SIG University Certified Sourcing Professional (CSP) program graduate Andrew Beck shares the difficulties associated with change management in sourcing and how it can help improve inefficiencies.
We have all experienced change in our careers or personal life, which is why change management is one of the most critical skills a person can learn. Throughout anyone's career, they will experience change, whether it be developmental, transitional, or transformational. Change is inevitable and part of everyone one's career; the key is how we manage that change.
My current organization is currently in year two of a significant transformational change. The company's prior organizational structure was that each facility was its entity with its procurement, human resources, quality, and manufacturing departments excreta. This approach was very siloed, with many inefficiencies. To gain efficiencies, reduce costs and ensure long-term viability, the company executives wanted to consolidate the company as one. Through this change, I've had the opportunity to witness many successes and many opportunities for improvement.
The procurement group transformation was one of the first groups to change and to do so successfully. In reflecting on why and how this was successful, there is evidence that the Procurement leadership followed John Kotter's eight-step change model. They brought forward information about the need for the change to ensure long-term viability for the company. They then created a cross-functional transition team to lead the change and benchmark other companies. They followed by creating a new charter for the procurement division sharing the executive's vision for the group.
The procurement leadership empowered the transition team to change ERP systems and put all of the procurement on the same system. In this process, they transitioned small groups at a time into the only procurement organization allowing for small wins for the team to see the successes. With the slow, methodical consolidation, the transition team could showcase sure wins and use them to support the change efforts. Once the procurement transformation was complete, they could show the transition's value and how new standard processes and procedures have helped improve the procurement division. They do this with quarterly meetings with the procurement division.
In furthering my belief that change management is an essential skill for the procurement professional, we can look at the successes and failures of changing a service provider. My organization recently has made many changes to the manufacturing plants' service providers, such as food and security services, as part of a sourcing initiative to communize service providers across the company. The sourcing lead ensured buy-in from the plant's critical stakeholders for the food service change by clearly communicating the industry. The sourcing lead also informed the associates at the plant through a series of communications through the plant communications team.
This made everyone aware that the change was coming and allowed time for any concerns to be addressed, ensuring complete buy-in. This was an example of sourcing change management that I've observed within the organization. Furthermore, when security services were changed, it was not as successful. Lack of communication with the stakeholders and a poor transition plan led to many struggles. The lack of sourcing change management caused several cost overruns and missed vital performance indicators.
In summary, change management and sourcing change management will be tools that I will continue to develop. As sourcing professionals, we are often tasked with driving change throughout our organizations to provide the best value to the company. The course taught me some techniques for managing change and resistance through planning, instilling belief, motivation, repetition, and honesty. These are all things I've experienced from change agents within my organization. It is this understanding, along with a new version of the ADKAR model, Kurt Lewin's 3 stage model, and John Kotter's eight-step model of change are tools that I hope to use throughout my career. To me, with ever-evolving businesses, change management is critical to learn and use as we move forward.
The Certified Sourcing Professional (CSP) Program is a 10-week course that focuses on the hard and soft skills of sourcing, including strategic sourcing and outsourcing methodologies, as well as best practices in negotiations.
Andrew Beck, Capital Equipment & Construction Buyer, American Honda Motor Co., Inc
Andrew Beck is a capital equipment procurement professional who has spent the last fifteen years within the Honda family. He started his professional career in 2001 with Keystone Automotive Distributing as a Senior Sales Associate selling automotive components to retail outlets while pursuing his degree at Bowling Green State University. In 2007 he was a co-op with the Honda East Liberty facility in the indirect procurement department.
In 2008 he hired on with Honda Manufacturing of Indiana in the MRO indirect procurement department as an electrical commodity buyer. Shortly into his career with Honda he was asked to move to the capital equipment and construction team to help complete the new five hundred million dollar manufacturing facility. In 2021 under a company consolidation re-organization Andrew was put in the American Honda Motor Co. North American capital equipment group to handle equipment purchases across North America.
SIG University Certified Sourcing Professional (CSP) program graduate Andrew Beck shares the difficulties associated with change management in sourcing and how it can help improve inefficiencies.
The Certified Sourcing Professional (CSP) Program is a 10-week course that focuses on the hard and soft skills of sourcing, including strategic sourcing and outsourcing methodologies, as well as best practices in negotiations.
Andrew Beck is a capital equipment procurement professional who has spent the last fifteen years within the Honda family. He started his professional career in 2001 with Keystone Automotive Distributing as a Senior Sales Associate selling automotive components to retail outlets while pursuing his degree at Bowling Green State University. In 2007 he was a co-op with the Honda East Liberty facility in the indirect procurement department.
In 2008 he hired on with Honda Manufacturing of Indiana in the MRO indirect procurement department as an electrical commodity buyer. Shortly into his career with Honda he was asked to move to the capital equipment and construction team to help complete the new five hundred million dollar manufacturing facility. In 2021 under a company consolidation re-organization Andrew was put in the American Honda Motor Co. North American capital equipment group to handle equipment purchases across North America.