“Sourcing Change” <\/a>Kops herself to help steer our sourcing change research agenda this year. Over to you, Mrs. Kops…<\/p>\nHappy Sourcing Change Year<\/span><\/strong> <\/em><\/p>\nMy friends at HfS are forecasting a meteorologist\u2019s dream for the sourcing industry\u2014 high pressure combinations of Cowboys and Indians, a blizzard of new deals, and very Cloud-y days. In the face of these anticipated patterns, how should buyers prepare for the stormy weather that ultimately impacts results for their organizations? Perhaps it\u2019s time to prepare for the change sourcing represents a bit differently. Here are my top five recommendations for staying warm and dry in 2011. <\/em><\/p>\nApproach sourcing as \u201cdisorganizing event\u201d <\/strong>Buyers usually restrict their ambition for sourcing to make existing conditions a bit better, faster and cheaper in a more scalable structure.\u00a0 Yet the act of sourcing is a profound opportunity to make indelible changes to the way the organization works\u2014enabling work in new ways, setting new rules, delivering different outcomes, even changing the culture. Think about how you want to change the organization, and solve for it, rather than build a better mousetrap. What do you want sourcing to enable you to do?<\/p>\nFocus on \u201cworst practices\u201d <\/strong>Think about it–the best practices always take care of themselves, <\/strong>yet the worst practices fester and fester. Want to delight your customers by making their lives better? Stop painting a picture about a sourcing nirvana where 200 basis points of the cost of an invoice will solve all ills, and design a solution to get rid of their biggest headaches—inaccurate data, late close, lackadaisical staff on boarding, excessive system downtime. First fix what is inexcusable and downright awful, and customers will start to believe the vision.<\/p>\nAllay all fear <\/strong>The aim of sourcing is about as altruistic as corporate initiatives get. Few dare to argue that the business case benefits aren\u2019t exceptionally compelling. Yet what stops it in its tracks is fear\u2014fear of pushing too fast or treading on important corporate toes on the part of the sponsoring team, fear of not performing on the part of the delivery team, and fear of loss of control on the part of the business lines. If you can allay your own fears, and those of your internal customers, you\u2019re halfway there.<\/p>\nDitch procurement <\/strong>Is traditional procurement deeply involved in M&A activity? Corporate strategy? <\/strong>Business transformation? Not a chance. While our friends in the CPO\u2019s office have an important role to play in procurement process and governance, they cannot be the major arbiter of taste when it comes to sourcing true corporate change. <\/p>\n