Solution
Executive Summary
This assessment has focused on evaluating the best practice that can be adopted in leading a project team for implementing a new category management strategy. This has been done with a focus on XXX which is a private-owned multi-specialty hospital operating in Qatar. The rationale of this has been informed by the fact that the author works in this organisation and has identified the existence of inefficiency in the P&SM due to their adoption of manual systems. As such, there has been a need of modernizing their systems to ensure that they achieve in areas of talent management, supplier relationship, stakeholder engagement levels and digital transformation. The approach to the change has been identified by adopting stakeholder matrix and using a change management models to describe the nature of the change. A team from different departments would be used in the change implementation that have been identified and the leading style by the leader. The benefits of the change process, stakeholder’s management, and the best practice to forming and developing the project team has been identified. The outcome of the change process to the XXX organisation would include harnessing the procurement process to be more efficient and effective than in the past and creating a host of strategic opportunities. Also, by ensuring an acceleration of the innovation in the entire organisation, the engaged team would play a critical role in shaping of the broader digital roadmap. Different aspects have been pointed out to form a critical category management with collaborative leadership being implemented. The team would be required to participate in deciding on the selected change, discuss on it and offer their final decision.
There are several recommendations which have been provided. They include;
- Carrying out frequent engagements with all stakeholders in XXX company
- Adopting the Maslow’s Hierarchy of Needs and Herzberg’s Two Factor Theory to the team to understand the need for their motivation and satisfaction
- Ensuring that the modernized system is independent from their current ERP system for success
1.0 Introduction
1.1 Company Background
XXX is a private-owned multi-specialty hospital operating in Qatar. It was founded in 2015 and affiliate of a larger institute involved in teaching students on different medical fields. At the start, the hospital was offering medical services to approximately 500 patients with the number increasing to 900 as at today with a similar number being served as inpatients. Currently, the hospital has employed a total of 3000 employees. In 2018, a total of 25,000 patients were treated at the hospital outpatient clinic with an intention for future expansion in the number of patients handled to 30,000 annually and 1000 inpatient beds. The author of this report works as procurement administrator in the XXX procurement hence has a sufficient understanding of the department operations.
1.2 Procurement Function of XXX
The procurement and supply management (P&SM) plays a critical role in handling different types of tenders and contracts associated with different services and products (Spina et al., 2013). Currently, there are different contracts being implemented by the department guided by the department policies and highlighted in bills of quantity. The P&SM interacts with all potential bidders albeit in a more physical approach with minimal adoption of technology. As a result, the tendering process fails in actively engaging all stakeholders as they play their distinct roles. The P&SM department operates with a primary aim of ensuring that they manage their resources effectively while harnessing an improved expenditure and accruing different gains. The organisation P&SM organisation structure is as shown in figure 1;
Figure 1: Procurement and Supply Management Department Matrix Structure
Source: XXX
1.3 Category Management and Category of Spend
CIPS (2019) defines the category management as a strategic approach involved in organizing procurement resources for focusing on specific areas of spends. The outcome is better as opposed to traditional based purchasing methods. In the context of P&SM, Azambuja et al. (2014) noted that the process involves organizing resources of a procurement team for focusing on the entity supply market contrary to the internal customers or departmental functions for holistic leverage on procurement decisions.
From the identified definition, in the context of XXX, category management involves the strategy adopted by the organisation in managing its P&SM activities related to products and services. The categories of spend in this regard would include ICT, Stationery, medical supplies and vehicles across the XXX and mapping them onto a specific supplier market. From this category management, XXX management would be able to make relevant decisions on the products and services to be bought, the suppliers to be engaged and the contracts they enter into and a category by category basis with a need to optimize quality and maximize overall savings in the entire organisation. In order to achieve the identified strategy, there is a need for XXX to transition from their manual approach in procurement to a modernized approach. This is possible through leverage on change targeting the areas of talent management, supplier relationship, stakeholder engagement levels and digital transformation.
2.0 Current Situation
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