The document discusses how LendingTree's procurement department embraced innovation and disruption to transform. When Michael Leiken first joined as Senior Director of Spend Management, the department had no processes or policies in place. Over time, as the company grew through acquisitions, the need for change became clear. Leiken helped establish new tools, policies, and processes to bring efficiency and visibility to contracting. This included implementing a source-to-contract system. While change faced challenges, including shifting requirements and stakeholder preferences, collaboration and customer feedback helped drive successful transformation. Looking ahead, further disruption and value-add are planned to continue evolving the procurement function.
9. #scoutspark
The act or process of disrupting
something; a break or interruption in
the normal course or continuation of
an activity or process.”
DISRUPTION
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10. What’s the real meaning to you
and your company? Ultimately,
it’s what you make of it.
11. Byron Pollitt
Former CFO at Visa
Different isn’t always better,
but better is always different.”
“
12. • No tools, no processes, no policy, no
comprehension of the function
• A culture that empowered employees to take
charge and run with the ball
• Answering the question “so, what is
Procurement anyways?”
The first disruption was hiring me!
Flashback to the Beginning at LendingTree
13. #scoutspark
Flashback to the Beginning at LendingTree
Second 1:1 with my boss (the CFO)…
He requested:
• A report of contracts expiring in the next 12
months (proactive and logical, right?)
• Unfortunately, there wasn’t a way to do it,
which blew his mind.
14. #scoutspark
Flashback to the Beginning at LendingTree
Demonstrating ways “Procurement” could add
value outside of its traditional swim lane.
• Economic incentives
• Project management for new HQ project
• IB deal terms for M&A
• Streamlining new vendor set-up process;
minimizing payment delays and taking work off
Legal’s plate
• Establishing blanket waivers with Legal to remove
them from process for low-risk purchases
• Pushing for (and drafting an initial) PCard policy
15. Procurement needed to adapt
quickly and evolve to effectively
support the business as the
company continued to scale.
16. #scoutspark
The Need for Change…Some Perspective
2016
• 63 completed contracts
• 20 in-process at year-end
• 2 acquisitions (SimpleTuition
and CompareCards)
2017
• 130 completed contracts
• 43 in-process at year-end
• 3 acquisitions
(DepositAccounts,
MagnifyMoney, and SnapCap)
2018
• 400 completed contracts
• 42 in-process at year-end
• 3 acquisitions (Ovation
Credit Service, Student Loan
Hero and QuoteWizard)
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The Path to Where We are Now has Changed
2016
• Save LT a ton of $$$
• Save my CFO a ton of time
• Learn the business
• Educate
customers/stakeholders
• Sell the value of procurement
2017
• Grow team to keep up with
demand
• Need to address big picture
goals and advance original
vision
• Reconsider metrics/goals
Late 2017 and 2018
• Spend Analytics
• Source-to-Contract
Starting out as a new hire Proven concept, but
stuck in the weeds
Finally, time to focus on tools
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Navigating the Transformation Process
The process for evaluating new tools is not easy:
• Still no formal policy/procedures
• NO WAY we can introduce Purchase
Requisitions (are you kidding me?!)
• Functionality was intended to be limited
• New CFO; different background, perspective,
and initial focus
• Stakeholder considerations
20. #scoutspark
Identifying and Defining Desired End State
Simplifying the process for everyone
Making our day-to-day work more efficient
Resolving common pain points
Increasing visibility and transparency
Getting out of disparate systems for communication
Housing all information in one centralized location
Having a formal approval process, if/when desired
22. #scoutspark
Bad news, however…
• New requirements from AP
• Pausing the initiative to explore options
• Restarting and moving forward
• Yet again, new requirements resurface
• Unexpected supplier influence
• Pausing the process again…
23. What we learned:
Think through how you can better manage stakeholders and hold
them accountable for initial buy-in
Expect that you’ll have to react and adjust to the unexpected
Always remain supportive throughout the painful process
Don’t lose sight of your goals and timeline
24. What we learned:
Know that arriving at compromises takes time
Expect some involved parties to be unhappy
Don’t be afraid of hitting roadblocks and stepping on toes
26. #scoutspark
• Collaboration is also over-hyped…BUT…
• Interview primary customer teams
• Conduct 1:1 meetings with each stakeholder team
• Provide a preview of the tool
• Solicit feedback and LISTEN!
