Category Management:  The Secret Sauce!!

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We ran a series of webinars titled: The Journey from Strategic Sourcing to Category Management:  The Secret Sauce or Opening the Kimono  and I happened to come across one of the sessions while doing some research for a client, and it reminded me of the old saying: The more things change, the more they stay the same. We were asked by members of the Next Practices Xchange (a group of senior leaders) to share how we help clients transition to Category Management, and we agreed.

Our initial meta-messages were simple but essential: these transformations take time; you need to know where you are today; and you need a clear picture of where you want to go. I know it sounds basic, but you’d be surprised at how often one or more of these elements are missing in our early discussions with clients. Only after you have clear answers to these questions—and have alignment around those answers with your senior management, leadership team, and the rest of your organization—should you begin the journey.

This particular session focused on three key elements of the “secret sauce” recipe. I know some of you may have heard these from us before, but let’s take a trip down memory lane because they are worth repeating. Here were the three topics on the agenda for this webinar:

Big Idea #6 – Adoption
Big Idea #7 – Educate, Align, Execute, Evolve
Big Idea #8 – Force Multiplier

We began by emphasizing the importance of focusing on Adoption, highlighting examples of its challenges. Having a solution is just the starting point; Value does NOT begin until Adoption happens.

Antiseptic Surgery Example

  • Joseph Lister introduced antiseptic surgery in Scotland in 1867, saving thousands of lives.
  • Despite the proven results, it was not adopted in the U.S. or England for years.
  • President James Garfield died in 1881 due to the neglect of sterile surgical conditions.
  • Public outcry finally led to the adoption of antiseptic surgery after decades of resistance.

A more recent, painful example is the adoption of COVID vaccines. Many unnecessary deaths occurred because people refused to get vaccinated, putting themselves at needless risk. The basic formula for Adoption is that there are perceived costs and perceived value. As long as the perceived cost exceeds the perceived value, Adoption will be poor. And remember, these costs and values aren’t measured solely in financial terms—quite the opposite!

Next, we discussed how to move an organization from point A to point B. Our basic message is that the first two stages of our model—Educate and Align—are not just critical, they are the reason why most change efforts fail. There’s often a rush to get to the third stage, Execute, because that’s where value is perceived to be. However, nothing could be further from the truth! In their eagerness to reach this hidden value, most organizations either ignore or rush through the Educate and Align phases.

This ties back to our earlier point: by properly educating and aligning, you can increase perceived Value and decrease perceived Cost, which in turn increases Adoption—n’est-ce pas? Adoption is where true value resides, not in merely creating or deploying a solution. Without Adoption, there is no value.

We still have those webinars available if you’re interested. I think you’ll find the topic of Force Multiplier very interesting, and I’ll cover it in my next blog!

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