(Solution) CIPS Advanced level Leadership & Management in Procurement and Supply
- In summary, this report has focused on evaluating the impact of approaches to leadership and management in an organisation.
- To achieve this, a focus on Eco2Solar organisation has been prioritised where it has been established that the organisation current success in a project intended to achieve 2,000 installation in different apartments can be credited to their astute leadership and management.
- This equally evidence the organisation position dominating UK solar sector.
- These findings have been affirmed by PESTLE analysis of external factors, RACI Matrix among other tools which have been used.
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Description
Solution
Executive Summary
In this module of leadership and management in procurement and supply, a business report has been developed which evaluate the approaches to leadership and management within Eco2Solar organisation. This entail an evaluation of the impact of leadership and management on organisational behaviour, impact of leadership approaches on job satisfaction and the sources of power within the organisation and their use. This report has also evaluated on the importance of equality and diversity policies within Eco2Solar organisation. By using PESTLE external analysis tool, this research has identified leadership and management as being two different concepts despite often used interchangeably. Also, they have been identified to have a significant implication on the organisation behaviours. The leadership styles impact directly the organisational behaviours. Also, leadership and job satisfaction have been evidenced as directly correlated. By use of available peer reviewed works and CIPS Notes, leadership approaches have been noted to impact on an organisation employees wellbeing. This is with a people-cantered leadership being evidenced as the most appropriate as opposed to task-centered for organisation success in highly competitive business environment. Further, by use of Mendelow Matrix, stakeholders analysis has been conducted which has evidenced the scope in which power is distributed and exerted for the success of the organisation. This is with Eco2Solar organisation equality and diversity policy being identified and the potential benefits incurred. Finally, due to the identified gaps and suggestions of improvement, a set of recommendations have been generated which include;
- initiating coaching and mentoring sessions to enable followers to appreciate their leaders roles
- Integrate transformational with situational leadership which Eco2Solar
- Invest on an appropriate communication plan for influencing their different stakeholders.
- Establishing a system to ensure they harness efficiency in their resolution with minimal hindrances
- Diversify their eProcurement system to net suppliers who meets the other departments in the organisation diversity requirement.
- Merging departments to enhance efficiency and eliminate wastages associated with their current leaders and managers roles duplication
1.1 Organisation Background and Procurement and Supply Management (PS&M) 5
1.2 Selected Category of Spend in Eco2Solar Organisation. 6
2.0 Impact of Leadership and Management on Organisational Behaviour 7
2.1 Leadership and/or Management in Eco2Solar 7
3.1 Concept of Job Satisfaction. 11
3.2 Leadership approaches impact on Job Satisfaction. 11
4.0 Sources of Power within the organisation. 16
4.2 Sources of Individual Power 18
6.0 Conclusion and Recommendations. 21
Figure 1:Leadership and Management in procurement benefits. 5
Figure 2:Eco2Solar organisation Procurement and Supply Leadership and Management 6
Figure 4:Model of diagnosis of organisation behaviour impacts. 9
Figure 5: Nadler-Tushman Congruence Model 10
Figure 6:Factors influencing Eco2Solar Employees satisfaction. 11
Figure 7:Leaders Role on Employees Wellbeing. 13
Figure 8:Eco2Solar Organisation Leadership Grid. 14
Figure 9:Eco2Solar Stakeholders Categories. 16
Figure 10:Mendelow Matrix Stakeholders Analysis. 17
Figure 11:Sources of Individual and Organisation Power 18
Figure 12:Power/Dependency Matrix. 19
Figure 13:Eco2Solar Organisation contents of the Equality and diversity policy. 20
1.0 Introduction
In modern business environment, organisations fail to appropriately spend their million of dollars budgeted for procurement and supply owing to lack of appropriate leadership and management. This is supported by CIPS (2021) which note that a successful adoption of procurement approaches after the foundational spend analysis, it is dependent on an entity support structure, systems, processes, policies set and performance measures which link the organisation behaviours. The importance of this is identified by Asante and Boakye (2019) as the leadership and management as supporting influence of entire aspects of procurement and supply which range from new systems development, green procurement, and improvement of transparent practices. As a result, inexistence of leadership and management supply lead failure of multiple procurement and supply strategies as the top managements and leadership fails in harnessing the sustainable relationships and promoting a high-level interaction in negotiation as a best practice. This importance of leadership and management was also affirmed by Delloitte (2022) which had focused on 481 top-performing global CPOs from 38 countries with the organisations representing an integrated annual turnover of upwards of $5 trillion. The findings in the report on the importance of leadership and management are as illustrated in figure 1 which evidenced value creation at 50%, digital transformation (45%), leverage on competitive advantage (30%) and maximising productivity as the importance of integrating leadership and management approaches.
