A procurement professional should know how to influence and negotiate, the basic business drivers in their organization and how they impact them, how to budget and set timelines, what world class procurement looks like and how to use rigorous spend analysis to drive prioritization and performance. These 8 books can equip supply chain professionals and in particular procurement professionals with the tools to step change their negotiations and careers.
Influence: The Psychology of Persuasion by Robert B. Cialdini
By: Robert B. Cialdini
Source: Audible, Influence, New and Expanded, link here
About: The book covers 6 principles of persuasion and how, using certain triggers, one can influence human decision making and behaviour. Robert Cialdini is one of the leading social scientists in the field of influence.
Why good for procurement: Persuasion and influence are key for both external negotiations but also internally to influence stakeholders in such a way that gets you the desired outcomes. This book outlines simple techniques that any sourcing professional can use to maximize their influence and the power of persuasion in negotiations.
Quote from the author: “The best persuaders become the best through pre-suasion – the process of arranging for recipients to be receptive to a message before they encounter it.[1]”
Available here in audio format or here in physical format
Getting to Yes: Negotiating Agreement Without Giving In
Source: Amazon, Getting to Yes, Link here
By: Roger Fisher and William Ury
About: This book has helped millions of people learn a better way to negotiate. It is one of the primary business texts of the modern era, it is based on the work of the Harvard Negotiation Project, a group that deals with all levels of negotiation and conflict resolution[2].
Why good for procurement: The book offers a step-by-step strategy for coming to mutually acceptable agreements in every sort of conflict. It is great for procurement professionals because it offers a clear method for negotiating professional disputes without getting angry or getting taken[3].
Quotes from the book: “Any method of negotiation may be fairly judged by three criteria: It should produce a wise agreement if agreement is possible. It should be efficient. And it should improve or at least not damage the relationship between the parties.[4]”
Available here in audio format or here in physical format.
Good to Great
Source: Audible, Good to Great, link here
By: Jim C Collins
About: This book outlines how companies make the transition from being good companies to being great companies. The book is a management classic that covers topics such as leadership, prioritization and incremental improvements that can help a business prosper.
Why good for procurement: This book is designed for anyone interested in good business. Procurement professionals are business people first and foremost. Concepts in the book such as the flywheel are useful when considering the positive (or negative) effect that procurement can have on the bottom line and the overall success of a business.
Quote from the author: “Greatness is not a function of circumstance. Greatness, it turns out, is largely a matter of conscious choice, and discipline.”
Available here in audio format or here in physical format
Heathrow Terminal 5: History in the Making
Source: Amazon, Heathrow’s Terminal 5 – History in the Making, link here
By: Sharon Dohery
About: This book reveals the inside track on the building of Terminal 5 including outlining the ground-breaking management thinking, and the many lessons learnt from the leaders, the client and integrated supply chain teams (involving over 50,000 people from 20,000 companies) which led to the successful delivery of this mega project on time, on budget, and safely[5].
Why good for procurement: One of the best case-studies on supply chain and big budget procurement. To deliver a project of that scale on time and on budget can only be achieved with best-in-class procurement professionals, and so reading this book is equivalent to learning from the best.
Quote about the book: “Two decades of the planning, design, construction and opening of Terminal 5 has resulted in a gateway that Heathrow can be proud of.[6]”
Available here in physical format
Nudge
Source: Amazon, Nudge: Improving Decisions about Health, Wealth and Happiness, link here
By: Richard Thaler and Cass Sunstein
About: Nudge is about how we make choices and how we can make better ones. Using dozens of examples and drawing on decades of behavioural science research, the authors show that no choice is ever presented to us in a neutral way, and that we are all susceptible to biases that can lead us to make bad decisions[7].
Why good for procurement: By knowing how people think, we can use “choice architecture” to nudge people toward certain decisions which can be useful when trying to negotiate for certain outcomes. It can also be used to set up certain cues for your procurement teams to optimize their behaviour. Obviously, nudge theory should be used ethically and responsibly.
Quotes from the book: “The first misconception is that it is possible to avoid influencing people’s choices.[8]”
Available here in audio format or here in physical format
How to Win Friends & Influence People
Source: Amazon, How to Win Friends & Influence People, link here
By: Dale Carnegie
About: An impactful self-help book that aims to teach readers how to communicate with diplomacy and tact, be more likeable, increase their ability to get things done, become effective leaders and navigate social situations successfully.
Why good for procurement: Communication skills, likeability and effective leadership are all relevant to procurement professionals looking to strike great deals, build strong partner relationships and manage effective teams.
Quotes from the book: “Success in dealing with people depends on a sympathetic grasp of the other person’s viewpoint[9].”