Putting in Work to Set Ourselves up for Success
27. Quality collaboration does not begin
with relationships and trust; it starts
with a focus on individual motivation.”
Carlos Valdes-Dapena
CEO of Corporate Collaboration Resources
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28. #scoutspark
We partnered with the Scout team to determine optimal approach
for LendingTree
Scout: Customer-Centric Customization
Customized Intake questionnaires
Based on each Project type – we wanted to minimize data entry and total clicks needed to submit a
stakeholder request.
Customized Milestone steps
We wanted the customer to see and understand the standard steps that would need to take place for each
Project type.
Created specific dashboard statuses
Finally, we created very specific statuses so the customer dashboard would be useful. This indicates what’s
happening and who the current step is with.
Some examples:
• Pending Stakeholder Approval
• Spend Management Negotiation In-Process
• Supplier Legal Contract Review
• Routed for Signature
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Driving Awareness & Promoting the Benefits
Simple Process
• Single Sign-On
• Straightforward questionnaire with drop-downs and check-boxes
Visibility into Request Process and Status
• Self-service updates and follow-up for customers
• Dashboard identifies which Spend Management team member is supporting the request, as well as
the status
• Requester can add colleagues or manager to projects
Enhanced Communication
• Chat function with shared conversations is valuable to quickly answer questions, address issues or
pass along information that might facilitate approvals
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Driving Awareness & Promoting the Benefits
Accountability for Everyone Involved
• Names, time stamp for Milestones when assigned
• It’s important to know what is happening (or what’s not happening) at all time
Reporting
• Utilized to prep for weekly project prioritization/alignment meetings with Legal
• Utilized for monthly touch base meetings with CTO and CISO
• Previously, managing our team pipeline and savings tracker was a time consuming, manual exercise in
Excel
• With simplified reporting, we’ll track several new metrics
Projects Visibility for Spend Management
• This has been key for SM. We’re finally out of SharePoint, Outlook and Excel hell
• The volume can be daunting at times, but we otherwise wouldn’t know what we don’t know
• There are so many examples where we’ve been able to make an impact with one phone call
34. Share the glory! Recognize the
value of customers’ efforts and
celebrate successful joint-
efforts.
35. Communication should be a two-
way street. If you want to manage
perception, you must understand
it.
36. #scoutspark
We sent our first Customer Service Survey two months after going live:
• Anonymous
• Customers that engaged our team 3+ times in 2018
• ½ page; only 6 questions
• Short, thoughtful topics we knew we could improve upon
• You can’t act on what you don’t know about
Be Vulnerable and Request Candid Feedback
37. #scoutspark
We sent our first Customer Service Survey two months after going live:
• 93.9% Satisfied/Very Satisfied with “level of communication and collaboration”.
• 90.9% Satisfied/Very Satisfied with “outcome of deals negotiated”.
• 90.9% Satisfied/Very Satisfied with “overall satisfaction
Be Vulnerable and Request Candid Feedback
38. #scoutspark
• Show a clear improvement and change based on actions and
realities not words or slides
• Gain fuller support and buy-in by selling the value;
• In doing so, driving quality collaboration
• Instill the expectation for further improvement and evolution
• Be flexible, adaptable and willing to change for the greater good.
There isn’t any shame in altering the plan.
None of this is about ego!
Embracing Innovation & Disruption
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• It is a process, not an event
• It doesn’t happen overnight
• It requires revisiting and tweaking to maintain over time
• Conveys a clear difference of “before” and “after”
• Strive to keep it simple, while focusing on customers and
stakeholders
These things are not earthshaking. But doing them well is super
hard.
