With digital transformation becoming the buzzword of sorts in procurement alleys, it’s important for CPOs to realize that driving this agenda would require a combination of elements. Their plans of transforming the procurement function can come unstuck if they commit the cardinal sin of overly focusing on one element at the cost of the other. While technology and process would be central to the digital procurement transformation narrative, the human element is just as critical. After all, organizational and cultural change would to a considerable extent determine the success of the transformation program.
Traditionally, the procurement function hasn’t been judged on how it “deals” with people. While that is understandable, it has also meant that old misconceptions such as “procurement being just another cost center" persist. For digital transformation to be a success, procurement needs to truly get out of if its comfort zone and communicate across the business and beyond.
The human factor just doesn’t end with procurement establishing and managing internal and external relationships. So, what are the other core people measures that organizations will have to undertake to ensure the success of its digital procurement transformation?
Part 1: People – The Human Factor in the Momentum for Change is the first of a three-part series that focuses on the human element of digital procurement transformation. The series, which is the outcome of an organized exploration jointly undertaken by GEP and Supply Management Insider, also features Part 2: Process – The Path Toward a New Procurement Function, and Part 3: Technology – Embracing Innovation and Disruption to Achieve Step Change.