The Change Management Category

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For Hospitals Only (Part 2): How an Internal Marketplace Drives Hospital Standards

healthcare

More often than not, procurement projects that finally make the docket address problems that staff have been complaining about for a long time. Therefore, having a detailed understanding of the problem is essential. To get there, cross-functional input must be solicited from staff representatives of all affected organizational layers throughout the system design and implementation phases.

One thing that successful change management efforts have in common is that they are typically driven by a combination of front-line workers and back-line executives. When this happens, success if virtually assured. When it doesn’t, well, the odds aren’t great, but sometimes we get lucky (according to statistics, about 46% of the time).

In Part 1 of our series on Prodigo Solutions, we talked about the company’s dedication to the needs of hospital procurement organizations and how it has allowed Prodigo to achieve dominant status in its market. From a change management perspective, Prodigo provides a shining example of how desired results can be achieved when we focus ourselves on doing certain things particularly well. As we know, when we don’t, pushback is a certainty.

Procurement’s New Reality: A Business Case Blueprint for Innovation

Procurement is a critical function, yet it has challenges being seen as a strategic and transformative player, despite its enormous potential to drive enterprise cost savings and growth. However, forward-thinking procurement professionals are radically transforming business as usual and sitting alongside other key changemakers within the enterprise. Many of these forward-thinking procurement leaders have taken note of the huge digital transformation effected by sales over the last 20 years and have applied many of these operational tactics to sourcing. By emulating the sales framework and approach, procurement executives can usher in a new era where they can better establish priorities, allocate resources, engage stakeholders and react to changing directives. In the process, procurement will also deliver maximum business impact, with a new respect there for the taking.

‘I Have Plenty of Stories’ — Roy Anderson Details Procurement’s Digital Roots and Its Future

Procurement veteran Roy Anderson understands the current digital revolution that holds so much promise, and some pain, for businesses because he’s been a leader of it for over 30 years. From Raytheon in the 1980s to building procurement software from scratch to today’s AI buzz, he has a story for every step of the way:

“Moving to a printed requisition was what [stakeholders] thought was automation.”

“Simplify the process. ... Eliminate the excess and then automate the mundane. … It’s still valid today, on how to do business.”

“As I did strategic sourcing, I found problems. I have plenty of stories around problems you find. ... Your current suppliers know bad things have occurred, but they always want to stay quiet.”

Anderson, now with Tradeshift, sat down with another procurement veteran, Pierre Mitchell of Spend Matters, to share some laughs and lessons about how the industry adapted to digital changes over the last 40 years. The following is the first of three-part series of their conversation, which has been edited for clarity. Part 2 will run Wednesday, and Part 3 on Friday.

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Driving Adoption Through More Effective E-Procurement Change Management

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Change management, as a business discipline, dates back to the 1960s. Despite steady growth, dozens of “breakthrough” discoveries and countless books on the topic, the practice of change management hasn’t been very successful. According to McKinsey & Company, only about 30% of change management initiatives are successful in achieving their intended business outcomes. How should finance and procurement leaders who seek to drive adoption for e-procurement platforms regard change management? As John Hu, Shelby’s vice president of client services, is fond of saying, “change management isn't a project workstream, it’s the entire project.” There are numerous theoretical frameworks for enterprise change management. These can be helpful references for understanding the challenges and principles for managing change in today’s business environment. However, trying to apply any of these models to the practice of rolling out your procurement transformation initiative won’t get you very far. The need for a purpose-built approach: Conventional enterprise change management approaches are too generalized to address e-procurement adoption challenges. Our latest e-book, E-Procurement Change Management Strategy, offers a six-step, purpose-built framework for e-procurement change management that can be adapted to fit the needs of organizations with different requirements, cultures and business objectives.

Supplier Relationship Management Needs a Jolt of Technology, State of Flux’s SRM Summit Finds

Procurement has made significant strides in supporting supplier relationship management initiatives, but poor investment in technology could limit the potential benefits those programs can deliver in the years to come, according to State of Flux, a consulting firm that specializes in SRM and which held its annual SRM summit in Chicago on Oct. 23. Over the decade that State of Flux has monitored SRM maturity, procurement organizations have made considerable improvements in several areas — but not in adopting and using technology dedicated to SRM.

