ADJECTIVE
- (of a person, action, or idea) showing a willingness to take risks; confident and courageous.
Do we consider Procurement bold or risk averse? In risk averse organizations, the desire to avoid failure overrides the desire to achieve good outcomes (Lopes, 1987). An old debate suggested that Procurement’s risk aversion is limiting it’s ability to deliver value in the public sector (Public Spend Forum Exchange 2017). This risk aversion impacts the ability to find a better way and generate commercial innovation. Too often cultural mindset barriers are formed which are then legitimized through rigid procedures and regulations which in turn leads to further mediocrity. We all get tired of banging our head off the same wall……
Is Procurement bold enough to challenge those established norms and shift the mindset? Or do we sit back and bend to the immovable object that sees creativity as a risk that breaks the rules.
Boldness requires a wealth of relevant experience , and a level of confidence that comes from knowing your stuff! The question is how we change mindsets as today’s organizations face more and more regulation. The original study conclusion remains the same: the core issue concerns organizational knowledge, education and training.
For those seasoned Procurement practitioners, are we condoning risk aversion or helping facilitate a mindset change?
AYSCO CONSULTING 