Getting on-board the transformation journey using our 6-Levers.

Working to maximize the ROI of consulting spend requires a company-wide transformation. By combining strategies such as investing in the right projects, having a structured RFP process, and collaborating between business lines and procurement teams, organizations can achieve an average increase of 25-50% in ROI with potential savings or earnings in the hundreds of millions depending on the size. Transformation is essential for success – this episode offers tips on how to use the six levers to get started!

Key Takeaways

  • To get on board the transformation journey, companies should build a sense of urgency and support their case with practical examples.
  • Align top management with a common vision, anticipate potential resistance from stakeholders when introducing new ways of working, communicate changes widely and openly to ensure everyone is informed about them.
  • Implement your plan by prioritizing actions that can be tackled quickly first; use KPIs to measure performance; set up rules around governance for decision making authority; prepare for potential issues through good risk management practices.
  • Make sure any changes made are sustainable by integrating them into company culture so they become part of how teams work over time

Transcript

In today’s episode of our 6-Levers Podcast series,  we will discuss how to use the six levers to get on board the transformation journey.

In the previous episode, we have established that optimizing the return on investment (ROI) of consulting spend can significantly impact a company’s bottom line. Companies can ensure they are getting the most value for their money by carefully evaluating the costs and impacts of consulting services, negotiating better rates with consultants, finding more cost-effective suppliers, and focusing on high-value projects.

To maximize ROI from consulting projects, you should review the six levers we have described in the previous episodes. And then implement those that make sense for your organization based on where you stand and where you want to go.

It can be investing in the right projects; having a structured RFP process; building relationships with preferred suppliers; managing changes during the projects to keep costs under control; collaborating between business lines and procurement teams to build networks and improve create stakeholder satisfaction; professionalizing teams and utilizing design to cost methods.

By combining these strategies, you can achieve an average increase of 25%-50% in ROI – potentially resulting in hundreds of millions saved or earned for organizations depending upon their size!

If you’re like most business leaders, you know that transformation is essential to stay ahead of the competition. But where do you start? And how can you be sure your transformation efforts will succeed?

Today’s episode offers a few tips to get your initiative to maximize the ROI of your consulting spend off to a successful start. So whether you’re just getting started or well underway, this episode will help you learn how to use the six levers to get on board the transformation journey!

Undertaking a Transformation Journey – Where to Start?

In a world that’s rapidly changing due to digital transformation, organizations are scrambling to keep up. A recent McKinsey study found that nine out of ten C-level and senior leaders have had at least one large-scale organizational change in the past few years – which is no surprise considering how quickly technology can evolve or become obsolete!

It’s clear companies must stay ahead of these changes if they want success with their transformations, but for those who don’t know where to start (or what transforming even means), it isn’t going to be easy…

But what do they mean by ‘transformation’? Well, in general, there are really three different perspectives: the first one is operational or doing better/faster/cheaper; the second one is pivoting from one core business to another. Netflix is a good example since they shifted from DVD to streaming with success, we all know. And the last one is embracing cultural changes over time.

Now let me make a case for the optimization of the ROI of your consulting spend. I say it is a transformation journey. Why?

Because working to maximize the ROI of your consulting spend implies that all the stakeholders need to be on the same page if you want to succeed. This means that strategy, finance, and procurement departments need to work together with all the other areas of the company.

Because, as explained in last week’s podcast, all the functions and business lines in your organization are potential clients for consulting services. (Unless, of course, you have limited access to consulting to a very small group of functions, but that’s another story.) So, to iterate on our point, we are talking about a company-wide transformation here!

However, a transformation journey doesn’t have to be an uphill battle. According to John Kotter, 70% of such initiatives are doomed to fail – but that’s mostly because people are not taken into consideration when planning and executing them. Technology is obviously important, but the heart of a successful transformation lies in its people and how they interact with each other to make it happen!

You know, EY and Oxford University recently conducted research that revealed commitment from employees was key to success – something often overlooked!

