Measurement and Expectations
Show Me the Money!
If you’re not keeping score, you’re just practicing.
CEOs, COOs, or CFOs, when asked “how is your purchasing department performing?” will often respond:
The purchasing department reports great results, year after year, but I can’t find the savings figures on the bottom line of my income statement.
Purchasing executives, when reporting their cost reduction results, often hear the following questions from their internal clients:
Are these savings real?
Are these numbers net of inflation?
How were these figures calculated?
What are these compared ...