Managing Goals

In this video, Alex explains the value of Managing Goals.

A category manager uses the mandatory Goals card to outline their desired outcomes for a specific category. These goals should align with the purchasing objectives of the organization related to that category. The category manager has the ability to create, edit, and manage each goal. They can input various attributes for each goal, including Name, Description, Start Date, End Date, Region, Goal Type, Key Performance Indicator (KPI), Target, and Measure. Each goal must be unique and should not be duplicated. Additionally, the category manager can create initiatives under active goals, which detail how the goals will be achieved.

SAP Ariba offers ready-to-use options for attributes such as Goal type, KPI, and Measure. You can create new goals, copy them from existing ones, and easily search, filter, sort, and delete as needed. Initially, new goals are set to a status of "None," but this can be changed to one of several statuses: Active, On Track, At Risk, Needs Attention, Completed, or Obsolete. Depending on the status, the right panel will display either the phase and status or just the phase.

Here are the phases of setting Goals:

The category manager can create and edit initiatives related to a goal and add benefits to them. They can also input estimated, negotiated, and realized benefits for each initiative.

Estimated benefits are compared to the Goal Target in the Initiative Contribution visualization chart. Negotiated benefits are assessed against the estimated benefits for initiatives that are in the Active phase. The unit of measurement for negotiated benefits varies depending on the Key Performance Indicator (KPI) selected for the goal associated with the initiative.

Additionally, category managers can record realized benefits for each estimated benefit entry of initiatives in the Active phase. Similar to negotiated benefits, the unit of measurement for realized benefits is determined by the KPI measure linked to the goal associated with that initiative.

Category managers can also monitor benefits from initiatives and goal targets using a visualization chart. The Initiative Contribution chart appears when the assigned category manager has added a KPI to the goal and incorporated a benefit from a related initiative. This chart presents the goal’s KPI, the estimated benefits of the related initiative, and the total value, which indicates whether the category manager’s goals are in surplus or experiencing a shortfall. The surplus/shortfall values are calculated using a specific formula.

Category managers can assess how the estimated benefits of their planned initiatives align with their goal targets, evaluate the adequacy of these estimates, and pinpoint any shortfalls or surpluses.

The Initiative Contribution chart demonstrates a 2% shortfall between the 12% goal target and the 10% estimated benefit.

In this simulation, you’ll learn how to create a goal and add an initiative to a goal:

In this lesson, we explore the use of the mandatory Goals card by category managers to define and manage desired outcomes for specific categories. These goals must align with the organization's purchasing objectives and are customizable with attributes such as Name, Description, Start Date, End Date, Region, Goal Type, Key Performance Indicator (KPI), Target, and Measure.

Creating and Managing Goals:

• Unique Goals: Each goal must be distinct and not duplicated. Ready-to-use options are available for Goal Type, KPI, and Measure attributes.
• Initiatives: Under active goals, category managers can create initiatives detailing the methods to achieve these goals.
• Goal Management: New goals can be created, copied, searched, filtered, sorted, or deleted.
• Goal Status: Initially set to "None," statuses can include Active, On Track, Needs Attention, At Risk, Completed, or Obsolete, with phase details in the right panel.

Phases of Goal Setting:

• Planned: Default phase allowing edits unless pending approval.
• Active: Goals marked as Active once the strategy and plan document is approved.
• Completed: Goals marked as Completed when the strategy and plan is finalized, showing progress as Achieved or Not Achieved.
• Obsolete: Goals no longer tracked but retained for reference.

Benefits and Initiative Management:

• Initiative Planning: Category managers can input estimated, negotiated, and realized benefits for initiatives
• Visualization Chart: The Initiative Contribution chart helps monitor benefits and goal targets through visual representation of KPIs and estimates.

• Surplus and Shortfall: The chart highlights whether initiatives surpass or fall short of goal targets, using a specific formula for calculation.

The lesson provides insights into setting, managing, and assessing goals through SAP, empowering category managers to align goals effectively with organizational purchasing objectives and evaluate initiatives through visualization tools.