Change management: the 5 biggest pitfalls in P2P implementations [2]
In this blog, Lonneke Goei looks at the main obstacles you may encounter when implementing Purchase to Pay projects and why you'd rather avoid these pitfalls.
Change is inevitable. Every organisation faces it, and the digital transformation of Purchase to Pay (P2P) processes is no different. What should you look out for when you introduce changes to processes and systems? How do you bring your people along?
In a series of blogs, Lonneke Goei, Senior Consultant & Change Management expert at Spendlinq, explains how a pragmatic approach to change management can contribute to a successful digital transformation of your P2P processes. In blog 2 of this series, Lonneke explains which obstacles you may encounter when implementing P2P projects and why you’d rather avoid these pitfalls.
Change management? We don’t need that!
Let’s start with an example from practice – perhaps a familiar one. At an organisation in the food industry, the design of the new way of working focused mainly on the ordering process as part of the P2P process to be implemented. The accounts payable administration was barely involved in that phase and felt blindsided when it turned out that major changes would be made to their way of working too. They dug in their heels! By involving the accounts payable administration after all and listening to their input and arguments, the design of the new P2P process was improved in substance and the accounts payable department came to support the change. Afterwards, the department managers even took on the communication and training of their staff on their own initiative, supported by the project team.
Pitfalls in P2P implementations
“In our many years of experience with organisations in the public and private sectors, we’ve noticed that the same change issues often come up in P2P transformations. Some are generic and turn up in every project, but P2P implementations also have their own pitfalls,” says Lonneke. Here we explain the main stumbling blocks organisations run into.
Top 5 pitfalls in P2P implementations
- No ‘sense of urgency’ in the organisation: there’s no awareness that the change is needed now. And then nothing will change.
- No clear vision of the desired new way of working in the P2P process. Policy is also unclear and sometimes contradictory.
- There is no overarching P2P process owner in the organisation, and no clear owner of the change process either. Nobody “loses sleep over it” when the P2P processes run into problems.
- Representatives of the stakeholders in the P2P process (such as requesters, buyers, budget holders, accounts payable administration, controllers) get no time or space to give their input on how the new way of working is shaped. Often the head office also “thinks it knows how things work on the shop floor”.
- Because the complexity of P2P processes often seems manageable, people see no need for change management. Or else the external change manager is expected to resolve any resistance in the organisation.
Priority 1 is to sidestep these pitfalls – or, if that doesn’t work, to clear the obstacles out of the way. Above all, make clear why the change is needed and why it’s needed now. Make sure an overarching P2P process owner is appointed, and put that person to work developing and promoting the vision for the P2P process (further). Involve key stakeholders in good time, not only to gather their input but also to actually help shape the change. And last but not least, involve your own people in change management. After all, your people know your organisation best and can fine-tune the change activities to its needs. Their positive commitment will also create broader support for the change. You can read about which change activities you actually need and what they involve in our next blog.
Change management: indispensable in every P2P project!
“Without attention to change management in a change programme, a project still has a chance of success, but probably at higher cost, with later go-live dates and with less motivated employees. Using change management well increases employees’ willingness to change and, with it, the likelihood of a successful change. Good experiences also help an organisation build the right change capabilities and reap the benefits in future change programmes,” concludes Lonneke.
Read the whitepaper | Why change management is crucial in the digital transformation of P2P processes.
You may recognise the challenges we’ve outlined and want to know how to use change management in your own organisation. In this whitepaper you’ll read what change management involves in practice and what role it can play in implementing P2P projects. And how a pragmatic approach to change management contributes to a successful digital transformation of your P2P processes.
Download the whitepaper here.