6 Ways To Really Mess Up Your AP Automation Project

Spend Matters welcomes this guest post from Melissa Hendrick, VP of marketing at Yooz North America.

Today, automation technology is one of the inevitable trends for companies wanting to improve their efficiency and agility in a complex economic environment. The reasons are clear: cost reduction, process optimization, data security, regulatory compliance and many more.

If you are considering automating your invoice payment processing workflows in accounts payables, or are already investigating solution providers, your success will be based on following some basic guidelines and avoiding some common pitfalls.

With that in mind, here are some insights to help you identify the pitfalls on your journey to AP automation, combining practical information with a little tongue-in-cheek humor.

Give Your Company a Personality Test Before Contracting for Services

Spend Matters welcomes this guest post from Gary Weiss, Flash Global's vice president of pricing, procurement and inventory management.

If your company were a human who could sit down and take a personality test, how would it score? Every company is like a person, with an individual temperament, strengths, weaknesses and quirks. Instead of "personality," though, we call it "corporate culture." Company culture affects every aspect of business operations, including employee recruitment, retention, development, business practices and vendor relationships. These five questions will help you define your corporate culture and find a service vendor who is a good fit.

7 Tips: A Guide to Mastering Procurement Transformation

Spend Matters welcomes this guest post from Alex Saric, Ivalua's chief marketing officer.

As the role of procurement continues to evolve, a new approach is required. Leaders are transforming their organizations with a new mindset, new processes and new technology. Having worked with hundreds of leading organizations as they transform procurement, I’d like to share these seven tips for procurement managers that should serve them well.

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Lessons Learned on the Road to Procurement Transformation

When it comes to leading a procurement transformation initiative, there is no substitute for experience. Recently, at the Coupa Inspire 2018 Conference, in San Francisco, four change agents discussed their e-procurement journeys and the lessons they learned along the way. As leaders of change within their respective organizations, Scott Whitehill of Blackstone, Todd Dooley of H&R Block, Dale Welcome of World Vision, and Leslie Townsend of Edwards Lifesciences each developed a vision for the role that e-procurement could play in addressing unique organizational challenges and opportunities. Just as important, they each built the stakeholder alliances and the infrastructure needed to translate their vision into reality.

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How a Source-to-Pay Migration is Like a Home Renovation

As with any home renovation project, your expectation is that you are going to wind up with a better home at the end. The same should be true for a move from one provider to another.  You should expect a serious upgrade at the end of your source-to-pay renovation. If you’re about to undergo your own S2P renovation, consider the following when making the move.

20 Questions to Ask Stakeholders Before Implementing Your New Procurement System [PRO]

Implementing new procurement technology is like implementing anything. There is a ton of change management involved, and if you don't get stakeholder input upfront, you are asking for trouble. This is especially true with modern procurement systems that can enable new practices on process redesigns that may be disruptive to the status quo. So, you need to get input from a myriad of stakeholders:

  • C-level versus lowest-level end users
  • Procurement users versus internal stakeholders and supplier stakeholders
  • Functional partners such as IT and finance who are “special” stakeholders because they are both spend owners and have a key role in the overall implementation
  • Visionary stakeholders looking to drive change versus stakeholders just wanting to keep their jobs and keeping efforts to a minimum
But what questions should you ask your stakeholders? Fear not. We have written a list of 20 key questions for you to consider.

You may be in procurement. Or you may be in IT. Or you can be a technology provider or consultant. Regardless, these 20 questions will help you tease out key requirements, intelligence and downstream barriers that you want to identify as early as possible. Just as spend influence is best done as early as possible, spend management transformation is also best informed as early as possible.

ADKAR: Procurement Change Management in 5 Letters [Plus+]

Change management is a seemingly "soft" topic that can have a highly adverse impact on hard ROI. If you need a practical framework for change management, Pierre Mitchell highly recommends ADKAR as a good default approach. In this post, he evaluates ADKAR in a procurement context and show it can be applied in a few different scenarios. The acronym stands for awareness of the need to change; desire to participate and support the change; knowledge of how to change (and what the change looks like); ability to implement the change on a day-to-day basis; and reinforcement to keep the change in place. Read on to see how ADKAR can be applied in a few example procurement scenarios.