Based on Sherry Gordon’s analysis my client has failed on at least four of the above; they have no clear and robust process in place, their communication with key stakeholders like their suppliers has been weak at best and non existent at worst. They have made no obvious attempt to communicate how suppliers have met or not met performance expectations based on measurable targets and there is no obvious linkage between the data collated in the system and corrective actions.
On the positive side they do have management support for the system and they are making SPM a key part of their organizational goals and objectives.
So how do they move forward and what will be my recommendations?
• Firstly I am recommending that they re-evaluate their future implementation strategy. I believe that if they use an implementation model that supports a central administrator with local ‘Champions’ who will engage with the ‘on the ground’ folks in designing scorecards and reports relevant to the work that they do. Ensuring stakeholder feedback and participation in scorecard development will help engender buy in to the process and hopefully encourage more feedback from all participation.
• Cleanse the system of cards and reports that are no longer relevant or necessary to clean up the system, simplify it and reduce complexity for users.
• Tier the implementation a supplier and a sector at a time –take a select group of suppliers and participants and get their complete buy in and participation. Once this group is actively using the system for their performance measurement then move on to the next group. Try not to bite off more than can be chewed by trying to do too much at once.
• Leverage the management support that is there to encourage participation and use the management platform to communicate the SPM group’s plans and system initiatives.
I am very hopeful that by adopting the recommendations I will make and with assistance from us in six to eight months this system will be in a very different place and will be a key enabler of this clients overall SPM strategy.
I would be interested to hear your thoughts as well. Have you implemented a Supplier Performance Management system in your organization? What worked and what didn’t work? Do you think the recommendations I am making will add value for this client? I would love to hear your comments below.
Gordon, Sherry R. “Supplier Evaluation: The Value Proposition”