Women in purchasing: Cracks appear in the glass ceiling
It's more evolution than revolution, but women are gaining greater responsibility in purchasing at companies of all sizes. Here are five who have made it to the top, and their advice for others.
By Susan Avery -- Purchasing, 2/14/2008 2:00:00 AM
We may have to wait until November to see if the nation has a woman president. But there are already thousands of women in executive positions in business. In purchasing, women hold 12% of the chief procurement officer (CPO) titles, and earn significantly more than male CPOs ($418,000 vs. $366,000), according to the Center for Advanced Purchasing Studies (CAPS) in Tempe, Ariz. With recruiters saying they're busier than ever trying to fill high-level posts in supply management, the number of women CPOs could grow.
Here's advice for would-be executives from five women who have broken through the glass ceiling...
Broaden your expertise
Christie Breves, Alcoa
Christie Breves, chief procurement officer at Alcoa in Pittsburgh, advises those pursuing a career in purchasing to get experience in a variety of areas and not get pigeonholed in one area of expertise. "Have a thirst for learning, make sure you are always developing professionally and have a great sense of urgency and real focus on delivering measurable impact," she says.
Breves is the first individual to hold the CPO title at Alcoa and is responsible for purchasing all direct and indirect materials and services and capital equipment globally, about $18 billion annually. (A separate group buys aluminum, electricity for smelting and some transportation services.) She reports to the chief financial officer.
"I think the recognition of the importance of procurement at Alcoa is really best addressed by the actions of our executive council when it decided three years ago to invest in this new organization," says Breves. "It's all about building more capability in procurement, and having the organization become much more strategic. Part is in reaction to the world supply situation becoming more challenging. But part of it was the value we demonstrate in procurement by doing this right, and by having really talented people in the function."
Breves began her career in accounting and had moved into procurement at Alumax when the company was acquired by Alcoa. She was named vice president of procurement at Alcoa in 2000, a role which, she says, is not the one she has today. Then, she was mainly responsible for leveraging the company's indirect spending; other buying still was done mainly by the businesses.
In 2004, Alcoa's executive council decided to invest in building greater capability in procurement. After a two-year transformation, the organization is now centrally led. Alcoa has more than 300 manufacturing sites in more than 44 countries.
Breves' biggest accomplishment is exceeding a $390 million savings goal after her arrival at Alcoa. "I think achieving that goal is a credit to all the people and teams involved and what led our executive council to make the decision to invest even further in building greater strategic capability in procurement," she says.
Leading the transformation was her biggest challenge because she says it involved a tremendous amount of change for the company. Her focus now is to make sure that her organization is supporting the businesses and helping them achieve results.
When asked about her work in purchasing, Breves says she likes knowing that what she does makes a difference "and the opportunity a career in procurement presents to work with people in a variety of different roles—internal teams, Alcoa's businesses and suppliers."
The skills needed for a successful career in purchasing are the same whether the individual is a man or a woman, she says. "Perhaps women are better listeners and maybe more collaborative, but I think it depends on the individual. I think a purchasing professional needs good business and financial acumen, good customer orientation, an ability to sell ideas and very solid experience in purchasing and business processes."
She believes strongly in the role of mentoring and is involved in a women's network and an emerging leaders program (for women and men) at Alcoa. She also tries to mentor others on a more informal basis.
Breves works to promote the purchasing profession. She's on the editorial advisory board of Purchasing and the board of the Center for Advanced Purchasing Studies (CAPS). She has served on the Institute for Supply Management (ISM) board of directors and is a past member of the Procurement Strategy Council.
Look for industry trends
Beth Schwarz, Pratt & Whitney
"Integrity is the value that follows you most in business and personal dealings," is what Beth Schwarz, vice president of group strategy and development at Pratt & Whitney, a United Technologies company in East Hartford, Conn., tells individuals pursuing a career in purchasing. "You have to work hard and deliver results. You also have to understand the landscape of the future so that you are not caught up in today's world."
