Procurement Governance: The Buying Process
Creating an open and transparent process for evaluating and selecting potential solution providers is in keeping with the Generally Accepted Recordkeeping Principles® (“GAR Principles”) principle of Transparency, meaning the processes and activities of the project team are “documented in a manner that is open and verifiable.”1
Getting a good start is important. In sum, always begin an ERM project or program based on a clearly defined business need or business objective. The potential benefits to the organization must be articulated and consistently communicated, particularly throughout the planning and implementation phase. (See Chapter 20 on “Building the Business Case” for more detail.)
Next, determine the potential business impact of solving the need. This is where cost justification and a return on investment (ROI) come into play. Many times it is best to use ranges, as it is difficult to make exact ROI projections. The project team may have several scenarios, based on differing assumptions.
Then you must secure an executive sponsor. This helps support the GAR Principles' principle of accountability,2 and is the only way the project will have the steam to carry through to completion. Someone must lead the charge, marshal the resources, make the case to upper management, and delegate responsibilities. An executive sponsor helps keep a project's momentum when obstacles come in its path or competition for budget and resources ...