Procurement

This last post on the series on the adoption of Procurement technology will highlight what actually happens during a change.

It is only with a good understanding of these aspects that change leaders can conduct fruitful and lasting change initiatives.

The Kübler-Ross change curve…

A classic representation of a person’s reaction to change is the Elisabeth Kübler-Ross change curve. It describes the emotional phases people go through when they lose someone:

“Insanity: doing the same thing over and over again and expecting different results.” –Albert Einstein

Here is the third post in a series of four that focuses on the adoption of Procurement technologies.

After looking at:

This is the second post in a series of four that focuses on the adoption of Procurement technologies. It will highlight some important aspects of the psychology of change because:

• they explain why so many projects fail,
• they must be taken into account to design a successful implementation.

The problem with changes…

“The only thing that is constant is change” — Heraclitus

What was true in Ancient Greece is even truer today. Especially when looking at changes induced by or linked to technology.

To be honest, I haven’t totally figured out all of the details of the inner workings of the blockchain technology. And, I do not think I will ever try to as some of it is very technical. I also do not believe that Procurement professionals should do it either. However, it is important to understand the implications of the blockchain technology. Because of the way the blockchain works, it has unique characteristics that represent a breakthrough with tremendous value for Procurement.

Anyone with a little bit of experience in business has heard of the Pareto (or 80/20) “rule.” And this principle drives how organizations are targeting their efforts towards areas that would maximize results. With limited (finite) resources, it is logical to focus them on activities that have the highest impact/value.

Procurement is no stranger to this approach. Focusing on the 20% of the supply-base that makes 80% of an organization’s spend is a strategy and method that is very common, and that also makes sense from a pure “economical” standpoint.

At a function level, what Procurement does (buying goods or services from external sources) hasn’t changed much and will not. What does change is the world that Procurement operates in? Procurement does not operate in a vacuum so how it does the job has to reflect his times (and continuously do so). Also, it has to take into account with/for whom it does it. It is about addressing expectations, serving stakeholders, attracting talent, and much more.

Part 2 — Who is accountable?