Feb 7, 2017

Professionals answer the question: why is it so difficult to introduce change in a Procurement organization?

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We asked the question, “Why Isn’t Procurement Changing?” and provided some of our own answers. Even though 70% of Hackett best-in-class Procurement organizations use eSourcing, others still fail to make the change. Some Procurement organizations are so large that they experience inertia that makes they resistant to change. At the same time, people suffer from bias that affects their decision-making and holds them back from making changes.

Read the full article here!

So what do procurementworld readers on LinkedIn think? Why is it so difficult to implement change?  

Stephen D., Account Director, from Wigan, UK: It's difficult to introduce change, because it's difficult to measure the value brought about by the change. (In many cases) The focus is still on quantitative measurement like cost savings (despite how inaccurately cost savings can be recorded). Often the cost is shifted rather than saved ! I know the numbers are paramount, but I strongly believe that if you focus on the qualitative, the quantitative benefits will follow. This is the change I would like to see.

Thomas W., Compliance Coordinator, from Dayton, Ohio: The proposer is not the Shareholder and the Shareholder has to understand the benefit. Many ideas sound great, but the proposer may not be the one stuck with the work.

Peter M., Director of Indirect Procurement, from Massachusetts: It is human nature to resist change. Change comes about when there is proper support for the change actions from the top of the organization. The procurement team must demonstrate the tangible value of the associated change to the internal stakeholders and obtain their buy in and full support. It is not easy to accomplish change in an organization. It really takes a change agent who is tenacious to lead the change. I have seen individuals attempt to lead change without the necessary procurement experience or a clear understanding of the difficulty being a change agent. Ultimately, the projects failed and the objectives were never recognized. I have also seen change accomplished with professional change agents who understood the obstacles and achieved success. There is a lot to be said about experience and the "never give up attitude" of a change agent.

Andrew S., Business Development Manager, from Birmingham, UK: Don't trust process over proof. I can only vouch for my market but people would rather opt for a globally recognised name than a relatively unknown and a rebate structure than a demonstrable case study any day of the week. (In the realm of office products in any case) have you seen 'The Matrix'? Take the red pill and I will show you how deep the rabbit hole goes. Or, you can chose the blue pill and stay plugged in like everyone else who doesn't like the change and doesn't want to see what's happening. (The truth). 9/10 won't care, but that 1, that 1 will actually make a difference.

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