We all know the problem of too many projects on the list and not enough staff or time to do them all, and how do you prioritise what you do? I bet on your list are a number of smaller projects that stand alone as tactical solutions, that we could pick up for you. We specialise in those – quick wins –
Tactical vs. Strategic Sourcing:
Many organisations have spent a lot of time developing and improving their strategic sourcing processes over the years, but sometimes the quick wins are forgotten.
Following a regimented strategic sourcing process often means that procurement projects can take a long time with significant benefits not being realised until the end of the process. Moreover, organisations usually prioritise high spend areas with key suppliers for these strategic projects as this is often where the highest savings can be achieved.
This approach clearly has an impact on the use of development resources. Once the flagship categories have been dealt with there are a number of other spend areas that still need addressing in some form or another – these areas are often ignored and not managed as focus and priority is given to the critical spend.
With budgets becoming tighter, savings through development initiatives that give quick wins and deliver fast business benefit should not be ignored. But for these smaller or more time critical projects, it can be hard to justify the time spent in applying the often lengthy strategic sourcing processes.
For many organisations, it may be worthwhile considering whether a more tactical approach for certain projects would produce more cost-effective results overall.
Quick but effective – fast business benefit
Tactical sourcing is typically reactive to a situation or need with individual projects being considered in isolation. This sourcing approach may be especially relevant for time critical projects or where significant business benefit can be achieved as a result of a system change.
A number of our clients have successfully used a tactical approach for projects that need urgent delivery to meet changing regulatory requirements such as compliance projects where the FCA is involved.
Do it properly
One of the major criticisms sometimes levelled against tactical development is that is it a short term solution and may need to be replaced with the final strategic solution in the long run. While is it true that this can be an issue, a correctly rolled out tactical solution should repay its costs before it is replaced and in the meantime has provided business benefit. It is imperative that any tactical development project is managed effectively, and to a great extent this is down to expert project management skills and teamwork between the business and solutions provider. In our experience, a well implemented tactical solution may actually remain in place for many years.