Score One For Performance Management

For companies thinking about making performance management investments in such areas as scorecards and dashboards in 2006, it turns out that you're not alone. According to AMR's recently published brief Performance Management Spending Nears $23B in 2006 scorecarding and dashboard investments will grow 26% to $5.2 billion in 2006. Granted while supplier performance management will only be a small piece of this growth, this is good news for Spend Management providers offering capabilities in this arena including Apexon, Emptoris, and Verticalnet. But before choosing a technology provider, companies should focus on the business processes (both internal and external) that they want to measure and improve. For example, supply performance management dashboards and scorecards can help companies understand the true value of low cost country sourcing (LCCS) programs by helping quantify total cost based on supplier performance. By tracking PPM, on-time delivery, and other supply performance related information in a common application and rolling this data up in a dashboard across an organization, procurement organizations can begin to understand the true costs of managing global suppliers. And as important, these types of approaches can help a resource constrained supplier development team understand where to focus their efforts (and to begin to track and measure the results once a development initiative is under way).

Jason Busch

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