Sourcing Relationship Management - with Measurement

January's edition of Globalization Today, the IAOP periodical, has an article by Matt Shocklee describing the IAOP's Value Health Check Survey.  The VHCS is based upon a self-assessment survey and analysis built upon research which suggest that healthy outsourcing relationships score well against metrics in five dimensions:

  • Financial Performance
  • Service Quality
  • Capabilities
  • Risk/Compliance
  • Governance

While I commend and support the value of this assessment framework and would not suggest removing any of the five dimensions, I cannot help but notice that the framework and Matt's article do not mention Measurement.  Surely, this should be added as a 6th dimension.  I can certainly see that measurement could be implied in the previous five but I would argue that it needs to be explicit.  In my experience, frankness about the nature and purpose of the measurement regime can preempt a lot of misunderstandings and even identify and accommodate (rather than remove) the sometimes different goals of the parties.

Written by Michael D. Harris at 23:05

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