What skills does a successful category manager need?

22
JUL
2010

What skills does a successful category manager need?

Author: Jonathan Webb - Categories: Talent, Category Management

The procurement function has dramatically changed from its previous role of purchasing and transactional compliance. Procurement departments are now strategic agents that seek to align best practice within the business. Analysts, buyers and category managers also need to grow to meet these new needs.

The question that organisations need to ask is "what makes a good category manager?" Increasingly, category managers need more strategic, interpersonal and change management skills. As the role of procurement within organisations changes, senior buyers need to develop also. The central message is: category managers: forget what you did before.

A recent report by Kay Bayen, development advisor at the European Institute of Purchasing Management, compared the skills needed for a category manager in 2015 to current organisational needs. For 2010, most surveyed businesses thought that integrity, negotiation, cost management and category expertise were the most valued skills. However, in 2015 executives believed that category managers needed strategic thinking, team-working abilities, influencing and persuasion skills and change management. That businesses believe that there will be such a differing profile in their category managers ten years hence, shows that not only will organisations need to recruit these skills in the future, but recruit those individuals that are capable of developing with the organisation.

Soft skills are also at the heart of new category management. Number crunchers may be useful in the back office, but during negotiations with clients, category managers need to possess emotional intelligence as well as numerical ability to strike the best deal. For instance, a University of California report found that exhibiting anger whilst in discussions with suppliers may secure a better deal. The other party may fear that dissatisfaction may precipitate a withdrawal from the negotiations. Thus a strategic display of irritation may leverage a stronger bargaining position, if conveyed in a professional manner.

A recent book by Jeffrey Pfeffer at Stanford Business School found that organisational success is partly hinged on the political and power-building skills of its managers. Those managers that have strong interpersonal skills and the political acumen to persuade and manage people can drive through change and organisational improvements, even where staff are disengaged. Where procurement needs to increase its profile and ensure that buying best practice is adhered to, it needs the personnel to drive through efficiencies.

Category managers need to develop these skills if they are to remain competitive in the future, and companies need to ensure that their senior buyers need to possess these skills if the organisations themselves are to remain competitive. These issues will be discussed in greater depth in PIU's next Executive Research report on talent management, which will be launched in October.

Comments

Laura via LinkedIn

Tue 31 Aug 2010 10:14

Below is what I think a good retail CM should have as a skill set.
The ability to anticipate and capitalize on market trends, identify profit potential and position your category to maximize market share. Effective in broker/vendor relationships. Proven record of meeting and exceeding sales, profitability and shrink goals. Well versed in the tools required to make intelligent decisions including AC Nielson and Spins data.
Strategic Business Planning, P & L Performance Cross Functional Collaboration, Merchandising Expertise, Sales Forecasting & Budgeting, Vendor/Broker/Distributor Relations, Buying & Pricing, Schematics & Planograms, Shrink Control, Associate Development, Promotional Planning, Private Label Development, Team Leadership, Coaching & Mentoring,

Niamh via LinkedIn

Tue 31 Aug 2010 10:14

A good category manager needs to be articulate, a great communicator and negotiator. To have the ability to see outside the box, to see the bigger picture aswell as the detail. Ability to adapt to ever changing markets and dogged perseverance are also a plus!

Bob via LinkedIn

Tue 31 Aug 2010 10:15

As the poet John Donne so rightly put it "no man is an island entire of himself".
Not only does the category manager him/her self need a certain skill set, but in order for him/her to thrive and be successful, the rest of the organisation must play a role in creating the environment for category management to succeed.

Chris via LinkedIn

Wed 6 Oct 2010 12:20

Number one will always be understanding accurate information, without that the manager no matter how good they are will be suggesting incorrect action.
However in my experience even with good data many managers fall down on the communication. Often they are steam rollered by more dominant buying or operations teams, who don't want to take on board valid recommendations. When category managers are not seen as core to senior management they will always play second fiddle to the other commercial teams.
A successful manager will be able to understand the data, and then communicate the insight in a language that speaks to the broader audience.