Is tenure a good indication of expertise?
Historically, and in the majority of the conversations, tenure is sold as a metric of experience and expertise. I have 17 years of experience in Procurement or I have been at this firm for 12 years etc.
But, right now, I don’t think tenure should be seen as proof of expertise. In fact; tenure (without actual deep expertise) results in a significant decrease in risk assessment capabilities. Extremely damaging to the decision-making process.
I believe teams and organizations are byproducts of their decision-making quality and its process.
In the case of Tenure without expertise, the entire decision-making process generally involves discussions on hypothetical scenarios and such discussions always converge on maintaining the status quo state, as they always create a situation that results in maximum risk. They fail to account for the probability of such an instance.
So, tenure (and not expertise) driven authority gets trapped in risk-averse behavior, unable to effectively identify opportunities and new growth areas. They get trapped in minor incremental improvements but lose their advantage in the long term.
A person with a tenure advantage but without deep expertise is more likely to reject new innovations based on the first reaction of adapting to change.
The same goes for RFPs: Longer cycle times of an RFP don’t imply a good evaluation process. An extended timeline does not result in better outcomes. It only increases the administrative burden.
What is the solution?
What I prefer is to measure the impact. Impact of work done, the impact of decisions made. This has nothing to do with Tenure. Especially, with all the AI tools available, the tenure advantage has reduced exponentially.
I can write as good a code as that of a 5-year experienced programmer or ask for procurement evaluation framework rules that a general consultant will advise on. So, the expertise is no longer tied to the number of years spent in a role, but rather to one’s ability to make use of tools available and deliver the impact.
So, Look for impact created, value delivered, and my favorite decision-making process for complex scenarios. Asses the individuals based on their decision-making process and ability to navigate between the 40,000 ft view and the Granular grid view at the execution level.
This should also be applied in how to select vendors, moving beyond desktop evaluations. The value should be in proof of work and not in tenure of business.
Here is my two-point framework to assess individuals and vendors:
1.) Decision-making process: This one is my favorite. The ability to make a decision in a complex situation is far more important to me than just being right or wrong. Every successful team or person works their way using their decision-making framework. You may not agree with the decision output but if they are able to assess the situation correctly and can walk you through the process of how they arrived at a decision, I think it is extremely rare and you should work with that person.
The ability to navigate complex scenarios in the supply chain and procurement world requires critical thinking. As automation takes over mechanical tasks, critical thinking will become an extremely important skill to have!
2.) Impact of work done: What improvements have been delivered? Exclude the activities from the outcomes. Have their initiatives driven cost savings, efficiency gains, or competitive advantages?
So, how is this applicable to Procurement?
I think this principle should be applied in vendor selection and team hiring (and their career progression).
For vendor selection, your procurement evaluation process should move beyond evaluating vendors based on their longevity or historical relationships. Instead, capitalize on the impact of work done within your company and in other clients/industries. I think it is time to move beyond desktop submissions and behind-the-desk evaluations.
Similarly, for your team, hiring and career progression should not be tied up with time. If an individual has demonstrated their expertise on multiple occasions, it should be rewarded and compensated ahead of time. That's how you build a successful team of top performers in 2025. Time to make some bold decisions!
Comments