3 E's of Value Creation
The journey to holistic value Let's nail it - those obsessed with savings only look at a single link of a complex value creation chain. It's not just about the Needs to Resources transformation - it's about the impact we created. The following sketch isn't my idea—I found it elsewhere and adjusted it to my beliefs. In the procurement context, we should look at economies but remember Efficiency and Effectiveness. Like anyone else's, our work must be measured by its impact. Savings don't create an impact. We must consider whether we made our company more competitive or our society a better place (affordable prices, new business for SMEs, cleaner environment, etc.) Our actions and decisions are deeply interconnected, and their actual value is often more significant than the sum of their parts. The flow from economy to effectiveness in the (procurement) process isn't just a chain of steps; it's a value-creating journey that can make or break the success