Tag Archives: change management

A CPO ’s “To-Do” List for the First 100 Days

100 days of being a CPO….What’s on your to-do list, where do you start and how do you develop your action plan to transform the procurement team? 

You’re hired!  After the jubilation of accepting a job wears off and you’re successfully on-boarded to your new company, you learn you have 100 days to develop a plan.  This plan that will begin a journey of procurement transformation that surpasses the expectations you shared during the new hire process.  The opportunity is ‘greenfield’: building out a procurement function where one didn’t previously exist or where the function never took hold for one reason or another.

You’ve been appointed CPO. You have 100 days to develop a plan.  What’s first? 

There are various approaches to transformation and the key is to find the right one for your project.  The approach I will share is based on my personal experiences building out the procurement function (source-to-settle) at a Fortune 50 company, at a hyper-growth entrepreneurial company, and (most recently) at an established, well-diversified healthcare company.

First course of business – assess the current state if you didn’t do so during the interview process.  Have a conversation with anyone willing to engage starting with your new team, executive leadership, and cross-functional stakeholders.  You need to understand your inherited brand firsthand – including the perspectives and opinions of your inherited procurement function.  These discussions are important on several fronts because they:

  • Baseline the present-day function and capture a snapshot of where you started your journey. This will be key as you look in the rearview mirror to see how far you’ve come;
  • Identify strengths, weaknesses, opportunities and threats across the categories of people, process, and technology;
  • Provide key insights on brand perceptions and the history behind them;
  • Help identify advocates, influencers, and distractors; and
  • Finally, provide insights to what ‘should’ be next and offer a semblance of preferred timing

I recommend partnering with a change management guru and a project manager to articulate the business requirements that will form your vision, set a definition of success, and develop a communication strategy and cadence.  Do not underestimate impact of change and the new behaviors that are required to effect better business outcomes.

At my current company, we took a slightly different approach to transformation based on our unique combination of vision, culture, and employee demographics.  Early on we reached out to Marketing to create a ‘drip campaign’ comprised of video vignettes, campus signage, and direct outreach. The whole effort centered on our mascot – Moolah, a big fury, purple creature that was accompanied by a tag line – ‘Spend It Like It’s Yours’ (loosely based on the acronym ‘SILIY’ – pronounced silly).

The objective was to have fun with the initiative, which is one of our values.  The result was celebrity status for Moolah and greater acceptance of the initiative.  Frankly, it was fun to see employees taking selfies of Moolah at all-hands-on-deck meetings.

Included below is a checklist based on my experiences to help develop your plan.  Again, model or pivot based on what you observe in front of you and the expectations of procurement.  There is no absolutely right answer.

Discovery

    1. The Initiative
      1. ‘Why’ is the initiative being undertaken and why now
      2. ‘Who’ – who is the advocate and what role to they play and their plans to stay active
      3. ‘What’ is the motivation, business reasons for the initiative
      4. ‘When’ – expected timing – launch for the initiative and drivers
      5. ‘Where’ what is the geographical, business reach for the initiative, i.e., domestic only, certain BUs only, etc.
      6. ‘WIFT/M’ – beneficiaries?
    2. Your company
      1. Culture
      2. Vision, Mission and Values
      3. Story – market, penetration, success, competitors, …
    3. Existing function and talent
      1. Who plays the role today within the business
      2. Partner with HR to run a title & role search across the company
      3. Ask the pre-existing talent to provide their CVs and interview them
    4. Needs of the organization from the perspective of the business
      1. Functions value
      2. Brand (good, indifferent and what needs to change)
      3. Successes and failures
    5. Identify partners and executive support to advocate for the initiative
    6. Subset – players
      1. Active vocal participants (supporters)
      2. Points of dissension (naysayers)
      3. Bandwagoneers – those on the sidelines waiting for results and uncommitted in the interim

