Measuring What Matters in Public Procurement: Are We Getting What We Measure, and Is It Really What We Want?

Measuring What Matters in Public Procurement: Are We Getting What We Measure, and Is It Really What We Want?

By Chris Smith, MBA, PMP, VCA, VCARM

Date: 11/06/2024

In the world of public procurement, metrics often drive behavior. We measure how much we spend, how fast we buy, how much we save, and how many contracts we process. But do these numbers really reflect the value we’re delivering? And are we actually getting what we measure, or just creating the appearance of success? As procurement professionals, we need to ask ourselves: are we rewarding the right outcomes and behaviors, or are we just chasing numbers? Let’s dive into what really matters, and explore a balanced approach to measuring success in public procurement.

The Metrics Trap: Speed, Spend, & Savings

In many public procurement organizations, performance metrics tend to focus on:

• Total Spend: How much budget we’ve utilized.
• Procurement Speed: How quickly we can push contracts through.
• Immediate Savings: How much we saved through price negotiations.

While these metrics are easily quantifiable and look great on reports, they don’t tell the whole story. For instance, prioritizing speed can lead to rushing through procurement processes, potentially sacrificing compliance, quality, or due diligence. Similarly, focusing solely on cost savings might mean missing out on higher-quality, sustainable options or suppliers who align better with long-term goals. Are we measuring the right things, or are we just scratching the surface?

What Truly Matters in Public Procurement

A truly effective procurement function goes beyond spend, speed, and savings to consider:

1. Best Value, Not Just Lowest Cost: It’s not enough to save money if what you’re buying doesn’t deliver long-term value. Best value means balancing cost with quality, lifecycle costs, and overall benefit. Procurement should reward teams for finding options that provide a real return on investment, not just an upfront discount.
2. Total Cost of Ownership (TCO): TCO is a measure of all the costs involved in owning a product or service over its life, including maintenance, disposal, and environmental impact. While we might be tempted by a low purchase price, the cheapest option upfront can be the costliest over time. By factoring in TCO, procurement teams can make more sustainable and fiscally responsible decisions.
3. Reducing Redundancy: Do we need multiple contracts for the same type of service? Eliminating redundant contracts and consolidating purchases can save time, resources, and money, allowing procurement teams to leverage volume for better pricing and stronger supplier relationships.
4. Effective Risk Management: Procurement teams are like public service’s very own risk management agents. We’re protecting against potential disruptions, supplier failures, and compliance risks. Just as intelligence agencies like the FBI and CIA handle known and unknown risks, public procurement must do the same. While this is difficult to quantify, metrics like supplier risk assessments, contract disruption rates, and compliance audits can help keep potential threats in check.
5. Sustainability and SWaM (Small, Women-owned, & Minority-owned) Participation: For many governments and organizations, sustainable and inclusive procurement isn’t just a box to check—it’s a priority. Tracking metrics related to sustainability (e.g., carbon footprint, lifecycle analysis) and SWaM participation (e.g., percentage of contracts awarded to diverse businesses) aligns procurement activities with organizational values and the greater good.
6. Stakeholder Engagement & Satisfaction: The best procurement processes involve feedback and input from all stakeholders. By measuring stakeholder satisfaction, procurement can ensure that purchases meet operational needs and provide the right solutions to those on the front lines of public service.
7. Maximizing Competition: Healthy competition in bids and proposals helps ensure that procurement receives high-quality, competitive offers. Are we seeing enough bidders for each solicitation? Are we getting realistic, viable solutions rather than just the lowest price? If not, we may need to reassess our outreach and criteria to foster a more competitive environment.
8. Transparency & Trust: Building public trust is central to the mission of procurement. Transparent processes that reduce the use of sole sourcing and emergency procurements help strengthen public confidence. Measuring the frequency of competitive bids versus sole source contracts can give insight into how open and transparent our processes truly are.

A Balanced Scorecard: Measuring What Really Matters

Let’s shift to a balanced scorecard approach, where procurement success is measured holistically:

This balanced scorecard approach provides a more holistic view of procurement success, allowing teams to focus on what truly matters—not just what’s easiest to measure.

Benefits of a Holistic Approach to Measurement

By tracking these expanded metrics, procurement professionals can achieve:

1. Long-Term Value & Savings: By emphasizing best value and TCO, procurement teams focus on the long-term impact rather than immediate savings alone. This approach avoids short-term gains at the expense of quality or sustainability.
2. Enhanced Efficiency through Reduced Redundancy: Fewer redundant contracts mean streamlined processes, stronger supplier relationships, and often better pricing due to volume buying.
3. Reduced Risks & Increased Resilience: Tracking risk metrics such as supplier stability scores and compliance audit results help procurement mitigate potential threats before they become costly problems.
4. Support for Sustainability & Diversity Goals: Metrics for sustainability and SWaM participation ensure that procurement contributes positively to environmental and social goals, enhancing public trust.
5. Greater Trust & Transparency: Reducing sole sourcing and promoting competition, along with regular stakeholder engagement, creates a procurement environment rooted in integrity, which is critical for public trust.