Figure 1:Leadership and Management in procurement benefits
Source: Summarised from Delloitte (2022)
Based on this background information, this business report focuses on evaluating the approaches to leadership and management within Eco2Solar organisation. In this report, the impact of leadership and management on organisational behaviour, impact of leadership approaches on job satisfaction and sources of power within the organisation and how these are used being evaluated. Finally, the importance of equality and diversity policies within the organisation has also been generated.
1.1 Organisation Background and Procurement and Supply Management (PS&M)
Eco2Solar organisation has been in active operations in UK Energy sector since 2007 with a focus of addressing current climatic change threats (Eco2Solar, 202). The focus of the organisation in UK is to reduce the overall CO2 emissions and fuel shortages/costs increase by offering an alternative solar energy. Over these years, Eco2Solar has been offering solar energy solutions to newly constructed residential homes and different commercial installations. The target market of the organisation include and not, limited to the multinationals including Barratts, Taylor Wimpy, Linden Homes, David Wilson and Lovells. For success of the organisation in their business area, being the most appropriate strategy, their business scope has included health centers (40%), learning institutions (50%), care homes (30%) and individuals apartments installations (20%). Today, the organisation has an average of profitability of approximately £10 million which is gained from their past involvement in different projects.
The success of the organisation in its procurement and supply department is because of successfully investing in good leadership and management. As shown in figure 2, through an embrace of hierarchical structure, there is a clear hierarchy of leadership in the organisation. Particularly, in the current COVID-19 pandemic, the organisation has been able to manoeuvre through immense challenges owing to their successful leadership and management system.
Figure 2:Eco2Solar organisation Procurement and Supply Leadership and Management
1.2 Selected Category of Spend in Eco2Solar Organisation
Since early 2021, Eco2Solar organisation had been involved in the implementation of 2000 solar powered projects in UK Estates (Eco2Solar, 2022a). This was an opportunity that the management and leadership of the organisation identified as being essential for Eco2Solar owing to the increased demand for energy in UK after the prevalence of COVID-19 pandemic. As evidenced in Solar Power Portal (2022), it note that 15% of buyers of new build properties had noted solar panels as the most critical installation and feature they prioritise on their operations and influence their decisions of purchasing. Hence, by focusing on the identified project, it would be essential for evaluating the scope in which leadership and management are engaged in the project. This will mirror the overall organisation operations and importance of leadership and management in the organisation.
2.0 Impact of Leadership and Management on Organisational Behaviour
The leadership and management concepts are noted in some research works as being used interchangeably. Core to most of the interpretations, CIPD (2021) identify the leadership as noted as including a process of development of an initial vision and inspiring others on the process of achieving a vision. This is with management including translation of vision into reality through a guidance of actions and behaviours of a group of people every day. In CIPS CIPS (2021) define leadership as being linked with a process followed to influence, encourage ad motivate others. This is with management being linked with control, telling, and implementing tactical actions. Further, while leadership embraces other people, two-way communication, feedback and empowerment, management represent dictation, controlling, authority and the process followed. Hence, in line with the provided definitions, it is evident that both have an appropriate position in an organisation. Often, the managers operate over leaders.
2.1 Leadership and/or Management in Eco2Solar
In Eco2Solar organisation, owing to the nature of their procurement and supply department, they operates both leadership and management. To affirm this, for Eco2Solar organisation to achieve an installation of energy systems to more than 20,000 buildings in UK solar Power Portal (2021) such as learning institutions, hospitals, medical centers, universities and distribution centers, this has been due to an effective management and leadership. For instance, in the organisation, the great managers ensures a smooth and effective running of these projects and ensuring all things are done. They harnessing planning, organising and coordinating all the operations in the identified projects. On the other hand, the leadership in Eco2Solar follows the best practice to inspire, motivate and innovate. For instance, through an appropriate leadership in the procurement and supply department, Solar Power Portal (2019) note that the organisation was able to sign an exclusive supply deal with house building firm Redrow Homes and partnered with heat battering firm Sunamp for delivering pilot project for Solar PV-Powered domestic heating.
