globalisation. Define it? How is it driving change? In what ways? Knowledge explosion. What is this? Demographics. How does this impact business environment? Privatisation of the public sector is growing significantly, in the belief that a ‘market economy’ will be more effective and efficient than a ‘public monopoly’. Regulation and De-Regulation at the same time. Consider EU – single market – external barriers remain in some forms. Demanding stakeholders.

133. Anderson & Anderson – Drivers for Change Environment – Pestle Market Requirements – what needed to succeed? Business Imperatives – strategic plan re customer demands Operational Imperatives – how organise your business Cultural Imperatives – change the culture – easy? Behaviour – individual change at all levels – easy? Mindset – seeing need for change & awareness of change influences

134. Communicating Reasons for Change - Anderson & Anderson Building the case for change Defining the rationale and motivation for the change in a compelling way (akin to the compelling vision) The full scope of the change effort, how extensive and deep-rooted is the change to be? Clarification of the type of change occurring, fine tuning or corporate transformation? Identifying the specific target groups that must make the change happen, those responsible for the implementation of change.

135. Communicating 2 The degree of urgency and general time-scales for the change An overall change strategy, which is broken down into a series of specific change initiatives – why broken down? How can this help? Clarify the theme that integrates all the multiple initiatives – don`t forget to let people know the “big picture” – what the individual changes will lead to overall! Communication media to be used - what format to be used? Clear training plans for the skills, knowledge and attitudes needed for the change to succeed – resource issues? Reward and motivation!

136. Force Field Analysis

137. Crainer’s Skills for Change Management Managing conflict – constructively – how? Interpersonal skills eg? Project management skills – think systems – iron triangle – people – teams etc Leadership and flexibility Managing processes – design and implement Managing strategy – “the big picture” Managing personal development – own development, staff development Others? See May 2009 exam paper

138. Action Research Process – method of undertaking on-going research & implementing action simultaneously Involves – systematically collecting research data about an ongoing system relative to some objective, need, or goal of that system – observe and record feeding the data back into the system – reflect and learn taking action by altering selected variables within the system based both on the data and on assumptions about how the system functions – plan change then act/implement new ideas evaluating the results of actions by collecting more data – observe and record cyclical process – it is a continuous process

139. Leading Change – some practical issues Set an example - is this critical? Eliminate perks - divisive Walk around and talk to people – why? Any difficulty doing this in practice? Be genuine Have passion – if you don`t believe in project/change how are you going to convince others? How do you cope with scenario where you don`t agree with the change but are forced to lead it anyway?

140. Change Management Group exercises Which is better choice – internal or external change agent? Contrast and evaluate Lewins 3 stage model with concept of ongoing cyclical change Why do people dislike/resist change? What are typical reactions – how do these change over time? Read Kubler Ross p157

141. Trends in Supply Chains An increasing focus is required on integrating suppliers into your organisations supply chain. Why? JIT, MRP, TQM An increasing focus on the development of an agile supply chain. What is agile? The creation of key performance indicators (KPIs) that seek to develop skills, not just measure them. Building relationships with suppliers that should allow for change and negotiation. Aim is to motivate suppliers leading to improved performance.

142. Stakeholder Needs v Organisation Needs

143. Stakeholder Mapping

144. Stakeholders Re stakeholder mapping. Whose model? How do you treat each group? Who would you include in each segment re your organisation? Justify answers to colleague.

145. Thomas-Kilmann Conflict Mode Instrument (TKI) p178 2 basic dimensions – assertiveness & cooperativeness Competing:  High assertiveness and low cooperativeness. The goal is to "win". Win/lose scenario Avoiding:  Low assertiveness and low cooperativeness. The goal is to "delay". Generally unassertive and un-cooperative but can be diplomatic

146. TKI 2 Compromising:  Moderate assertiveness and moderate cooperativeness. The goal is to "find a middle ground". Can be a “quick fix” Collaborating:  High assertiveness and high cooperativeness. The goal is to "find a win-win situation". Idealistic? Accommodating:  Low assertiveness and high cooperativeness. The goal is to "yield". Lose/win scenario. Are either competing or accommodating satisfactory in business environment? Why?

