I hope that you have enjoyed the article “The Balanced Scorecard For Procurement.”
In that article, I explained why companies use the Balanced Scorecard and provided an example for how, without it, companies can screw themselves over with bad goal planning. But though I described how to adapt the Balanced Scorecard to procurement, I didn’t provide any examples of how a procurement department can screw itself over with bad goal planning.
I’ll do that here.
Procurement is an area ripe with competing priorities. Most procurement departments have a goal of achieving cost savings. And, let’s be honest, one way of achieving cost savings is by buying lower quality variations of the products and services our company requisitions. To be clear, that is not a recommendation. But, it is a reality in some procurement departments, unfortunately.
And without quality-driven goals to exist alongside cost-driven goals, what’s to stop a procurement department from cutting corners with quality?
That is a perfect illustration of why the Balanced Scorecard is needed in procurement!
So, the above-linked article provides some insight on what goes into a Balanced Scorecard for procurement. If you want to get a step closer to implementing the Balanced Scorecard in your organization, we offer a sample procurement Balanced Scorecard that you can modify for your own purposes. It is one of the many procurement templates available in the NLPA Library.
Access to the NLPA Library is granted to every SPSM-Certified procurement professional in good standing as well as anyone enrolled in the SPSM Certification Program. If you currently fit into neither of these groups and would love to have a procurement Balanced Scorecard template, now may be the perfect time to pursue that procurement certification you’ve always wanted!