Why Isn’t Procurement Changing?

It’s a good question, and one the procurement dynamo recently tackled over on procurement.world. According to the dynamo, multiple factors are at play, including, but not limited to:

Big Jelly Theory

Attributed to Paul Finnerty, the ‘theory’ is that if you throw yourself and your team members, 100% mentally and physically, at the organization, in an attempt to change it, at best the organization will give a little shiver, momentarily, like a giant jelly, and then immediately return to its pre-existing shape and carry on, with business as usual, as though nothing has happened.

Irrational Actors

Attributed to Charles Jacobs, brain cience has found that human beings are anything but reasonable… When it comes to motivation, our approach is based on the view of classical economic theory that people are rational beings trying to maximize their economic return. This leads us to use the promise of rewards to motivate the behavior we need. But in direct defiance of the theory, people don’t respond reasonably or objectively to the rewards.

But are these the only reasons? There are two reasons that modern Procurement solutions aren’t adopted. The first is the people. They can resist, resist, and resist. The second is the management.

Management with Revolving Door Priorities

When Management falls for every fad of the day and changes priorities, processes, and even technologies every couple of years, employees get jaded and even more resistant to change then they’d naturally be. The Big Jelly gets bigger.

Maury the Management Moron

Sometimes the team, who want to do well and get their bonuses, will come to the conclusion they need a new solution, go through a detailed evaluation and select one they are willing to give an honest go. But, Maury the Management Moron, who will just see the price tag (and not the ROI) and correlate it with a potential negative impact on his bonus will say no. And that’s the end of the Procurement progression.

So, when trying to figure out a way around the conundrum, you have to go beyond just people and look at roles and how the values change as the role changes. And take that into consideration when applying your economic theory. (And, sometimes, wait for Maury to be shown the door.)

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