Procurement transformation is a coordinated change to procurement’s operating model, processes, technology, data or capabilities intended to improve business outcomes. A transformation has a baseline, target state and implementation sequence. Installing software without changing ownership or behavior is only a technology project.
How is Procurement Transformation structured?
Transformation begins with a baseline of spend, processes, systems, organization and supplier performance. The business then redesigns decision rights, workflows, category practices, data and technology around a target operating model. Implementation is sequenced through manageable releases with adoption and control checks. New software alone is not transformation if the underlying process and accountability remain unchanged.
What should the Procurement Transformation operating record contain?
Keep the baseline, business case, target processes, role changes, data plan, implementation milestones, adoption measures, costs and realized benefits.
What does Procurement Transformation not establish?
Large programs fail when promised savings fund the project before suppliers, demand and contracts have actually changed.
