1.The first priority
is Business Partnership and it has one metric attached to it: Business Partner
Satisfaction.
2. The second
priority, Financial Management, has two metrics. The first of these (Metric #2)
is Contract Savings. To this end, the procurement organization measures hard
first-cost dollars. Was there a budget that procurement was able to reduce for
the client, and that finance people would concur with? Procurement also
measures softer costs, such as price increase avoidances and warranty
extensions. Metric #3 is Budget Attainment.
3. The third
priority, Operational Excellence, has five metrics. The first of these
five metrics (Metric #4) is Contract Document Quality. Metric #5 is
Manage Contract Expiration. Metric #6 is
Contract Under Negotiation. Metric #7 is Contract to Auditor. Metric #8 is
Supplier Quality.
4. The fourth
priority, Innovative Teams, has one metric, which is (Metric #9) Supplier
Diversity. In the last 10 years, the company has spent $24.5 billion
with diverse companies, which represented about 17% of all of its procurement
dollars. Its current goal is to make sure that 21.5% of its dollars go to
minority-owned, women-owned, or disabled veteran-owned businesses.
Source: Atkinson, William. “AT&T provides nine metrics no
procurement group can live without.” Purchasing 14 June 2007