Tuesday, September 01, 2009

Are My Hair Stylist's Performance Measurements More Stringent Than Your Buyers'?

Last week, I went to the mall to get my "ears lowered" at the salon. While sitting in the chair, I couldn't help but notice a nearby wall with paper stars taped to it.

"What are the stars about?" I asked my hair stylist.

She proceeded to explain that they were a part of a performance measurement system that the salon had in place. Upon further inquiry, I learned that the salon had quite a few performance measurements: those that related to profitability (e.g., number of upsold services), quality (e.g., number of customer complaints and "re-do's"), and other important priorities of the salon.

These performance measurements were directly tied to compensation (including pay and number of paid vacation days) and good measurements were pre-requisites to "advancing within the company." I was quite impressed!

While I am a big proponent of performance measurement in business, I never really thought that a hair salon would have such a sophisticated measurement process.

Then I got a little irritated.

I know that there are many mid- to large-size companies that do not have any performance measurements in place for their buyers. While this made me bristle in the past, now that I see that a hair salon measures its employees so closely, it really fires me up that some people in desirable purchasing leadership roles aren't even that far along!

If your buyers' performance isn't measured as closely as my hairstylist's performance, something is wrong!

Get some measurements in place. Sooner rather than later!

If you don't, the next "trimming" that's done may be your position being cut from the org chart.

To Your Career,
Charles Dominick, SPSM
President & Chief Procurement Officer
Next Level Purchasing, Inc.
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