How might Roche Procurement expand the strategic value it delivers to the business—operating as One Procurement? 

On January 19–20, 2016, the Roche Procurement Committee (RPC) gathered in Yountville for the RPC Blitz. The Blitz was an intensive, immersive effort to Think Wrong about how Procurement can expand the value it contributes to the business so that Roche might serve and benefit even more patients.

Our focus

• Business value (over procurement value) 
• Business partner alignment 
• Supplier innovation 
• People 

Our objectives

• Explore the impact that Procurement might have for the business and patients 
• Explore how Procurement might best be understood across Roche and the industry 
• Explore how to tell a compelling Procurement story 
• Explore what will need to be done to keep the promises of that compelling story 
• Explore and agree how the RPC might work even more effectively as one team—and how all of Procurement might operate as One Procurement

Desired outcome

• A strategic vision that builds on the foundation of the 10 RPC Strategic Initiatives 

We thought wrong about the impact that the RPC might achieve through One Procurement.

Deflection Point
Moonshot
So That...
Eulogy
8-Word Impact
Framer-in-Chief
When...
 

Loathe to Love

Draw It
 

Matters Most
Impact x Doability
SASU
Waypoints

 

New insights, sharper focus, better alignment, greater impact.

The RPC had an open and strategic discussion about our strategy, platforms (systems, tools, processes), people, ways of working together, value delivery, and reputation.

We confirmed the aspiration and strategic intent for One Procurement at Roche:

We want to become a strategic business function delivering more value for the business—and ultimately for our patients.

We reviewed the 2015 RPC goals, which were all met or exceeded. We discussed the overall progress made last year, and analyzed where we need to improve.

We will collaborate and align even more closely with Finance and Nexus. We also decided that adding Carsten Reibe as a member of the RPC will allow us to align earlier; make decisions faster; increase speed and deliver more guidance; leadership, and value.

The RPC streamlined the Strategic Initiatives/Projects and agreed on the 2016 RPC goals and priorities.

In addition to the Joint Operating Model and delivery of the PPSC projects, the 2016 goals include Savings, C4C, DJSI, prioritization leveraging a joint RPC project portfolio, and clarifying roles and responsibilities as well as decision making among the various Procurement teams and committees.

We stepped back, opened the aperture, and imagined the impact that we might have as One Procurement.

We inspire innovative procurement to deliver results with pride.

We deliver bold sourcing to transform Roche.

We enable supplier innovation, bringing care to more patients.

We explored how we might work together even more effectively in areas such as strategy, decision making, resourcing, and eliminating redundancies.

Inspired by earlier work completed by the GPPLT and Diagnostics, the RPC agreed to develop a Joint Operating Model. As an integral part of this joint operating model, we will also develop a joint SSC (Shared Service Center) procurement strategy.

We focused on the strategic imperatives that would have the greatest impact and reprioritized our strategic initiatives to support those.

Over the course of the RPC Blitz we were able to identify those initiatives that would make the greatest contribution to achieving our impact vision and that would lay the best foundation for One Procurement. Other initiatives were either pushed back to a later start date, reassigned, or retired.

We set clear and achievable goals and priorities based on our refreshed strategic imperatives and initiatives.

In addition to the Joint Operating Model and delivery of the PPSC projects, our 2016 goals include: 

• Savings
• C4C
• DJSI
• Prioritization leveraging a joint RPC project portfolio
• Clarifying roles and responsibilities as well as decision making among the various Procurement teams and committees

March 

WAYS OF WORKING

PPSC/Nexus runs RPC:
Agree on clear R and R between RPC and PPSC
Sharpen focus of PPSC membership

Lack of Prioritization: 
Hire PM 

Ways of Working for RPC:
Taking active ownership of quality of agenda
Commit to one 4-hour meeting per month via Telepresence

PRIORITIZATION OF STRATEGIC INITIATIVES

SRM:
Pilot in 2016 consulting and thermo for joint SRM

May 

WAYS OF WORKING

PPSC/Nexus runs RPC:
Total clarity on GBS strategy impact on Procurement

June

WAYS OF WORKING

Lack of Prioritization: 
Build portfolio during F2F in Indy

July

PRIORITIZATION OF STRATEGIC INITIATIVES

Category Management:
Pause RIR 

October 

WAYS OF WORKING

Lack of Prioritization:
Operating Model and implementation plan  

December

WAYS OF WORKING

Lack of Prioritization:
Project inventory to drive value:
-Planning
-Implementation
-Realization   
Elevate TOM on Charter

Each Think Wrong drill produces useful output. Documentation of our work provides a rich collection of ideas and insights to mine as we move forward. 

