In the world of business and finance, ‘sustainability’ has progressed from a sidebar topic to a mainstream conversation. Accompanying the traditional environmental and social discussions, business leaders are asking questions on how business sustainability actions affect the bottom line. It is this fundamental concept that drives our sustainability consulting to continuously explore measures of success.
“Make intangible measures more concrete by using metrics that capture the full range of Procurement’s value.” –Procurement Strategy Council
Touring the latest information on sustainable supply chain metrics, we turn our attention to Spend Management for insight. Contained within the post, How are CPOs Measured, we find some interesting comments on executive performance criteria in today’s supply chains. Spend Management provides greater detail by capturing feedback from some notable leaders:
- Johnson & Johnson - Quality and reliability on the supply assurance side, followed by cost.
- General Motors - Delivery, quality and cost, along with working capital and its potential to generate cash flow.
- Nestlé - Risk mitigation
- Novartis - Savings, cash flow, payment, quality and service targets.
Performance measures have always been a part of business. Over time, companies have learned to incorporate more inclusive metrics to their stakeholders. Leading organizations are now embracing more advanced performance management practices to include business sustainability indicators.
At Taiga Company, we view the future of business sustainability going far beyond the implementation of individual sustainability concepts. Many organizations have already adapted their business models to capture value from sustainable development. The leaders of tomorrow will continue to push the edge of business sustainability to transform entire industry sectors. The right strategies and small business resources can help bridge your business into the future and the right metrics can help tie your sustainable business strategies to the bottom line.