Download PNG
Strategy

Center-led procurement: the evidence gap behind the dominant model

63% of large enterprises use center-led procurement. Virtually none can prove restructuring improved anything. The model spread on consensus, not hard evidence. Like adopting a diet everyone recommends without checking if anyone actually lost weight.
63%
Enterprises over $2B using center-led/hybrid models
About 2 out of 3 large companies use this structure
~0
Published controlled studies isolating operating model impact
No company has run a scientific test of whether restructuring helped
3-5
Other major changes that happen at the same time as restructuring
New tech, new boss, new market conditions — you can't tell which one worked
Consensus
Adopt the center-led model because consultants and peers recommend it. Centralize strategy, decentralize execution. Trust the framework.
Model adopted without testing
Evidence
Before restructuring, define what variable you're testing. Measure baseline outcomes. Compare after isolating the model change from other interventions.
Causal link established (or refuted)
Risk
The isolation problem: when you restructure, you also upgrade technology, change leadership, and renegotiate contracts — all at once. Any improvement could come from any of these changes. You cannot claim the model worked when you also changed everything else. Like celebrating a new workout routine while also getting more sleep, eating better, and hiring a personal trainer.
01
What variable are we actually testing? Name the specific procurement outcome you expect the model change to improve — and nothing else.
02
Who wins when central and local priorities conflict? Define the tiebreaker rules before the first disagreement, not after.
03
How will we know if the model is working? Set measurable baselines now. Without them, you're just hoping — and hope is not a procurement strategy.
Jargon Decoder
COE Center of Excellence — a central team that owns strategy, tools, and best practices for the whole company.
Hybrid Model A mix of central control (strategy) and local freedom (daily buying). Like a franchise: corporate sets the menu, each store runs its own kitchen.
Operating Model How a company organizes its people and processes to get work done — who reports to whom, who makes which decisions.
Organizational Design The architecture of teams, reporting lines, and decision rights inside a company.
Maverick Spend Purchases made outside approved contracts — like employees buying from any vendor instead of using the negotiated supplier.
Causal Link A proven cause-and-effect relationship, not just a correlation. "A caused B" vs. "A and B happened at the same time."
Sources: McKinsey & Company, The Hackett Group (2023, 2025), Deloitte (2025 Global CPO Survey)
Rzzro
Procurement, quantified.