We identified six dimensions of transformation for One Procurement.  

We used “Deflection Point”—a Be Bold drill—to imagine the future if nothing in Procurement changed and to explore the kind of transformation we might be able to lead as One Procurement.

Strategy
 

Support business priorities

Drive best business decisions

Provide a competitive advantage

Drive revolution rather than evolution

Transform Roche

Platform
 

Make it easier to work with Procurement

Enable Procurement to be strategic partners to the business

People
 

Attract top talent—from business functions and beyond

Drive high morale

Make our people proud

Ways of Working

Make it easier to work with Procurement

Increase speed and agility

Free up funds for investments

Value
Delivery

Make value clear

Extract full potential and benefits for Roche

Demonstrate value of innovating Procurement to Business Development

Drive demand for our services

Drive more value for patients

Reputation
 

Build trust

Elevate the status and impact of Procurement

Team 1

Innovate state-of- the-art tools.

Populate resources into cross-functional teams—splitting Procurement into Business Sectors rather than a Group Function.

Team 2

Integrate business development— influencing and shaping business strategies. 

Team 3

Faster to market by 50%.

Our suppliers impact patients, shape end-to-end drug discovery, and reduce cycle time by 50%.

We explored the mindset, values, and approach we wanted to exemplify through One Procurement.

We used “So That...”—a Be Bold drill—to explore how we wanted to go about doing the business of One Procurement and the kind of results that we might produce.

Team 1

In a way that is a great customer experience so that people love to work with One Procurement and Roche.

In a way that is quick and agile so that Roche can utilize the latest industry offerings.

In a way that quickly meets business needs 
so that we offer a competitive advantage.

Team 2

In a way that moves from savings and process to talking about business and business strategy so that people see the value of involving Procurement in business development—and so that Procurement is seen as a business function.

In a way that attracts talent from business functions so that the business can be influenced more effectively—and to make it easier to work with Procurement.

Team 3

In a way that engages our suppliers
so that we extract their full potential and benefits for Roche.

In a way that innovates so that we go for revolution rather than evolution.

In a way that best uses our market insights and data so that we get the best business decisions.

Team 1

We can be the catalyst for progressive change.

We can boldly go where no one else in procurement has gone.

We can be known for our energy and innovative approach.

Team 2

We can help save people’s lives with disruptive, innovative technologies that enable speed to market.

We can cause Procurement to be seen as much more than savings.

We can change mindsets in Procurement and across the Business.

Team 3

We can focus the role that Pharma plays in drug development.

We can create new, distinct markets that support Pharma.

We can be relentless advocates to focus on what makes a difference for patients.

We can make our shareholders’ investments in us meaningful and sustainable.

We explored how we might transform the things we don’t like about the RPC into things we could all love. 

We used “Loathe to Love”—a Let Go drill—to generate ideas for how we might make One Procurement even more compelling. On Day 2 we ran a second round of “Love to Loathe,” focused on how we might become even more effective as the RPC.

Feels like Nexus runs RPC.

Invite Carsten to serve as an interface between Nexus and the RPC.

Share charters—GSC Strategy.

Gain clarity on GBS Strategy and understand its impact on Procurement.

Develop Joint Operating Model with Carsten.

Lack of prioritization.

Elevate TOM on the RPC charter.

Ruthlessly prioritize our projects.

Identify and support only our Top 5 projects. Everything else stops.

Stop 50% of our projects.

Agree on clear roles and responsibilities between RPC and PPSC.

Sharpen focus of PPSC membership.

Systems, tools, and IT roadmap changes.

Tensions between divisions.

Too much divisional viewpoint.

Too busy for strategic change.

Operating model + project inventory to guide planning, implementation, and realization, as well as to drive value creation.

RPC Ways of Working.

RPC chairman focused exclusively on RPC for 9 months.

Face-to-face meeting at Leadership Conference, 4 April 2016.

RPC commits to one 4-hour meeting per month via Telepresence.

Move forward with decision making—if unable to attend meeting, give RPC colleague your vote.

Take active ownership of quality of RPC agenda.

Our
Employees

Our Business Partners

Our
Suppliers

We shifted from talking to drawing—to build a deeper understanding of emerging solutions and models.

We used “Draw It”—a Make Stuff drill—first to explore how One Procurement might show up for employees, business partners, and suppliers at the moments that matter most to them.

Then we used “Draw It” to build on the Target Operating Model (TOM) already in development by the GGPLT.