If cost per outcome can be measured in the government, it can most certainly be measured in the private sector, especially on a granular basis within a function such as procurement. On some level, it already is. I’m certain that some Spend Matters readers have been exposed before to various return on net asset (RONA) or return on invested capital (ROIC) type models and diagrams, those that compare potential various programs and P&Ls on a side-by-side basis. I remember early in my career pulling these together manually – literally cutting and pasting Excel model outputs and early charting software.
New Procurement Metrics: Cost per Outcome in the Private Sector (Part 1) [Plus+]
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