Most organisations know they need to transform to stay competitive, but many underestimate where that transformation should begin. McKinsey’s latest research shows that upgrading procurement can be one of the most powerful levers for wider organisational performance. In fact, when procurement hits its savings targets, companies are nearly twice as likely to achieve their organisation-wide targets too. Procurement isn’t the back-office support function many assume; it’s an engine capable of accelerating transformation across the whole business.
The research highlights three critical qualities that separate high-performing organisations from the rest: ambition, speed, and capability building. Procurement “stars” set targets far higher than they initially believe possible, not because they enjoy pressure, but because they understand that value leaks quickly, often before implementation even begins. Without stretching the ambition early, organisations find themselves scrambling later to fill gaps that cannot realistically be closed.
The second critical differentiator is pace. The companies in the top quartile achieve meaningful impact within the first three to six months, often securing between 16% and 20% of their financial target almost immediately. Early wins matter. They build momentum, reinforce belief, and prevent transformations from stalling. Slow starts, by contrast, correlate strongly with missed two-year targets and cultural fatigue.
Finally, procurement-led transformations succeed when organisations invest intentionally in capabilities. It’s not enough to squeeze more out of the same people. Leading organisations build cross-category skills, negotiation confidence, commercial literacy, and modern procurement techniques such as cost modelling, cleansheeting, and data-driven decision-making. Procurement becomes a talent engine, not just a cost-control function.
At Mind-Gap, we help organisations build the leadership, communication, and behavioural foundations that enable these procurement transformations to succeed. Technology, spend analytics, and operating models matter, but without leaders who can challenge assumptions, accelerate decisions, and galvanise teams, procurement cannot deliver the value it holds. Strong leadership capability is the multiplier.
Where to Start: 6 Practical Actions
- Stress-test your savings ambition
Push your target beyond comfort. Assume 30–40% value leakage and raise the bar accordingly. - Plan for quick wins within six weeks
Use spend analysis, top-down scrubs, or priority negotiations to demonstrate momentum early. - Create a procurement “win room”
Centralise data, negotiation expertise, category insights, and decision-making for speed. - Build cross-functional capability
Train teams in should-cost modelling, cleansheeting, scenario planning, and supplier strategy. - Install a real-time impact-tracking platform
Monitor initiatives daily to catch delays or blockages before they compound. - Challenge legacy assumptions ruthlessly
Ask: What are we doing because it’s right, and what are we doing because it’s familiar?
If you’d like our free downloadable “Procurement Transformation Pulse Check Tool”, leave us a message in the Contact Us page and we’ll send it to you.
