Global Best Practice - Performance Measurement
The performance measurement process enables procurement to establish criteria for determining the quality and results of an entity's activities. This criteria should be based on the strategic planning goals to effectively measure progress against the organization's stated plans and objectives. This practice identifies the methods to be used in performance measurement along with a checklist of how procurement managers should plan performance measures. Further, it outlines the levels and areas within the entity to be assessed using performance measurement. The performance measurement system is a part of the performance management program and is based on metrics tied to the entity's strategic plans and goals. It is important to link the review portion of the performance measurement program to established metrics based on the entity's goals and objectives to make sure progress is being measured and managed against the strategic plan.