The Science of Sourcing Governance
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The Science of Sourcing Governance
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Unlock the Science Behind Sourcing Governance 🚀
Most organizations spend 70–80% of their IT budgets just “keeping the lights on”—and the same inefficiency plagues sourcing governance. The result? Strategic forums are often cosmetic, while operational meetings dominate. This imbalance costs businesses 15–50% of annual contract value in lost opportunities.
It’s time for a shift.
✅ People – Invest at least 5% of ACV in governance resources and ensure clear accountability.
✅ Processes – Own the right governance processes (Contract, Issues, SLAs, Invoice, Service Requests).
✅ Tools – Structure governance meetings with discipline and transparency using formulas like Fmtg = (Frequency, Type, Duration).
Good governance = clarity on “who talks with whom, about what, and when.”
When done right, sourcing governance moves from a rear-view mirror IT agenda to a proactive business value engine.
💡 Key takeaway: Effective governance isn’t optional—it’s the foundation for safer, cheaper, faster, smarter, and greener IT decisions.