Art of Procurement podkast

BTW EP 26: The Phil-Ins: Stop Counting Wins Start Counting Outcomes

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Do tyłu o 15 sekund
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Procurement's incentive problem doesn't stop at the contract. It gets worse after signature.

In this Phil-Ins episode of "Buy: The Way…To Purposeful Procurement," Rich Ham and Philip Ideson are joined by Kelly Barner to unpack three "Buy Laws" at once, mainly because they're inseparable in practice.

First: count only what hits the ledger. If the value doesn't show up in actuals, it doesn't count. That means moving procurement out of the projection business and into the results business… where the CFO lives.

Second: stop counting only the good. The status quo lets category managers rack up credit for isolated wins while bad outcomes quietly pile up elsewhere. Procurement can't become more credible (or more strategic) if the scoreboard only records highlights.

Third: fund a validation function. If you're going to demand that outcomes be real, you have to resource the work that proves it. Validation isn't optional. It's the bridge between negotiation and execution, the place where contract adherence, leakage, "technically compliant but avoidable" spend, and invoice-level reality either confirm the deal… or expose the fiction.

Along the way, the conversation also confronts the uncomfortable tension at the heart of all three Buy Laws: procurement can't control everything that drives financial outcomes. But that can't be an excuse to keep rewarding imagined savings. The answer is a healthier system altogether, which should include clear carve-outs, smarter attribution, and a consistent discipline of asking the simplest kinds of questions procurement too often avoids: "this was supposed to be 12… so why is it 15?"

If procurement wants to claim value, they have to stay involved long enough to validate it, and build a measurement system strong enough to survive contact with reality.

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