Breaking the Barriers: Securing Stakeholder Buy-in for Procurement Initiatives

“I’m sorry. Your product is great, and I see potential, but we are not going to invest in anything new at this time.”

As a former transformation leader at IBM, I dreaded having this conversation with vendors. And I’m sure it’s not just me. Every transformation leader would have made variations of this statement. You know that this new product will benefit your team and organization. The capabilities and features are great; you have seen the product’s potential.

Despite your best efforts, you fail to secure the required support and funding to take it live. You just don’t know why people can’t see the benefits as clearly as you—how automation through a specific partner can reduce the manual workload of thousands of transactions or how a solution can bring so much spend visibility to improve your procurement savings.

Securing stakeholder buy-in for procurement-related initiatives is a complex challenge. It requires a deep understanding of the organization’s dynamics, a clear vision for procurement’s role in driving business value, and a strategic approach to engagement. Over the years, I have engaged with multiple vendors across product lines: ERPs, process mining, RPA, helpdesk solutions, and most recently, workflow orchestration.

First Things First: Understand the World of Enterprise

Large enterprises are often characterized by silos, entrenched processes, and a risk-averse culture. Procurement, traditionally seen as a transactional function, is often undervalued, and hence investment in this area seems unreasonable. Stakeholders, ranging from C-suite executives to end-users, bring diverse perspectives and priorities. Aligning these varied interests and creating a shared vision is a formidable task. It requires a nuanced understanding of organizational politics, influence dynamics, and the ability to build trust and credibility.

While there are cases where the software doesn’t fit well with your business requirements, one of the major reasons for initiatives not taking off despite finding the right product or technology is getting stakeholder buy-in. Here’s my perspective on why people say no and how you can turn it into a potential yes.

1. Pinpoint Areas for Enhancement and Identifying Suitable Solutions

Resisting the urge to jump on technology trends is crucial. The market is inundated with different types of technology. With multiple competing solutions for each sub-process, the financial and operational burden of deploying everything becomes untenable. Overloading users with too many tools can also lead to decreased productivity and increased frustration. This necessitates a careful selection process to identify the most suitable solutions.

To build a compelling case, you must ground your argument in solid data. Convincing yourself of the necessity for this change is paramount before seeking buy-in from others. Leverage data analytics to reveal opportunities for improvement and communicate tangible value.

At the organization where I worked previously, I have used PO data or the missing information in the PO data to show the importance of process mining, which can yield higher efficiency by improving PO quality, for example. Similarly, we have used invoice analytics and overall spend analytics to identify specific use cases.

2. Identify the Key Stakeholders

For procurement initiatives, key stakeholders include procurement executives, direct line management, the CIO, and even internal consulting teams. Their input will be instrumental in shaping the initiative. Many initiatives don’t even kick-off as the decision-makers were not even involved in the discussions. Consulting teams often bring in rich market perspectives, which turn around decision-making internally.

Typically, you should first engage with your line management executives before involving their peers within the CIO organization. Afterward, bring in relevant stakeholders from consulting and other areas as needed. It’s crucial to identify who will fund the project and work from there, as having strong support behind the project is essential for its success.

3. Navigate the ‘Make or Buy’ Dilemma

Let’s say an organization has invested in a home-grown solution for contact centers and is currently looking to bring in an external partner. The immediate question is why do you need something new when we have something already in place?

The perpetual ‘make or buy’ dilemma frequently stalls progress. Large organizations often prioritize in-house development, driven by a misguided belief in cost savings and a reluctance to outsource.

Total cost of ownership offers a more comprehensive perspective than the initial outlay when weighing ‘make or buy’ decisions. By partnering with an external provider, organizations can distribute risk, access specialized expertise, and accelerate time-to-market. Moreover, vendors often lead industry innovation, which can expedite deployment and deliver greater value. While financial metrics like ROI are crucial, conducting proof-of-concept trials can provide concrete evidence to support purchasing decisions. Here’s what worked for me:

• Clear and Concise Problem Statement: Present the “why” using a mix of simple bullet points and graphics.
• Approach: Keep it straightforward without overselling.
• Benefits: Quantify both financial and productivity gains relative to the investment, and be transparent about the time required to realize value.

4. Craft Tailored Messages for Diverse Stakeholders

Tailoring messages to resonate with different stakeholder groups is essential. Operational leaders prioritize efficiency and productivity gains, while C-suite executives focus on the bottom line. The CIO seeks to understand how the initiative differentiates the product suite. Large enterprises use the CIO organization as a gatekeeper to prevent multiple duplicate products. Many companies use thousands of applications, and most of them are used only once or compete against each other.

I tailor discussions depending on who I am speaking with. A procurement user needs to see the problem statement customized to their job function and how the tool will bring value to them. For C-Suite executives, it’s organizational-level visibility for the data and how the tool can deliver incremental savings.

5. Harness Empathy and Proof of Concepts

Empathy is a powerful tool for gaining stakeholder buy-in. By understanding their perspectives and addressing their concerns proactively, we can build trust and foster engagement. Anticipating and mitigating potential risks demonstrates our commitment to their success. And talking alone doesn’t help. Proof of concepts should make it real for the stakeholders by demonstrating to them how their concerns are being addressed and how they can move from just doing business as usual to leaping ahead. We did this in our robotic process automation proof of concepts where we specifically showed how a certain tool could navigate the frustrating time lag between screens and effectively automate thousands of transactions in a day.

6. Overcome Tool Fatigue with a Compelling Value Proposition

‘Tool fatigue’ is a real challenge. Organizations are often inundated with technology solutions, leading to skepticism about new tools. This skepticism is compounded by past experiences where tools promised much but delivered little. Overcoming this hurdle requires a clear and compelling value proposition that differentiates the new tool and demonstrates tangible benefits.

For example, when we wanted to deploy workflow orchestration at my previous organization, there was so much skepticism from all over the organization because we started and stopped a lot of initiatives. It took a lot of effort to help every stakeholder group see the value this technology would bring to their daily life. Getting them excited about the concept of the technology is the first ice-breaker in securing their involvement.

The Power of Belief in the ‘Why’

From contact center solutions to orchestration, one of my biggest workload drivers has been identifying the stakeholders and proving the product value to every stakeholder. It often takes months to build a solid business case, only to face rejection. And this is why I mentioned upfront that you should first believe in the ‘why’. In my personal experience, my passion for why it is important to the organization and how it can help bring value has got me a seat at the table for people to at least hear me out.

Every procurement organization is on a journey to optimize processes. Workflow orchestration is a relatively new concept, making it challenging to convince stakeholders of its value. The key lies in problem identification and demonstrating how the solution addresses specific pain points. Ultimately, building trust and fostering a sense of ownership are crucial for long-term success.