In sourcing management too often there are complaints about the lack of performance. From the customer an example is, ‘the provider is just doing the bare minimum and I thought we had a partner who would truly help our business’. From the provider an example is ‘the customer doesn’t know what they want, they just want everything but are not prepared to pay for it’. Part of reason such complaints abound is that we have no clear explicit measure of performance. We use SLAs as our proxy for value.
This aphorism is linked to ‘O’. Ensure you can clearly state the financial benefit of the sourcing relationship and moreover ensure that you regularly market test this value. That is the first step.
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