Changing a Program From the Inside Out: Tying Organizational Transformation to Services Procurement (Part 2)

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At the IQNavigator IQNsider’s event earlier this month, the contingent workforce program leader from a large financial services institution took the stage to talk about how his firm’s overall transformation efforts included a new focus on services procurement programs as part of the overall change elements for the company. As part of this initiative, the organization focused on creating a hybrid top-down and bottoms-up approach to managing an overall program office to “show value through stakeholder partnerships” and to engage line-level managers.

The effort included structuring a cross-functional partnership with both procurement and HR, which this individual suggested remain “attached at the hip” regardless of where an overall program sits. The advantages of bringing together both groups under one roof and building a broader program management office around the services procurement umbrella include creating a clear charter and execution plan for program ownership, program operation and influencing program behaviors.

Previously, the organization was reactive and lacked informal and formal partnership and collaboration engagement ability. Procurement would focus on “contracts and pricing/rates” and HR’s efforts would center on talent management, labor policy, engagement policy and the like. As an example of what would occur, someone would “read stories on the Internet” about misclassification or other compliance matters that would lead to a fire drill to put tenure limits in place.

The firm implemented a number of changes to address these reactive approaches. These included building an overall new program charter and management structure centered on engaging executive stakeholder “to assist in building vision and strategy.” The transformation included similarly engaging with “key business stakeholders and line-level champions” as well. Centralizing the overall program efforts while simultaneously increasing “cross functional partnerships” that leveraged an “established governance model” and minimized” rogue spending and behaviors” was also key.

In the final post in this series, we will explore the governance structure that the organization implemented to put in place its services procurement transformation program.

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