Computer Associates (now known simply as "CA") International in Islandia, N.Y. has been through a lot the last couple of years, like many technology companies, including the implementation of a whole new leadership team and a modification of its approach to business. As part of that overall reorganization, CA reshuffled its procurement operations to focus more on global expertise and less on traditional organizational charts.

John Miles, vice president of global procurement, was brought on in early 2005 to spearhead that process. Miles was selected specifically for his experience in making significant changes in the way procurement was handled at major companies.

"One goal at CA was to transition from a founder-led organization to one that is focused on business needs," Miles says. Part of the methodology for setting up the new structure was that, while procurement would continue to be a corporate-led program, not everything had to be driven through the headquarters location in Islandia.

When Miles arrived, he found that procurement was being very traditionally managed at CA. "The positions and roles were focused on things like buyer one and buyer two," he explains. "I didn't think it would serve the needs of the organization in today's global business."

Miles has since created new job descriptions based more on knowledge and experience than on traditional hierarchies. "The skill sets that we look for in our organization are pretty much the same," he explains. "It's the advancement, knowledge, and experience within those skill sets that now differentiate people."

Miles has also created a matrix-type organization that encourages and facilitates the sharing of resources across the enterprise. For example, if CA has a networks initiative going on, and if there is someone in CA's Asian office in Hong Kong who has significant knowledge and experience in networks, that person will be brought in as a resource.

Miles now also has someone in CA's U.K. office near London who, because of his expertise in marketing sourcing, heads up the company's global procurement for marketing spend.

Changes like these would be difficult in a manufacturing environment, which he says tends to be very traditional and hierarchical.

"In our organization, though, where we focus on bringing thought leaders on board in the first place, the transition has not been difficult."

Internal customers have had few issues with the new system, but there has been more pushback from suppliers.

"It has not been difficult to get internal customers to understand and buy in to what we are doing, because we already have a high level of collaboration within the businesses," reports Miles. For example, the decision to have the marketing role based in the U.K. was the result of a conversation Miles had with the senior leadership in the marketing organization.

"I presented the concept and the rationale, and it was not a difficult conversation," he recalls. "They understood it and saw the value in it, so we got the buy-in to do it."

The changes presented a new model for suppliers, though—one that was not easy for all of them to assimilate into. In many cases, the resistance came from the suppliers' account executives, particularly those who had been in place for a number of years and preferred the traditional ways of doing business.

"When we talked about the new ways we wanted to do things, some supplier representatives wanted to stay with the old way," Miles says. As a result, some account execs had to be replaced. This has worked well, in that the new ones coming on board understand CA's new thought processes and methodologies.

The new global structure still offers some challenges for everyone, though, he admits. For example, a New York-based marketing supplier now has to work through CA's UK office. Before, that supplier could work directly with CA's Islandia headquarters.

The changes balance out, though. For example, before the new structure, marketing suppliers in the UK were forced to establish relationships with CA's Islandia office. Now, they can work directly with CA's UK office.

Miles admits it's too early to provide concrete saving numbers or other results. But he is sure things are moving in the right direction. In the first half of 2006, CA will be implementing SAP. When this is in place and the spend data begins rolling in, Miles and his team will begin to launch some initiatives on the vendor management side, such as supplier performance management. It will then have the data it needs to begin reducing the number of suppliers it utilizes and increasing the share of wallet that it has with others.

"A lot of results will be based on our ability to capture a greater portion of the spend," he explains. "Already, we are getting some great traction and some great results. We are also getting invited into a lot of initiatives we were never invited into before."

He believes that all of these are good indicators, showing the people are "getting it" and are supportive of the process.

"We are only just beginning," he concludes.