Available here in audio format or here in physical format
Never Split the Difference: Negotiating As If Your Life Depended On It
Source: Audible, Never Split the Difference: Negotiating As If Your Life Depended On It, link here
By: Chris Voss with Tahl Raz
About: This book takes you inside the world of high-stakes negotiations. Voss (former international hostage negotiator for the FBI) reveals the skills that helped him and his colleagues succeed in negotiating during life or death situations. In this practical guide, Voss shares nine effective principles people can use to become more persuasive[10].
Why good for procurement: Negotiating is at the very core of procurement. Having practical strategies and principles at hand when entering a negotiation can boost your chances of reaching a favourable outcome.
Quotes from the book: “Negotiate in their world. Persuasion is not about how bright or smooth or forceful you are. It’s about the other party convincing themselves that the solution you want is their own idea. So don’t beat them with logic or brute force. Ask them questions that open paths to your goals. It’s not about you.[11]”
Available here in audio format and here in physical format. Chris Voss also has a MasterClass available here.
Spend Analysis: The Window into Strategic Sourcing
Source: Amazon, Spend Analysis, link here
By: Kirit Pandit and H Marmanis
About: As per the title of the book, the book explores spend analysis, including how to conduct the analysis and how to use the analysis. Spend analysis can be a crucial driver for better corporate performance, improving the bottom line and better risk management. This book is known as the definitive text on the topic.
Why good for procurement: Spend analysis can help improve several areas including the identification of cost reduction opportunities, the prioritization of sourcing projects, the negotiated results, and the tracking and monitoring to ensure that negotiated results reach the bottom-line[12]. If you can’t analyse your spend data, many opportunities for improvement will be missed. It’s relevance to procurement is huge.
Quotes from the book: “One of the requirements for enabling world-class strategic sourcing results is rigorous spend analysis[13]”
Available here in physical format.
[1] Strategies for Influence, Robert Cialdini – Principles of Influence, https://strategiesforinfluence.com/robert-cialdini-principles-of-influence/, [accessed 17 Jan 2022]
[2] Amazon, Getting To Yes: Negotiating Agreement Without Giving In, https://www.amazon.com/Getting-Yes-Negotiating-Agreement-Without-ebook/dp/B0051SDM5Q, [Accessed: 18 Jan 2022]
[3] Amazon, Getting To Yes: Negotiating Agreement Without Giving In, https://www.amazon.com/Getting-Yes-Negotiating-Agreement-Without-ebook/dp/B0051SDM5Q, [Accessed: 18 Jan 2022]
[4] GoodReads: Getting to Yes: Negotiating Agreement Without Giving In, https://www.goodreads.com/work/quotes/1394134-getting-to-yes-negotiating-agreement-without-giving-in, [Accessed: 17 Jan 2022]
[5] Amazon, (Jan 2022), Terminal 5: History in the Making, https://www.amazon.com/Heathrows-Terminal-5-History-Making/dp/0470754354, [Accessed: 18 Jan 2022]
[6] GoodReads (Jan 2022), Heathrow’s Terminal 5, https://www.goodreads.com/book/show/16921475-heathrow-s-terminal-5, [Accessed 17 Jan 2022]
[7] Amazon, Nudge: Improving Decisions about Health, Wealth and Happiness, https://www.amazon.com/Nudge-Improving-Decisions-Health-Happiness/dp/014311526X, [Accessed 17 Jan 2022]
[8] Goodreads, Nudge: Improving Decisions about Health, Wealth and Happiness, https://www.goodreads.com/work/quotes/2535409-nudge-improving-decisions-about-health-wealth-and-happiness ,[Accessed 17 Jan 2022]
[9] Khim, D., 30 Inspirational Quotes From “How to Win Friends and Influence People”, https://blog.hubspot.com/sales/inspirational-quotes-from-how-to-win-friends-and-influence-people, [Accessed: 18 Jan 2022]
[10] Audible, Never Split the Difference: Negotiating As If Your Life Depended On It, https://www.audiobooks.com/audiobook/never-split-the-difference-negotiating-as-if-your-life-depended-on-it/, [Accessed 17 Jan 2022]
[11] GoodReads, Chris Voss Quotes, https://www.goodreads.com/author/quotes/5525291.Chris_Voss, [Accessed: 18 Jan 2022]
[12] Amazon, Spend Analysis, https://www.amazon.com/Spend-Analysis-Window-Strategic-Sourcing/dp/1932159932, [Accessed 16 Jan 2022]
[13] Amazon, Spend Analysis, https://www.amazon.com/Spend-Analysis-Window-Strategic-Sourcing/dp/1932159932, [Accessed 16 Jan 2022]
