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People Should Be a Core Pillar of Any Procurement Transformation

To successfully undergo a procurement transformation, any organization must clearly understand people’s roles in the process. While technology and process are both important, people ultimately drive success or failure. In this blog, we will explore why people should be a core pillar of any transformation and what steps organizations can take to ensure their people are prepared and engaged in the change process.

If you find this insight useful, we suggest you also look at our change management video series!

Why Change Management is Important in a Procurement Transformation

Any organization that is looking to undergo a procurement transformation must place a high priority on change management. They must clearly understand the role that people play in the process and take steps to ensure that their people are prepared and engaged in the change process. There are many reasons why this is so important, but here are just a few of them:

  1. People are the ones who will be implementing the changes. If they are not adequately prepared and engaged, then there is a good chance that the changes will not be implemented correctly or at all.
  2. People are often resistant to change. They are more likely to resist if they do not understand why the changes are happening or their role in the process.
  3. People are the key to success or failure. If the changes are successful, it is because the people involved were able to adapt and embrace the new way of doing things. If the changes fail, it is usually because the people cannot make the necessary adjustments.

 

How to Plan for Effective Change Management in a Procurement Transformation

When making a case for change management, it is essential to remember that people are the ones who will be implementing the changes. If they are not properly prepared and engaged, then there is a good chance that the overall procurement transformation will falter or fail. To ensure success, it is crucial to have a human-centered strategy that focuses on preparing and engaging the people the changes will impact. The following are some of the steps to achieve this:

  1. Establish a clear vision and purpose for the change. A vision will get everyone on board and help your team embrace the new way of doing things.
  2. Communicate the changes effectively. Explain why changes are happening and what role each person will play in them.
  3. Encourage feedback and engagement from employees. Frequent and honest feedback ensures everyone is on the same page and that concerns are addressed early on.
  4. Provide training and support to help employees adapt to the changes. This step will ensure everyone can adjust successfully and implement the changes effectively.

By following these steps, organizations can create a change management strategy focused on people and their needs. This will help ensure that everyone is on board with the changes and that they can successfully adapt to them.

Who should be involved in Change Management?

The people who will be most affected by a transformation are the key stakeholders. These individuals will be most impacted by the changes and need time to prepare to ensure success. There are many different types of stakeholders, but here are just a few of them:

  1. Project Sponsor– The project sponsor is the most impactful person on the project. An active and visible sponsor is the most significant contributor to project success. A successful sponsor actively and visibly participates, builds coalitions, and communicates directly with stakeholders.
  2. People Managers– Front-line managers are another critical group of stakeholders. They work closely to where changes happen and can build support and mitigate resistance on behalf of the project team. Manager buy-in can contribute to faster employee buy-in.
  3. Employees – Employees are the ones who will be implementing the changes, and they need to be prepared and engaged to do so successfully.
  4. Front-Line Managers – Managers are responsible for ensuring that the changes are implemented correctly and that their employees are on board.
  5. Customers – Customers are the ones who will ultimately benefit from the changes, and it is vital to make sure that they are aware of them and understand what they entail.
  6. Vendors – Vendors can play a key role in helping organizations implement changes, so it is important to keep them in mind.

Each of these stakeholders needs to be considered when planning a transformation, as they all have a role in making it successful. By focusing on the key stakeholders, organizations can ensure that everyone is on board with the changes and has the support they need to make them a reality.

 

When Should Change Management be done?

Change management should be involved as early as possible in the transformation process. This will help ensure that everyone is on board with the changes and they are appropriately prepared. It is also important to continue to engage key stakeholders throughout the transformation process, as they can help to ensure its success. Change management should be ongoing, as the changes will likely take time to implement. Organizations can ensure that issues or concerns are quickly and effectively addressed by continually engaging employees and stakeholders.

 

Final Thoughts

There are many critical success factors in change management, including:

  1. Establish a clear vision and purpose for the change. This will get everyone on board and make them more willing to embrace the new way of doing things.
  2. Choose an active and visible sponsor willing to champion the project.
  3. Communicate the changes effectively. Explain why the changes are happening and what role each person will play in them.
  4. Encourage feedback and engagement from employees. This will help ensure everyone is on the same page and that any concerns or issues can be addressed early on.
  5. Provide training and support to help employees adapt to the changes. Training allows employees to adjust successfully and successfully implement change.

By following these steps, organizations can create a change management strategy focused on people and their needs. This will help ensure that everyone is on board with the changes and that they can successfully adapt to them.

At Velocity, we believe change management is critical to any procurement transformation. Our Change Management consultants are certified through Prosci, and we adapt our change management programs to work alongside your existing internal resources.