147. Session 9 Objectives, Strategies and Resources Implementing Change at the Coal Face

148. Learning Outcomes At the end of this session candidates will be able to: Explain how objectives are set for a change programme and describe how objectives should be defined (SMART) and aligned with a broader strategic intent Evaluate the relative merits of incremental vs step [fundamental] change and the respective implementation strategies these require Suggest ways in which a change programme can be structured using a steering group, work streams, focus groups, cross-functional teamwork and change agents –issues around empowerment and delegation Determine the resource requirements needed for the implementation of change within the purchasing function

149. Learning Outcomes (cont’d) Understand what is meant by delegation and identify the requisite leadership behaviours that enable effective delegation Link to Hersey’s model of situational leadership Describe how to monitor and review delegated responsibilities and tasks Develop appropriate reward and recognition associated with the successful delivery of a delegated activity Use force field analysis to identify forces and barriers to change and determine what needs to be done to develop and aid change Describe how individual’s respond to change Explain why some change programmes fail Describe the principle barriers to effective change and the mitigating actions required to overcome resistance

150. Characteristics of the Empowered Organisation Flatter structure Work on a team basis Customer focused Freedom to fail – is this true? Effective MIS Leader managers Responsible employees Cooperative relationships – how establish? Effective communicators The middle manager is usually the channel though which empowerment operates - obviously they need to be empowered first! Control is not given away but refocused so the manager does not retain full responsibility for all output from his/her team. Management control is maintained through the agreed boundaries which allow people to more freely manage their own work. Similarly individual goals are negotiated and monitored to support this process. Managers thus undertake a leadership role, moving away from the more traditional supervisory stance. To manage empowered teams managers need to develop skills in: goal setting facilitating business processes monitoring and reviewing progress providing information effective communication coaching and mentoring allocating resources maintaining morale and building staff confidence training and development delegating and refocusing control and responsibility recognising and rewarding achievementThe middle manager is usually the channel though which empowerment operates - obviously they need to be empowered first! Control is not given away but refocused so the manager does not retain full responsibility for all output from his/her team. Management control is maintained through the agreed boundaries which allow people to more freely manage their own work. Similarly individual goals are negotiated and monitored to support this process. Managers thus undertake a leadership role, moving away from the more traditional supervisory stance. To manage empowered teams managers need to develop skills in: goal setting facilitating business processes monitoring and reviewing progress providing information effective communication coaching and mentoring allocating resources maintaining morale and building staff confidence training and development delegating and refocusing control and responsibility recognising and rewarding achievement

151. Barriers to Empowerment Employees may say they want more responsibility but are reluctant to accept it in reality – agree? Employees are not capable of undertaking the development needed – why not? Managers are only willing to ‘let go’ in trivial areas – why is there sometimes reluctance? Lack of appropriate recognition and/or reward – why? Management hierarchy is the only form of career structure for many employees – is this now true? Managers may underestimate what empowerment will mean to their role and feel threatened. Therefore they limit the process and it becomes a meaningless exercise. To be effective it must be part of the company culture and supported by an appropriate structure which ensures the right people have the right information at the right time. Where successful, employees must feel that the reward strategy is appropriate and they are not taken for granted. Their development must be planned and achievements rewarded. Empowerment can remove the conventional organisation career structure or ladder so an alternative career management process must be put in its place. The reward strategy must be perceived as fair across the organisation.Managers may underestimate what empowerment will mean to their role and feel threatened. Therefore they limit the process and it becomes a meaningless exercise. To be effective it must be part of the company culture and supported by an appropriate structure which ensures the right people have the right information at the right time. Where successful, employees must feel that the reward strategy is appropriate and they are not taken for granted. Their development must be planned and achievements rewarded. Empowerment can remove the conventional organisation career structure or ladder so an alternative career management process must be put in its place. The reward strategy must be perceived as fair across the organisation.

152. Inhibitors of Creativity

153. Other Inhibitors Bureaucracy Rule based processes and procedures Fear of failure Blame culture Cost of getting it wrong Others?

154. Barriers to Change Bureaucracy - that is departmentalism, formality of management Resources – scarcity, shared, financial Politics – why? Insecurity – how overcome? Risk – what is organisations risk culture? Risk taker / risk averse? Blame culture – impact? Deference acquiescence – is this best format? What are problems? Read Bedeian p157

155. Creating an Environment for Change Encourage the right attitude – how? Develop a culture that is based on creativity and innovation – how? Provide appropriate recognition and rewards – rewards are critical to successful change programme – need to incentivise. What form of reward? Encourage flexibility. Foster employee involvement – how?

