Change can be difficult, even if you know it will create a better outcome in the long run. Determining when change is necessary can be key in creating efficiencies and saving money. Additionally, making sure all of the key decision makers understand and support the change is a top priority.
Below is an article from paystreamadvisors.com that describes why it is necessary to get all stakeholders on-boarded in the organization’s procurement transformation. After reading the article, give us a call at SpendBridge so we can partner with you to help transform your accounts payable and procurement operation to be the most efficient it can be.
Source: paystreamadvisors.com | Re-Post SpendBridge 2/19/2018
Most of us, by default, are resistant to change once we are used to something. After a certain point, inertia kicks in and we sometimes resist change instead of adopting it for the good. The mind’s defense mechanism starts finding reasons, some rational and some completely irrational, for wanting to continue things the way they were in the past.
The Challenge of Change Management in Procurement
While every CPO (Chief Procurement Officer) or top executive wants to make their procurement department efficient, introducing any change is difficult. Getting people to change their style of work or asking them to get used to a new process is always tricky. As easy as it may sound, change management is one of the toughest things to implement in an organization. However, one way to manage change as a part of procurement transformation is to plan and implement it correctly from the beginning. Resistance to change can be minimized only if there is sufficient buy-in from the people that will actually go through the change.
As a procurement leader, you might decide that the buying team should work with only, for example, three preferred suppliers instead of a current 20 suppliers. You could formulate a sourcing strategy which allows only for centralized procurement and discourages regional buying. You might want to conduct a Zero-Based Budgeting (ZBB) exercise for the entire organization spend. However, the internal stakeholders (in this case the business user or buyer) play a pivotal role in the success of such initiatives.