An interview with Andrea Sala, Procurement Project Manager at the Franke Group
Founded in 1911, Franke is a privately owned company within the Artemis Group and a leading global manufacturer and provider of solutions and equipment for domestic kitchens as well as for the professional foodservice sector and coffee making. The company is present worldwide and employs nearly 8,000 people in 35 countries, with 23 production sites. Net sales amount to approximately 2.42 billion Swiss franc.
Andrea Sala is Procurement Project Manager at the Franke Group and has been working in procurement transformation for various big-name companies since 2005, both internally and as an external consultant. “I see my role as supporting people and companies during transformations,” she says. She underlines that procurement technology implementation can be a daunting challenge for many organizations. “Any major technology implementation is a tough sell internally. First, you have to build a credible business case and constantly refer back to it: if you deviate from the plan – which is almost inevitable – you need to be able to explain why.”
The business case should be fully costed, and Andrea believes it is best to offer a spectrum of expected benefits from ‘conservative’ to ‘optimistic’. “Think about the direct savings and efficiencies but also the wider benefits such as redeployment of headcount,” she advises. It’s also important to consider company culture when calculating timelines for a return on investment. “Some companies are very top-down when it comes to adoption, making it mandatory. Others take a softer approach, which might mean longer time-to-value but the benefits in the long run may turn out to be greater,” Andrea says.
You need to secure adequate budget, bearing in mind that you will also need to cover changes post-implementation. There is often a temptation to underestimate the budget in order to get it approved, which may lead to problems later. Remember that you need to retain confidence and buy-in beyond the initial signoff. At some point you will need to contact stakeholders and ask them to provide the resources you need to move things forward.
Finally, in this initial planning process you need to put together a solid Project Charter with KPIs, map your stakeholders to them and think through change management beyond training and communication.
“Essentially, you must always be thinking about people and how this implementation is going to impact them,” Andrea says, emphasizing that time spent up-front will pay dividends later. “Requirements gathering is all-important. Speak to all stakeholders to discover and understand their needs. Don’t be shy! Speak to people at various stages and you will get good inputs on topics you would otherwise overlook.”
Every company is different – but they also have a lot in common, especially in procurement. “We all buy stationery in basically the same way. So there is no need to reinvent the wheel,” Andrea advises. In most cases, you can use standard software and customize it to a lesser or greater degree. Where you are likely to differ is in your integration requirements, so these should be thoroughly investigated, otherwise you might be in for some nasty surprises.
Once the requirements are fully understood, you can start writing the RFQ. “Make the RFQ about the technology but also the implementation partner. The partnership must work as a triangular relationship of three compatible partners, where everyone knows their responsibilities,” Andrea advises. Ideally, the technology partner and the implementation partner should have worked together before and know each other. If they are new to you, get reliable and independent references. “Nobody wants to change their technology platform after two or three years so bear in mind this is a long-term collaboration,” Andrea adds.
Andrea has worked on projects with and without an implementation partner. “The difference is as clear as night and day!” she says. Apart from the expertise that they bring, implementation partners can make a big impact on project success because senior management listen to them more readily than they listen to internal staff.
The implementation
When it comes to the implementation itself, Andrea advises having a detailed project plan that can be tracked easily and is approved at all levels. “On the other hand, it pays to be flexible. You need a plan, but you also must accept that sometimes you will need to diverge from what you originally envisaged. Rely on your implementation partners – this is their field of expertise, so they are not only good at planning but also dealing with the unexpected,” Andrea says.
Rather than go off in the wrong direction, it might be wise at this stage to carry out a small proof of concept in a controlled environment.
Your most valuable resource now is time. “Don’t rush, even if there is a lot of pressure to get something completed. You need time to understand, adapt and configure, and above all for change management and dependencies.” However, you must also communicate with regular reports and updates and ensure that when you do, your stakeholders hear you and understand.
Andrea also says that she likes to design and configure at the same time. “This might not suit everyone, but it avoids the situation where you have signed off on a design, and then have to go back and change it when you see how it works – or doesn’t work – in practice.”
Change management
Change management is the application of a structured process and set of tools for leading the people side of change to the desired outcome. “You can have the best technology and systems in the world but if people don’t understand and embrace it you will not see the benefits,” Andrea says. It’s essential to be open and honest if you want to bring people along with you. Nobody expects you to be perfect, but what they probably won’t forgive is if you create the wrong expectations. And if you want stakeholders to recognize your expertise, do them the courtesy of recognizing theirs. In a procurement transformation project, that means recognizing that procurement professionals are the ones who know how to buy and how to manage suppliers and so on – so listen to their concerns and empathize: “Reward stakeholders for their contribution and celebrate successes together! By building a network of supporters, you will be in a much stronger position during and after the rollout of the new systems across the organization.”
Andrea is especially keen on identifying champions within the organization – people who are enthusiastic about the project and can articulate the benefits. “They need not come from the largest departments or subsidiaries. What matters is that you have people outside the core project team who can act as independent ambassadors,” she says. Alongside this you also need strong governance and support models to drive adoption. “Always be ready to listen, measure, improve and iterate. Don’t be afraid to make changes where this makes sense, especially if responding to stakeholder input.” Much will be revealed in the course of the implementation project and users need to be assured that there is always someone at the end of a telephone who can help.
Work closely with suppliers
While her experience at Franke has been highly positive, Andrea comments: “I cannot emphasize strongly enough that supplier collaboration is essential. If suppliers don’t adopt because they cannot, don’t know how to, or don’t want to, then you will never succeed. On the other hand, if you engage them from the start, they can be fantastic allies. Remember, they have almost certainly been through a similar process with other customers, so you can leverage their experience. Ask for their thoughts on integrations. What works and what doesn’t. How your company could make things better than their other customers.” To capture this input, Andrea advises setting up a dedicated change management stream for supplier collaboration.
In conclusion: six key learnings
Andrea summarizes what she has learned on various procurement technology implementations with six points:
- Get management buy-in: not just a signature! Be sure that senior managers will be there when you need them.
- Research before committing: Make sure you fully understand the needs of your stakeholders. How well placed are your partners to meet these needs? How flexible are they?
- Look beyond capabilities: It’s a long-term three-way partnership between you the customer, the technology partner and the implementation partner, so it has to be a good fit. Not just a list of features.
- Build a robust business case and a project charter you can refer back to: That way you won’t lose sight of the goals and objectives, but you will also have a basis for adjusting if things aren’t exactly as foreseen.
- Implement as a team: It’s not about individuals. In fact, egos can obstruct progress.
- Make it about people: You need to be able to answer the question, “What’s in it for me?” if you are to convince stakeholders and bring them on board – internal users and suppliers. Hence the importance of change management to drive adoption.
Learn more about Franke’s experience implementing JAGGAER.
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