The ROSMASM Performance Check helps CPOs and sourcing professionals demonstrate their contributions to shareholder value

This universal standard is the first initiative from a new alliance of ISM, A.T. Kearney, and CIPS to increase professional recognition for procurement.

A.T. Kearney, the Institute for Supply Management, and the Chartered Institute of Purchasing and Supply three leading institutions supporting the supply management profession – have formed an alliance to increase recognition of the discipline as a key driver of strategic business value. This month, the alliance launches the first of several initiatives to support this goal: the ROSMASM Performance Check.

ROSMA (Return on Supply Management Assets) is a performance measurement standard that helps procurement organizations quantify their financial contributions to companies using an easily identifiable metric. Derived from classic financial frameworks (such as DuPont’s investment performance measures) and shareholder value methods (such as economic value added), it helps supply management executives demonstrate the function’s financial impact on the bottom line.

ROSMA captures hard savings benefits and the tangible value created from advanced practices, supplier innovation, and the financial reengineering of the supply chain by indicating the overall financial productivity of supply management assets.

“This alliance is key for procurement as we raise the profession’s profile and demonstrate its value to organizational growth,” said David Noble, CIPS group CEO. “The ROSMA Performance Check offers our professionals another component in their toolkit and provides a robust demonstration of their function’s financial value.”

ROSMA Results Available to Procurement Professionals and CPOs
Supply management organizations can participate in the ROSMA Performance Check online via the CIPS and ISM websites.

Universal adoption of ROSMA provides numerous benefits:
• Procurement functions can benchmark their performance against their respective markets and industries.
• As a standard structure on metrics that the financial community understands and endorses, ROSMA reflects the mindset of CFOs, encouraging their buy-in to support the function.
• As a powerful scorecard component, its results can be used to explore gaps, set priorities, and steer supply management toward a results-driven leadership mindset or model.
• The CPO can use it to establish priorities around financial results improvement, talent capability building, and organizational development.

The ROSMA Performance Check differs from a typical point-in-time survey. Participants can use it annually to compare how procurement’s performance has changed.

Supply management organizations can take the assessment at the enterprise level or within business units and divisions. Completion takes approximately 30 to 45 minutes. Information provided is kept strictly confidential.

Immediately upon completion, participants receive their organization’s complimentary ROSMA score and a customized report that assesses their procurement performance, compares it to leaders and followers, and identifies improvement opportunities.