What one desires but does not want?
In companies, processes refer to structured sets of activities or tasks that are designed to achieve specific goals. They provide a frame for teams to follow, ensuring consistency, efficiency, and compliance with industry standards.
Procurement process and team performance
This is how I got that sometimes we want more than we should handle.
Starting a new job, I wondered about preparing a specific contract. Dani, my colleague, offered his personal rule: "We have so many processes. Do what feels right. If you miss a step, someone will tell you. If no one says anything, it's either allowed or the process is outdated." Basic, simple, surprising, right? Astonishingly, after a few weeks, I realized everyone worked like Dani!
On another occasion, beginning a unique project, I faced resistance. Buyers and managers demanded more procedures for team collaboration. No process, no project. Those who cheerfully ignore standard procedures call for RASICs, flow charts, and decision matrices in new or conflict situations.
Hmm...I began to wonder. Are there too many or too few processes? And why?
It's a matter of perception and human nature.
These anecdotes highlight a dilemma: finding the balance between comprehensive yet rigid processes and total but risky flexibility. I've seen both extremes regarding procedures in procurement. From "nothing written but established habits with origins lost," signifying no documented process yet ingrained practices, to process documentation so thick, like two phone books, no one remembers or understands all the details.
Why then do associates want more processes in new situations but fewer in practical application?
Here are the extremes I've observed:
Let's listen to our teams who ask for processes in new situations but want fewer for practical application:
Simplify, train, communicate...
The goal is to reduce deviations and boost engagement. Because dding more processes is not the answer, training and transparency are key. True: additional pages of procedures won’t enhance employee satisfaction, business margins, or customer experience. In fact, more processes will 100% increase the risk of deviations. The more process, the more deviation. That is why less, simple and easy to understand, reduces the errors... and simplifies training and adherence. Ideally, your team can maintain at any time a link between their process and the company's goal or its customer's needs.
When a process is missing in a new situation, it might mean the existing process isn’t understood, known, or well-described....or too far from the customer (and become meaningless). This calls for training and clarification. Your job! Alternatively, the implications of the new situation might be misunderstood or exaggerated, necessitating training in critical thinking, entrepreneurship, and problem-solving. I suggest to keep alive the purpose of your process: either impacting directly the bottom line, or supporting the process that impact the bottom line: 2 levels maximum.
A paradox of mindset
It starts with a managerial culture—embracing entrepreneurship, accountability, and discernment.
The quality of our results depend on the quality of our processes, and everyone is responsible for improvement of processes.
This sentence is not from me, I learned that in 2003. It works 100%
Processes ensure consistent, efficient execution but can also be seen as restrictive. Too many, too few, unclear, or inappropriate processes will alter agility and innovation. Those complaints about excessive processes contrast with the demand for clear procedures and performance indicators for new roles or responsibilities. Understanding what is truly requested from the business AND from the team is essential. Understanding what's truly requested is vital.
My takeaways:
??Prio#1: setting quality, compliance, and legal standards
??Prio #2: Customer centric, or no process! The real customer who pays everything. If the process adds customer value or improves bottom-line: good. if it supports a direct contributor, still good. Rest: no-good, eliminate, automate, try without
??New task for achieving my work at quality level: bring a process into it
??New collaboration/interface: bring a RASI first, and see where it leads us
??New software: manage data rather than document + principle of "your software, you key-in the data you need" because ...no pain no change
??Training on "critical thinking", entrepreneurship, and problem-solving addresses the perceived need for new processes.
??Training, again: do employees want more processes, explanations of objectives, or guidelines/examples?
??Performance KPI must be thoroughly documented, with little room for flexibility.
??Process KPI (non impacting customer) can be less documented, allowing team
flexibility if necessary. Base rule is +1 process here means -1 process there.
??Like Dani, trust your instinct within an established standard framework.
When and how to choose to do something about it?
No need to implement something when there are no use case. Waste of time. Sit with your team and get a buy-in for a new process, select a lead associate for the design and implementation. Then I suggest a problem solving session (Kaizen event etc...), before everyone jumps on the solution of a new process. Most of the time, we find out nothing is needed, or a basic role description makes the job...or...an example in a training is enough.
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Start with the why, and who's asking for it.
I know 3 main situations where the why is important
??a new top manager, VP or GM wo -far from procurement- sees everything with biaised lenses "in my world [previous company] procurement's delivers that [whatever you do not delivered]" >expect to be challenged on what you deliver with your process
??a new director of a department interacting with procurement has different views on how cooperation should go "I disagree with the process and sees is really different" >challenge on how the process works
??a new associate with strong experience may refuse to work as you expect " what you ask me to do? I know what works and do as I thing is good" >challenge on why the process fits this company and not another, and how the standard procedure is set
Deeper into "why"?