Baseline

  1. Performance to date
  2. People
    1. Skills and gaps
    2. Investments to date
    3. HIPOs (High Potential Employees)
    4. Investments and jettisons
  3.  Process/Policy
    1. Does one exist?
    2. Are there accountabilities?
    3. Spend authority
    4. Document signing authority
  4.  Technology
    1. What do you have?
    2. To what extent is it implemented?
      1. Vanilla
      2. Customizations
      3. Partials
    3. What is next and why?
  5. Quantify behaviors
    1. Buying behaviors of customer
    2. Willingness for change
      1. BUs
      2. Function
      3. Other Shared Services Centers
      4. Legal
      5. Execs

Initiative governance structure

  1. Agree roles/oversight for initiative, for example:
    1. Steering Committee
    2. Advocates within the business
  2. Other key constituents
    1. HR
    2. Legal
    3. Information Security
    4. Finance
  3. Develop RACI

Change Management strategy, approach, methodology

  1. Campaign
    1. Partner with Marketing on drip campaign (pre-planned, gradually released communications)
      1. Tagline
      2. Mascot
      3. Video vignette
  2. Change management leader
    1. Messaging
    2. Signage
    3. Cadence
  3.  Access
    1. Execs
    2. BUs
    3. Leadership
    4. Management
    5. IC’s

Business case to effectuate a different outcome

  1. Executive summary – overview of the initiative
  2. Detailed description of the initiative
  3. Why – what is it in for them/me – market analysis
  4. Organizational design
  5. Funding requirements
  6. ROI/IRR
  7. Anticipated outcomes
  8. Necessary executive support
  • Gain support for initiative
  • Execute
  • Reflect
  • Celebrate your successes

Appreciate that procurement transformation is a journey with a starting point that is unlikely to ever end.  You iterate, detour, and adapt to meet the needs of the organization.  Investment is required in the three buckets of people, process, and technology – and most importantly, the leadership team – to stay relevant.

You will encounter setbacks, and your ability to recover will test the team.  How they (and you) respond will determine the overall success of the initiative.  Most importantly – have fun if you are fortunate enough to have that as a key value at your company.

Greg Tennyson is the CPO at VSP Global.  This article was originally published on The Art of Procurement. 

Take the Disney Approach to Procurement

Take some advice from Disney – storytelling lies at the heart of every successful change programme.

disney approach procurement

Here’s a little-known fact – I used to work for the Walt Disney Company. Over twenty-five years ago I was a Marketing Co-ordinator in Disney’s International TV Department based in Soho Square, London.

The rest of the team (not me, unfortunately) used to travel to Cannes for the TV Festival each year to support our roll-out of Disney Clubs. It was all very glamorous (for some) and very educational for me.

In one way (at least), I was a perfect fit for a job with Disney. If you’ve ever caught one of my podcasts here on Procurious or elsewhere, you may have heard my voice.

Let’s just say it’s “unfortunate” – quite high in pitch, scratchy…not pleasant! Some of my friends at the time claimed that my role with Disney was actually as the voice-over for Minnie Mouse. Cruel, but understandable!

I learned so much during my time there, but today I want to focus on what I picked up by experiencing the Disney marketing machine first-hand. I am sure many of you have heard about “the Disney formula”, which involves a core asset (the story) being rolled out and leveraged in its many formats.

My short-hand way of summarising this phenomenally successful technique is to categorise the formula into “the book, the movie, the merchandise, the ride – and the tweet”.

Drive Procurement Change Programmes like a Disney Executive

CPOs today are paid to drive global change – but are the programmes we put in place really that effective? Deft change management is what separates the good from the great.

I want to encourage you all to take a very professional, systematic approach to driving change with this Disney-inspired formula.

The Book

At the heart of every Disney project lies the book, or the original script. For CPOs, our “book” is the business case for the change program. This proposal, or argument for action, is the foundation of your change programme that must win the endorsement of your senior leadership team. Without the business case, your campaign has no foundation and will always be on shaky ground.

