It's usually said that no serious success comes from remaining in the same place. 

Especially for businesses 

However, it's part of human nature to feel a bit wary of trying something new and when that something means changing long-established processes, well…things can get confusing.

That's why we need to discuss what change management means and how it can benefit your company when you need to make a big transition.

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Define change management 

Yes, it involves changing.

But it's not only that 

In procurement, things can take an unexpected turn at any point. 

Think about it, you have processes, markets, customers, technologies and even regulations evolving. 

Change management is nothing but the approach you follow to move people and processes from a current state to a desired point.

Done right, it provides you with a structure so changes are implemented with minimal disruptions and following a really beneficial method. 

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The Golden Triangle Framework

You probably know this already 

Procurement works with multiple factors, but if we were to select the main ones, then we would need to focus on only three: People, processes and technology.

People

Yes, automation is great and everywhere these days, but that doesn't mean you can develop a procurement strategy without people.

Without people, there's no chance of having any sort of procurement activity.

Employees, suppliers and all your stakeholders need to be engaged throughout the complete change process. 

Remember that resistance to change is a common trait in our society, so clear communication, training and ongoing support are fundamental to making things work. 

Processes 

People are necessary, yes, but so it's having a set of processes. 

Processes define how procurement functions, from sourcing supplies to managing contracts and even keeping everything in check with regulations. 

When it comes to changing processes, there are some common goals:

• Streamline workflows.
• Reduce inefficiencies.
• Improve transparency 

Technology 

Technology allows people to work smarter, and for procurement, this is gold, as it means spending less resources and gaining more time to work on what keeps your company running.

Digital procurement tools, automation, artificial intelligence and data analytics can absolutely improve the way you make decisions.

If you are planning to implement a new digital platform in your procurement department, then bear in mind the necessity of offering training and answering potential doubts clearly.

Why Change Management Matters in Procurement?

Change might be a difficult situation in some cases, and without a structured approach, procurement changes can lead to confusion, resistance and perhaps operational disruptions as well. 

That's what makes change management so necessary for procurement.

‍

The Golden Triangle Framework

You probably know this already 

Procurement works with multiple factors, but if we were to select the main ones, then we would need to focus on only three: People, processes and technology.

‍

People

Yes, automation is great and everywhere these days, but that doesn't mean you can develop a procurement strategy without people.

Without people, there's no chance of having any sort of procurement activity.

Employees, suppliers and all your stakeholders need to be engaged throughout the complete change process. 

Remember that resistance to change is a common trait in our society, so clear communication, training and ongoing support are fundamental to making things work. 

‍

Processes 

People are necessary, yes, but so it's having a set of processes. 

Processes define how procurement functions, from sourcing supplies to managing contracts and even keeping everything in check with regulations. 

When it comes to changing processes, there are some common goals:

• Streamline workflows.
• Reduce inefficiencies.
• Improve transparency 

‍

Technology 

Technology allows people to work smarter, and for procurement, this is gold, as it means spending less resources and gaining more time to work on what keeps your company running.

Digital procurement tools, automation, artificial intelligence and data analytics can absolutely improve the way you make decisions.

If you are planning to implement a new digital platform in your procurement department, then bear in mind the necessity of offering training and answering potential doubts clearly.

Why Change Management Matters in Procurement?

Change might be a difficult situation in some cases, and without a structured approach, procurement changes can lead to confusion, resistance and perhaps operational disruptions as well. 

That's what makes change management so necessary for procurement.

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Main Principles of Change Management

Okay but how can you make change management work?

Following some basic principles of course.

• Clear vision: From the very beginning, you need to define the purpose and goals of the desired changes. 
• Be honest: Look at your company and processes. So far, how have they reacted to something new? 
• Set small milestones: Develop a roadmap where you can set a sequence of things you want to achieve with this change.
• Connect with your people: The best way to show people that change is a good thing? Engage them in the process from start to finish.
• Communicate: Keep everyone informed at every point of the transition.
• Leadership: Strong leadership is crucial in driving change. Leaders set the tone by demonstrating commitment and responsibility. 
• Flexibility: No change initiative goes exactly as planned. Procurement teams need to be flexible and willing to adapt as new challenges arise.

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Common challenges in change management

Communication issues

This is a common problem, if you are trying to implement change in any process, you need to establish a clear communication plan. 

Who must be prioritised? Who must be constantly notified? 

What possible misunderstandings could arise?

If you don't have these basic questions solved, then there's a high chance that you're going to run into delays and mistakes.

No supplier engagement 

Before implementing a change in your procurement or supply chain operations, there's an incredibly important factor you need to bear in mind: How are your suppliers going to react?

Are they well-informed about the new processes?

Are they equipped to handle it?

Doing this sort of assessment is fundamental to prevent a strain on your supplier's relationships. 

Resistance to change 

Because yes, that's a feature in some of us. In the beginning, you might find that your procurement team is hesitant to change their traditional ways. Educate your staff properly so they're fully aware of how much benefits the transition can mean for the whole company.

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Change Management Methodologies

Kotter's 8-step process

Don't things become easier when there's an instruction set to follow? 

This approach is all about that. 

There are eight sequential steps that you need to follow to make the change process even more effective. 

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 1. Establish a sense of urgency.

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2. Build a guiding coalition.

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3. Develop a vision and strategy.

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4. Communicate the change vision.

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5. Remove obstacles and empower action.

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6. Generate short-term wins.

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7. Sustain acceleration.

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8. Anchor changes in the culture.

Prosci’s change management process

• Prepare for Change: Define success, assess readiness, and develop a strategy.
• Manage Change: Engage stakeholders, implement training, and support adoption.
• Reinforce Change : Measure effectiveness and make necessary adjustments.

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How to Choose the Right Methodology?

Consider your procurement team's size, the complexity of the change, and the level of stakeholder engagement required. Kotter’s method works well for cultural shifts and leadership-driven changes, while Prosci’s approach is more structured for process and technology adoption.

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Best Practices for Procurement Change Management

• Get Leadership Buy-In: Support from decision-makers increases credibility and smooths implementation.
• Engage Stakeholders Early: Include end-users and procurement staff in planning to reduce resistance.
• Communicate Clearly and Frequently:Regular updates help manage expectations.
• Invest in Training and Support:Provide hands-on training and a support system.
• Monitor Progress and Adjust: Track adoption rates and address roadblocks proactively.

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Procurement change management is essential for adapting to new challenges and staying competitive in a market that's full of unexpected things. 

Using the right frameworks and methodologies is a smart way to guarantee a smooth transition and maximize the benefits of your procurement improvements. 

Change may be inevitable, but with the right approach, you can turn it into an opportunity for growth and efficiency.

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