How to smash your Performance Review and springboard into 2025

Who here actually gets value from the performance review?

In fact, I’ll ask an even more important question, who actually learns anything from them?

I’ve seen many Procurement teams waste performance reviews.

They focus on a review of their KPIs - Cost Savings, Supplier Performance metrics, an update on their category management plans and maybe a count of number of activities that have delivered ‘value beyond savings’.

Here's what you need to focus on to get the best out of the performance reviews:

• Maturity modelling of the function

• Process Improvements delivered

• Actual supplier feedback

• Comprehensive stakeholder feedback.

It really is time to stop thinking is a transactional way and stop measuring success by numbers.

We should also stop painting the picture of busy through delivery and start measuring impact within the business we operate in.

Actual Progress made against the delivery plan is what’s key.

My top 3 tips.

Here are the ways I’ll be differentiating my end of year review and what you should do too:

1. Stakeholder feedback

I’ve gone out to 15 difference stakeholders this year to ask them what I should start doing, what I should continue doing and what I should stop doing?

What’s more, I’ve not just gone to stakeholder I know work well with Procurement.

I’ve deliberately picked some of the awkward ones, the ones where it might have been a bumpy ride.

I’ve given them the option to respond directly to my line manager without copying me, who will then ensure the feedback is anonymous.

If you want to truly gage how you can improve and how to overcome the more difficult stakeholder challenges, this feedback will be golden.

2. Supplier feedback

No, I’m not talking about speaking with your top 3 suppliers and getting recommendations here.

I’ve requested feedback from four different suppliers.

1. A supplier than won an RFP this year and we have contracted with.

2. A supplier that lost an RFP this year.

3. An ongoing supplier we have a strategic partnership with.

4. A supplier we exited this year.

Sounds a bit brave and a bit crazy doesn’t it?

But if we really want to measure how good we are at supplier relationships, this is the information that will prove to be absolute gold when it comes to developing our ways of working.

3. The maturity model

Whether you are a CPO, Head of, Procurement Manager or Analyst, you should always be thinking in terms of year on year progress against the maturity model.

At the start of 2024 where did you want Procurement to be by this point in the year.

What permanent changes have you made that have massively pushed things forward?

Are there processes you’ve improved?

Is there a system you’ve implemented or a level of contract control you didn’t have last year?

Ahead of my Performance review I’ll be creating two slides against the maturity model I issued to my line manager last year.

• Slide 1 will measure the progress against everything that has been delivered this year.

• Slide 2 will be my roadmap plans for next year.

It’s also a powerful way to make a statement on the value that is ahead for Procurement delivery and to open the conversation around what training and investment might be required.

What will you be doing for your end of year review?