Why Digital Transformation in Consulting Procurement Often Fails (And How to Fix It)?

Digital transformation isn’t just about flashy new tools—it’s about redefining how we work. In this episode of Smart Consulting Sourcing, Helene Lafitte, CEO of Consulting Quest, dives deep into the pivotal role of change management in digital procurement transformation. From real-world challenges like misaligned teams to actionable strategies for driving success, Helene breaks down why transformation in consulting procurement requires more than technology—it demands a mindset shift and strategic alignment across the board.

Don’t miss this insightful episode that uncovers the secrets to unlocking the full potential of your consulting spend. Tune in now and start transforming smarter!

Key Takeaways

  • Transformation is not just about adopting new technology; it’s about changing the way people work, collaborate, and deliver value. Without robust change management, even the most advanced tools will fail.
  • Organizations often focus on the features of new tools rather than the bigger picture. True transformation involves rethinking operations, aligning stakeholders, and creating a culture of innovation.
  • Resistance to change is a major barrier. Aligning teams, addressing concerns, and emphasizing the value of transformation to all stakeholders are critical steps for success.
  • Unlike other categories, consulting is intangible and relies heavily on trust, expertise, and alignment across diverse stakeholders. This makes transformation in this space particularly challenging but rewarding.
  • Instead of rolling out changes organization-wide, begin with a controlled pilot phase. Test, refine, and showcase success stories to build momentum and credibility.
  • Consulting procurement transformation involves navigating politics, aligning goals across departments, and fostering collaboration. Strong change management is the backbone of achieving this.

Transcript

Hello and welcome to Smart Consulting Sourcing, the podcast that helps you unlock the power of consulting to drive your business forward. I’m Hélène Lafitte, CEO of Consulting Quest, your go to partner in consulting procurement. We are all about helping organizations make smarter decisions when sourcing consulting services.

Today, we’re tackling a topic critical to the success of digital transformation in procurement. Change management, with a special focus on why it’s the cornerstone of success in consulting procurement.

So, let’s be honest, implementing a digital tool just because it’s trendy, doesn’t work.  Trust me, I’ve seen this movie before and it doesn’t end well. Digital transformation is about changing the way you work, not just adding new tech to your toolbox. That’s where change management comes in. Without it, even the most cutting-edge solutions will fail to deliver.

In this episode, we’ll explore why digital transformation requires more than just technology. How consulting procurement presents unique challenges for change management and most importantly What it takes to drive successful transformation in this space.  Let’s dive right in!

Digital Transformation Isn’t About Technology—It’s About Transformation

Here’s a harsh truth. Many organizations approach digital transformation like they’re shopping for the latest gadget. They focus on the tool itself, the features, the dashboard, the automation, and forget the bigger picture.

Take this statistic as an example, 70 percent of digital transformation initiatives fail to meet their objectives. Why?  Because organizations underestimate the importance of change management. They’re invested heavily in technology. But forget that transformation doesn’t just happen when you implement a shiny new tool.

Let’s consider a real-world example. A Fortune 500 company, a household name, recently implemented digital procurement solution across its global operations. The software was top notch, AI driven analytics, automated sourcing, but within a year, usage rates have plummeted. The teams weren’t aligned on how to use the tool. Stakeholders resisted the change it brought to their workflows, and no one had addressed the people’s side of the transformation. And this isn’t an isolated case.

Research by McKinsey shows that only 16 percent of employees feel fully equipped to adopt digital tools introduced in the organization. It’s a staggering gap between potential and reality.

So, what does this tell us? Digital transformation isn’t just about technology. It’s about rethinking how you operate, how you collaborate and how you deliver value. That kind of change doesn’t happen just because you have implemented a new software solution. The real work begins when people start embracing new ways of working, and that means addressing resistance to change. People are creatures of habit, and if they don’t see the value of a new tool or worse, if they feel it threatens their roles, then they resist.

