More on procurement performance

I had some interesting comments on Linked In relating to my post on measuring procurement performance (with the comparison to footballers where failure is pretty self-evident!).

Federico Caporali of the Rexel Group Australia thinks it is ‘easy’ to track performance with KPIs but the point is many organisations don’t do that.  I’m not sure I agree it is that easy to get appropriate KPIs but I agree that many don’t even do that.

He also points out there is a lack of understanding at CEO / CFO level around how a modern procurement function should be measured – and that is a very good point.  “How many are talking about total cost of ownership reduction instead of merely arguing about price down “ he says.  Which makes me think – do we do a good enough job as a profession, both individuals and our Institutes, academics and so on, in educating top management as to what procurement can and should really do?

Alison Smith said, “We can only measure performance if we understand clearly what the goals are and individuals themselves can only understand what is expected of them if they have this clarity. Often this clarity is lacking and conflicting goals make it very hard for individuals to know what is expected of them”.

She also points out that sales people ‘often have a goal to sell often at the expense of whether that's right for the buying organisation.’  Very true (see this post for a great example!)

Alison also offers this link to her interesting piece on NLP and how people can be motivated to achieve their goals in Insight Guide 30 written for Future Purchasing http://www.futurepurchasing.com/insightsandbriefings.html

Richard Snowden commented,  again reinforcing the point about others' understanding of procurement.  "In any organization there exist individuals contributing who may be misunderstood, quite frankly because senior management doesn’t have the experience or understanding of the procurement element to analyze benefits regardless of the number of PPT or spreadsheets presented."

An interesting topic and one we'll return to.....

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