The 2024 State of Agility in Procurement & Supply Report: Key Insights on Leadership
The Lean-Agile Procurement (LAP) Alliance has released its 2024 State of Agility in Procurement & Supply report, closely examining the growing significance of agile transformation in the procurement and supply chain sectors.
The results of this global survey provide some insights that continue to point toward the importance of leadership in navigating market uncertainties and improving business outcomes.
Importance of Leadership in Agile Transformations
The report found that executive support in scaling agile practices is critical to a successful transformation – with insufficient executive backing noted as a major barrier to success. Leaders must champion these initiatives to ensure they receive the necessary resources and alignment.
Skills Gap and Training Needs
There is a notable skills gap in agile methodologies and contract management, with 82% of respondents expressing a lack of confidence in managing agile contracts. This gap underscores the need for leadership to invest in comprehensive training programs to build the necessary competencies within their teams.
Cultural Resistance
Organizational resistance to change and difficulty in adapting existing processes are highlighted as significant challenges. Leaders play a pivotal role in fostering a culture that embraces agile values and practices, helping to overcome these barriers.
Overwhelming Agreement on the Importance of Agility
92% of respondents agree that adopting agile practices is strategically important for their business. This consensus reflects the necessity of agility in addressing complex, volatile, and rapidly changing market conditions.
Further, the report emphasizes the importance of creating adaptive partner ecosystems – yet only 5% of respondents have included external partners in their agile transformations, indicating significant room for growth. Leadership must prioritize building these collaborative networks to enhance resilience and innovation.
Agile Leadership Leads to Business Results
Adopting agile practices has shown significant business benefits, including improved lead times and better overall performance. Success stories from commercial functions demonstrate potential improvements in lead times ranging from 200% to 800%.
Beyond Practices and Frameworks
While the report points out the importance of agile practices and frameworks, real, lasting transformations hinge on effective leadership. Leaders must go beyond the adoption of methodologies and pursue a cultural shift within their organizations.
The report's outcomes highlight that executive support, comprehensive training, and a willingness to overcome cultural resistance are pivotal to success. Leaders must champion agile initiatives, not only by endorsing them but by actively:
- Fostering a culture that embraces change.
- Investing in skill development.
- Building adaptive partner ecosystems.
This approach ensures that an organization’s transformation is not just a superficial change – but instead, a shift toward resilience and innovation. By going beyond practices and frameworks, leaders can drive significant improvements in business outcomes in an unpredictable market.
Explore the full report for detailed findings and actionable strategies to empower your leadership and drive successful agile transformations.
About the Author
Betsy Piland is the Marketing and Communications Manager at Agile Leadership Journey. She has spent the bulk of her career working in the higher education, healthcare, corporate learning and development, and nonprofit industries – always looking to tell a compelling story that will inspire audiences into action.
When not working, she can be found digging in her garden, baking something delicious, and spending time with her husband, daughter, and two rescue dogs.