Aligning stakeholders in procurement decisions often involves multiple functions, from finance to legal to operations. If these groups aren’t aligned, transformation grinds to a halt. Creating a culture of innovation goes beyond tools and processes. It’s about empowering your team to think differently, experiment, and embrace change.

And if that sounds challenging, it’s because it is. But in consulting procurement, the stakes are even higher. Consulting procurement is inherently more complex. Companies globally spend over 250 billion annually on consulting services, yet consulting is one of the most opaque and intangible categories.

You’re not just buying a product, you’re buying expertise. Here’s an example. Imagine a company that’s sourcing a 10 million consulting project to drive a critical transformation. They implement a digital procurement tool to streamline the process, but the success of that project doesn’t just hinge on selecting the right consultant.

It depends on whether the stakeholders are aligned, whether the tool is used effectively, and whether the teams involved truly understand how to integrate the consultant’s recommendation into their operations. In short, technology can enable transformation, but it can’t drive it on itself. And that’s the role of change management.

Without it, you’re not just leaving money on the table, you’re risking the success of your entire initiative. And in consulting procurement, that risk is magnified.

Why Consulting Procurement Is a Special Case?

Consulting procurement isn’t like buying office supplies or raw material. It’s a unique category that operates in its own slightly messy and often political universe. When you buy consulting services, you’re not purchasing a product. There’s no physical item to hold, no immediate results to measure, no box to tick off.

Instead, you’re investing in expertise, insights, and recommendations. And the challenge? You’re betting on something intangible. How do you assess the ROI of advice? Before you have even seen the impact, how do you compare the value of one consultant’s methodologies to another’s? Because of this, many organizations rely on instinct or, let’s be honest, personal preferences, to guide their decisions.

“Oh, I’ve worked with them before”, or “They’re big name in the industry” becomes the default criteria rather than a structured, value driven analysis. Changing this approach requires more than just a simple policy update. It requires a mindset shift.

Consulting is used everywhere in the organization. Strategy, operations, HR, IT, you name it. They are all hiring consultants. This means the people you need to convince to embrace a new approach to buying consulting aren’t just sitting in one department. They are scattered across the company, each with their own needs, preferences, egos. This is why transformation in consulting procurement isn’t just about processes.

It’s about building consensus and aligning goals across a diverse and often divided group of stakeholders.  In consulting procurement, the people buying the service are often the same ones using it. In theory, this should make things easier, but in practice, it doesn’t.

This dynamic requires collaboration, not just between procurement and end users, but across teams, functions, and even geographies. And collaboration, as anyone in procurement knows, isn’t always easy. Now let’s throw in another complication: C-suite politics. many executives don’t exactly love the idea of procurement meddling in their consulting decisions.

“I’ve been using Firm X for years and they know my business inside and out”, they’ll say. Or worse, they’ll just bypass procurement altogether. And this makes consulting a touchy category. Procurement must walk a fine line between adding value and avoiding conflict, especially when senior leadership is involved.

Why Strong Change Management Is Essential?

So, what does it mean for organizations looking to transform the way they buy consulting? It means that without extra strong change management, your efforts will fail. Period. Think about it. You’re not just asking people to follow a new process. You’re challenging deeply ingrained habits and preferences.

You’re not just rolling out a new tool. You’re navigating the politics of the C suite. And you’re not just introducing a new way of working. You’re shifting the mindset of an entire organization. That’s why consulting procurement requires a tailored approach to change management that accounts for its unique dynamics, builds trust and ensures alignment across all levels of the organization.

And yes, it’s a tall order, but if you want to optimize, transform, or even survive a digital transformation, change management is non-negotiable.

What Am I Supposed to Do Then?

All right, so we’ve established that implementing a digital solution for your consulting procurement is not the transformation itself, it’s just an enabler. Think of it as the spark, not the fire. The real transformation? That’s a challenging, political, company wide effort that requires careful planning and execution.

So how do you make it happen?  Let’s break it down into six clear steps, that will help you navigate the complexity and ensure your transformation is a success.