For affirming that Eco2Solar organisation has both leaders and managers, the RACI Matrix can be used. As evidenced in CIPS (2020) this is a model used in understanding and managing various stakeholders in a particular project. The project of focus in this case is the recent installation of 20,000 Buildings in UK. The project RACI Matrix is as illustrated in figure 3;
Responsibility– At the initial phase of the project, the procurement manager was to source all materials not available in Eco2Solar organisation for purchasing. This is with the HR leader being tasked with a role of resourcing the best employees to be part of the installation process.
Accountable– As a leader of Eco2Solar, the board of directors leader and CEO had been tasked with the implementation of the project. The positive outcomes of the project would successfully be credited for the process.
Consulted– Prior making the decision making, the finance department manager and also the innovation managers would be engaged in the process and consulted in the entire installation process.
Informed– The top leadership and management in Eco2Solar would be engaged actively in the process implementation. This is with their needs being engaged in the process implementation.
Further, in terms of impact on organisation behaviour, Champoux (2010) note that leaders and/or managers have an influence of how people behaves in an organisation as an organisation does not behave. For the sake of demonstrating the impact of existence of leadership and management in Eco2Solar organisation, PESTLE Analysis can be used. As evidenced in the CIPS NOTES, Nadler and Tushman (1980) model of diagnosis of the organisational behaviour, the factors as shown in figure 4 can be used;
Figure 4:Model of diagnosis of organisation behaviour impacts
Source: Nadler and Tushman (1980)
Hence, as shown in figure 4, the impact to organisation behaviour is dependent on how the PESTLE Analysis factors influence the demand and also the response of system (people, culture, tasks and formal systems).
Political- As a result of the Brexit policy, the leaders, and managers in Eco2Solar were aware of the changes in purchase and selling of electronic equipment and solar system from EU (Solar Energy UK, 2021). In the identified project, this prompted them to establish a new communication program for creating awareness among the employees.
Economic- In UK, owing to the COVID-19 pandemic, UK Parliament (2021) report note that the GDP reduced with 9.7% in 2020. As a result, UK citizens focused on prioritising on strategies for people to reduce the demand for energy. As a result, in 2021, to meet the gap, the leadership recommended the procurement and supply in Eco2Solar to set strategies for meeting the gap of demand for energy.
Social- In UK, the culture has significantly changed influencing the demand for local employment, job opportunities, improving life standards and community development. Similarly, for the Eco2Solar procurement and supply leadership, they prompted an increased investment on sourcing of the renewable materials.
Technological- UK is ranked as one of the best in terms of investment in technology. As such Eco2Solar (2019) highlight that the management has put on plans in the organisation for integrating smart technologies. This is with an intention of meeting the 3% of the UK overall energy demands.
Environmental- Eco2Solar CEO ensures that all their operations are based on achieving the 2009 UK renewable energy policy of achieving 15% of overall energy consumption from renewable resources by 2020 (GSHPA, 2021). This being a formal system, the organisation has been instrumental in the process implementation.
Additionally, to evidence the impact of leadership and management in Eco2Solar, the Nadler-Tuchman Congruence Model can also be used (see figure 5);
Figure 5: Nadler-Tushman Congruence Model
According to GSHPA (2021), the Nadler-Tushman Congruence Model is appropriate to note on the issues impacting on performance and addressing them for improving performance. For Eco2Solar organisation, as a best practice, the management ensure that the tasks set, structure and culture are fitting collaboratively and working harmoniously with each other. Achieving this imply a high-level performance and achieving the set and organisation goals. The leadership in the organisation in turn set the inputs for use which include resources (financial, human, and technical), history (past investment in similar projects). The overall business performance is achieved evidenced in their output which is organisation, group and individual.
Currently, in Eco2Solar, situational leadership style is followed. This is also applied by the management in the organisation. As evidenced in MSG (2022) this has a positive implication in influencing performance and productivity in workplace. This is by encouraging the managers in the organisation to be flexible based on the situations. Nevertheless, there is a need for the leadership in the organisation to invest in capacity development as this is a significant gap that is evident creating a disconnect between their followers and the assigned work roles in the organisation.
3.0 Impact of Leadership Approaches on Job Satisfaction
3.1 Concept of Job Satisfaction…….
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- Within six months, PS&M personnel will be provided with chances for capacity building through partnerships with educational institutions to gain knowledge and skills for implementing category management.
- The PS&M would become more motivated in the long run by providing recognition and benefits for pursuing category management implementation.
