Unpacking the Role of Procurement in Corporate Innovation and the World of Startups By Andy Beth Miller
When I first sat down with Martin Perminas to discuss the role of procurement in corporate innovation and the world of startups, I had no idea about the wild and wondrous ride that awaited. Perminas is currently the US Managing Partner of Tomorrow Street (TS), an Innovation Center that is a joint venture founded by Vodafone and the Luxembourg Government, providing startups with a base from which to be mentored to Globalize and scale their business’. So, when he talks, you listen. And listen I did. From on the button metaphors that swept me away on fishing and hunting expeditions to delving into Darwin’s survival of the fittest theory, unpacking how it also applies to procurement, there was not a single dull moment. But we will get to all of that, so buckle up. There is a saying, “You’ve gotta give before you get,” that many successful business people, including famous entrepreneur and angel investor Dan Feld, ascribe to as being a touchstone of their mantras. However, after barreling down the alleyway that is Perminas’ ingenious brain alongside him, I began to see that this expert would sooner offer a decided spin on this pithy precept, switching the verbiage to align with his own outlook regarding how it applies to procurement specifically. Perminas would most certainly say instead, “You’ve gotta ‘get’ before you ‘get.’” Allow me to explain. One of the first barriers to procurement’s success, according to Perminas, is how oftentimes procurement is pigeon-holed into a limited scope.
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Boxed in, if you will, particularly by CEOs and founders that are operating their businesses—and approaching procurement—with an outdated and ill-advised tunnel vision. These “boxes” are labeled with stereotypes and limited expectations—and equally limited freedoms—for procurement, the most popular label being “getters.” For example, the CEOs wants something, and it is the sole responsibility of procurement (the getters) to do as their name suggests… to procure… or get. Here is when Perminas would step in and educate us about the other side of the coin that co-exists by way of a double entendre, and how “getting” – Perminas can—and does— also mean mentally understanding and being aware of something. He would also divulge that in procurement particularly, you really have to “get” (understand; i.e. the business requirements) before you “get” (obtain), or at least before you can do so efficiently.
“You’ve gotta ‘get’ before you ‘get.’”
It is this understanding that Perminas pinpoints as being one of the most vital skills procurement professionals must possess in their arsenal. Simply put, you will need that understanding and intuitive acumen as you are faced with the abundance of barriers that Perminas points out are prevalent in the procurement arena, especially when dealing with startups.
