More effectively leveraging the ecosystem
This is also the case when working with partners and suppliers. Many of us struggle to set and stick to goals in both our personal and professional lives, and the same can be said throughout the lifecycle of a relationship with another organisation. Goal-setting is not always that well-embedded into our make-up. It is something we consider when we start a new job or at the start of a new year, but while declaring your intentions is an essential first step, it’s often difficult to turn these goals into concrete action.
Frequently, this is because we set too many goals, or goals that are vague, too ambitious, or impossible to prove progress against.
"The trouble with not having a goal is that you can spend your life running up and down the field and never score.”
– Bill Copeland
The need for SMART goals
SMART goals ensure that you avoid these common barriers by clarifying the vision and the ideas, focusing the team’s efforts, and allowing you to deploy resources productively.
Working with numerous organisations with large supplier ecosystems has given us extensive insight into the value of setting these SMART goals with suppliers; they ensure that initiatives and projects are given initial focus at the outset and that they stay on track. This alignment enables Supplier Relationship Management and Supplier Collaboration efforts to flourish.
Setting SMART Goals For Procurement
Adopting this technique means setting goals that are:
- Specific (keep it simple but significant, stay away from ambiguities)
- Measurable (easily quantifiable)
- Achievable (agreed with those involved so that they can be attainable)
- Relevant (reasonable, realistic and results-based)
- Time bound (time-based, time-limited, timely and time-sensitive)
Why would such a basic concept be the best recommendation we could come up with?
This is simple: it keeps you away from setting up unattainable goals and helps navigate difficulties. It gives you a framework for keeping the base of your goals specific, realistic to your cause, easy to quantify, time-limited and agreed upon.
‘Without strategy, execution is aimless. Without execution, strategy is useless.’
– Morris Chang
Get a quick overview of how to digitise your strategic objectives in Vizibl:
Here our professional services team give you a quick overview on what goal setting and strategic objective setting looks like when digitised In Vizibl.
Putting theory into practice
In theory, this all sounds straightforward, but how do you convert the theory into practice?
Step 1: Think about the big picture
When getting started, it’s important to take time to think about the broad picture. Answer the basic existential question: ‘what do I want with this supplier or from a supplier relationship in general?’ and ‘what are good business outcomes for the supplier and for the organisation?’
This will help to visualise the general direction the partnership should take.
The answer to this question might be: ‘I want to drive innovation and collaboration with my suppliers to improve quality and new services’, ‘I want to enhance the relationship with the supplier to help both businesses grow in a mutually satisfactory way’, or ‘I want to be a champion in setting up great relationships with suppliers that drive trust and bring real value to both parties’ It is really important from the outset that you understand what you want to achieve.
Step 2: Establish a timeline
With the vision established, you can start answering ‘when do I want that to happen?’ Set a timeline for achieving this in order to give both parties an overall idea of how much time they need to invest in the initiative.
Step 3: Start breaking it down into actionable steps
Don’t worry too much about making them smart yet, just try and break that overall vision down into some clear steps.
For example, say your Vision is:
Vision: ‘I want to drive innovation and collaboration with my suppliers’.
In this case, one goal might then be:
- Create a positive, accessible environment that enables suppliers to easily propose innovation ideas.
Another goal could be:
- Ensure you are able to capture and track all innovation ideas with your suppliers – and then, subsequently from this – ensure you have an innovation review process that can help you analyse these and determine which ideas are worth investing in.
This will allow you to capture the benchmark of how many ideas are being presented – from there you can create quantifiable and time-bound goals to increase those innovation ideas and also to track the outcomes of ideas that are being invested in.
Or say your vision is:
Vision example: ‘I want to enhance my relationship with my suppliers to help both our businesses grow in a mutually satisfactory way’
Example Goal 1:
- Research and adopt a software that enables both parties to track their business objectives – which would then lead into – supporting in achieving those objectives.
Or maybe your answer is that ‘I want to be a champion in setting up great relationships with suppliers that drive trust and bring real joy to the mutual engagement and collaboration.’
In this case, your goal may be: have your suppliers act as advocates for your company.
Step 4: Get specific!
The next step is to get specific. Define actions, timelines, deadlines, and measurable KPIs and agree these with your supplier. The more specific you are, the better and easier it is to track and measure. In our view, almost any vision can be translated into clear, specific, time-bound, and actionable steps.
From the scenarios above, your goal of:
“Research and adopt a software that enables both parties to track their business objectives” then translates into:
- 1 month research of software tools, shortlist and present back to the businesses in the following month to then reach a proposal by X time (3 months from now for instance).
Or your goal of “having your suppliers act as advocates for your company “could then translate into:
- Have 3 different suppliers from your tier 1 base act as advocates for your company by next quarter.
The more specific you are, the better and easier to track and measure.
Of course, all of these are just examples and your goals might be different to the above, but the idea is to give you practical ways of how broad, just ‘pie in the sky’ almost-visions could be translated into clear, specific, timed and actionable steps.
Step 5: Always recheck your goals
Finally, always recheck your goals. Of course, one way to do this is to assess your goals based on the SMART definition. Another way to check is to go through each goal and try to answer the fundamental questions: ‘why, what, who, how, when?’ Whether or not you can answer every single one of these, you’re on the right track. Why? Because you’ve identified existing gaps, and therefore know what amendments are needed to confidently apply the ‘SMART’ logic to each goal.
In conclusion, get to the ‘why, what, how, when and who’, but don’t over-complicate it. As we ease our way out of the pandemic, the world looks very different from two years ago. Against this backdrop of uncertainty, it is more important than ever to start shaping up your goals with suppliers and ensure there is total transparency from all parties around expectations. This will help to significantly reduce the risk of any nasty surprises at the end of the year.