Far from being a tendency, processes help companies to establish themselves in increasingly competitive market. Warren Buffett, from Berkshire Hathaway, Mary Barra, from General Motors, Lowell McAdam, from Verizon, Larry Fink, from BlackRock and other CEO´s from big Norte American companies signed in 2016 a document (read here) that lists methods to better the corporative governance of the U.S.A.
The idea behind that signature was to make companies adopt more transparent and effective politics, promoting credibility with the public. And without management, it is not possible to establish a positive scenario inside – and outside – of an organization.
The term “management” became trendy with the agreements of Bretton Woods, in 1944, along with the institutes created from the conference, and emerged to map the “the group of processes, costumes, politics, laws, regulations and institutes that regulate the manner in which a company is directed, administrated or controlled”. But, in 2002, governance became an urgent matter, after the introduction, in the same year, the Sarbanes-Oxely law, announced to restore the public’s confidence in the companies and the market after accounting fraud that failed high performance companies like Eron and WorldCom.
Fifteen years later, the signing of that manifesto by big entrepreneurs brings us to the fact that the companies have no choice than to leverage success and mitigate past failures, and evaluate carefully future risks if they want to survive nowadays.
Ethic, risks management, sustainability and compliance
We have already seen that the governance of a company interferes directly with its reliability. The evidence that validates that perception is found, daily, in the first pages of the newspapers.
According to the survey from OCEG GRC (2014), think tank a non-profit that acts in the performance of organizations, 80% of the interviewed said that their organizations use independent management, risks and conformities for each department – with little or no exchange of information. This leads to gaps in the coverage of risk and global inefficiency, since the work is a lot of times duplicated.
But, more interesting is the change of the interviewed, presented form the same survey, in 2016. The research points to a bigger interest for technology for management of operational and corporative risks and solutions for management, since geopolitical risks, third-party risks, information risk management, EH&S (environment, occupational hygiene and labor security) until the Continuous Negotiation Planning (CNP). This leads to believe that, the velocity in the change of behavior of the involved in the answer, via rules, to the tendency which indicates the technology as the best solution to unify and manage processes.
Governance of the purchasing decisions
Corporative governance is, mostly, synonym of decision making. In other words, it means putting the house in order, without hiding the dirt beneath the rug. But where to start applying an effective practice of management in business?
A good start is to take the reins of the company and dominate the obstacles is to exercise total control on the purchasing department, a strategic area of the company, since their power of negotiation interferes directly with the final price of the products and, directly, in the competitivity. After all, each R$ 1 saved in purchases is R$ 1 more revenue for the company.
Motivated by the crises in 2008, the evolution of this sector ended up being boosted by a new economy politic of costs to better the efficiency and saving (reduction of costs for the acquisition of products and services). It was then that the buyer role emerged. From then on, salaries evolved and the profession got to the called C-Level, in the figure of the Chief Procurement Officer (CPO).
The entrance of technology in this sector made the transformation accelerate even more. And, with the standardization of the data banks and the automatization of the process of analyzing all the purchasing information, the steps towards the governance of that area are data.
Between practices that can be facilitated with the use of mechanisms that, demonstrably, register and organize all, there are price quotations, request management, revers or direct auctions, material standardization, supplier homologation, catalogue management, among others. Even the outsourcing nowadays may be managed. With the automatization of outsourcing management, the risks of subsidiary responsibility and solidarity lower and with the controlling of payment information, gathering of costs, security and occupational health of the collaborators with allocated workforce is total.
This meaning, that once the organizations decide to invest in governance, they gain a broad variety of approaches at their disposal, and competitive advantage, becoming more visible to the market.