The survey also highlighted how important psychological safety is – when pressure increases during times of transition, having additional support like listening sessions can be paramount in maintaining trust between stakeholders so they don’t give up faith in the project’s progress or vision.

So when your organization starts the next transformation, don’t forget to put plans in place to ensure everyone feels supported throughout those high-stakes moments!

Now, Where Do You Start With Our 6 Levers?

Let me answer that using the works of two change leaders: John Kotter and the late David Nadler.

John Kotter recommends that you first build a sense of urgency. To do this, you should measure where your organization stands on consulting procurement maturity.

Identify areas of improvement and measure the size of the prize – you can visit our website consultingquest.com to read our insight called “Diagnosing your consulting procurement maturity made simple”. If you go at the bottom of the insight, you will find a short survey that gives you a pre-diagnostic of your organization’s maturity. That could help you get started.

Next, support your case with practical examples.  Suppose there is an opportunity to save costs by working with boutique consultants. In that case, you’ll have to calculate the anticipated savings and present it in monetary terms.

David Nadler adds that when building the case for change, you need to also highlight mistakes made in the past: don’t go into too much detail but give enough background information, so people get an insight into why things had gotten stuck and why a change is needed. For instance, you could explain why keeping procurement out of the equation leads to lower impact and high costs.

Finally, bombard people on future opportunities and the benefits for the company – emphasize how being agile and seizing opportunities quickly will enable your organization to gain an advantage over competitors. Make sure that everyone involved understands that your organization can not seize these opportunities without changing.

Now you need to align your top management with a common vision of success and build a coalition to support the change. It’s essential to choose the right people for this task, as it will be crucial for driving successful action. Look for people who have power, influence, credibility, expertise, and leadership skills.

It’s also important to create a vision that is imaginable and attractive – something that the team can easily visualize and understand. This means developing goals regarding ROI, impact, and savings within specific dimensions of maturity you would like to achieve. While doing so, make sure your vision remains flexible, adjustable, and easy to modify according to changing circumstances.

You also have to understand that the vision with depend on your company’s current maturity, your culture, your existing ways of working, but also your ambitions and the volume of consulting you buy, among other things. Not all companies need to be best-in-class.

A small company, for instance, may aim for a standard level where processes are under control, and basic demand management in place, while a very large company should aim for the moon.

Finally, when presenting your vision to your team (or even wider audience), connect both logically, emotionally, as well as instinctively.

Don’t forget to speak directly to their head (their logical side ), heart (their emotional side), and guts (their instinctive side). It’s a powerful combination that can help drive successful change. So try to engage with people on three levels – this will increase the chances of success!

Your next step is to facilitate the adoption of a new way of working and anticipate potential resistance from different stakeholders. It’s understandable that business leaders who are used to deciding everything on the consulting budget might not feel completely comfortable with arbitration or validation steps. Similarly, Procurement professionals accustomed to being called for negotiations and transactional activities only might have some reservations over their increased role.

We can all agree that change for the greater good is necessary, however, don’t underestimate the impact it will have on individuals. Some functions will be integral to this new way of working, so they must be on board!

Make sure to keep them in the loop, understand their point of view, and provide support where needed. This way, you can ensure that everyone has a stake in the success of your project and will work together to make it happen!

While taking up the transformation journey, don’t forget to have some fun along the way, too – after all, change is an exciting time! Share stories from similar projects, get creative with incentivizing participation, and celebrate successes when they come. Who knows, you might even have some people running towards these new opportunities instead of resisting them!

Now it is time to communicate your plan.  It is essential that you communicate as widely and openly as possible. This will ensure that everyone understands the changes, how those changes will affect them, and why they need to be implemented in order for a successful transition.

