Lessons in Enabling Effective Procurement Change

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Lessons in Enabling Effective Procurement Change

Transcript of Lessons in Enabling Effective Procurement Change

Page 1: Lessons in Enabling Effective Procurement Change

Lessons in Enabling Effective

Procurement Change

Page 2: Lessons in Enabling Effective Procurement Change

Improving Procurement is Not Easy

Most procurement initiatives aim to reduce costs and improve quality

Yet many of them fail to deliver on these promises

Neglecting change management is the most important cause of failure

Page 3: Lessons in Enabling Effective Procurement Change

Drive the Change from the Top

1. Ensure the initiative is led by the senior management

3. Determine what is to be achieved and how the change will be managed and measured

2. Create a map of the existing purchasing processes and a blueprint for the future

Page 4: Lessons in Enabling Effective Procurement Change

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Consult Your People

Stakeholders may resist the change by arguing that it lacks an understanding of frontline priorities

Identify and address their concerns as it may reveal risks that were ignored previously

Page 5: Lessons in Enabling Effective Procurement Change

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Come to a Consensus

Stakeholders need to understand the reasons for the change and approve of the end results

People may be unclear about what they should expect if the initiatives seem like a never-ending list

Page 6: Lessons in Enabling Effective Procurement Change

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Take Steps to Change the Mindset

Employees invested in the existing practices might believe that they are protecting the company from a mistake

Build a more attractive and transparent approach for people to accept change and become enthusiastic advocates

Page 7: Lessons in Enabling Effective Procurement Change

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Communicate Effectively

Use effective communication channels and reach out to your stakeholders

Customize all communications to understand and manage the perceptions of your audience

Keep communication two-way: listen to and understand the concerns of your stakeholders

Page 8: Lessons in Enabling Effective Procurement Change

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Train Your Staff

Employees often worry about whether or Not they possess the required skills to continue with their jobs

Take an early lead to help the staff adapt to their new roles

Page 9: Lessons in Enabling Effective Procurement Change

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Keep Your Eye on the Prize

Discard the old processes when you adopt new ones

Avoid demonstrating a lack of organizational support by using both new and old processes simultaneously

Always focus on the bigger objective

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Make Your Change a Success

Manage stakeholders and assess the impact of the change

Train your staff and showcase the benefits of the program

Push for cultural and behavioral change

Engage those affected By the change

Page 11: Lessons in Enabling Effective Procurement Change

Copyright © 2017 Tata Consultancy Services Limited

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