Steps of the process

How do you implement category management?

Category Management Cycle by CIPS is a useful tool that will help you implement category management. The model has 6 key activity steps. You can apply certain elements of the model when you don’t need to follow the full process.

Category Management Cycle by CIPS

1

Initiate / Prepare
Key Questions
  1. What is the scope of the category?
  2. Who are the key stakeholders?
  3. What key issues or problems need to be addressed, are you aware of the business objectives you need to consider?
  4. Do we have support for this work?
  5. Do we have the resources and skills to undertake the work?
  6. Are we clear about the high-level benefits and risks?

2a

Identify Opportunities
Key Questions
  1. Do we understand our business needs and issues (now and into the future as far as possible)?

  2. Do we have a deep understanding of the external marketplace, its trends and dynamics, and an appreciation of our organisation’s position within this?

  3. What opportunity for improvement can be gained by commercial and economic insight?

  4. Are there any quick-win opportunities that emerge through our immediate research and analysis? Can we implement these before developing a final strategy?

2b

Prioritise Opportunities
Key Questions
  1. What are the changes and opportunities that will drive improved performance
  2. What risks need to be addressed?
  3. What priorities make sense for the business?

3

Prepare/Present Category Strategy
Key Questions
  1. Is the strategy grounded and are the recommendations supported by the research and analysis?
  2. What is the payback (benefit), how will it be measured and is it realistic and tangible?
  1. Does the expected benefit stack up in relation to the anticipated risks and the resources required to deliver them?
  2. Does the strategy address the business issues and objectives identified at the outset?

4

Implement Category Strategy
Key Questions
  1. Is the implementation and change programme being communicated effectively
  2. Is implementation proceeding as outlined in the strategy?
  3. Are relationships and supporting structures in place?
  4. Are performance measurement/reporting systems established?
  5. Are benefits secured and captured?
  6. Are transition risks being effectively managed?
  7. Are stakeholders satisfied?

5

Maintain
Key Questions
  1. Are we managing supplier and internal stakeholder relationships effectively
  2. Have we identified and managed risks?
  3. Is the strategy delivering the expected benefits?
  4. Is performance monitored
  5. Are issues effectively managed and resolved?
  6. Are we managing supplier and internal stakeholder relationships effectively
  7. Have we identified and managed risks?
  8. Is the strategy delivering the expected benefits?
  9. Is performance monitored
  10. Are issues effectively managed and resolved?

6

Improve and Enhance
Key Questions
  1. Do we have mechanisms which identify and seek to deliver continuous improvements?
  2. Do we have the right internal and external behaviours and structures to generate and deliver change and innovation?
  3. Are we aware of internal and external changes and routinely assess how they might present risk or opportunity?
  4. Is the category strategy still aligned to the needs and priorities of the organisation?
Source

Source

CIPS Intelligence Hub
https://www.cips.org/intelligence-hub/category-management/cycle