ADVANCING PROCUREMENT THROUGH EFFECTIVE EMPLOYEE PERFORMANCE MANAGEMENT

EFFECTIVE EMPLOYEE PERFORMANCE MANAGEMENT How to advance the procurement profession? Alignment of procurement goals Commitment to achieving goals Sustaining that commitment The performance of procurement team is essential to success.

Where do we start? Understand the strategic plan of your institution Align procurement goals to what is important to your institution

What is important to your institution? – Increase research funding – Recruit & retain top faculty – Provide experiences for students – Innovation How does Procurement fit into this ? We maximize resources and minimize risk.

SUPPORT

Procurement Strategic Plan Develop & strengthen business processes to support the planned growth in research, international programs & entrepreneurial activities Implement enhanced administrative systems and associated processes Manage risk & demonstrate accountability for university assets Generate revenue to support core operations Implement sustainable strategies that promote university as environmental leader

Procurement Strategic Plan Partner with all university units & provide assistance for their continued success Enhance cooperative efforts to increase efficiency & productivity Foster a culture of work life balance Pursue competitive compensation & job structuring Strengthen professional development opportunities for employees Provide experiential learning opportunities for students

You can’t do it without great employees and clear expectations Share your Strategic Plan

And You can’t do it without effective performance management

EFFECTIVE PERFORMANCE MANAGEMENT 1.Determines organizational goals based on strategic plan 2.Transfers goals to functions 3.Sets & aligns goals of employees with goals of organization 4.Creates opportunity to build employee commitment 5.Sets individual performance expectations 6.Provides guidance on goals & coaching 7.Aligns employee performance & goal attainment with promotion & career opportunities

EFFECTIVE PERFORMANCE MANAGEMENT Other benefits: Enables employees to own their performance and career development within the organization Links results to outcomes

Developing talented procurement professionals is the foundation for advancing the procurement function

EFFECTIVE PERFORMANCE MANAGMENT STEP #1: HIRE THE RIGHT PEOPLE – Develop appropriate/strategic job descriptions – Identify the necessary skills Too often job descriptions are unclear, generic or outdated. Have you updated yours lately?

Skills/Knowledge Analytical skills Judgment Innovation/creativity Knowledge/experience w/specific commodities Communication skills Collaboration 4 yr. Degree According to Georgetown Univ. Ctr. on Education & the Workplace by % of all jobs in U.S. will require post-secondary education (up from 28% in 1973)

Skills/Knowledge Experience in procurement in not on this list – why? Severely limits the applicant pool Experience may not be the best fit Experience may not be successful experience

EFFECTIVE PERFORMANCE MANAGEMENT STEP #2: RETAIN THE RIGHT PEOPLE – Develop a career path in procurement PA I PA II PA III PA IV PA V Associate Director Director

CAREER PATHS Career paths must contain clear level of responsibility and authority to progress to the next level: Experience Complexity of duties/projects Impact Leadership Freedom of Action Note: This cannot be accomplished in a transactional environment

EFFECTIVE PERFORMANCE MANAGEMENT STEP #3: DEVELOP PEOPLE TO ACHIEVE THEIR CAREER GOALS By implementing effective performance management.

PERFORMANCE REVIEWS Study finds that basically every single person hates performance reviews. The Washington Post 1/27/2014

PERFORMANCE REVIEWS Annual performance reviews are a time for feedback. Study by psychologists Kansas State, Eastern Kentucky, and Texas A &M- how people respond to negative feedback in performance reviews. Even top performers don’t take constructive criticism well and are often discouraged.

PERFORMANCE REVIEWS Other research – Zlatan Krizan, Assoc. Professor (ISU) – People think they are good because they receive vague or not accurate feedback – “Empty praise of telling someone they’re great, or pretending there are not skill differences when there are, can really become a problem.” – “Setting specific measures for evaluation and feedback will lead people to consider their performance and outcomes versus broad ideas of competency.” – “If people are evaluating themselves in terms of very specific criteria, they’re going to have better self-insight.”

PERFORMANCE ASSESSMENT CRITERIA Cost Savings/Value Added – Dollars saved/value of value-added services – Opportunities analyzed – Innovation leading to cost reductions Collaborative Agreements – Number of new opportunities analyzed/established – Quality of new contracts established Customer Service – Successful public relations/business liaison activitie4s – Outcomes from dept. visits/feedback – Timely response to customer needs

PERFORMANCE ASSESSMENT CRITERIA Economic Development – Volume of business with small businesses, women-owned, minority-owned, disability-owned, veteran-owned. – New businesses (above) identified Teamwork – Positive interaction with mgmt./peers – Timely submission of substantive reports – Participation in team projects Supplier Relations – Absence of problems – Vendor feedback – Innovative solutions

ANNUAL REVIEWS Reasons they don’t work:  Time consuming  Hesitate to be honest  No follow-up  Sounds like a personal competency assessment  Talking about performance once a year is a waste of time  Don’t’ tie performance review to salary review

PERFORMANCE REVIEWS How to make them work: – Each person should assess their performance against the specific performance criteria – Set goals: Each person should establish professional goals for the next year AND – Establish realistic career goals – Identify knowledge or skill gaps to achieve career goals – Create action plan to acquire necessary skills

PERFORMANCE MANAGEMENT Manager’s responsibilities for success; – Build trust – Align organizational and individual expectations – Coach for success – Evaluate results – Recognize & reward success – Provide opportunities for employees to gain skills needed

Performance Management should not be the once-a-year dreaded activity

SUMMARY Effective Employee Performance Management – Drives organization performance through goal setting and alignment with institutional goals – Provides performance and development plans, commitment and action steps to support/guide employee career growth – Increases retention & engagement of employees – Reinforces a high-performance culture

Departmental goals aligned with strategic goals of institution + All staff are working toward those goals Positive & effective contributions of procurement to the institution

Advance the Procurement Profession

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