MAVERICK SPEND. A term that is as synonymous with irresponsible procurement practices as it is with managing your last-minute spend like a pro. Whatever your take on the maverick spend, it shares the conflict over how much of a good idea it is with another Maverick:
The term ‘maverick spend’ implies almost exactly what Tom Cruise as Maverick embodies in Top Gun:
High potential, coupled with an ‘up-yours’ attitude, that ultimately ends in a sticky situation. The issues are resolved, in Top Gun, by bringing some discipline to the Maverick’s methods, and creating this:
Out of this:
Maverick Spend: purchases made without the involvement of procurement, and typically without complying with contracts or existing processes.
Procurement, Maverick Spend, and the Crash-and-Burn Risks.
Managing your spend, your engagement with suppliers, and your project costs effectively, and avoiding the urge to blow your budget on the nearest good-looking option (not Kelly McGillis, in this case), gives you a much cleaner and rational approach to your project- and business-management. It also makes your processes more likely to be compliant on a global scale.
What are the real implications of an uncontrolled ‘Maverick’ Spend?
- Higher rates for goods and services
- Lower economic value in return
- Increased risk of non-compliance in any business sector.
Getting your very own Tom Cruise to toe the line in your business will help you to manage these issues, wherever you’re operating.
The Maverick-Spend: Specifics in the Gig Economy
We spend a great deal of time discussing the implications of non-compliance in global business, in terms of employment regulations, tax rates and structures, and business set-up ideals. The maverick spend makes it tough to regulate your business structures and comply with employment laws since it operates on a last-minute-panic basis.
Ardent Partners’ Contingent Workforce Weekly Podcast shares a great deal on procurement in the gig economy, and gives this advice to businesses using contingent workers:
- Procurement spend management saves your business money. The more you invest in spend management, the better your control, the higher the return in savings on maverick spend and non-compliance legal issues.
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- Procurement is a facilitator of the next great form of collaboration – and the maverick spend is the lone wolf who needs to learn some teamwork skills.
- Procurement is a facilitator of the next great form of collaboration – and the maverick spend is the lone wolf who needs to learn some teamwork skills.
- Managing your talent and your workforce is key: These are the resources you need to succeed in the gig economy, and managing them correctly from the outset is critical.
- Managing the company bottom-line is a job best performed by procurement – and the percentage of on-contract spend is the primary metric followed. Mavericks are not good for business, so ensure you’re on-contract, on top of compliance, and on-point with your procurement procedures.
To get an update on your compliance procedures, or request assistance with your global talent management in the gig economy, contact CXC Global / CXC Corporate Services.
Words by Alison Krumm
