How to Measure Process, Technology and People Alignment?

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We often hear we need process, technology, and people alignment for effective execution. So how do you measure that alignment?

Let’s use the procurement department as an example. The main role of the procurement department is to acquire materials and services necessary for the business to produce and deliver its goods and services.

Two key outcomes are timeliness in requisition (procurement, PO cycle time) and cost effectiveness in conducting the procurement work (unit cost of purchase). Two outcome measures might be procurement cycle time and procurement operating cost per dollar spend on materials and services acquired.

The two measures are lag indicators. You also want to look at lead indicators that drive these results. Here, you explore what you can measure to evaluate the performance of process, technology and people deployment that relate to the procurement cycle time and procurement operating cost.

For process performance, you could get feedback on the requisition workflow from business units. A quarterly survey can be used for that purpose.

For technology performance, you could monitor time saved from automating certain tasks.

For people performance, you could monitor productivity.

To get a holistic view of your execution alignment, include both lead and lag indicators in your assessment.

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