Procurement Transformation
Description of Project
Chaucer Consulting provided project management, change management, business analysis, and human resources expertise for a client’s procurement transformation program.
The client had undertaken a global productivity transformation initiative, of which procurement transformation had been designated as a key to accelerating the client towards best-in-class performance. A particularly important area was the downstream procurement function, which internal audits and benchmarking had indicated as being significantly behind other areas of third-party spend.
The procurement transformation program was expected to deliver leading edge year-on-year savings to the client by:
- Developing and implementing an integrated procurement organizational structure
- Implementing appropriate performance management standards
- Implementing common tools and processes to deliver added value
Chaucer’s Scope
Chaucer Consulting was engaged by the client to develop a work breakdown structure and bespoke reporting tools that allowed for greater visibility of program progress, and more effective accountability. The Chaucer team focused on the following three workstreams:
- Organization and People:
- The transition of roles, teams and work-scopes had resulted in a degree of unease among the global procurement workforce. The client leveraged Chaucer’s change management expertise to reduce the likelihood of personal anxiety among its employees, or disruption to its operations
- Performance Management:
- Chaucer focused on developing internal incentives (performance targets were established for all job-descriptions under the new organizational structure), and improving visibility into the progress of procurement projects (a reporting pipeline was created to manage financial information, project progress, and other key project data). The Chaucer team also implemented a robust reporting methodology that was consistent across the entire organization and aligned with established principles and best-practices of program management
- Common Tools & Processes:
- The Chaucer team reviewed existing procurement tools and processes from a project management perspective. They developed a taxonomy system for segmenting over 1,200 discrete procurement projects to determine the appropriate degree of project management rigor for each project. In addition, a bespoke project management toolkit was developed, which brought together the best aspects of the existing tools, and best-in-class principles and techniques based on Chaucer’s experience. The toolkit was developed to be adaptable, and could be tailored to fit the specific needs of each project
Benefits
The Chaucer team supported the client with their project management, change management, business analysis, and human resources expertise. They worked with the client to ensure that key areas of their procurement transformation program (organizational restructuring, performance management, and common tools and processes) were addressed in a professional, organized and disciplined manner; and backed by the necessary subject matter expertise.
Partnering with Chaucer Consulting allowed the client to successfully transform its procurement function across the globe; which resulted in best-in-class performance and cost savings of over $200m.
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- Accreditations/Partners
