Value realization starts with identifying, properly prioritizing, and justifying opportunities that include a plan for success. Enabling value includes not only technology deployment, but using process/policy definition, awareness and education to get internal and external stakeholders on-boarded. But value enablement will only lead the horse to the water. Achieving compliance requires an effective governance model, a well-staffed operations team, an aligned incentives program as well as a highly professional attitude towards change management. Join this session to hear from leaders as they discuss their business commerce programs and the steps they took to realize maximum value.
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Secrets to Accelerate and Maximise the Value of Your Procurement Investment: A Real Life Example - London
1. Secrets to Accelerate and Maximize the Value of Your Procurement Investment - a Real-life ExampleAriba LIVE 2011; London Anna Göjeryd; Sr Project Manager, Supply Chain, Corporate LantmännenIda Hempel; Project Manager, Supply Chain, Corporate Lantmännen
3. 3 Group President and CEO: Per Strömberg Turnover 2010 (SEK): 36 billion (€ 3,75 billion) Profit after net financial items (SEK): 946 million (€ 98,5 million) Spend Indirect Material (SEK):4 billion (€ 4,15 billion) Owned by more than 36,000 Swedish farmers Has over 10,000 employees Operates in 18 countries Lantmännen is one of the largest Groups in the agriculture, machinery, energy and food industries in the Nordic region.
4. “…from field to fork” ”We take responsibility fromfield to fork” Field Fork Transport Transport Transport Transport Raw material production Store/consumer Internal Audit Board Processing Group President & CEO Legal Affairs Strategy & Business Development Energy Sector Machinery Sector Food Sector Economy & Finance Agriculture Sector Supply Chain Human Resources Communication Sustainable Development R&D
5. Anna Göjeryd Anna is Senior Project Manager at Lantmännen’s Supply Chain´s project office. Anna joined Lantmännen Feb – 09.Former employer is Sony EricssonProfile: Drive change Ida Hempel Ida is a Project Manager at Lantmännen’s Corporate Supply Chain’s project office. Ida joined Lantmännen in Aug – 08.Profile: Supply chain and change Speakers BIOs
6. Objective with This Presentation “Secrets to Accelerate and Maximize Value of Your Procurement investment - a Real-Life Example” Today's session will describe a successful implementation of P2P from start to first deployment. April -11 Dec -09
7. Lantmännen bought P2O from Ariba, implements P2P Integrations with Lantmännen’s invoice system First phase 300 users Common Functions at the Head Quarter Relatively small group of buyers of indirect material and services Next phase additional 600 users After nine Go Lives: in total roughly 7,500 users The project/process/portal is called P@L – Procurement at Lantmännen Preconditions
8. Hygiene Factors for All Projects Reference groups Steering committee Project members Kickoff Project model Milestones Budget Goal
9. Mindset - We drive Change! this is a change program in the context of purchasing Project setup reflects the mindset People as well as plan Project budget reflects the mindset Communication reflects the mindset Handle change within project team as well as outside project team Success Factors for Lantmännen´s Project
10. Understand and work with the difference of Strategic Change Management Operative Change management Strategic Change Management Enabler for operative Change Management Operative Change Management Do the job! Successful Drive of Change #1
11. Secure the right team, work actively with team spirit Kickoff incl. personality analysis from team perspective Mature and well-functioning team Mutual respect Common goals Unconditional commitment Lots of laughs Dedicate resources Secure the right commitment from Steering Committee and Sponsor Active participation in the project They need to understand the nature of a change project – they need to ask for it Close cooperation with the sponsor Successful Drive of Change #2
12. Project owns Change Activities But…commitment from organization is KEY Dedicated responsible resource Activities from start to beginning Steering Committee Decisions makers Receiver of the solution Clear plan (more details to come) Go Live – make it fun! Budget for it! Make sure there is room in the budget. This is the reason for active work with steering committee and sponsor. They should ideally raise the budget for Change Management! Successful Drive of Change #3
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14. Getting to Know the Surroundings Previous change experience in the organization Selling points and scares Identifying key people Identify potential downfalls Navigate the change initiative based on this! 17 februari 2011 Presentationstitel 14
15. Building the Foundation Take care of the key people Make them your allies Involving managers “Waterfall” the information Follow up – did the information penetrate the organization? Getting the organization onboard! 17 februari 2011 Presentationstitel 15
16. Adjusting the Message Keep it simple Emphasize the most important activities, skip the rest Respect the fact that this is one of many processes for the user 17 februari 2011 Presentationstitel 16
17. Go Live 17 februari 2011 17 Text message: Today we go live, come and learn more!
18. Go Live Information square in the lobby Text message to all users: “Today we go live, come and learn more!” Information folder Several drop-in training sessions Instruction video shown all day in the lobby Opportunity to try the portal Get a Go Live porridge! 17 februari 2011 Presentationstitel 18
19. Confronting the Arguments Proactively Saves Time “The cake at the café costs less than the one in P@L…” But it is not cheaper!
20. Conclusions So Far We have a better Solution! Need to get down to usage details early Change happens faster and better when The project team is onboard The reason is explained – WHY? Investment contributed to a good communication climate between users and project team Ambassadors for upcoming implementations Numbers, then? Savings? Yes – we have concrete financial goals as well. The project is measured towards them - BUT they cannot be achieved without the right focus ….
24. Secrets to Accelerate and Maximize the Value of Your Procurement Investment - a Real-life ExampleAriba LIVE 2011; London Anna Göjeryd; Sr Project Manager, Supply Chain, Corporate LantmännenIda Hempel; Project Manager, Supply Chain, Corporate Lantmännen