Project Structure and Staffing

The Executive Steering Committee

As we have said before, a critical first step in a change management process is enlisting executive support and consensus. The best way to continue to maintain that level of sponsorship is to continue to engage those executives throughout the project by having them sit as a steering committee. For a time out of favor, placing a steering committee in charge is worth a word of caution, because as any of us who has either sat on a steering committee or worked with one in the past knows, there can be a tendency for the group to micromanage and second guess the project team, in ways that are not always best for the project. Nonetheless, executive understanding and sponsorship is too critical to have with an e-procurement initiative to allow the project to move ahead without direct executive participation.

In the end, the key to finding a balance between sponsorship and domination is usually dependent upon the personality and abilities of the program manager/project champion. She or he will ultimately need the political tact, the technical knowledge, and the respect of the leadership community to be able to continue to keep the executive officers informed and involved, without allowing them to choose the all-too-easy option of project by dictate.

E-Procurement Program Manager

E-procurement projects for indirect goods can be difficult, but are mainly straightforward in their goals and design. Many hundreds of companies have already shifted their indirect purchasing online, and therefore there is ample evidence of what works and what doesn’t when it comes to a project approach. Direct is infinitely more complex and difficult, but many of the same principles and structures apply. In either case, there are a number of broad activity categories that need to be completed by someone—either from within the organization or from the software or consultancy world—in order for the project to be successful. These include

• Soliciting and guaranteeing the necessary levels of sponsorship from both company leaders and the supplier community

• Day-to-day project management

• Development and execution of the communications plan

• Completing the implications analysis on changes to people’s work activities and the process, and developing a transition plan for changes to employees’ jobs

• Both process and technical education and training

• Technical design and implementation of the software

• Technical design and implementation of the supporting IT systems, including integration and communications issues

• Benefits tracking

The responsibility for overseeing these various tasks will be different with each project, but it is important to recognize that someone needs to be charged with the successful completion of each of these broad activity areas, and clarity around that responsibility is essential to success.

As a deputy to the chief executive (or possibly to the chief procurement officer, in larger companies), the e-procurement program manager directs the entire project and has overall responsibility for making certain that each of the above areas is accomplished successfully. Constantly reinforcing the coordinated, enterprise-wide project viewpoint, the program manager provides high-level day-to-day project management, ensures consistency of approach and adherence to project guidelines and milestones, and serves as the highest level liaison for resolving issues with senior management that arise during the project. That means that he or she is continuously communicating with the executive steering committee, educating and updating the executive sponsors on project process, and facilitating executive resolution of major project issues as they arise. The program manager serves as the single, most knowledgeable liaison between the executives and the teams and is essentially the project “brain trust,” single point of contact, spokesperson, and owner of project success.

Technical Program Director

Reporting directly to the program manager, the e-procurement technical program director is responsible for

• Design and implementation of the software solution

• Design and implementation of the supporting hardware, communications interfaces, data migration, and systems integration

• Technical end-user training and help desk setup

The technical director therefore oversees the entire investment in technical infrastructure and should be both a skilled MIS practitioner and an experienced IT project manager. He or she will need to have a good understanding of the procurement process and of various applications and how they interact. As the central point of contact with software vendors, the technical program director will require an understanding of broader business goals and the presence to resist the temptation to “slam in a system” at the expense of overall business benefits.

Nontechnical Program Director

The nontechnical program director is responsible for all non-IT aspects of the e-procurement project. This broadly encompasses three main categories: project risk and change management, business process and job role analysis and change, and business case management.

The nontechnical program director also works closely with the program manager and the executive sponsors on the steering committee to help ensure strong and visible executive sponsorship, and is ultimately responsible for creating and overseeing the delivery of the employee communications program. He or she also oversees project “health” and identifies—and is responsible for—resolving any personal or political issues that arise that might compromise the success of the project. This role also is responsible for deriving and documenting the changes to workflow and positions brought about by the new process and system (the implications analysis) and for assisting departmental leaders and Human Resources in creating a transition plan for helping employees with education and training on nontechnical (process and activity changes) issues. Finally, he or she is responsible for applying the “performance indicators” agreed upon by the executive and planning teams, and for building the business case and ROI over the course of the project.

Far too often, organizations assume that anyone dealing in people or position changes should be from human resources, but that is almost never the case. Usually a respected leader who is knowledgeable about the procurement process, whoever is appointed to this critical role needs to have the political presence, organizational familiarity, and personal tact to manage the most difficult half of the project—ensuring that the business actually derives a benefit from the new systems. Those qualities usually are found in long-serving organizational mid- to high-level managers who understand how procurement is done, can appreciate the need for change, are known and respected broadly, and have a healthy and engaging relationship with senior executives (Figure 14.1).