My advice is to treat your “book” the same way that the world’s best authors approach their craft – write, re-write, and re-write again until you’re 100 per cent confident that you’ve created a rock-solid, engaging business case that meets your organisation’s requirements.

The Movie

Think about some of the lengthy classics that Disney has converted into film. Whether it’s The Jungle Book, The Hunchback of Notre-Dame or Treasure Island, the editors have managed to bring the story down to an average of 1.5 hours. Your “movie” is the public, dramatic expression of your story.

Not everyone will have the time, nor the interest, to read the business case for your change programme, so it’s important to condense it into a version that’s palatable for all. In the corporate world, this is often referred to as “the deck” – or even just a snappy executive summary. 

The Merchandise

Disney has always done an amazing job of licensing their characters to consumer goods companies. Procurement, on the other hand, is notoriously poor at marketing themselves internally.

I’m not suggesting that you order in a range of paperweights or mousepads to promote your change management programme, but it’s worth considering an effective logo or even a slogan that will encapsulate and amplify your message.

Why not reach out to your colleagues in marketing for their creative input? 

The Ride

When I worked at Disney all those years ago, the most profitable part of the business was their theme parks. As part of their marketing formula, amusement rides were based on Disney’s most popular movies and TV shows. But how can this be applied to your change management programme? 

Well, I once heard that if you want to get a message across to employees, you need to communicate it eleven times before it’s absorbed. Why eleven, I have no idea! This is where the ride comes in.

Once you’ve converted your “book” into a “movie”, hop on “the ride” which will repeat the same message over and over again until your program has been accepted.

It doesn’t necessarily need to follow the same track – best-practice communication involves delivering your message via multiple platforms (newsletters, emails, the company intranet, posters and social media) to keep the message fresh and engaging.

A Modern-Day Addition: The Tweet

When I was at Walt Disney, there was no social media. I’ve just checked the #Disney hashtag on Twitter and it’s incredible to see how many accounts they’re running concurrently: @Disney, @DisneyPixar, @WaltDisneyWorld, @Disney Channel, @DisneyMusic. This doesn’t even cover the individual hashtags dedicated to each new movie, along with a legion of unofficial, fan-based accounts.

Disney understands that social media is essential for getting their message to where their audience spends its time. CPOs need to take the same approach. Social media, used intelligently, is an irreplaceable tool in their global change management kit.

Yammer, Procurious and LinkedIn are just some of the many platforms that can be used to engage and influence your team to help them understand the why – and the how – of your change program.

I’ve looked to Disney for my inspiration due to having first-hand experience with their marketing techniques all those years ago in Soho. However, they certainly aren’t the only organisation with a magic formula.

If you’re considering a change management programme, save yourself some time and energy by finding your own inspirational company who demonstrate best-practice, steal their formula, and get to work!

ProcureCon Europe, now in its 17th year, is Europe’s most strategic procurement conference for CPOs and senior procurement executives. See the full range of topic and speakers at the event here.

2016 – The Year of Procurement Transformation

Transformation – the word on procurement’s lips. But when will real strategic change be realised for the profession?

transformation

If you were to pick one word to describe 2016, you could probably settle on volatile. There has been major change afoot in global markets and politics, which has lead to unprecedented volatility and upheaval.

In the past few weeks, we have been talking to some of our Procurement partners about the topic of change and transformation within their organisations, and more broadly in the market for our ‘Autumn Market Insights‘.

It prompted us to think about what has actually changed? Clearly the spectrum of change is quite varied. However, a common theme coming out of these discussions was ultimately that Procurement was, is, and always will be, about getting cost out of the bottom line of the business.

Transformation on the Procurement Agenda

How aggressively this is approached will obviously vary from business to business depending on its agenda. But surely this is why Procurement is critical to any business?

What this has allowed over time is for Procurement to have a seat at the “top table”, rather than being part of a broader function that reports into Finance.

Increasingly we are seeing businesses turning to a more category aligned approach to Procurement, bringing in experts in their field to drive category strategies forward and having the gravitas to collaborate with stakeholder groups.

