Context
Many organisations are moving towards centralised operating models. In a procurement context, a centralised and digitised procurement model protects and governs how the enterprise aligns on spending and realises economies of scale.
Snap Stats
- Procurement Maturity Model:
- 20% Laggards
- 50% Industry average
- 30% Best-in-class
Critical Success Factors for the Change
- Culture & Behaviour
- Strategy
- Technology
- Organisational Design
- Procurement Model
The Measurable Results
Metrics to realise the benefit case for change include:
- % Total spend under management (TSUM)
- % Total negotiated savings realised (TNSR)
- > Profitability
Procurement
- Executive buy-in is a must
- Management inclusion in the operating model design thinking
- Lift and shifts require detailed change impact assessments
- Assess skills levels
- Communicate in time – not too early on
- Leadership training on leading change
- Employee training on leading myself through change
- One-on-one engagement/coaching with leaders
Business
- Position a meaningful and transparent business case for change
- Dedicated focus on awareness, acceptance & upskilling
- Measure business awareness & readiness
Suppliers
- Dedicated focus on supplier awareness, acceptance & upskilling
- Sufficient supplier support post go-live
- Elicit feedback from suppliers before, during and after go-live
- Supplier post go-live engagement and feedback to refine supplier experience
- Inside-out and outside-in view on improvements
The Approach
Project focus on:
- Centralised strategic sourcing
- Supplier rationalisation
- Automated business processes
- Self-service
- Data and reporting
Change management models:
Lessons from the Frontline
- New processes and technology are the easy parts
- Balance the perfection of design vs the focus on people
- Use a leader-led approach for ownership and scale
- Leaders must have a voice
- Be clear on the Org Design and role impacts
- Fill critical leadership roles before a S189
- Leaders who don’t get senior roles may become disengaged
- A prolonged and phased approach to implementation is likely to affect overall productivity (valley of despair)
- Have a plan to develop skills
- Make sure leaders really understand the ‘why, what and how’ of the change
- Dedicated resourcing and workstream needed for data and reporting
One-Page View
ChangeFolio
Our Global Team of Change Experts
