The Power of Persuasion: Cultivating C-Suite Confidence in Procurement

Once viewed solely as a cost-cutting mechanism, the enterprise and C-level awareness of procurement as a key contributor to organisational success is on the rise.

The traditionally narrow interpretation of procurement’s value – ruled by cost optimisation and profit and loss (P&L) statements – is finally being replaced by a more nuanced understanding.

Procurement’s deep knowledge of supply economics, market forces, sustainability and value creation make its role equal parts practical, tangible and operational.

And it’s ensuring high performance procurement plays a pivotal role in strategic planning and decision-making at the highest level of organisations. 

In fact, a 2022 industry survey by Deloitte found that the highest CPO performers were the ones who focused on high-level activities including restructuring the supply base and broader value chains or engaging the business and supply markets to meaningfully impact outcomes, innovation and digitisation.

It’s abundantly clear that the role of procurement is rapidly evolving from transactional towards transformational. Which means gaining unwavering confidence from the C-Suite is a critical step for professionals looking to tap into procurement’s immense potential – and could make for a career-defining moment if you get it right.

The question is, how is it possible to enhance C-Suite confidence in procurement efforts?

Understanding the views of executives and addressing key areas of concern is a good place to start. When looking into executive’s perceptions around the performance of procurement, a report by SAP found that just under 70% of executives believe that procurement insights are essential for implementing organisational strategy. 

Yet only 53% agree that procurement effectively collaborates with the rest of the organisation. Addressing this mismatch requires procurement to take proactive steps to engage with the C-Suite, rather than expecting the C-Suite to engage with procurement.

In other words, the door is partially open, but it is up to procurement to step inside and establish meaningful connections. 

Nurture fruitful relationships

When researching the influence of procurement on the C-Suite we found that just 38% of survey respondents present their own priorities to the C-suite for guidance with a smaller 14% reporting to their board of directors.

While promising figures, the dial still has plenty of room to turn. After all, initiating regular communication and engaging in open dialogue with the C-Suite is crucial for strengthening organisation and procurement relationships. 

Take time to identify the individual interests of each C-level executive before developing strategies and actions that will help build positive relationships with each. From there, arrange regular face-to-face meetings to keep senior executives informed and updated on procurement initiatives. Focus meetings on insights, updates, and recommendations on procurement initiatives that align with their priorities and how procurement is actively meeting them.

Most importantly, be prepared with additional data. When you demonstrate knowledge of the issues, marketplace and broader objectives, the C -Suite will develop trust and confidence in the procurement function. 

These efforts go a long way towards positioning procurement as strategic partners rather than mere transactional players.

Speak the right language 

Time is precious for the C-Suite. You won’t have time to articulate every minor detail, nor should you. Your message will be more effective when you are able to translate complex procurement metrics and data into concise, impactful summaries that resonate with what they most care about.

For example, if you are pitching for investment in a new data management system, the C-Suite will be more likely to engage in the conversation if you present information that highlights the potential value and impact on the key objectives, targets and values of the wider organisation.

Be ready for meaningful business conversations during impromptu meetings too. Should you find yourself speaking to an executive in a more casual setting, be prepared to speak confidently about shared concerns to maximise your chance of making a lasting impression.

Showcase past successes

Trust is earnt, not given. Before seeking support from senior management, articulate a track record of success to establish trust. Of course, reporting plays a role here, but compelling success stories will be more effective.

Perhaps a new partnership with a socially-responsible supplier is aligning with the organisation’s corporate social responsibility (CSR) goals, or a recent implementation project has resulted in productivity gains. 

Showing that you have the competence to advise and implement actions that support the goals of the C-Suite will go a long way towards getting buy-in for future change initiatives.

Embrace innovation and change

Digitisation, automation, AI and data are slowly removing procurement’s more tactical and administrative tasks. Now is the time to step back and adopt a different perspective on how procurement can support the business.

Being strategic, nimble and innovative will not only align your department with the organisation’s innovation agenda, it will demonstrate procurement’s ability to drive transformation and positively influence strategic decisions.

Are you ready to take the next step?

Earning and maintaining C-Suite confidence in procurement will take a multifaceted approach. By proactively engaging with C-level executives, emphasising and communicating procurement’s contributions and strategic value, building relationships, and embracing change, procurement professionals can elevate their function’s standing.

As procurement continues to evolve, be the one to seize the opportunity and become a central player in an organisation’s business continuity, growth and profitability.

Dive deeper with From Insights to Impact: Driving High-Performance Procurement. Top procurement leaders possess distinct qualities that enable them to drive successful initiatives. Our survey of almost 200 procurement professionals conducted together with SpendHQ has unveiled crucial insights into these qualities. Download your copy.