There's no rule that dictates the breadth of Procurement Transformations. Organizations can refine Procurement without making amendments on every level. A small-scale improvement might entail implementing a new solution or developing a new recruitment strategy. Long-term transformation, however, means rethinking Procurement's approach to people, process, and technology. The department - and the business it supports - can only reach its full potential by allowing the three components to evolve interdependently.
The ideal approaches to people and process will inform the ideal approach to technology. Allowing one area to take precedence could lead Procurement to allocate its resources poorly and waste time on initiatives it can't possibly see through. For example, imagine a Procurement team that pursues an ambitious new solution without tailoring the tool to its current team. Their new solution might provide short-term benefits, but it's unlikely to prove sustainable without people and processes to support it.
Part 3 of Procurement Transformation: Industry Perspectives takes a three-pronged approach to its discussion of improving the department.
Naseem Malik (MRA Global Sourcing) opens the whitepaper with his thoughts on Procurement's talent problem. Advocating a new approach to both recruitment and retention, he stresses the fundamental importance the human element in Procurement. It's an importance, he writes, that too many Procurement leaders fail to acknowledge.
He's followed by Kelly Barner (Buyer's Meeting Point). Taking a closer look at Procurement's processes, Barner reminds readers that not all friction is a bad thing. Within the buying and sourcing processes, for example, productive friction can lead to more transparent communication and valuable negotiations in the future. Transforming Procurement's processes, she suggests, will often involve analyzing friction and using it to diagnose the department's ills.
Kristian O'Meara (JAGGAER) closes the paper by cautioning Procurement to temper its enthusiasm with skepticism. When it comes to technology, he reminds readers, any buzzword or emerging trend is potentially dangerous. They lead many teams to expect too much. Counting on new solutions to drive the function forward, Procurement neglects to transform its people and processes. As a result, the department's evolution is stalled and its reputation with the organization suffers.
Check out "People, Processes, Technologies" today to read more from this trio of Supply Management thought leaders.