Archive for the ‘Change Management’ Category

Ways to raise the status of purchasing

December 10, 2008

For the past few years there’s been a constant buzz regarding the increased status of purchasing professionals. Yet with all the talk about CPOs taking on new challenges in corporate management and purchasing becoming a hotbed for talent recruitment little actually trickles out when it comes to the actual practicalities of raising the status of purchasing.

Take this case story from the recent issue of Efficient Purchasing magazine regarding purchasing at GEA Group. Some background info: GEA Group is a global technology group with more than 250 companies in 50 countries focused on specialty mechanical engineering. Due to the geographically diversified organization the company established a corporate supply management team in 2005 with direct orders to introduce company-wide purchasing processes and tools.

For years, GEA Group has held an internal process and production innovation contest, where all companies/divisions in the group were eligible to participate. In the innovation-driven GEA culture, winning the award is highly valued; in 2006 supply management won the process innovation contest.

“Ten years back, no one would have expected purchasing to participate, much less to win the yearly process innovation contest”, says Charles Bloch, corporate coordinator of supply management in the Efficient Purchasing article.

GEA Group also runs an internal development program called GEA Academy which now also features programs for staff in purchasing and supply management. With the increased visibility of purchasing due to participation in programs such as the GEA Academy the raise of profile of the purchasing profession has increased within the GEA Group.

Expanding the Circle of Influence

November 10, 2008

Today I ran into this inspiring research paper from the Hacket Group describing their model of assessing the capabilities to deliver procurement value. The model is based on the assumption that procurement organizations will only manage to increase value by increasing their influence on different target groups.

  • Customers 
  • Suppliers
  • Shareholders, Board of Directors, Regulators
  • Employees
  • Requisitioners

The circle of influence describes 5 different levels of influence ranging from “Assurance of supply” (Level 1) to real “Value Management” (Level 5) for each target group.

 

So go ahead and do a quick benchmark for your organization. Knowing your level of influence will definitely help you to focus on the right next steps in your purchasing transformation program.

 

You can download the research paper with the circle of influence thru this link http://www.thehackettgroup.com/research/capabilitymodel/ (registration is required but really worth it).

 

The Importance of the Choice of Communication Channels in Change Management

September 23, 2008

Today is the first day of the eWorld Purchasing & Supply, and one of the speakers at the event is Jenny Vårlid (she’s delivering a presentation on Managed Sourcing, describing how you can ensure savings from non-core categories) from IBX. When talking to her before she departed for London last night we got into the discussion of appropriate communication channels in change management projects.

Change management is a delicate subject and as we’ve discussed before, to succeed you can improve your chances by following a structured approach which includes both stakeholder analysis and the creation of a strong communications plan that includes message, concepts and choice of channels.

In recent projects that Jenny had been part of the choice of channels were not limited to classics such as newsletters, dedicated intranet sites and the use of existing inter-company magazines; the project management team had also set up a monitor displaying the project progression in the staff cafeteria.

As the organization had recently transformed using a centralized approach this meant that affected staff could check updated KPIs and purchasing statistics every time they grabbed a cup of coffee. It also meant that other functions got insight into the progression of the purchasing transformation. As the purchasing transformation program affects the entire organization, this approach has proved very successful.

When you’re setting up your change management program, make sure to spend some time looking into the communication plan; and if you don’t have the skill set required to make the necessary analysis on board get in touch with a communication expert. Most of the time, the resources are available in-house and if they’re not, don’t hesitate to look for an external partner. If you fail in the communication phase of your change management program, chances are that the entire program will falter and not yield the expected results.

Using Web 2.0 to Engage Your Audience

September 19, 2008

Here at Purchasing Transformation, the so-called Web 2.0 technologies are something we care a lot about. We wouldn’t be doing this blog if we didn’t believe that the content we create was not syndicated into someone’s RSS-feed and re-published somewhere else.

Blogs, Wiki’s and forums are highlighted in a recent issue of A.T. Kearneys “Excecutive Agenda” as the technologies that support company growth through increased employee co-operation and improved communication. By using these tools; “the invitation to engage in transformation is thrown open to the whole organization”.

To connect to one of my older posts on the subject of communication in a change (or transformation) process, don’t just look at these tools as just being technologies; see them as communication channels, and as such they must be understood in order to be effective. It’s not the technology in itself that will make the difference, it’s the understanding of the channels and how the audience use it that will prove vital.

Structuring Your Purchasing Change Management Efforts

September 18, 2008

When it comes down to it; we, as humans, have two primal impulses that drive our behaviour. The first is the need to conserve energy, or in essence, to flee danger. The second is the exact opposite of the first; we strive to expand energy in order to hunt for food or seek a mate. The first impulse is the strongest, and the second only comes after strong stimuli.

This has to be taken into account when you are setting up your change process.

Because people are afraid of change, it’s deeply rooted in us as humans, and we need strong motivation in order to overcome this very conservative impulse. Just telling people about the goals and the processes is not enough. As humans, we focus on feelings, not facts, so the change needs to be perceived as positive and result in positive emotional memories in order to be successful.
Change is a fragile fruit, and should be treated as such. It’s a process of what you reap is what you sow. As in any growth process, control is of the essence.

A structured approach to change management follows this four step process:

Stakeholder Management and Change Leadership

  • Stakeholder analysis
  • Change management plan
  • Set up of global and local change management organizations
  • Communication

Communication plan

  • Project marketing
  • Expectation management
  • Motivate and support
  • Integrate and build acceptance

Organization Design and Training

  • Job and organizational design
  • Skills and competences gap analysis
  • Training

Benefit Identification and Tracking

  • Business case
  • Project goals
  • KPI follow-up
  • Feedback

This needs to be supported by a project team building effort.

Still, even the most well planned change program can fail and numerous risks have to be taken into account. But following the above mentioned guidelines gives you both a basis for risk assessment as well as a structured and controlled process.


Follow

Get every new post delivered to your Inbox.