In a new role (she was vice president of supply management at Pratt until this past summer when she made the lateral move), Schwarz reports directly to Alain Bellemare, president of Pratt Canada in Montreal.
The company, which manufactures jet engines, has an annual purchasing tab of $1.4 billion which represents about 70% of its annual sales. Supply management at Pratt is responsible for sourcing, as well as delivery and quality. "It's obvious that if we in supply management don't succeed, the company doesn't succeed," says Schwarz.
The numbers have changed, or, as Schwarz sees it, the pendulum has swung. Ten years ago, purchased parts made up 50–60% of annual sales. "A lot of that has to do with the fact that we have a very broad customer base that, in many cases, requires that purchased content originate within their own countries. Plus we are constantly looking for the best sourcing strategy."
Schwarz began her career in purchasing as an associate buyer. She has always been in purchasing and always worked for UTC. (Her father also spent his entire career at the company and now her son is working in the finance department there.) She says she's had opportunity to go outside of the supply chain, but has "always found it to be a fascinating, challenging place to be."
Schwarz was the first woman at Pratt who was hired to purchase hardware for the engines the company makes. Other women before her were relegated to roles that called for them to purchase such commodities as paper and office supplies. She was also the first woman supervisor and the first woman executive.
"I had the opportunity to break ground and change impressions of what could and could not be done by women in the workforce and it was satisfying to be able to do it," she says. "The challenge was that I had to do it. All along, I've been able to find men and women who had a vision that diversity was the right thing for UTC, and I've been able, as I moved up the ranks, to create a more diverse organization. It's very satisfying to watch people grow when given the right opportunities." The purchasing and supply operation at Pratt is now about 55% diverse, she adds.
She's also pleased with her company's work at building relationships with other companies, especially a joint venture with Blades Technology International, a supplier of parts for companies in the aerospace industry in Israel. She's a member of the board of directors at the company. The experience "has given me opportunity to watch the company grow into something spectacular."
The supply management operation at UTC received Purchasing's Medal of Professional Excellence in 2006.
Set your sights high
Christina De Luca, BP
If Christina De Luca had one piece of advice to give, it would be: "If you want it, go for it and surround yourself with people who support and believe in you and will challenge and push you to achieve what you want."
De Luca is chief procurement officer for the refining and marketing division at BP in London, and is responsible for providing procurement capability for the businesses to achieve their strategies and deliver the most value for the company. BP is a global company with operations in just under 100 countries. She manages a purchasing budget of about $20 billion annually.
De Luca began her career as a chemical engineer and has earned an MBA from Stanford. She's spent her entire career in the oil industry and has worked for Arco and Amoco, which was eventually acquired by BP. Her work has taken her to southern Africa where she ran BP's downstream business operations in 14 countries there. She's also had a stint in planning and performance management for refining and marketing. That's how she got into procurement: She was working to develop strategy that included leveraging procurement capability.
De Luca turns to her time spent in Africa when asked about her greatest accomplishment. "One of the things we managed to do is accelerate some environmental legislation that resulted in cleaner air for the people in the area. This always supersedes anything I've ever done." She is also particularly proud of leading the transformation and building procurement capability at BP which has led to a greater understanding of the value of the function at the company.
She is on the board of directors at the Institute for Supply Management (ISM) and works closely with professors at nearby universities in London, whom she considers coaches. "I don't think you can lead the profession without thinking about the science of that profession and where it is heading," she says.
De Luca does some coaching herself and meets frequently with young people in mentoring relationships during the work week. "I think education, certification and continued learning are important," she says.
If she had to do it over again, she says she would not set her sights so low for her career. "It wasn't that I didn't have aspirations, but I didn't have people around me who told me that I can do anything."
Keep questioning and learning
Linda Behan, Fidelity Investments
"Be patient, professional and mature, and continue to focus not only on getting the work done, but how it's done," advises Linda Behan, vice president and global head of strategic sourcing at Fidelity Investments in Boston. "Approach each situation as a blank slate, think creatively, listen and learn."
