Contract Scorecard (Contract Management KPI (Key Performance Indicators) worksheet)
A Contract Management Balanced Scorecard (CMS) is a performance measurement framework that lets organizations track and evaluate their contract management processes performance. It typically includes a set of key performance indicators (KPIs) and performance measures aligned with the organization's strategic objectives. A CMS typically consists of the following four perspectives:
- Financial Perspective: It measures financial aspects such as cost savings, revenue generated, and return on investment (ROI).
- Customer Perspective: It measures customer (or supplier) satisfaction and the effectiveness of contract management processes in meeting customer (or supplier) requirements.
- Internal Business Processes Perspective: It measures the efficiency and effectiveness of contract management processes, such as a time-to-contract award, contract compliance rate, and contract renewal rate.
- Learning and Growth Perspective: It measures the organization's ability to learn, innovate and adapt to changes. It covers aspects such as the training and development of the contract management team, the implementation of innovative technologies, and the level of automation of the contract management process.
The balanced scorecard approach allows organizations to track multiple aspects of their contract management performance and identify improvement areas. It also helps align the contract management objectives with the organization's overall strategy and goals. How to compute and measure each of these aspects? Download the detailed worksheet now to get started.