Bulgari gained visibility and control through a technology overhaul © VCG/Getty Images
Bulgari gained visibility and control through a technology overhaul © VCG/Getty Images

What are the four principles of change management?

14 April 2021

Outlining a clear purpose and providing role models throughout the organisation have been crucial in increasing adoption of procurement technology at jewellers Bulgari.

Jose Bustillo, sourcing excellence and procurement administrator at Bulgari, told delegates at Ivalua Now, when Ivalua’s technology was initially implemented at the firm in 2018, it had been “too quick”. 

“We did not prepare our stakeholders or end users for this change. There wasn't a purpose and there wasn't enough communication which resulted in resistance to change,” he said. 

“The number of emails increased dramatically to about 100 emails a day or more with questions about the implementation, questions about the interface issues or about the training.”

As a result, Bustillo said the firm had to initiate a new change management model to find a purpose for using the technology and how to make it work for Bulgari.

As a result of this model, Bustillo said there was currently 100% end user adoption of the system.  

“There is a lot of trust in the system. The number of emails that I used to get at the beginning of 2018 has reduced by almost 99%,” Bustillo said. 

Bustillo shared Bulgari’s four principles of change management:

1. Be clear in your purpose

Bustillo said it was important to emphasise that Ivalua was not just a tool that would help Bulgari simplify its processes. It was also about gaining visibility, spending analysis, sourcing management, contract management and elements that end users were not as aware of so the firm needed a change in perspective.

“Trying to figure this out started with me analysing and studying first how Ivalua was actually working from A to Z in every single field in the platform. From creating a vendor, to creating a contract, what was the cost centre or the purchase group and how do we do a PO? All of these terms the end users were not aware of,” Bustillo said.

“Think about how you outline a purpose to somebody who has never worked in finance before? Somebody who was actually working at the stores selling or in the field, or somebody who is in a corporate office? How will you display a message that will actually emphasise our purpose?” he said.

2. Reinforce behaviour

The next stage focused on reinforcing behaviour within the firm by incentivising and motivating teams to continue to use the technology, Bustillo said. 

“This was a team effort and we needed to reinforce the change. We needed to keep that motivation and support and we needed teams to believe that this was necessary for a change in the corporation.”

To do this, Bustillo said the firm used financial rewards such as giftcards, but also meals alongside training.

He added: “Those who we realised were putting more effort into learning about a tool could have a one-on-one session with me and that was an incentive to them.”

3. Get the right training in place

Training was also crucial to ensuring team members had the skills they needed in order to understand the technology. 

“We needed to teach them the skills they needed to understand and go through all the different terms they didn't understand and work out how to make it easier for someone who has never worked with a system like Ivalua,” Bustillo said.

One of the ways in which this was achieved was condensing a 78-page manual into separate modules and how to guide on different topics such as suppliers, contracts, catalogues, procurement and invoicing, Bustillo said. 

4. Locate your role models

The last element that helped Bulgari through its change management project was ensuring there were consistent role models throughout the organisation, not just from the finance department or sourcing departments.

Bustillo said: “We needed to have a local role model so we created the ‘Ivalua Key Users Initiative’ for key users that had a more clear picture of exactly what they wanted to have for their departments. We created these users and then we started to implement them, complementing our training from the core office as well as training local team members.”

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