At Fidelity, Behan led a restructuring of her organization that included creating new positions aligned with categories of spending and upgrading skills through recruiting and training. She's responsible for a multi-billion dollar spending tab including some areas new to most purchasing organizations—real estate, advertising and marketing, benefits, legal and audit and telecommunications.
Behan began her career at Fidelity as a secretary in the real estate division, an area that was at the time responsible for purchasing. She worked her way up the career ladder, serving as assistant buyer and buyer. For help with her education, she turned to the local chapter of the Institute for Supply Management (ISM), the Purchasing Management Association of Boston (PMAB). She earned a degree in business administration from Northeastern University, took a contract manager post at State Street Corp., and moved up the ranks to vice president of strategic sourcing. She worked at Credit Suisse in New York before returning to Boston and Fidelity Investments where she took on responsibility for leading the transform of the strategic sourcing organization.
Behan says her early years provided the foundation for her current role. "I've taken every opportunity to learn and continue to recognize there's still much more learning to be done. It's one of the many things I love about this work."
She's most proud of her team's efforts recently: The strategic sourcing spend under her management increased 100%, growing from 38% to 77%. And now she says they're being asked by management to influence other areas of spending within the company.
Poise, patience and perseverance are what it takes to succeed in purchasing, says Behan, who especially likes the logical, progressive career path that work in the field promises. "With the shift from traditional purchasing to more strategic approaches, there's more opportunity to bring value and demonstrated leadership in new forums and with more executive visibility. Access and exposure coupled with good work generally translate into opportunities."
Behan has had several mentors throughout her career. "Executive guidance has always played a critical part of my professional growth and success," she says. "Feedback is a gift and should be received as such."
Behan is a member of the Sourcing Interests Group and has participated in the Minority Purchasing Council of Boston.
Be a change agent
Lisa Martin, Pfizer
Lisa Martin, senior vice president of worldwide procurement at Pfizer in New York, suggests that those just starting out in purchasing have a deliberate plan for their careers and not to be afraid of rejection.
"You have to be able to deal with rejection and not take it personally," she says. "As much as purchasing is understood as a function, it's still misunderstood. It's part of our responsibility to keep on educating."
Further, she adds, at least at Pfizer, executives look to purchasing for new ideas, so those in the profession have to be change agents.
Martin has spent her entire career in purchasing and assumed a newly created role of senior vice president of worldwide procurement at Pfizer one year ago. She's responsible for an annual spend of about $15 billion.
Like at many companies, the procurement function is undergoing a complete transformation, from tactical to strategic. Before, it was decentralized. Now, the operation is center led. What's most challenging for Martin and her team is that the entire company is going through a transformation at the same time.
She says that procurement is viewed as a key contributor to Pfizer's success in two ways. The first is what everyone would expect: working with the company's businesses to deliver cost savings.
"Even more important," she says, "is procurement's ability to bring forward different ways of doing things both internally and externally." For example, sourcing teams have had success recently with such nontraditional areas of spending as meeting planning and legal services.
Martin entered the profession like many of her peers—by accident. After graduation, she had her heart set on a career in public relations. Originally from Los Angeles, she went to work in the entertainment industry as a go-fer. About a month after starting, the president of the company asked her to help create a purchasing organization. Knowing little about purchasing, she went back to school.
She also became involved in the local chapter of the Institute for Supply Management (which was known then as the National Association of Purchasing Management or NAPM), and eventually became the group's youngest female president. Of the opportunity within ISM to test her leadership skill, she says she's "always viewed my early involvement in ISM as a critical success factor." Now, she's serving as chair of the board of directors of the association, and is mentoring a recipient of the group's annual R. Gene Richter scholarship who is now working at her first job at IBM.
While Martin is currently working toward a career goal of creating a seamless integrated procurement organization at Pfizer, she'd also like to increase her professional responsibilities at some point.
She considers an accomplishment "seeing people who worked for me in the past become successful on their own." She also finds it satisfying watching how other professionals have changed their view of procurement and supply chain management as the function has become more strategic. Now the two areas are ripe with opportunities for individuals to pursue challenging careers.
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