156. Creating Major Change(Kotter 1996) 1. Establish sense of urgency – why? 2. Create the guiding coalition – who will drive change? 3. Develop a vision and strategy – clear, unambiguous – “smart” 4. Communicate the change vision – how? When? How much detail? 5. Empower broad-based action – care re issue of control 6. Generate short-term wins – why? 7. Consolidate gains and produce more change – evolution not revolution – why? 8. Anchor new approaches in the culture – how? This is extremely difficult.

157. Implementing Change Pilot scheme Incremental changes ‘Overnight’ - out with the old and in with the new – when is this approach appropriate? Variations on the above Monitor and Review

158. Why does change fail? Group exercise – list and justify reason for change failure. Then read and review - Kotter profex p159 - Also Pitfalls of change programmes – profex p160

159. Resource Requirements Prioritisation - Critical Path analysis - Gannt charts - Pareto analysis - Risk analysis

160. Other Change Theories – p170 Evolutionary change - issues of “kaizen” & TQM Revolutionary change - Business Process Re-engineering Emergent change – Mintzberg Logical incrementalism – Quinn Emergent change v Planned change – Johnson and Scholes

161. Change Leadership Style Dunphy and Stace Coercion - imposes Direction – managerial authority Consultation – relevant level of staff involvement Collaboration – widespread employee participation

162. Delegation What is the process? How much control? Importance of feedback Advantages? Disadvantages? Why are some managers reluctant to delegate?

163. Impact of Change on Supply Change Process – Control Mechanisms Budgetary Control - who sets them? Fixed or flexible? What is impact of change? What are advantages of good budgetary control? Project control measurement – what tools? – CPA, Gannt charts, software programmes Benchmarking – Bendell p209 – “Internal, Competitor, Functional, Generic” – how help assess change impact? Auditing – importance of auditing a change programme? Employee and stakeholder reactions - how obtain? What will it tell you?

164. Continuity of Performance Business as normal – how to achieve this during change programme? Internal change? – direct, immediate change from one system to another – issues? - phased changeover? - parallel running? - pilot programmes? External change? – issues re new suppliers? - outgoing suppliers – issues? - contractual terms re “handovers”?

165. Supplier Implementation Programme Group exercise Outline a programme that you would use to ensure the smooth introduction of a new supplier replacing one that had demonstrated inadequate performance. Consider – acceptance testing - Stakeholder issues, systems and infrastructure considerations - Pilot programmes - Phased/direct implementation - Parallel running

166. Session 10 Negotiation Industrial Relations

167. Learning Outcomes At the end of this session candidates will be able to: Describe the negotiation process and explain the need for planning a negotiation campaign (link to other units) Describe how a complex negotiation needs careful stakeholder mapping and the importance of power/dependency mapping Explain the concept of structural power (Cox) in a negotiation context and describe how this will impact the approach to negotiation Define the term ‘industrial relations’ and describe the contexts in which they are appropriate Outline when and how the purchasing function may become involved in IR situations Describe how to approach an IR negotiation and the key differences from a commercial negotiation

168. Negotiation Process What is it? When do we start to become adapt at negotiation skills? Is it a good way to resolve conflict? What are the key stages? – see p188 Why is planning important? What must you decide at that stage? What aspects of presentation/interaction are key factors? What do we need to do in follow up process? Use Cook, Macaulay & Caldicott – p189 –to consider stakeholder power/positions in negotiation preparations

169. Negotiation 2 The team Who do you want? What are advantages of team approach? Disadvantages? Important that you are all “singing from the same hymn sheet”! Distributive bargaining – splitting the pie – who gets the bigger slice? Integrative approach – constructive or a “win/win” approach – realistic? When?

170. Industrial Relations Get it wrong and consequences can be serious – eg BA and Gateway Gourmet - any other examples? What do employees want? What do employers want? Do they have genuine shared interests? Do they realise this? Procurement managers will also be involved in issues re disciplinary, grievance, group problem solving and negotiating terms and conditions.

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