Why are procurement teams constantly transforming?
A bit of a generalisation with the title, but it always seems that procurement teams are going through, have just finished, or are about to embark on a transformation program.
Why does procurement seem to be ever changing? Do other parts of the business go through the same and as frequently, but we just don't hear about it, or is procurement guilty of this?
I believe that being adaptive and responsive is a good thing, but do you think that sometimes procurement cannot deliver what it is promised, or is supposed to, because of an ever changing landscape?
I guess because it is in our inherent DNA to look to continuously improve. Whilst I have no issue with that, I have one too many times witnessed change for change's sake. So my question would be to the organisation: Are you looking to transform? Or are you looking to evolve? As transformation to me suggests on the lines of radical change of everything rather than evolving a process here or an approach there.
I do believe it's all to easy to get swept up with the idea and notion of change and often there are 2 extremes in trying desperately hard to make change work when in reality it won't and the other is that change is necessary and can work, but is met with strong resistance. Which I why I feel evolution should be the first consideration prior to a full scale change and be certain it's absolutely the only option to select. I always think of Tiger Woods when he tried to change his swing and his level of high success dried up. In some cases if it's not broke, don't try and fix it.
In my opinion,not only procurement, every business process is subject to change. We can't predefine anything. Likewise, the process of procurement too. A normal procurement process usually includes Process Planning, Defining Specifications, Make Procurement, Contract Management, Extension of Contract, Ending Contract, Process Review, Spending Thresholds. A small change to any of the process could change the entire cycle.
Yeah Lewis, I do also sometimes feel, procurement management is not efficient enough to deliver the goodness it should actually provide for the business. But latest technologies could improve procurement management process a lot. Do anyone agree with me?
1) Execution / Communication failures
2) Changing landscape of internal stakeholders and their priorities
3) Introduction of new technology designed to support significant improvements in one or more metrics
4) New impetus to demonstrate meaningful improvement in one or more metrics (new CPO, new CFO, M&A activity, etc)
Category manager comes in. Creates a strategy. Spends 3 years executing that strategy. Then is faced with repeating the process with more or less similar stakeholders, business challenges, suppliers... Never truer than in procurement is the phrase change is constant. Transformation as a word is overused and meaningless as a result. Procurement functions must be in a constantly evolving state to constantly be able to adapt to the market conditions and the needs of customers.