Change management in Thai procurement organization: a case study in a Thai construction company.

Abstract

Organizational change management is a topic that has been widely discussed and studied to find out how to successfully transform the organization to cope with significantly increasing of changes in every dimension whether it be frequency and variety from the impact of globalization. The aim of this research is to explore the extent methodology for change management in a Thai Procurement organization which has superior performance result. Furthermore, the research project aims to identify the required procurement competency in the future. Three research questions are: (1) What is the current methodology that a Thai procurement organization uses for change management? (2) Does the practice that a Thai procurement organization used consistent with McKinsey 7-S model? (3) What should be the competencies for future procurement role? The research study the effective change management practices in seven aspects: structure, strategy, systems, skills, style, staff, and shared values as well as its alignment to shared value. Moreover, the exploration of required competency in the future will be done based on Iceberg competency model. This research select Operational Procurement Department, CUEL Limited as the case study, and use the qualitative method for collecting data and analysis. The research analysis has shown that this organization recognize the change and uncertainty as a part of the organization, share the core value, ethics and direction to the members. They have the plan to improve the competitive advantages of procurement. They have restructuring the organization structure from ‘functional’ to ‘matrix’ structure for flexibility in respond to change. Moreover, they continuous improve tools used for daily operation i.e. sourcing operation procedure, program and database also the communication channel, solving problem method. Furthermore, they have improved the member’s profile by expanding the job responsibility from Buyer to be Buyer/Expeditor. The organization has tried to improve competitive capabilities and competencies: assess the skills and performance, provide continuous training to every organization member. Lastly, the most important thing is they align every practices with the shared value of the organization. Therefore, this organization has change management practices conform the 7-S framework. This research also shown the exploration for future role and required competency both technical and behavioral. In summary, all of research questions have been answered. The practices of change management would support the organization to have an effective operation and achieve the superior performance.