CURRENT STATE OF SRM
STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
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TTTTTTTTTTT TTTU CURRENT STATE OF SRM
SRMmaturity model
SRM LEADERS
6.0
4.1
ADVANCED
4.5
SRM FAST FOLLOWERS
ESTABLISHED
3.0
3.5
DEVELOPING
1.5
UNDEVELOPED
SRM FOLLOWERS
BUSINESS DRIVERS & VALUE
STAKEHOLDER ENGAGEMENT & SUPPORT
GOVERNANCE & PROCESS
PEOPLE & SKILLS
INFORMATION & TECHNOLOGY
RELATIONSHIP DEVELOPMENT & CULTURE
2.9
© 2014 State of Flux
SRM MATURITY IN 2014
OVERALL MATURITY
The SRM maturity model measures the maturity of companies surveyed against each of the six pillars of SRM. Last year we introduced the SRM index, which provides a numerical value to help companies track and measure progress.
Overall, the maturity profile across the six pillars, in terms of the relative strengths and weaknesses, remains much the same as last year. People and skills is the only pillar where all three benchmark groups report stronger practices. Governance and process continues to be an area where most companies believe they are making the most progress. Information and technology is still the area where the most improvement is required. It would appear that some progress has been made engaging and gaining support from senior internal stakeholders. But engagement with business and operational teams and suppliers is still an area requiring more attention. The gap between leaders and followers has steadily widened over the six years we have been conducting this research. Recently, that gap has been more defined by the level of benefits being reported. The gap has widened more significantly in the area of business drivers and value. Leaders report that their SRM programmes are better aligned to business strategy and objectives, as well as increased benefits. The final pillar of relationship development and culture also shows a widening gap, as the investment being made by leaders has an increasing positive impact.
SRM LEADERS
This year the companies classed as SRM leaders* have achieved a higher SRM index score than last year. In 2013, the leaders' average SRM index score was 3.8, compared with this year’s average of 4.1 for the 46 companies in this category. This can largely be attributed to the group reporting better practice in the people and skills pillar.
SRM FAST FOLLOWERS
This year’s new group of 32 companies classed as SRM fast followers have an average SRM index score of 3.5. This is not far below the average index score which was being achieved by leaders in 2013.
SRM FOLLOWERS
The SRM followers are made up of 96 companies. They had an average SRM index score of 2.8 in 2013, compared to a score of 2.9 this year. Similar to the leaders, this group has reported stronger people and skills practice.
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