When it comes to communicating your plan, there are three dimensions that you should consider:

  1. Who needs to know? Identify who needs to know about the change, what information they need, and how they should receive it (for example, an email or a meeting).
  2. What do they need to know? Explain what is changing and why. Make sure to include practical steps on how people can adjust and prepare for the new processes.
  3. When do they need to know? Determine when people need to be informed so that they can make the necessary preparations.

In addition, you should make sure your plan includes a list of any changes that will be implemented and the actions that you are taking to address any resistance. Changes could include introducing new technology, altering processes, hiring new personnel, or creating new roles, whatever it takes to ensure a successful transition.

Lastly, keep in mind that communication is key throughout this process, so don’t forget to stay focused on ensuring your message reaches everyone who needs it!

Now It’s Time to Implement Your Plan for the transformation journey!

Prioritizing actions is an important part of this process. Consider which ones can be tackled quickly, and start by tackling those first. This will help build momentum and enthusiasm for the project as you move forward. Don’t forget to mix in some longer-term actions that might not have a quick payoff but could make a real difference in the long run.

And lastly, don’t forget about good project management practices! Set up Key Performance Indicators (KPIs) and solid project governance.

KPIs help you measure the performance of your implementation, while rules around governance will make sure everyone is clear on who has the authority to make decisions and take action. Good communication, clear goals, and solid risk management can also do wonders for any implementation plan.

Thinking ahead about potential issues that may arise will ensure you are prepared to tackle them if they come up down the line.

Make Change a Part of Your Company Culture

Last but not the least, it’s important to keep up the momentum and make sure that any changes made are sustainable. That means integrating them into the company culture so it becomes part of how your team works overtime – easy as pie! Of course, you need to help with that, and there are a few ways to do it.

Firstly, look at changing processes using handbooks and training sessions if needed.

Secondly, leverage digital tools to support those changes – this can be anything from collaboration tools that help spread ideas quickly to productivity tools like task management applications or procurement tools that guide your teams through the best practices and measures their adherence to them.

And don’t forget the fun stuff, either; adding a bit of fun into the mix can go a long way in keeping people engaged and motivated!

And so, to conclude today’s topic,

Companies know that success in today’s climate requires embracing digital transformation, but just implementing change won’t guarantee a great return on investment. The keys to optimizing consulting spend are understanding the “why” behind the initiative and rallying everyone around it- which isn’t always easy!

Experts John Kotter and David Nadler emphasize putting urgency first by presenting tangible facts tied to real consequences of inaction as well as highlighting potential rewards associated with taking action.

To increase buy-in from upper management, they suggest selecting individuals who possess power plus influence credibility, expertise, and leadership capabilities. You should create a vision powerful enough to adjust when conditions adapt and speak candidly directly into people’s minds, hearts, souls , aka head heart & guts – when delivering this dream aloud.

Keep an eye up for me next week when I return with another fascinating topic.

You need to think strategically about who needs the info, what they ought to know, and most importantly – when do they need it.

Plus, you have to move fast to keep the momentum and, at the same time, keep the long-term goals in mind.

Planning ahead can help determine which actions are most important; your strategy should include setting up goals plus implementing good project management practices like risk management & project governance.

Above all – make sure those changes become part of everyday life by implementing practical methods such as handbooks, training sessions, or digital tools like collaboration, productivity, or procurement apps. So let’s keep on changing the way we buy consulting together!

Well, this concludes today’s episode. .

Next week we’ll return with another fascinating topic.

Till then, stay safe and happy sourcing and if you have any questions regarding today’s topic or anything consulting procurement related, remember you can always contact Helene directly on LinkedIn or by email because she’s always game for a chat and stay connected with us through our community on LinkedIn and follow our Twitter handle @ConsQuest.

Don’t forget to like and subscribe to our channels!

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Happy Sourcing!

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Helene Laffitte

Hélène Laffitte is the CEO of Consulting Quest, a Global Performance-Driven Consulting Platform. With a blend of experience in Procurement and Consulting, Hélène is passionate about helping Companies create more value through Consulting. To find out more, visit the blog or contact her directly.

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