Because if they don’t then it’s only a matter of time before they hear that a “consultancy spend freeze” has occurred. And whilst this might not altogether sound like a bad thing (how better to save money on consultancy other than to just stop buying it altogether?) what they are really being told is:
“We are so bad at buying consultancy/demonstrating that we are getting sufficient value from it that we have no choice but to just stop buying”.
Which for the CPO, who has overall responsibility for how an organisation buys, is a bit embarrassing. And the benefits which consultants might deliver are also lost.
Alternatively, CPOs who know how to manage consultancy spend can potentially get much more from this category of spend than other categories – there are of course substantial savings to be secured but consultants, who often drive strategic change activity, can also tell them what is happening across the organisation before the CPO might usually hear about it.
Which means that the CPO can get Procurement warmed up to support all sourcing activity triggered by the consultant’s work.
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