Consider the complexity of the task. When many stakeholders are involved, a well-defined process must bring clarity in the collaboration. It set roles, outlines responsibilities, and ensures everyone knows their part. I recommend when collaboration is the claim of your team
Think about the frequency of the task. Regularly occurring tasks thrive under a standardized process. Efficiency improves. Consistency is achieved. It could end up in standard work instruction to learn "how to do my job"
Reflect on the associated risks. High-stakes tasks, whether financial or operational, demand a process. It’s a safeguard, a shield against potential pitfalls. Here, think about personal safety and business at stake.
Yet, adding a process isn't always beneficial. Transparency and purpose are. It can lead to increased complexity. Flexibility might be sacrificed. Therefore, any new process must be communicated with precision. Training becomes essential. Everyone involved must be prepared.
The level of process detail
When deciding to add, change, or omit a process, consider compliance, financial -and legal risks, cybersecurity. The more processes there are, the more crucial it is for everyone to adhere to them and be well-trained. Install safeguards in industrial purchasing, including audits, annual training, and updates to avoid inconsistencies. Trust and install self control when possible.
Look at this new process before roll-out and ask around how much people will really use it as is, every day, without complain. and if it does add value to the customer?
Ready to make a decision? This involves understanding the task's nature, stakeholders, and associated risks. Evaluate options by consulting stakeholders, researching best practices, and considering potential implications. Make decisions that reflect the interests of all stakeholders and align with the company's overall goals.
How to start with a new process? Introducing a new role, software, objective or new manager's expectations goes through a couple of steps I listed:
Recommendations for purchasing managers
Leading means you will creating an environment where processes are seen as useful tools rather than constraints, bringing innovation / flexibility / purpose of the business.
Routine evaluation of existing processes
An associate used to claim a RFQ process felt like a marathon. It used to take too long, didn’t it? But upon measuring together with transparency, we discovered it only consumed 15 minutes a week, which is manageable. Regularly engage the teams, ensuring transparency in such evaluations. If you seek true feedback, analyse performance data, and conduct internal audits, you can use tools like Value Stream Mapping to pinpoint and eliminate waste. Treat audits not as pain , but as opportunities to adapt to the ever-changing market and competition.
Next, let's simplify
Picture this: inefficient processes draining 30% of annual revenue, 26% of an employee's workday wasted. Can you imagine the impact? Streamline these overly complex procedures. Trim the fat. Simplify instructions. Lean methodologies are your allies, cutting out wasted time and effort. Standardize and simplify with clear, visual flowcharts. Hear frequent complaints about purchasing complexities? Dive deep. Find the root causes. Address them. Boost performance.
Train & support
I remember a while ago this new experienced colleagued had joined our team. Eager to deliver, he rushed into the topics immediatly. Real fast conflicts emerged, frustration raged, performance was not there. Reason? Having skipped the training and onboarding he was doing "the way it should be" at least he though...that was not the way our company need it.
Training and support are our bedrock. Comprehensive training, detailed guides, mentorship programs—these are essential. Most of the time, software overwhelms because training is lacking. Create a "process champions" program, or process owner who cut the complexity in small pieces, and keep processes alive and effective. Encourage certifications like Six Sigma. and start building expertise in the team. It will inspire confidence and sustainability.
Flexibility & innovation
Our business transforms fast—electrification, car-sharing, autonomous drive, AI. Flexibility and innovation? Indispensable. So, regularly review and update your processes to understand their limits and impact. People first: empower teams. Let them propose improvements. Encourage calculated risks. Form continuous improvement committees that can use agile methodologies. Remember, processes should guide, not constrain. In some areas, quick adaptation may mean diverging from standard procedures. Here, agility must be balanced with quality execution. You manage, you decide.
Before you balance agility with quality execution, explain why and the goal in full transparency. It is ok to diverge. Not to hide it.
Automate when relevant
Boost efficiency. Automate repetitive tasks. Choose software wisely, only the one tasks that are non-strategic and well-structured, repetitive. By doing so my teams managed to save tens of thousands of hours lost on poor processes.
Additional I suggest to target the typical "optimized IT silos". Each department has a perfect tool for its needs, and rely on excel or manual input for collaboration with other department...poor process!
Beware of the obsolescence that ties your team on poor processes. I remember those highly skilled associates having to manually clock their time, to later keying it into excel, then into SAP. 21st century was a bit late on this one,. No customer pays for that any more.
Let's talk about it
Communication! Clearly convey the importance of processes for team and organizational success. Your process owner or early adopters will help you getting momentum in adherence and respect. Silos? Identify and dismantle them where communication falters, smoothing cross-functional processes. As leader defining a compelling company vision is your job. Then ensuring that processes are designed to help achieve strategic goals. Hold workshops with your team to disseminate this vision at every level, embedding it into key process designs. Trust your employees. Too many approvals signal a lack of trust., so it is better to give autonomy: reduce approval levels and let them make responsible decisions.
In the end, it’s all about balance and risk/benefit with your team. Structure processes to provide stability, yet remain flexible enough to adapt swiftly.
Bring people in and engage your teams actively, and stay agile in response to market changes. By doing so, you’ll create a harmony of efficiency and innovation....and address the paradox.
no what?...
I put it together, where are you?
Still there? Here is a diagram process for decision-making process ??