A week is a long time in politics, so the saying goes. Proof of the pace at which the external environment can change has become clear following Donald Trump’s inauguration as President of the United States on 20 January.
Since taking office, President Trump has signed almost 50 executive orders, generating no shortage of headlines and disruption. Amid significant and rapid change, many business leaders are finding themselves redrawing their strategic roadmaps at record speed – with procurement being no exception.
When we assembled members of Procurement Leaders’ CPO community to take stock and share responses to the new political environment, it was unsurprising to see that tariffs were top of mind for many. While some procurement chiefs said they plan to accelerate their reshoring, localisation and multisourcing efforts, others noted they were not planning to change their plans – despite the likelihood of additional costs.
But in a discussion characterised by thoughtful contributions and considered insight into both the business and human challenges that leaders are addressing, a comment from one CPO was particularly striking.
The leader drew comparisons with the disruption brought about by the onset of the Covid-19 pandemic, likening the impact of sustained uncertainty and volatility on a business to running a marathon. Back in 2020, many procurement functions realised they weren’t “fit for the job and needed to get fitter”, to use their words. The leader challenged the group, saying that while many teams have evolved their strategies and worked hard to elevate their capabilities, have they done enough?
This cuts to the heart of what is a difficult balancing act. CPOs are the executives responsible for the function’s strategic roadmap, they have to keep their eyes on the macro issues, the transformational trends and the long-term goals of the organisation. At the same time, however, the short-term pressures are real: we all have targets to meet, stakeholders to manage and critical deliverables that can often take precedence.
The challenge is finding a way to deliver continuous improvement in a fast-paced and ever-changing world to ensure the function is fit to rise to whatever challenges the future may bring.
While further pronouncements from the White House are inevitable and businesses will need to react in the short-term, CPOs must find a way to strike a balance between responding rapidly to external events and developing their functions to ensure they deliver on long-term strategic goals. After all, it’s a marathon not a sprint.
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