What does behaviour have to do with procurement? On the face of it, not much. But as my guest on this episode David Loseby explains, behind every procurement and supply chain operation, there are human beings involved in the design and management of the processes.
In other words, they’re areas that present huge opportunities for human risk to manifest itself. As David, who specialises in helping companies to manage the behavioural dynamics behind operational decisions, explains, there are trade-offs that need to be made. Just in time processes can deliver lower costs by reducing the need to warehouse stock and tie up working capital. But, as we saw under COVID, they’re also extremely vulnerable when things don’t go according to plan.
If we ignore human decision-making and what can be done to mitigate the risks it poses. It’s also worth remembering that if companies have a procurement function, it means that the amount of money they’re spending on procurement activities is large enough to justify the function's existence. Which is great if they get things right. But not so good when they get things wrong.
David has over 25 years of experience at a senior executive/director level driving value and change through procurement and organisational transformation.
His varied background enables him to draw on not only his various global experiences, sector diversity and responsibilities within many Public Bodies as well as FTSE 100 companies.
During our discussion, we talk about
- David’s background & research:
https://research-portal.uea.ac.uk/en/persons/david-loseby
- David’s book Soft Skills for Hard Business:
https://www.cambridgeacademic.com/product/soft-skills-for-hard-business
- The VUCA framework short for volatility, uncertainty, complexity, ambiguity:
https://en.wikipedia.org/wiki/Volatility,_uncertainty,_complexity_and_ambiguity- The COM-B model of behaviour change
https://thedecisionlab.com/reference-guide/organizational-behavior/the-com-b-model-for-behavior-change- The Tanker driver who was followed by a line of drivers, who discovered that he wasn’t carrying fuel:
https://www.bbc.co.uk/news/uk-england-northamptonshire-58767230
You can get hold of David via his LinkedIn page:
https://www.linkedin.com/in/david-loseby-cpochangeexecdir/To be notified of new episodes of the show, subscribe to the Human Risk podcast newsletter:
https://www.getrevue.co/profile/humanrisk
