eProcurement Project Managing Change

1. eProcurement ProjectManaging Change S Tahalooa LLM, MBA, MCIPS, PhD Candidate Advisor Procurement Policy Office 24 February 2014

2. Elements of Changes • Technological Change • Functional Change • Physical Change • Process Change

3. Key objectives of Change Management • To acquaint stakeholders to appreciate the new eProcurement system • To acquaint suppliers with the new system • To motivate, train and capacitate procurement officials to undertake revised roles and responsibilities associated with the implementation of the eProcurement system. • To streamline transition of all aspects pertain ing to the eProcurement system a • To ensure successful implementation of the eProcurement system and embed sustainability of the project

4. Change Management Strategy • Communication Strategy • Capacity Building • Operational Strategy • Human Resource Strategy • Risk Mitigation Strategy - The eProcurement project will follow an incremental approach - Change management would follow the pace - Collaboration is key to success

5. Communications • Face to face meeting with all stakeholders including suppliers • Practical sessions • Video clips • Regular eNewsletter • User manuals • Emails • Extensive use of PPO websites • Feedback

6. Training and awareness workshop by Service Provider • Training Users for Testing • Training Users for Helpdesk • Training Users for System Administration • Training Users for Master Data Management • Training End Users • Awareness Workshop for Suppliers

7. Capacity Building • Capacity building to all concerned: Admin, Public Procurement Officials, Auditors and Suppliers • Special attention to SMEs with the collaboration of SMEDA, CIDB, Suppliers Association etc • PPO is compiling a list of potential trainers (about 10) • Dedicated training after completion of each milestone (wherever necessary)

8. Process change • Regulations for eProcurement introduced • Directives and Circulars reviewed • Detailed procedures introduced

9. Impact on current structure/operations • Generally same • Need for BEC, Departmental Tender Committee • Major contracts will continue to be approved by CPB • However, processes standardised and streamlined • Internal stakeholders fully integrated • Certain obligations such as Return of Procurement Activities might not be necessary • Management reports generated will be an important tool in the hand of decision makers

10. Performance Management • Measuring performance • 2013 as base line • Price differences, Efficiency gains, Increase in number of participants (overseas suppliers, SMEs) • Review Note: 1 % savings = Rs 150 million

11. Critical Success Factors • Perceived benefits of all stakeholders: Government, Public Bodies and Suppliers • Commitment and support of top level management is critical

12. eProcurement as ONE instrument • eProcurement is one important instrument to achieve most objectives of the procurement system However, • Improvements will continue through introducing new techniques such as LCC and FA

13. In a nutshell: Public bodies and suppliers will receive all necessary support throughout the transition period and beyond. Commitment and collaboration of all key stakeholders are essential for the success of the project