Global Best Practice - Performance Metrics
It is essential for procurement professionals to develop and measure a standard set of metrics that are aligned with the strategic goals of a particular project and the larger organization. These metrics are a quantifiable way for the procurement function to track and analyze goals. In analyzing performance metrics, procurement can compare performance standards and identify current and future performance improvements. This practice identifies the types of metrics that procurement teams should track and the targets to use for these metrics. It also includes a checklist of recommended metrics along with questions procurement teams can ask when evaluating metrics. It's important for procurement professionals to identify metrics that align with the organization's overarching goals instead of trying to track everything. When developing metrics, it's important to gain input from all relevant stakeholders including key decision makers on performance management to ensure overall organizational alignment.