BPS Energy & Resources Public Sector Uncategorized

Key priorities for CPOs operating in the Public Sector and Energy & Resources

Deloitte CPO survey

Deloitte recently launched The Deloitte Global CPO Report 2016 which looks at CPO sentiment around the key areas of talent, business engagement and technology. As with their global counterparts, local CPOs have a mandate to provide sustained long-term growth amidst a challenging macro-environment. In order for our economy to recover and stabilise, CPOs look at Energy & Resources and the Public Sector. So what are the key concerns and priorities for CPOs in these sectors?

Energy & Resources

By taking advantage of currency adjustments (on the back of a weak Rand), CPOs operating in the export market have been able to manage costs. But for CPOs in the domestic/import market, falling commodity prices are resulting in a need for strong cash flow management in the short-term. Many are exploring outsourcing as a strategy to manage costs in the long-term. Specifically in SA, there is an increasing focus on risk management (health & safety) with regards to suppliers, and less so within their own organisations.  In line with their global sentiment, these CPOs have been actively adopting new digital platforms, and are exploring cloud computing and self-service technologies. Where possible, they are looking at integrating cloud-based platforms for solutions that were not previously catered for.

Public Sector

In SA, these CPOs are focused on executing capital expenditure programmes, and there isn’t a strong emphasis on implementing cost saving mechanisms. The need to comply with stringent regulatory frameworks and combat corruption are key priorities for CPOs, while risk management is closely linked to regulatory compliance and government processes. Worryingly, these CPOs have fallen behind the technology curve, with older on-premise technology still in place.

These are a few of the many other issues that CPOs are grappling with, The Deloitte Global CPO Report 2016 further unpacks many other key concerns for CPOs including an under-skilled workforce, emerging technologies, cost and supplier management. All of this in slowed global markets with slowed economic growth. Here’s an infographic that clearly depicts what’s at stake for local CPOs.


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