Shownotes
In this episode of the ProcureTech Podcast, host James Meads is joined by Joël Collin-Demers, Principal Consultant at Pure Procurement. The two discuss readiness for digital change in procurement versus the capacity for change.
Joel explains that he works with various customers on their digital initiatives and helps them optimise their processes and applications. He notes that while many companies are ready to make the jump to digital procurement, they often lack the capacity and resources to do so.
Importance of change management in digital transformation
We discuss how companies should first assess their current system and make sure they have the necessary resources to make the switch. He also emphasises the importance of training and up-skilling the existing workforce so they can become more proficient in digital procurement.
Finally, he emphasises the importance of taking a holistic approach to digital transformation and ensuring that all departments are on the same page. Joël has been working in procurement and sourcing for over a decade and now runs his own business. He is passionate about finding the best combination of solutions for clients to help them reach their desired business outcomes. Each organisation has different needs based on their industry, budget, and constraints, so there is no one-size-fits-all solution.
James adds that when a CPO of a well-known company talks about a certain solution, it may be great for their organisation, but not necessarily for yours, so you need to consider the maturity, size, country, and degree of centralisation and maturity of your own organisation when making these type of decisions.
Readiness for change
This conversation focused on readiness for digital change.
There are five suggested components to consider:
- Overall software budget
- Your company culture
- Available talent (or do you need to hire?)
- Mindset of your team and stakeholders
- Having a C-level sponsor.
We then look at a framework for understanding readiness for digital change. This framework is composed of Awareness, Desire, Knowledge, Ability and Reinforcement.
Readiness for change means having an organisational attitude that is favourable to change and having an executive level sponsorship, mission vision, and a roadmap to follow.
Capacity to change
Capacity to change is an intangible element that includes knowledge and ability needed to successfully change.
The conversation discusses how organisations need to consider both attitude and capability when looking to make changes. This includes having a change management team, an understanding of the skills and knowledge needed, a conducive company culture, a sponsor and budget, a governance structure, and the ability to measure workload and improvement initiatives.
Additionally, the advantages of consulting backgrounds are discussed, as those who come from these backgrounds have seen many more businesses and have greater exposure to what "good" looks like.
Finally, the conversation touches on agility and how information flow and governance structures play a role in implementing changes.
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