And When it Comes to Transformation
41. #scoutspark
• Targeted Outreach Program across company
• Further disruption in (our) world of travel
• Implement a PCard Policy
• Push for updated Legal Contract Policy and formally implement
Spend Management Policy
• Adding more value for leadership and other teams
• Project approvals
• CTO visibility into projects requested by other teams, yet
requiring Tech resources
• Differentiating between CapEx and OpEx for FP&A
Looking ahead to 2019
In this context, it can be viewed as the difference in the original and final states.
For us, the primary innovation was technology.
In other words, specific changes to existing circumstances—and there can be several throughout the overall transformation process.
Isn’t a one-size fits-all approach or step-by-step instructions. What we’ve done isn’t the same as everyone. What you’ve done or will do can look different, and that’s okay.
In the end, this is about being better. Hopefully some of the things we’ve done well, and missteps we’ve made will help you navigate similar circumstances. Transformation is a process; it doesn’t happen overnight.
When I need to take a step back and reflect—perhaps reframing my natural perspective, I find it helpful to think about a favorite quote….heard Visa’s former CFO, Byron Pollitt.
That’s pretty good, right!!?!!
So, where did things all begin? What was Day 1 like?
Picture this…alone in an empty quad….schedule pre-booked for weeks….first opportunity to intro myself and (what was then called) Procurement.
It’s common for Procurement to be associated with tactical tasks such as processing PO’s and buying “stuff” like office supplies. Irony @ LT was the initial reaction from the business—thinking I should only be involved in $$$ or highly strategic things.
They did things their way for a long time, with little oversight, and wanted to continue doing so. Naturally, a contradiction to my vision….immediately establishing what I call a “Zone of Conflict” that’d require special attention.
I had my work cut out for me, and wanted to make as big of an impact as quickly as possible. So I volunteered to help with ANYTHING where I could add value.
And aside from the obvious areas I’d already known about, these experiences helped distill areas of real opportunity that needed to be addressed.
To help you better understand what we were managing, which contributed to the need for change….
AT END: As you can imagine from these basic stats, we needed to jump ahead and transform, which means some kind of disruption.
For me, the key message here is to not be fearful or ignorant about what is often involved in this type of process.
Disruption piggybacks on the introduction of any innovation. So what can you do for the disruption to end up overwhelmingly positive? Be aware of it, plan for it, and focus on how you’ll position and use the innovation.
Priorities and goals have changed—largely driven by immaturity of function, culture and leadership’s goals/objectives.
AT END: Great, we have the green light to move forward, but the process isn’t always easy. Where we were starting from?
We thought we’d averted this scenario by involving everyone at the onset of the process. So, what are some of the things we learned and advice we’d give, based on the experience?
For those of you that led a recent transformation, did you experience any unexpected hurdles along the way? If so, would you mind sharing during the discussion at the end? It’d be great for everyone to hear about, learn from those situations.
….the point behind communication and collaboration is to involve your constituents. We’ve all heard the saying “it takes a village” and, in most situations, greater participation will yield better results.
Interesting HBR article in Sep-18 on team building and collaboration. The most important misconception learned from the research was that (NEXT SLIDE).
I didn’t know that at the time, but fortunately, we were always very focused on the customer.
Just because we went live, we aren’t “done”. The internal campaign to remind people about the new process, solution and benefits resulting are ongoing.
What were the key goals at the start of the process, and how did hit on each?
Ongoing communication is essential. It’s awesome to have the efficient, streamlined options via Scout, but communication is not all systems-based; people need to connect to people – for example:
Evolve the process so that it’s not us versus them, but that we own this activity together to achieve the best results.
THINGS TO REMEMBER FOR Embracing Innovation & Disruption
AT END: Another quote that serves as a simple reminder: