Savings Metrics, Rat Farms and KPIs Gone Bad

Decades ago, goes the story*,  the French colonialists grew tired of the rat population in Hanoi.  So the French offered a bounty on dead rats.  What happened?  The industrious Vietnamese began raising rats.

Therein lies the trouble with metrics.  Be careful what you measure.  And what metric is more important than savings in the procurement world?

You’d think that such a basic word as savings would have a pretty well-agreed definition – especially when the S word is the focal point of just about every RFP process.  Unfortunately, there are very big differences in how buyers define and measure savings.  Let’s have a look at the slightly satirical implications for travel procurement. Continue reading