Are We Really Getting What We Measure?

Peter Drucker famously said, “What gets measured gets managed.” In public procurement, that means we need to think carefully about what we’re measuring. Are we driving behavior that aligns with our core values of integrity, transparency, and best value? Or are we incentivizing short-term wins and creating potential for waste, risk, and public mistrust?

By focusing on metrics that truly matter, public procurement can become more than just a transactional function. It can be a driver of innovation, sustainability, and social impact, delivering value that extends far beyond the bottom line. The next time you set out to measure success, consider the broader impact—on your organization, your stakeholders, and the public you serve.

Let’s measure what truly matters, and make sure we’re not just getting what we measure, but getting what we really want.

What do you think? How does your organization measure procurement success, and are you capturing what really matters? Share your thoughts!

About the Author - Chris Smith, MBA, PMP, VCA, VCARM

Chris Smith is a dedicated and experienced leader in public procurement, committed to advancing excellence, efficiency, and integrity across all aspects of government purchasing. With a strong foundation in procurement management and certifications including PMP, VCA, and VCARM, Chris brings a wealth of expertise to his role as a Contract Specialist II with Fairfax County.

An active member of VAGP and NIGP, Chris is also engaged with MPPA and NIGP-DC (serving DC, VA, and MD chapters). Known for championing transparency, collaboration, and procurement best practices, Chris leverages his extensive knowledge to inspire and connect procurement professionals on LinkedIn and in professional forums. His mission: to drive public procurement forward to higher levels of performance, accountability, and strategic impact, one informed decision at a time.

Let’s connect to explore new avenues for public procurement excellence and redefine what’s possible in government service!

-#PublicProcurement #ValueDrivenProcurement #BestValue #Transparency #Sustainability #SWaM #TotalCostOfOwnership #RiskManagement #BalancedScorecard #ProcurementExcellence #AchievementUnlocked #BestValueProcurement #BuildingTrustThroughProcurement #CAPA #CarpeDiem #CertifiedProcurementProfessional #CertifiedToServe #CPPB #CPPBCertified #CPPBSuccess #CPPO #CPPOCertified #CPSDCertified #CPSMCertified #EfficiencyInGovernment #ExcellenceInAction #GovernmentProcurement #HighPerformingTeams #HighPerformingCulture #ISM #MissionFocused #MPPA #MovingProcurementForward #NASPO #NCMA #NIGP #NIGPCPP #NIGPForum #PEN #ProcurementAchievement #ProcurementCareerMilestone #ProcurementChampion #ProcurementEvangelist #ProcurementExcellence #ProcurementExcellenceJourney #ProcurementExpert #ProcurementForward #ProcurementGoals #ProcurementInnovation #ProcurementLeaders #ProcurementLeadership #ProcurementMilestone #ProcurementNerd #ProcurementPride #ProcurementProfessionalism #ProcurementReady #ProcurementStandards #ProcurementStrong #ProcurementTraining #ProcurementWithIntelligence #ProfessionalGrowth #ProudCPPB #PublicProcurementCertified #PublicProcurementExcellence #PurposeDriven #PublicServiceExcellence #ResultsMatters #StriveForExcellence #TransparencyInProcurement #UPPCC #UPPCCCertification #VAGP #VAGPConference #VAGPSymposium #VCA #VCCO #VCO #VCM #VIP

???? Let's Rise to the Top Together! ??

I’m like Leo the Lion—strong, bold, and ready to connect with fellow professional leaders who share my passion, energy, and drive for impactful leadership. Together, we can collaborate, dream big, and aim higher than ever—because there’s always room for everyone at the top!

Let’s dream, think bigger, and shoot for Mars or the moon, knowing that even if we miss, we’ll still find ourselves among the stars! ??

Let’s connect! Send me a request, follow me, or drop me a message—I’d love to hear your thoughts and engage with your ideas. Your comments and DMs truly make my day, and I’m excited to build a meaningful professional relationship with you here on LinkedIn.

Connect here -->: https://www.dhirubhai.net/in/chris-smith-mba/

Carpe Diem—Every Diem! Let’s Go! ???? #LetsConnect #Leadership #DreamBig #Collaboration #ShootForTheStars #UnlimitedPotential