We’ve written previously about the skills procurement professionals need to be successful. Now, A.T. Kearney, ISM and CIPS have released their 2016 Return on Supply Management Assets (ROSMA) Report. In it, they evaluate the skills and performance indicators for the highest performing teams in procurement. The report profiles strong teams based on attributes, achievements and leadership agendas.
You can read the full report here.
What is ROSMA?
The ROSMA℠ Performance Check [sic] marries procurement-related activities with proven financial standards and principles to help procurement document, track, and compare its efforts annually. – CIPS
So, what did they find?
1. Good procurement teams are valued by stakeholders
The strongest procurement teams work together with stakeholders for most of (if not all) projects. They are involved from the very beginning, and have a seat at the leadership table.
2. Procurement leaders are accountable
Both business and finance stakeholders said that procurement leaders are accountable for results, productivity, and stakeholder satisfaction.
3. “What counts gets measured, and what’s measured gets done”
The top performing procurement teams also have clearly defined performance metrics that they stick to.
4. Procurement and finance work together
Another finding was how procurement and finance work together to complete routine and thorough performance evaluations. These evaluations are essential for enhancing talent development.
5. Stakeholders understand value drivers
Principal stakeholders such as the C suite and finance understand concepts of coverage, velocity, yield and compliance. As well as an understanding of concepts, they also know the desired performance ranges.
6. Stakeholders understand hard value
Strong procurement teams also have stakeholders who have a rich understanding of the value that procurement creates and delivers.
7. Top performers have a ROSMA score of 7 or higher
Finally, the 2016 ROSMA found that empowered procurement teams benefit their company. The strongest procurement teams therefore could add seven times their costs in value to the company.
Don’t forget to check out the original report, then let us know your thoughts in the comment section below.