Beyond Cost Reduction: A Rebel's Guide to Transforming Procurement

Enough with the outdated fixation on cost savings. Modern procurement approaches center on innovation, risk management, and sustainability but some companies just aren't there yet. Respect your stakeholders, but don't let their authority alone determine what is important. Question everything and push back on out-of-date practices. If you do it right, they'll thank you.

Your New Superpower: "Influence Without Authority"

Need to sway a decision or change a mind, but you're missing the fancy title or the official clout? No problem. This is where the magic of "Influence Without Authority" by Allan R. Cohen and David L. Bradford comes into play. This classic book isn't just another read—it's a game-changer for anyone who's tired of sitting on the sidelines. It shows you how to navigate the messy waters of organizational dynamics and get things done, all without relying on any positional power.

Why This Book Rocks

As the Harvard Business Review puts it, this book is "an invaluable guide" for anyone looking to "effectively influence and lead without relying on formal authority." "Influence Without Authority" hands you a toolkit for building influence that's all about understanding, empathy, and some smart, strategic thinking. The principles in this book help you engage with others by zeroing in on mutual benefits and leveraging your interpersonal skills. It's about creating those win-win situations, fostering real collaboration, and driving results.

What We'll Cover

• Reciprocity Principle
• Currencies
• Building Effective Relationships
• Diagnosing the Situation
• Strategies for Influence

Follow this roadmap, and you'll master these powerful concepts to navigate the wild world of interpersonal dynamics, build your influence, and crush your professional goals. 

Ready to level up? Let's get started!

The Reciprocity Principle

Why It Matters: The Reciprocity Principle is the cornerstone of influencing without authority. It's the simple idea that people feel obliged to return favors or kindnesses. In procurement, this means creating value for others before asking for something in return. When you help a colleague meet their goals, they're more likely to help you achieve yours. This principle is a powerful tool in any negotiation, marketing strategy, or leadership approach, as it fosters a sense of mutual obligation and cooperation.

Influence Gurus Who Swear by Reciprocity

• Robert Cialdini – Influence: The Psychology of Persuasion
• Stephen Covey – The 7 Habits of Highly Effective People
• Adam Grant – Give and Take
• Brene Brown – Dare to Lead
• George Homans - Social Exchange Theory 
• The Golden Rule in religious and ethical teachings

Reciprocity is a powerful tool not just in procurement but across various disciplines and frameworks. Understanding and applying this principle can help you build strong, influential relationships in any professional setting.

Currencies

Why It Matters: Understanding what others value—what Cohen and Bradford refer to as "currencies"—is key to building influence. In the electronics supply chain, different stakeholders have different priorities. For example, engineers might value component quality and innovation, while production managers focus on lead times and cost.

How to Apply It

• Identify Stakeholder "Currencies": No, we're not talking Bitcoin. What does your engineering team want to make their next project shine? What does the production line need to avoid a meltdown? Whether it's component reliability, lead times, or compliance, know what makes them tick.
• Offer Value in Exchange: Once you've cracked the code on what your stakeholders want, use that knowledge like a pro. If someone's desperate to cut down on time-to-market, show them how your top-notch sourcing strategy is the answer to their prayers.

Examples and Tips

• Have an engineering team freaking out about component obsolescence? Offer to provide a comprehensive BOM health check during the New Product Introduction (NPI) phase to identify any potential risks early on. Then, commit to continuous monitoring throughout the production phase to catch any issues before they become costly problems. They'll love you for it, and in return, you can ask for their support when pushing that new supplier risk management tool.
• Is ERP driving demand inside lead times? Offer to regularly review and update the lead times in your ERP. This ensures that your buy actions are always aligned with real-world conditions, minimizing the risk of unexpected delays and shortages. By taking charge of this task, you're showing that procurement isn't just about buying parts—it's about keeping the entire production line running smoothly and efficiently.

Build Relationships Like Your Job Depends on It (Because It Does)

Why It Matters: In electronics procurement, relationships are everything. Sure, you can hide behind emails and spreadsheets, but that's not how you build trust or influence. If you want people to see procurement as the strategic powerhouse it is, you've got to get out there and make some friends (or at least some allies).