However, as of one of the CPO’s we spoke to pointed out there can be risks to this approach. There can be a risk that a Procurement team member becomes so immersed within their stakeholder group that they “go native”, and move away from the Procurement agenda.

And the Buzz Word Is…?

If the buzz word for Procurement in 2015 was “strategic”, we would say 2016 is all about Procurement transformation. We are working with four large and well respected organisations at the moment in the South, supporting their transformations.

But what does Transformation truly mean? Does this simply mean a change in process or ways of working or is it something much larger? We have to consider transformation as fundamental change across the business – the processes behind procurement, the remit it covers, and the tools used. This is true transformation.

Clearly 2016 is very much about driving this Procurement transformation agenda. These are exciting times for the profession. And, as we approach the end of 2016, it can only add to Procurement being at the forefront of an organisation’s DNA.

Procurement Heads is all about getting to know great Procurement people and recruiting Senior Procurement professionals.

Procurement Heads understands the value of working in partnership, both in helping people develop their careers and in supporting organisations to build world-class teams.

Using Community Collaboration to Create a Change Narrative

Finding a way to create a narrative for change can be the difference between an organisation being able to successfully adapt, or not.

Wheeler Centre - Change

One speaker at the 9th Asia-Pacific CPO Forum opened the collective eyes of the audience to the possibility of change, and what that might look like.

Michael Williams, CEO of The Wheeler Centre, a public institution devoted to engaging conversation and Melbourne’s literary advocates, supporting the nation’s literacy activity.

Sharing Ideas and Conversations

Founded, and funded by a State Government injection, in 2009, it supports the health and vitality of the writing and ideas ecosystem. The centre also contributes to a deeper thinking society, and enables the storytelling and story-making that builds communities around the sharing of ideas and conversations.

“I’m very concerned that words used by companies in Australia today are losing their meaning. We seem to be forgetting how we use them, and how they can help customers and run businesses,” the head of the new cultural institution says.

Words such as agility, innovation and disruption, for example, he told the audience.

“We say these words as a sort of shorthand. I’d suggest that we need to stop and think about the words we say, and how we refer to them to do business. We say these words and repeat them to each other, and they’ve ended up being very much like those messages they play about piracy at the start of a DVD. They just almost cease to exist.”

Williams says he hopes that the Wheeler Centre gets to the bottom of some of these words, unravel what they actually mean, and change the conversations and business practices.

Challenging Perceptions

More than 200 events held across Melbourne each year challenge these perceptions, and work to extend the literary culture in the southern city. Speakers discuss everything and anything including pop culture, politics, history, literature, art and ethics. These discussions happen in Melbourne three times per week, and an average of 180 attend to the three weekly events.

Business custodians need to understand that people used to identify themselves as being readers of one of the local newspapers, but as the media landscape shifts, that’s no longer the case.

“We don’t identify ourselves as being a reader of The Age, or Herald Sun anymore. The internet is the biggest disrupter we’ve ever seen. It’s a challenge that we all need to get our heads around.”

Businesses need to understand that instead, consumers are looking to identify with authentic stories from brands.

Williams finished by pressing on the audience of procurement professionals in the room to consider that inviting people to be part of your own conversations, can be a hugely powerful way to engender broader engagement.

“True conversation starts with a question, so you need to consider how that might play out in your organisation, and find a way to make it authentic, rather than just hollow words.”

Samurai & Cowboys – Cultural Perspective on Management Styles

Whether you support or detest change, it is happening. But how much impact do management styles in different cultures have on change?

East vs. West Management Styles

Do you have a Smartphone? Do you use Google? Do you use global internet sites to get information on clothes, food, travel, music, research, work opportunities? These sites influence people and bring countries closer together, especially countries that share a lot of trade and commercial contact.

These factors influence what you and your colleagues may see as the norm. You are open to influence whether you know it or not, to leading thoughts, persuasions, technologies, arguments, speeches, TV adverts, products. Nothing stands still.

