How To Convince Senior Management Of Your Sourcing Proposal

there is a common understanding and agreement astarget can then be quantified using SMART
to what the opportunity and project is about.objectives (the acronym stands for Specific,
One method of achieving this is calledMeasurable, Achievable, Realistic and Timelined).o The
Situation-Target-Proposal or STP for short.third step is to produce a Proposal or Plan for getting
The STP is a succinct and accurate statement thatfrom where you are now to where you want to be
describes the current Situation, paints the vision of(the target).o The fourth step is to summarise all of
the Target, and lists the proposed elements to movethis into a succinct statement that encapsulates your
from the current Situation to the Target. In othercurrent situation, the target for where you want to
words, the STP is a succinct way to communicatebe and your outline plan for getting there.
the current state, a vision for the desired state, andHere is an example.
the key elements of a plan necessary to move fromProblem definition: The cost of providing homecare
the current to the envisioned state.services to older people in the County is more than
The STP also deals with incentives to move awaythe budget available.
FROM an as-is state and incentives to move TO aSituation: 25 homecare suppliers used. Average spend
to-be state.with them is £150,000. Average profit margin is 6%.
The specific steps in forming your STP are:-oThe County accounts for no more than 5% of any
Brainstorm and list everything you know about thesupplier's business. Average quality rating is
current situation. This includes how much you spend"adequate."
and with whom, known supply problems, upcomingTarget: Achieve same range and quantity of home
changes in legislation etc. This is done with yourcare services in the next 12 months for 10% less
project team colleagues and is a pooling of all of yourcost than now. Improve average quality rating to
current knowledge - it doesn't require collecting any"good."
new information (that comes later).o Set a Target.Proposal: Produce a category strategy that reduces
As the name suggests, The target is a description ofthe number of suppliers used to increase the value of
where you want to be. You should be careful here inthe County's account to them but commensurate
not jumping to a solution to the situation and calling itwith achieving defined outcomes. Implement quality
a target. So, for example, if your situation is that youimprovement programme.
have no money, a target is not to get a better paidDo you want to learn more about gaining
job (that is a solution) but to become wealthier. Theprocurement skills?