In this week’s deep dive article, I share my opinion and thoughts about CIPS, and the ongoing debate in the procurement community: Is CIPS (the Chartered Institute of Procurement & Supply) and its MCIPS qualification still relevant? Do procurement professionals need it in the modern landscape? And where do we think CIPS will fit into… Read More »The Great CIPS Debate: How Can It Stay Relevant? The post The Great CIPS Debate: How Can It Stay Relevant? appeared first on Procurement Software.
In this week’s deep dive article, I share my opinion and thoughts about CIPS, and the ongoing debate in the procurement community:
Is CIPS (the Chartered Institute of Procurement & Supply) and its MCIPS qualification still relevant?
Do procurement professionals need it in the modern landscape? And where do we think CIPS will fit into the future of procurement?
Although this article specifically focuses on CIPS, the points I’ll discuss can equally be applied to other formal procurement qualifications and industry bodies.
While the exact details may differ from one qualification to another, the fundamental challenges and opportunities I’m addressing should resonate across the industry.
Before diving into the pros and cons of CIPS, I want to touch on two key points that provide important context for the discussion.
CIPS Under New Leadership
First, CIPS has recently undergone a significant leadership change. The organisation now has a new CEO, Ben Farrell. From what I’ve seen and heard from people who have met him, Ben is making some positive moves.
He’s reaching out to procurement professionals and actively listening to their concerns and feedback. While I don’t know him personally, he did connect with me recently on LinkedIn. He’s clearly looking at what other content creators are doing, and is getting out of the CIPS bubble.
This is an extremely positive sign. I’ve spoken to others who are closer to the CIPS organisation, and it seems like some deep and long-overdue reforms are taking place.
I’m genuinely optimistic about this. I believe that the procurement profession benefits from having a more modern, open, and more forward-thinking body represents us effectively. The current state of CIPS – especially in terms of communication, events, marketing, and the content it produces – has felt outdated for a long time.
If the reforms being implemented now are truly meaningful, we could be witnessing the beginning of a much-needed transformation. I hope that under Ben’s leadership, CIPS will evolve into an organisation that speaks to the needs and aspirations of modern procurement professionals.
Respecting the CIPS Qualification Journey
Before proceeding, I also want to acknowledge the amount of time investment and financial investment that’s necessary to obtain the MCIPS qualification.
For those who have committed to this path, I certainly recognise the hard work and commitment that goes into earning the certification.
Now, let’s explore the case for CIPS. In what scenarios is it still relevant or even essential?
The Case for CIPS
Where does studying for and obtaining MCIPS still make sense? And how does CIPS help to elevate the procurement profession globally?
Cross-Functional Entrants to Procurement
For someone new to the procurement profession, I believe that studying CIPS provides an excellent foundation. The structured curriculum helps new professionals build their knowledge and understanding of procurement practices, which is essential when starting out in this field.
The theory behind CIPS is incredibly helpful, particularly for those who don’t come from a business, finance, or commercial background. It can accelerate the learning process, getting individuals up to speed much faster than if they were to dive in without any formal training.
New Graduates Entering Procurement
Similarly, graduates entering the procurement space will also benefit from the CIPS qualification.
Many young professionals enter the procurement profession without any prior exposure to business or finance, so CIPS provides the necessary tools to help them get up to speed.
Some graduates may have a background in business or finance, which gives them an advantage in understanding the workings of a modern business. But CIPS still provides a structured approach to procurement that fills in the gaps.
In Highly Regulated Industry Sectors
CIPS holds particular relevance in regulated sectors, such as the public sector and industries like banking and finance. In these environments, procurement tends to be somewhat more rigid and process-driven, with strict regulations around how business is conducted.
In such cases, having a CIPS qualification is not only useful: it’s often expected. The qualification helps professionals navigate the complexities of procurement in these industries and ensures that they meet the required standards of compliance.
CIPS’ Global Reach
One of the strengths of CIPS is its international presence. The qualification is highly regarded in the Middle East, Africa, Australia and New Zealand. Particularly across many former British Empire and Commonwealth countries, CIPS is considered an essential credential for those looking to advance their procurement careers.
In places like the Gulf countries and parts of Africa, it’s often a must-have qualification for stepping up the career ladder. Many employers in these regions won’t even consider candidates without a CIPS qualification, especially for senior roles. In contrast, outside of the public sector in the UK, this requirement is becoming less common.
So, while CIPS remains relevant in specific contexts, there are several challenges that the organisation needs to address to remain aligned with the changing face of procurement.
Challenges for CIPS in the Modern Procurement Landscape
Let’s now take a look at some areas where I feel CIPS is struggling to keep up. In some cases, its presence is shockingly absent, if we consider it as being the leading industry body worldwide for the procurement profession.
