In the previous blogs in this series, we explored the 2 different paths to procurement transformation – the Greenfield scenario for the organization in which procurement was primarily a back-office function and the Stalled Initiative: Substandard Suite path for the organization that had already begun with the transformation process but is now fully stalled.
Moving ahead to the third path – The “Slow Initiative: Death by a Thousand Point”
- Current state – in this scenario, the procurement transformation was begun, but has failed to achieve its initial goal. The procurement department has generated some success via the deployment of one or more point solutions but ultimately, the department lacks cohesion and appears unable to get to the next level of value.
- Key people considerations – there will be top performers and laggards on the same team working on the same things and managing the same processes and stakeholders. One issue may be the lack of a clear and shared vision for the department.
- Key process considerations – the process problems may not be global in nature, but rather at the sub-process and user level. While every process should be streamlined in the new program, the emphasis should be on improvement and not simply change for change’s sake.
- Key technology considerations – the issue is whether or not a point solution can add value to entirety of the source-to-settle process. A lack of cohesion across the current systems is now or soon will be a major hurdle to driving more value.
Stay tuned as we explore few more key points on this last path to procurement transformation.
