The LAP Approach
Complex sourcing made simple
The LAP Approach
Complex sourcing made simple
Agility is well known, there are even agile contracts to manage agile cooperations. However, the way how we get there today (RfI > RfP > LoI) can't really handle the complexity in an appropriate way. Furthermore it's not agile nor lean unfortunately. Lean-Agile Procurement is a new, exciting simple approach for procurement, that makes fun. It's based on agile and lean principles and focus to the business value and the people involved. The results will surprise you!-Lead time of sourcing a new partner is reduced to days, most important customer problems are solved first and the risk -to evaluate the wrong partner- is minimized.
The advantages of lean and agile business modeling and agile delivery became evident. So it was no surprise that even agile contracts are in place more and more. However the procurement process didn't became agile yet. This is painful because:
Lean-agile procurement is an agile approach for complex procurements, where collaboration between people is a key success factor. An example might be an. international sourcing, where considering other cultures usually becomes very important. It's totally new and breaks the existing rules in a disruptive way. The initial 5 goals of LAP were:
Any executives, procurement managers at customer or vendor side, that are interested in a new option for procurement. If your organisation is already agile or in transition to lean-agile procurement is a perfect tool to include your agile delivery organisation from the beginning.
Lean-agile Procurement might be also useful for
Please note: Lean-agile procurement is currently tested just in private sector. However, there are options feasible for public tendering too.
If you're newby with Agile feel free to schedule an inspiring talk.
We have on the right hand side all about the company, that is evaluating a new partner (left hand side). Main question is, can they both together achieve the main goals in the middle?
The lean procurement canvas is easy and gives the evaluation a comparable structure, that follow’s the highest risks first.
Lean-agile Procurement could be used without any attachments nor requires specific tools. However, there might be good reasons e.g. to break down complexity or make things to the potential partner more transparent to refer from the lean procurement canvas to further attachements.
Potential appendix’ to the Lean Procurement Canvas might be (numbers are equal to the sections in the canvas):
Setup an agile x-functional procurement team, that contains the people that will cooperate with the new partner, extended by other stakeholders needed. The x-functional procurement team (xPT) has to have the competences to decide.
2. Customer Needs Desing
Based a the Business Model Canvas define the high-level needs your own within the x-functional procurement team. Focus to the main Sections of the lean procurement canvas first and prepare all appendix’ you think are needed. Invite then potential partners/vendors, that you think could do the job and provide them your prepared informations in advance. Based on that, they should show up with all resources of the potential delivery team and other stakeholders. So that the vendor has a x-functional procurement team in the room, that is able to decide as well. Btw. this xPT by the vendor is also including the potential delivery team members.
3. Big Room Evaluation Days + 4. Peer-Feedback/Decision
With each of the potential partner a big room evaluation day is organized, where the Lean Procurement Canvas is worked out together. This will be done in an agile approach in several iterations of e.g. planing, break out sessions, hack-rooms, reviews, demo’s, etc. The Lean Procurement Canvas is evolving section by section. Where needed appropriate appendix’, such as a e.g. a go product roadmap, are developed together. The goal of the day is to complete the lean Procurement Canvas and gather peer-feedback/-decision.
4. Start agile Delivery
If there is still uncertainty, it might be an option to choose e.g.the best two potential partners and start agile delivery with both (initial proof-of-partnership). This will be even cheaper, than switching a partner in a later state (similar to a late bug detection the costs increases exponentially). The lean procurement canvas will be updated with any new stage and is the key instrument in partner management.
Depending at complexity of business case and availability of needed people an optimal lead time could be only 4 days!