The Digital Procurement Revolution
As a tech-focused content creator, advisor and consultant within the procurement space, we can’t overlook the increasing role of technology in shaping the future of procurement. With the rise of AI, robotics, and the push for procurement teams to improve the efficiency of their operating models, tech will be critical.
However, the current CIPS syllabus doesn’t adequately address the growing need for digital procurement skills. There is little, if any, focus on emerging technologies or the digital transformation of procurement.
For someone entering a tech-focused role, such as working on procurement technology implementation or being part of a centre of excellence for procurement tech, CIPS offers very little relevant content to prepare them for these tasks. This is a significant gap that the organisation needs to address to stay relevant.
The Increasing Need for Cross-Functional Skills
Another trend we’re seeing in procurement is the rise of cross-functional roles.
For example, let’s take category-specific roles such as marketing or IT procurement. Individuals need to have deep expertise in their respective categories, along with strong stakeholder and supplier management skills. The hard procurement skills – like running tenders or negotiating – are important. But, in these specific cases, they are not as critical as the industry knowledge and soft skills required.
CIPS, while providing a solid foundation in procurement, may not be the best option for professionals making a cross-functional move into procurement. This is especially the case when more industry-specific knowledge is needed. There are faster, more efficient ways to gain the necessary expertise for these kinds of roles.
A Personal Anecdote
If I look at my own procurement career, I started out in the UK and then spend most of my professional career in Germany.
I’ve never been asked for a CIPS qualification for any of the full-time roles I’ve applied for. Nor have I been asked for the BME (German equivalent) qualification either.
I’ve had five procurement jobs, as well as 3 interim manager / freelance consultant positions. None of them insisted on me being MCIPS qualified.
This isn’t to diminish the value of CIPS, but it does suggest that in many cases – particularly when you have a certain level of experience – that CIPS might not be the key to career advancement.
Speaking personally, I always felt that my lack of direct team leadership experience acted as the biggest barrier to career advancement.
Would CIPS have been useful to me early on in my career? Possibly, yes. I certainly feel that too much of my training was on-the-job, and very little was formal.
But if I were in my early 20s now, would I be lobbying my boss to do my MCIPS? Or would I instead be trying to get my head around different types of AI, and the practical use cases for it in procurement? I think it’s clear which one would help protect my job. Ensuring that I have the relevant knowledge to grow and thrive for the next 5 years would be priority.
I’m not convinced that having MCIPS adds much value when it comes to career progression.
The Cons of CIPS
While CIPS offers significant value, there are some clear downsides that should be addressed.
Outdated Syllabus
As someone heavily involved in the digital procurement ecosystem, I find the CIPS syllabus outdated when it comes to technological trends.
There’s a heavy emphasis on process, compliance and regulatory frameworks, but very little on the technologies shaping procurement today. Sustainability is covered, which is a timely and important topic, but CIPS still neglects the growing impact of digital procurement.
With the increasing role of AI in procurement, it’s crucial that CIPS adapt and modernise its curriculum to cover these changes. Without this shift, it risks falling behind as the procurement profession becomes more tech-driven.
Procurement needs Financial Acumen
Procurement often works closely with finance teams, and it’s essential for procurement professionals to speak the language of finance.
CIPS, however, doesn’t provide enough training on key financial topics; for example, procurement professionals really should be able to understand a balance sheet and a profit and loss (P&L) statement, as well as some other key, popular financial metrics.
This lack of business acumen is a gap that I feel needs to be addressed. Esepcially if procurement is to take a more strategic role, and build stronger partnerships with CFOs and senior leadership teams.
Too Technocratic in its Approach to Procurement
Finally, I’ve always advocated for procurement to adopt a more entrepreneurial mindset. Too often, procurement is seen as a technocratic function that focuses on processes and compliance, rather than on driving strategic value.
CIPS, in its current form, promotes this technocratic, process and compliance-driven view of procurement. If we want to see procurement thrive and grow in stature within organisations, we need to think and act more like business owners, and develop more charisma when it comes to our communication skills.
I hope that CIPS will begin to evolve in this direction, teaching procurement professionals to take a more entrepreneurial and marketing-oriented approach to their internal stakeholder management.
Conclusion
In conclusion, CIPS courses can still hold significant value. Especially for newcomers to procurement and for professionals working in highly regulated industries.
However, as procurement evolves, CIPS will need to address some key gaps in its syllabus. This is particularly in need when it comes to digital procurement, new roles in procurement beyond the classic Buyer and Category / Sourcing Manager positions, as well as the need to cover some Finance for Non-Finance Professionals content.
The future of procurement will require a modern, forward-thinking body to represent us. If CIPS can reform and adapt, it will remain a vital part of that future.
I wish Ben Farrell and the team at CIPS all the best as they work to bring the organisation into the future. As I said earlier, a stronger, more outward-looking and modern CIPS will benefit the entire profession.
The post The Great CIPS Debate: How Can It Stay Relevant? appeared first on Procurement Software.