Build Relationships Using the PCCP Framework

• Propriety: Acting with propriety does not mean "acting professional"—it means acting appropriately for the situation. Sometimes it means being sarcastic and funny, other times deferential and quiet. It's about reading the room and adapting your behavior to suit the context. Acting appropriately is foundational to making others feel comfortable. When people feel at ease, they're more likely to trust you, open up, and engage in meaningful dialogue. Whether you're negotiating a tough deal or having a casual catch-up, make sure your demeanor matches the moment.
• Competence: Competence comes in two flavors: personal competence and subject matter competence. Both are crucial, but their importance can vary depending on your experience level. For someone new to the industry, personal competencies like intelligence, adaptability, and being a quick learner are invaluable. These traits show that even if you don't have all the answers yet, you're capable of figuring things out and growing into your role. On the other hand, for more senior professionals, subject matter competence becomes paramount. By this stage, you're expected to have a deep knowledge of the electronics supply chain, understand market trends, and anticipate challenges. Matching your competence to expectations is key—whether that means showing your potential early on or demonstrating your expertise as a seasoned professional.
• Commonality: Finding commonality can span personal and professional interests, but focusing on personal interests often has the most impact. Shared hobbies, favorite sports teams, or mutual travel experiences can create a strong bond and open avenues for deeper professional relationships. Discovering these common interests can be as simple as observing clues in a colleague's workspace or Zoom background—like a photo from a recent trip or a coffee mug from a favorite sports team—or engaging in some light, cocktail party-style banter about weekend plans or vacation spots. These small, personal connections can make a big difference in building rapport and trust, making people more inclined to collaborate and support your initiatives.
• Positive Intent: Positive intent means doing what you say and showing that the other person is important to you. In a new relationship, even very simple actions can convey positive intent. For instance, if you tell someone you'll send them follow-up information, actually sending it can have a big impact. Think about how many times someone has promised to do something and then never followed through—frustrating, right? Positive intent is astonishingly powerful, astonishingly easy, and astonishingly ignored. By consistently following through on your commitments, no matter how small, you demonstrate reliability and show that you value the relationship. This builds trust and makes others more likely to engage with you positively.

Pro Tip: Never Show Contempt

Contempt is one of the most destructive forces in any relationship, professional or personal. It's more than just anger or frustration—it's a mix of disdain, disrespect, and superiority. Research by psychologist John Gottman has shown that contempt is the single biggest predictor of relationship failure because it signals a lack of respect and dismisses the other person's worth. Even in a professional setting, small acts of contempt—like rolling your eyes during a meeting or dismissing someone's ideas—can erode trust faster than you might think. Instead, strive to show respect and understanding, even when you disagree. This approach not only preserves relationships but also fosters a more collaborative and productive work environment.

Diagnose The Situation

Why It Matters: Before you start waving your procurement flag, make sure you know the lay of the land. Every organization has its own quirks, politics, and power plays. Understanding these dynamics is crucial if you want to make your mark without stepping on too many toes.

How to Read the Room

• Analyze Power Dynamics: Who's really calling the shots in your product development process? Knowing who holds the purse strings and who's just holding a grudge will help you navigate the internal politics like a champ.
• Assess Organizational Culture: Is your company obsessed with innovation, or are they just looking to pinch every penny? Knowing what makes your organization tick will help you tailor your pitch to hit all the right notes.
• Identify Resistance Points: There's always someone ready to throw a wrench in the works. Maybe they're skeptical of new suppliers, or maybe they just don't like change. Whatever the reason, be ready to counter their arguments with cold, hard facts.

Examples and Tips

• Thinking of switching suppliers for a key component? Be prepared to face some pushback, especially from folks who've been doing things the same way for years. Arm yourself with data showing how the new supplier can offer better performance or cost savings, and you'll be much harder to ignore.
• At a company that prides itself on cutting-edge tech? Highlight how sourcing from innovative suppliers can give them a leg up on the competition. Everyone loves a good competitive edge, right?

Strategy #1 – Indirect Influence

Why It Matters: Sometimes, going straight to the source isn't the best move. Your supply chain decisions affect many departments, especially when dealing with complex sourcing decisions like EMS selection, it's often smarter to use indirect influence. That's fancy talk for getting other people to do your bidding.

How to Leverage Indirect Influence

• Build Coalitions: Find your tribe—those folks in other departments who get what you're trying to do and are willing to back you up. Strength in numbers isn't just for sports teams, you know.
• Influence Key Influencers: Not everyone's a decision-maker, but some people have the ear of those who are. Win over these key players, and you're halfway to victory.

Examples and Tips

• Want to standardize components across different product lines? Team up with the product development folks and make your case together. You'll have a much stronger argument when you're all singing from the same songbook.
• Got a tech lead who's respected across the board? Get them on your side, and their endorsement will do wonders for your cause.

Strategy #2 - Find Win-Win Solutions

Why It Matters: We all report to somebody, the best way to prove your worth is to align your strategies with the company's big-picture goals. That means finding solutions that benefit everyone involved—or at least look like they do.

How to Find Win-Win Solutions

• Align with Organizational Goals: Your procurement strategies should support what the company is trying to achieve, whether that's faster time-to-market or superior product quality. It's all about framing your initiatives in a way that shows how procurement is helping to hit those big targets.
• Create Mutually Beneficial Proposals: Don't just pitch ideas; pitch benefits. Show how your proposal will make life better for everyone, from the bean counters to the product designers.

Examples and Tips

• Thinking about moving to a more innovative supplier? Pitch it as not just a way to cut costs but also to get cutting-edge tech faster. Two birds, one stone.
• Negotiating a contract? Focus on building a long-term partnership rather than just hammering down the price. A supplier who feels valued is much more likely to go the extra mile when you need it most.

Take the Lead and Drive Change

Don't wait for a mandate or an invitation. Take the lead in transforming your procurement practices today. Start by applying the principles discussed in this guide. Begin with small steps like identifying stakeholder needs, building your network, and aligning your actions with your company's strategic goals. Then, expand your influence by using indirect methods like coalition-building and finding win-win solutions. 

The old ways just don't cut it. Those who master the art of influence without authority will be the ones driving innovation and strategic growth. So, stop playing small and start shaping the future.