Step 1: Evaluate Where You Stand

The first step is to evaluate where you stand. Before diving headfirst into transformation, you need to take a good, hard look at your starting point. So, ask yourself. How mature is your consulting procurement function today? How much are you spending on consulting services? Who are your main consulting providers and what do you hire them for? What are the steps of improving this process? And perhaps more importantly, how much value can a transformation create for your organization?

Think of it as a diagnosis phase. Without a clear understanding of your current state, you’ll be navigating blind. And in a category as complex as consulting, that’s a recipe for disaster.

Step 2: Determine How Mature You Need to Be

Your second step is to determine how mature you need to be. Not every organization needs to aim for best in class consulting procurement processes. If you are a startup that uses consulting occasionally, it might make more sense to outsource your consulting procurement.

Why? Because building a highly sophisticated internal process might cost you more than it’s worth. But if you are a large organization spending hundreds of millions on consulting every year, the stakes are much higher. For you, achieving best in class procurement isn’t just a nice to have, it’s a strategic imperative.

Step 3: Build the Business Case

This step is about defining your target state.  What levers can you pull to improve your processes? In what order should you tackle them? Remember, you can’t do everything at once. Transformation is a journey, not a sprint.

People don’t like change, especially when it disrupts their familiar ways of working. That’s why you need to build a strong business case. This isn’t just about numbers. It’s about showing stakeholders what’s in it for them. How will a transformation benefit their function, their team, their goals,

for finance, the case might focus on cost optimization and ROI. For operational teams, it might highlight efficiency and faster decision making. For the C suite, it’s about aligning consulting spend with strategic priorities. A well crafted business case is your ticket to buy in, from leadership, both from leadership and from the people on the ground who will be using the new system.

Step 4: Find Your Champions

Now it’s time to take your proverbial walking stick and start meeting stakeholders. You’re looking for early adopters, people who are open to change and willing to champion your case. These champions are invaluable.

They help you advocate for the transformation at the C suite level, build credibility among their colleagues, and provide feedback to refine your approach. Think of them as your transformation ambassadors.  And with the right champions in your corner, you’ll get the momentum you need to drive change across the organization.

Step 5: Start with a Proof of Concept

Now, don’t try to boil the ocean. Instead, start small, with a proof of concept. Focus on one business unit, one function, or a large consulting project already managed by procurement. This approach allows you to test your new processes or tools in a controlled environment to gather valuable feedback.

It demonstrates tangible results to stakeholders. Think of it as a pilot phase. If it works, you’ll have a success story to share. And if it doesn’t, you can course correct before rolling out changes on a larger scale.

Step 6: Expand Strategically

Once your proof of concept is successful, it’s time to expand, but with a clear roadmap. So, here’s the key. Don’t overwhelm your stakeholders.  Each new phase of the rollout needs to be carefully managed with adequate support to ensure adoption.

For instance, if your proof of concept was in one business unit, your next step might be to extend it to another unit with similar characteristics. From there, you can gradually scale to the rest of the organization, always keeping an eye on take orders readiness, change management support, alignment with strategy goal.

There you have it. A six steps framework to drive transformation in your consulting procurement.

Conclusion

So, let’s recap. Evaluate where you stand.

Determine how mature you need to be. Build a compelling business case. Find your champions. Start with a proof of concept and expand strategically. It’s not easy, but achievable. With the right mindset, approach, and most importantly, the right team.

That wraps up today’s episode of smart consulting sourcing.  If you’re curious about transforming your consulting procurement, we’d love to help at Consulting Quest. We specialize in just that. And offer a powerful digital solution called Consource to support your journey. Feel free to visit our websites at consultingquest.com or consource.io to learn more.

Better yet, book a call, drop me an email directly at helene@consultingquest.com. I’m always happy to discuss how we can help you unlock the full potential of your consulting spend. That’s it for today. Happy sourcing. And as always, bye and au revoir.

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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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