Procurement’s toughest problems rarely come from spreadsheets or contracts.
They come from people.
In this episode of “Buy: The Way…To Purposeful Procurement,” David Loseby – professor, former CPO, and self-described “pracademic” – joins Philip Ideson and Rich Ham to explore why procurement’s incentive systems often fail not because they’re wrong on paper, but because they ignore how people actually think and act. Unfortunately, he says, most systems are designed for tidy models, not messy human behavior.
Drawing on behavioral science and front-line experience, David introduces the idea of “behavioral architecture,” a practical approach to shaping decisions by understanding how different audiences think, decide, and act. Finance wants the spreadsheet. Marketing wants the story. The CEO wants 30 seconds and a decision. A single, one-size-fits-all KPI (which we know is usually “savings”) can’t carry that load, and when it tries, it often drives the wrong behaviors.
Instead, David makes the case for incentives that create shared ownership of outcomes across functions. He walks through a concrete example of shifting an energy “re-tender” into an enterprise-wide consumption program that improved P&L results through local engagement, gamification, and rapid payback actions – all proof that when the metric matches the mission, the business moves.
He then applies the same logic to sustainability, customer experience, and resilience, showing how to frame the same initiative in different “languages” across the business without diluting the goal.
David also offers actionable guidance: build balanced scorecards that include the business’s priorities (not only procurement’s), tie a portion of bonuses to stakeholder metrics, and tailor communications so each audience sees their value in the work. It’s a call to action for procurement that may be uncomfortable, but it’s exactly what they need to hear: if you want purposeful outcomes, you have to design for human behavior, not inhuman systems and processes.
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