Invest time to build integrated transformation teams that will drive the organization to best-in-class performance.
More and more, companies of all sizes are seeking to transform their procurement and supplier relationship management processes — an activity that has a tremendous upside but to say the least, is very disruptive. Procurement transformation impacts every internal and external supply management process and relationship, and so requires a significant commitment in terms of resources, time and energy by just about every part of the organization.
As change management initiatives go, procurement transformation is especially difficult due to the patchwork way in which they are staffed. For instance, some employees usually remain from the legacy purchasing infrastructure, but it may take time before these folks are fully on board with the new direction. To this nucleus, add those who may be transplanted in from other business units such as finance. While they bring much needed analytical skills and knowledge of how things work in their “functional homeland”, they may not initially see the big picture or appreciate how all the pieces fit together from source to settle. And finally, it’s often necessary to fill a few roles with people from outside the company who bring valuable subject matter expertise but need time to acclimate to their new col- leagues and company culture.
So, what can leaders do to ensure procurement transformation is a glowing success?
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