Management Styles – East and West

Could all of this affect management styles? If you compare Japan and the USA there are, of course, differences. However, countries will find it difficult to maintain existing management cultures in the face of fast-paced change, and as technology makes the world smaller.

There is a belief that you can group countries with similar management styles – the USA, UK and Australasia in one group, and Japan and other East-Asian countries in another. Traditions, national roots and leadership are different, and this difference should be cherished. But could this have a negative effect on business?

When a multi-national company starts operating in Japan, Directors “back home” will see differences in culture. A Japanese firm, starting operations in the USA, is going to experience a culture shock when they hire local staff. Because of this, management styles cannot stay the same.

So which culture is better and will things change?

Values, Norms and Variances

There is a widely held belief that traditions and leadership styles in each country lead to the development of styles. National values, norms and education are instilled from an early age. These can lead to national variances such as:

  • Power of leaders to influence citizens
  • Pressure on a corporate employee if an error is made, and the outcome
  • Time scale to make decisions in a company, and by whom, a person or a group

Most will agree that management styles in some counties have changed over the years. People believe if you treat your staff well, they will perform better and go the extra mile. This is seen by customers, who tell others, and the company prospers. The ability to complete work to ‘best endeavours’ is initiated or halted by management – despite their wish to ensure good company performance.

But what or who influences the Directors and the Managers?

In a ‘Top Down’ style, the manner of the CEO is reflected across the organisation. But the leadership of a country can be influential too. Comparing Japan and the USA again, both have similar approaches and beliefs when it comes to market share, commerce and winning business. But there are variances that have evolved, which are more effective in their own regions.

Japan and the USA have traditionally strong trading links. Is there an argument for finding a cultural ‘middle ground’, where the best of both cultures are adopted by both parties in order to prosper? Is it a case of change and adapt, or fail commercially?

Power Distance

Current legal systems and education in each country lead to different responses by managers. Let’s take the concept of leadership and ‘power distance’ – the level of acceptance by society to the distribution of power. In some countries, an order might be met with “You must be joking!”, whereas in others the response will be “Yes, sir”.

It is said that ‘power distance’ and the process of decision making are inversely proportional. So, the more a person is deferential, the more that person looks for consensus before any decision is made.

If the citizen feels less influenced by their country or company leader, or traditions, they can make decisions faster, are able and prepared to take risk, and feel empowered to innovate and adapt rapidly to market forces.

In these countries when the economy thrives, the countries’ leaders tend to take the credit themselves, while, where there is a consensus or group response, leaders congratulate the group and see this as a mutual success.

Risk Avoidance

There are further differences when looking at risk taking or uncertainty avoidance in the USA and Japan. In Japan, the concept of a ‘job for life’ means there is traditionally high uncertainty avoidance.

In the USA, people will generally take these decisions, so when the company thrives, the employee receives the praise. Even if it turns out to be a bad decision, and the employee loses their job, a new employer may look favourably on the courage and innovation in the decision.

People don’t get it right every time – Thomas Watson, former Head of IBM, said in 1943 that there was a “world market for maybe five computers”. But if we don’t try, we will never succeed. The key is balancing the risk.

Long-term vs. Short-term

Gadget makers take ideas and concepts from multiple sources in order to make a better product, so too can management style benefit from taking the best from other models.

In any industry, there are people who are in for the long-term, and others who are in only for the short-term. In Japan, companies look at the long-term picture, and employees at the long-term ‘loyalty’ to a company, while in the USA, there is more focus on the short-term and individual careers.

However, this is changing in Japan, with candidates publishing Portfolio Career CVs showing skill sets, and not necessarily their list of corporate positions.

To take a simplistic view, we have one culture where short-term planning, individual confidence and easier movement between jobs, while the other focuses on long-term planning and thinking, collective confidence and the job for life.

But in 2016, the tide is changing, and a global perspective is required. Where the prevailing culture will end up is open to discussion but change is constant and more important, the pace of change is exponential – the rate of change is getting faster.