The 2024 State of Agility in Procurement & Supply Report: Key Insights on Leadership

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.