- Within a year, an effective change management strategy would be pursued, focusing on tracking the change and spotting change resistance
1.0 Introduction
1.1 ADNOC Organisation Background
In this report, the organisation of focus is Abu Dhabi National Oil Company (ADNOC). This is for understanding the impact of contract terms and conditions on distribution of risk and power with their suppliers. This is an organisation which began its operation in 1971 and today is ranked as the leader in diversified energy group which is owned by Abu Dhabi Government (ADNOC, 2022). The organisation network of holistically integrated business has based their operations across the entire energy value chain assisting their capacity for meeting overall demands of the consistently changing energy markets. For remaining competitive, the organisation has allocated $15 billion for advancing and accelerating lower-carbon solutions, investment in new energy solutions and decarbonisation technologies for lowering their carbon intensity with 25% by 2030 and successfully facilitating their NetZero by 2050 target. The company has a network of fully operational companies that operate throughout the entire hydrocarbon value chain, handling tasks including exploration, production, processing, storing, refinement, and supply in addition to manufacturing a wide range of petrochemical products. I work as a Contract Engineer for ADNOC Offshore, one of the company's divisions. The offshore division of ADNOC is responsible for the delivery and development of oil and gas resources in the waters surrounding Abu Dhabi. With OPEX and CAPEX, ADNOC Offshore spends over 3,000 million dollars annually. The organisation structure is as illustrated in figure 1; Figure 1: ADNOC Organisation Structure1.2 Identified Category Management
The deployment of the iSourcing system, a technology-focused procurement procedure, was chosen as the category management in this study. The need for oil and gas has significantly expanded in the modern era since the Covid-19 epidemic. As a result, ADNOC is forced to spend money on equipment to help them process and refine more oil and gas products. In light of this, the team leader's responsibility is to see that an iSourcing system is in place and can be utilised to purchase the new machines that the company needs to upgrade its operations. Locally in UAE, regionally in the Middle East, and internationally in Western nations, this would apply. This project aims to produce a report outlining the implementation of the change approach. This is done while ensuring the team members and leader have the necessary abilities to carry out the plan successfully. Implementing the new category management strategy is the kind of change being sought. The learner will be the team leader throughout the full category management process since a team has been chosen to oversee the deployment of iSourcing. The practical approach would be utilising various tools and strategies that demonstrate leadership and best practices in change management, along with a focus on the category management data from the ADNOC firm.2.0 Change Management Approach
2.1 Introduction of the Required Change Process
In its Procurement Supply and Management (PS&M) budget, ADNOC had allocated roughly 10 million UAEis before the COVID-19 epidemic. Up to 5,000 domestic and foreign providers are currently utilised in this. Because of the significant financial allocation in PS&M, the ADNOC sourcing method is crucial to their operations in this scenario. Logistics, equipment, and facility administration are all purchased separately by the organisation, all of which fall under the organisation's primary spending categories of computers and technical systems. As a result, they lack a centralised system that would allow all departments to be involved in aiding the procurement procedure (CIPS, 2020). The Burke-Litwin Model (Coruzzi, 2020) can pinpoint the internal and external factors that contributed to the identified change. This model ranks the many change drivers according to their importance and provides evidence of each one in figure 2; Figure 2:Drivers of Change Model When taking into account the ADNOC organisation and indicated change, these elements have the following effects, as stated in Table 1: Table 1:Summary of the Drivers of Change in ADNOC Organisation| Factors of change | Explanation |
| External environment | Supply chain networks have been significantly impacted since COVID-19. ADNOC's ability to replenish stock, equipment, and machinery has been affected. Therefore, ADNOC would participate in strategic alliances by including diverse actors and intermediates in the complete value chain through iSourcing |
| Individual and oganisational performance | ADNOC's investment in iSourcing would reduce PS&M turnover, everyone's performance, and supply chain network satisfaction. |
| Leadership | To ensure iSourcing success, the PS&M will lead and manage efficiently. This inspires and guides other organisations to iSourcing success. |
| Mission and strategy | The achievement of ADNOC's aim to provide high-quality oil and gas products would be ensured by the deployment of iSourcing. The justification for this is to quickly and effectively engage highly qualified vendors. |
| Organisation culture | Implementing iSourcing would promote the collaborative and teamwork-oriented organisational culture of ADNOC. This is due to the platforms offered by iSourcing that provide suitable options for teamwork and collaboration. |
| Task requirements and individual skills | Employees at ADNOC lack the knowledge and skills necessary to deploy iSourcing. This deficit might be filled by offering possibilities for professional advancement. Implementation of the change would be successful. |
| Employee motivation | This report's proposal suggests that providing monetary and non-monetary rewards is necessary to encourage people to adopt iSourcing. This is for employing remarkably contemporary systems of practice. |