Driving Change Management Success Through Strategic Consulting Partnership

The Challenge

Resistance to Change in Clinical Procurement System Implementation

A mid-sized pharmaceutical company faced significant challenges with its existing outsourcing tools. While the company utilized a corporate-level procurement system, the solution did not address the specific complexities of CRO bids. As a result, outsourcing teams—including R&D, early-stage, and late-stage clinical teams—relied entirely on Excel spreadsheets to conduct the RFP process. Despite efforts to streamline the process with standard bid grids and rate cards, the Excel-based methodology posed critical issues:

• Inefficient Proposal Reviews: Manual due diligence on complex Excel spreadsheets with multiple tabs and dimensions caused inefficiencies.
• Inconsistent Application of Agreements: Fixed agreements were difficult to enforce and verify they were consistently applied.
• Lack of Budget Clarity: Limited visibility on how negotiated rate cards were utilized on proposal budgets.
• Difficulty Comparing Proposals: Challenges in performing side-by-side comparisons of proposals.
• Limited Traceability: Absence of a clear audit trail for RFP, scope modifications or commentaries during the bidding process, both internally and with CROs.
• Prolonged Negotiations: Lengthy and cumbersome discussions with CROs.

Switching from Excel to a fit-for-purpose outsourcing system was necessary. However, resistance to change, workflow disruptions, and concerns about CRO interactions with the new system hindered implementation, delaying cost savings and operational improvements.

The Solution

Strategikon and Partners Deliver Seamless Change Management

Strategikon partnered with a specialized consulting firm to facilitate a smooth transition to a standardized clinical procurement system. The process included the following steps:

• Building Cross-Functional Collaboration:
  • Partnered with procurement, clinical, and IT leaders to form a cross-functional team.
  • Conducted in-depth stakeholder interviews to identify pain points and desired outcomes.
  • Produced a comprehensive gap analysis and aligned system features with operational goals.
  • Developed guidelines, work instructions, and processes to support the transition.Custom Training for Adoption.
• Custom Training for Adoption:
  • Created tailored training programs to address specific user needs, ranging from procurement staff to department heads.
  • Delivered workshops, interactive resources, and real-time support to enhance system familiarity.
• Phased Implementation for Success:
  • Rolled out the new system in stages, starting with smaller departments and simpler processes and gradually moving to complex late stage CRO outsourcing.
  • Implemented rate card, bid grid and assumptions consistent management
  • Engaged key CRO partners early to familiarize them with the system and identify any necessary changes for successful bidding.
  • Incorporated continuous feedback and adjustments to optimize workflows and minimize disruptions.

The Results

Enhanced Procurement Efficiency and User Adoption

The strategic partnership delivered measurable improvements, overcoming resistance to change and enhancing operational performance:

• Cost Reduction:
  • Procurement costs decreased by over 25%, driven by reduced due diligence time, larger negotiated savings, error elimination, and improved project scoping.
• Accelerated Adoption:
  • User onboarding was 50% faster compared to standard implementations, with twice as many users adopting the system, including non-outsourcing stakeholders from Finance, QA, and Clinical Operations.
• Increased User Satisfaction:
  • Over 90% of users reported high satisfaction with the system’s ease of use and efficiency.
  • Stakeholders rated the onboarding and transition process as “5 stars.”

This successful change management initiative not only optimized clinical procurement operations but also set a precedent for cross-functional collaboration, delivering a scalable and efficient solution that benefited all stakeholders.