Technology and the Growing Talent Crunch! (2025)

Posted on October 30, 2024

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Regardless of the reasons or for that matter the degree, of the pending talent crunch or vacuum as I like to call it, a successful procurement practice is built upon the commitment (some would say passion) of its personnel.

Even though I often refer to the continuing high rate of e-procurement initiative failures, there are examples (however rare) of successful programs.  These bastions of success have very little to do with the technology (so you can ignore those “comparison” advertisements by the software vendors), and more to do with the individuals involved in the selection and implementation process.

In an excerpt from Linda Brigg’s article, Rick Grimm (who is CEO of the National Institute of Governmental Purchasing), made the following statement; “as is true of any technology, the push for an e-procurement solution typically comes from one or more tech-savvy leaders within a school district.”  What this tells me is that the success of any program starts with an organization’s leadership.  Regardless of the talent vacuum, all organizations should already have strong leadership firmly in place.  If not, the lack of talent at the operational level is the least of their problems.  Quite simply put, committed and passionate leaders tend to draw equally committed and passionate personnel.

Grimm went on to say, “there needs to be a partnership that includes at least the district’s CIO, purchasing agent, finance manager in charge of accounts payable, major user departments, and budgeting arm.  They all need to be thinking strategically about where the best value is.”  Putting aside the notable exclusion of external trading partners such as suppliers from the list (which I believe is an important oversight), Mr. Grimm has hit the nail on the head.  Skill development is not achieved in the classroom alone, but is instead acquired through real-life experience and understanding.  Being part of an environment which promotes the ability to understand and incorporate the objectives of different stakeholders is a critical element of a successful program and career.  As Grimm rightfully concludes, “when you don’t have that (re stakeholder participation and understanding), you find niche systems in which purchasing becomes an afterthought.”  And this brings us back to why 75 to 85% of all e-procurement initiatives fail.

One Final Note

I forgot to mention that the above text is an excerpt from a Procurement Insights article I posted on August 1st, 2007. When it comes to talent and technology, have we really made any progress heading into 2025?

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Posted in: Commentary