Tying Organizational Transformation to Services Procurement: A Case Example (Part 1)

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At IQNavigator’s customer event earlier this month, I had the chance to listen to a case study from the services procurement program leader for a financial services firm, a story that offers lessons for procurement organizations regardless of industry. Most curiously, the company has started to tie elements of its overall organizational transformation efforts – the firm promoted within a chief transformation officer who is on the executive team – to its services procurement efforts.

The organization in question first went live with an MSP and VMS in the US in 2010 and was able to bring staff augmentation resources under management. The company did a re-launch of the program in 2013, bringing staff augmentation resources and statement of work spend under management across North America as well as the UK, Costa Rica, India and Spain.

The numbers may speak to the growing scale of the services procurement program within the firm, but they only tell part of the story. Earlier in its transformation, the company did a net promoter score with internal stakeholders and discovered that an overwhelming number of those surveyed were either detractors or passive in their view of the program. Simply put, these stakeholders and influencers were “not seeing the value” of the services procurement program overall, focusing instead on procurement and HR’s role in enabling contingent workers as a “means to an end.”

To address these concerns and to align transformation efforts with the overall business, the firm put in place a combined top-down and bottoms-up program to show the value of services procurement efforts by creating line-level champions to create more proponents and supporters in key areas (e.g., making it easier to work with procurement and HR to add new vendors).

This effort was actually part of a broader initiative centered on creating a services procurement program management office that would take charge of both tactical and strategic areas of services procurement engagement and management – on a consistent, sustainable basis. As our reporting on this example continues, we will turn our attention to how and where this program office aligned its efforts to the broader transformation efforts of the company as well as key lessons learned from the initiative.

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