The Science of Sourcing Governance

Unlock the Science Behind Sourcing Governance 🚀Most organizations spend 70–80% of their IT budgets just “keeping the lights on”—and the same inefficiency plagues sourcing governance. The result? Strategic forums are often cosmetic, while operational meetings dominate. This imbalance costs businesses 15–50% of annual contract value in lost opportunities.It’s time for a shift.✅ People – Invest at least 5% of ACV in governance resources and ensure clear accountability.✅ Processes – Own the right governance processes (Contract, Issues, SLAs, Invoice, Service Requests).✅ Tools – Structure governance meetings with discipline and transparency using formulas like Fmtg = (Frequency, Type, Duration).Good governance = clarity on “who talks with whom, about what, and when.”When done right, sourcing governance moves from a rear-view mirror IT agenda to a proactive business value engine.💡 Key takeaway: Effective governance isn’t optional—it’s the foundation for safer, cheaper, faster, smarter, and greener IT decisions.