When considering implementing a change management strategy, alongside a procurement software implementation project, it is very important to start your journey with a strong set of objectives and success measurements. All it takes is good planning. Having a well-documented understanding of your project and its objectives can guarantee the success of the overall change management strategy.
Change management requires constant tailoring and, as such, you will find yourself regularly changing and adapting processes, exploring new technologies and finding unexpected nuances.
As Spend Matters states 98% of CFOs view change management to be a critical skill for procurement. Yet 60% of CFOs expressed dissatisfaction with procurement’s change management capability, according to a Proxima Group & Nelson Hall study.
Change management outcomes/ Post Go-live measurements
A common set of conversations we have with our clients is around how to measure the success of their implementation, how users will adopt the new system and use it efficiently and effectively and how it will meet the Business Case objectives. To us, the most important conversations are always around understanding what the business case is based on, as this is critical to the project being seen as successful.
From a User perspective, having a system that meets current or improved business processes, whilst making life easier for the end users, is vitally important.
When we refer to change management outcomes, we mean the measurable differences in the to-be state post implementation. At the ground level, this could be trained staff, new business processes (and supporting IT) and improved performance measured by KPIs. At a more strategic level, these outcomes could be much more far reaching.
More than one take on change management strategy
To support an optimum P2P operation, another common change management measurement is focused around procurement restructuring. This might also include a newly shaped AP team – few people are required in AP when input and matching are automatic and those that remain are able to do more sophisticated value-added activities. There’s an opportunity for new KPIs – measuring things that were not measurable before or were seen as not under the departments control or influence.
Collaboration with finance becomes possible as well as desirable and indeed the idea of separate procurement and finance function becomes questionable. Does your organisation have distinct and separate reporting lines and if so, should that change? What further economies of scale are possible by merging AP and operational procurement? These are relevant questions that your company needs to consider.
Supplier relationship management can be transformed. When combining contract management with advanced forecasting, inventory management and financial reporting, you can really take things to a whole new level.
So, in terms of change management outcomes we would suggest considering:
- Target Operating Model – the optimal shape of operation P2P team(s)
- Advanced KPIs (New KPIs beyond measuring how much better you can do today’s activities but include new P2P enabled measures like consumable inventory reduction and early pay discounts)
- Advanced SRM
We will cover more of these topics in future blogs so please keep an eye out and subscribe if you haven’t already.
Change management is not only about changing different processes. It’s also about changing people, their habits, their work style & making them more objective oriented. Get in touch if you would like to discuss in more detail.