Building a Program Office: Tying Organizational Transformation to Services Procurement (Part 3)

Throughout this series exploring a case example of a services procurement program transformed aligned to overall company transformation efforts (see here and here), we have centered our exploration on the program itself: its past and current state. In this final installment of the series, we explore the actual program office structure and operating model itself that the firm put in place as part of its transformation efforts.

To recap, under the new and formalized operational model, the goal was to drive total company participation “through stakeholder partnership and standing up a global governance strategy team” that would place a contract labor program office at the core, working with HR, procurement, stakeholders, business leaders and external MSPs. Strategic program elements would “flow down” the governance model (see below) and escalations and questions would “flow up” as required.

On the foundational level, the program office would oversee tactical governance issues including the day-to-day management of operations, supplier catalog management, reporting and labor market analyses and time collection and supplier invoicing. Further up the governance ladder, HR and procurement would work as part of the program office to define and manage program ownership, policies, onboarding and offboarding, change management, vendor management and sourcing efforts.

Strategic governance efforts, still further up the management structure, would include contributions from business leaders, finance and others to ensure effective “alignment with the enterprise business strategy and organizational goals and objectives” as part of the broader company-level transformation efforts. Finally, executive sponsorship efforts stood at the top of the pyramid with executive representation and oversight.

Looking ahead, the company intends to build on these efforts, including overall program expansion into additional countries as well as adding professional services to the program management and category charter.

It is also looking to create tighter linkages between its overall contingent workforce and strategic workforce planning efforts in a manner that becomes even more aligned with business needs and forward-looking at the same time (i.e., to predict requirements and needs rather than reacting to new job requirements that need to be filled or addressed).

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