MASTERING ADAPTATION: STRATEGIES FOR MANAGING DEVIATIONS IN PROCUREMENT OPERATIONS
The problem with rules is that people like to test the limits of how far they can go. Most rules have loopholes that will be exploited by creative individuals, so if you spend your time chasing every offender, you will have your hands full trying to ensure adherence. You will then become a police officer instead of a business leader and that my friends, is a distraction from what we are called to do.
I’m often asked this question, “what do you think about managing non-compliance and managing people who violate processes?” this is my usual answer; “When you have an infestation of rats inside a room, how do you proceed to eliminate the problem?
Do you throw stones and objects at them and bring in more furniture hoping you will crush them by the sheer weight of these items, or do you empty the room one object at a time, until the pests have nowhere to hide?” As you make more rules hoping to “catch” violators in their game, the more inventive they become in finding ways to evade those procedures.
I propose a different approach; write those exceptions into the procurement process. Business operations are dynamic, and you really cannot account for everything that may occur; so, do a historical analysis of the usual exceptions, create a process for getting them approved (usually at the highest level), and include them in the procedure document. This process must include the reason for the exception and a sign off from the highest authority within their department.
You must realize that by this, I am in essence asking you to write a “rule for the exception.” I know that exceptions will occur, and I know that user departments will find a way to fulfill the needs of the business if they make a strong enough case. Business needs will always rank above the procurement processes when push comes to shove.
People usually come back at me with, “well, why are you showing them how to avoid the process and giving them a way out?” Well, I’m not. First, they already know how to navigate their way around the rules anyway, so there’s no need to pretend it’s not already happening. Secondly, I’m only “clearing the room” so I can see more clearly why they do these exceptions. It is only when the reasons for the exceptions are known that I can define a process that better manages it.
In my experience, I have seen that business leaders can approve an exception only a few times before they begin to question why their people are not complying. If you keep a record of the number of times each leader has had to approve an exemption, and you report it periodically, those same business leaders will begin to push back to their own people and will ask them to work within the framework of the procurement process. All the excuses of procurement being a bottleneck become baseless, and the real problem – a lack of adequate planning by the users – comes to the fore.
This does not mean that procurement people are always in the right, but it provides some insight into hat the issues are and how we can partner with our users to provide solutions that drive value and meet the business need at the same time.
