Hannu Kilpeläinen
Product Marketing Manager

Why is Awareness so important for getting e-procurement right?

Two words: user adoption. In our research, we’ve found that the number one reason users drop out of a process is that they feel like their actions are not making a difference and do not matter! WeProcurement™ empowers end users and catalyzes their full participation in the process by providing a feedback mechanism to make users aware of the impact of their actions. Awareness of performance is necessary to demonstrate to employees why their participation in procurement spend management is important and shows them their contributions towards company goals and success by simply using the system every time they need to buy goods or services.

At Basware we have designed WeProcurement to deliver awareness through rewarding personal achievement, peer competition, and enterprise success within the e-procurement system. Users can see exactly how their actions are benefiting the organization as they compare pricing and place orders, without having to understand the procurement process or leave the system.

A Change in Mindset Drives Strategic Outcomes

We encourage procurement and finance teams to use the WeProcurement approach to make sure they acknowledge users for the value they bring to the organization, and enable them to participate in the procurement process and spend management .

By using the WeProcurement approach, organizations can encourage employees to be more conscientious about the ways they are spending company funds by presenting ways they can inject value. Instead of trying to control employees, WeProcurement motivates them to improve the process by seeking their input. This approach also advocates community awareness to show users how their efforts combined with the efforts of others contribute to the procurement spend efficiency and overall success of the company.

Once employees feel personally motivated to participate in savings initiatives that support the company mission, their mindset shifts and their spend behavior actually changes. Continual performance feedback and their personal contribution becoming visible in procurement spend analysis makes employees aware of the progress towards goals and their contributions to the procurement savings progress in a meaningful way.

Awareness of Personal Impact to the Organization

Employees must have easy access to ways to save and know they are making a difference by simply following the process. A little healthy intra-company competition and spend analysis with team and personal level views into spend analytics also encourages participation and generates excitement around the WeProcurement system.

Here are a few ways you can acknowledge users of the system and deliver that critical positive reinforcement:

  • Personal Achievement – Rewarding individual achievements with points and badges encourages continued participation from users and helps reinforce desired behaviors. You can recognize top performers for being a “Speedy Approver,” “Compliance Champion,” or “Invoice Entry Machine.” Some companies offer these winners perks like gift cards or an extra day of vacation time.
  • Peer Competition – Showing employees how their efforts stack up against their peers promotes the healthy intra-company competition. Leaderboards can show who the most frugal traveler is or who is saving the most cost in their department, encouraging everyone try even harder to get that top position.
  • Enterprise Success – Together employees can see their impact on overall company goals and procurement spend , and the rationale and importance for spend stewardship by everyone. This shows users how their collective efforts are contributing to the financial health of the organization, which ultimately benefits everyone.

Over time, this awareness solidifies desired behaviors and a culture of spend stewardship emerges as everyone becomes more conscientious when spending company money. Cost savings become an obvious benefit, but that’s just the tip of the iceberg. A transformation in the economics of the business takes root, serving up funding for new initiatives that move the company forward and makes the company more competitive.

To learn more about Creating a Culture of Spend Stewardship by delivering Awareness of employees’ personal impact, view our on-demand spend management webinar or download our e-book "Putting the We in e-Procurement" and stay tuned for the final edition in the WeProcurement blog series with a customer case study.