We discussed in our last blog how successful companies invest in innovation with their people skills, processes and tools. The result: improved commercial excellence capability leading to higher operating profits.
So what has been changing in People Skills in the last decade? The game has been changed in Sales and Procurement capabilities in three themes;
- From Functional Silos to Task Oriented Integrated Teams
Where in the past large number of people in functional groups were working on a transactional basis and performing these transactions on a repetitive manner. The innovation is that smaller number people are working in their own deep functional expertise but integrated with other disciplines in task oriented teams.
People are working in flexible matrix organisational models, being a representative of a function and working in integrated multi-function small teams to drive value towards a common bottom line. The life cycle of the team is usually relatively short and focussed to the realisation of the task successfully. This integrated team approach ensures that business processes such as Procurement or Sales are glued with other business processes as Manufacturing or Distribution. Integrated approach ensures effective and efficient delivery business processes and business models outcomes.
- From One Physical Location to Virtual Network Locations
Where in the past the presence of each function was physically represented in each location, the innovation here is that teams are working with deep functional expertise membership in a virtual setup using great communication.
Priority in setting up the teams is invest in setting up the team, chose the right people in the team where they all buy in to and focus on delivering the value. Usual team dynamics and investment are at pay, the better the virtual communication the better the effectiveness of the team. Remember, effective teams usually deliver more value.
- From Single Functional Expertise To Bilingualism & Functional Expertise
Critical to the success to enable task oriented integrated teams, is the (1) high-end competence of members in their own functional discipline, (2) high level of curiosity in other functional disciplines enabling the understanding and ability to align value drivers in order to realise the objective of the tasks of the teams, and (3) the maturity and agility of an entrepreneur in working independently and improving own excellence. This means for a Sales Manager there is a need to have deep functional skills in negotiations, clear understanding on the financial aspects of a deal (e.g. cash-flow) and have a clear understanding on what the acceptance of an offer means from a legal point of view. Likewise on Supply, Logistics and other functions critical in getting the Prospect converted into a value creating Deal.
Summarised, People skills– Smarter and virtual commercial organisations enabled with bi-lingual skills in Commercial, Finance, Legal and IT competences are leading to higher operating profits.
Interested to get more about this? Read our upcoming Blogs.
If impatience or interested to know, what this means for your company? Give us a call to provide you support in this game-changing journey and stay in sync.
We from BloomingContracts.com have experience in how to make this work for you successfully, if you want to know give us a call.