A procurement manager is setting KPIs measurement for user satisfaction. He also wants to encourage users to share the reason why they feel the way they do. Which of the following types of KPI should the procurement manager apply?

The procurement manager's objective is to understand the reasons behind user satisfaction, which requires gathering subjective, descriptive feedback. A qualitative assessment is the appropriate method for this, as it focuses on non-numerical data such as opinions, perceptions, and experiences. Unlike quantitative measures that capture 'what' happened (e.g., a rating of 4 out of 5), qualitative methods (e.g., open-ended questions, interviews) are designed to explore the 'why' behind the user's feelings. This provides deeper insights into the user experience, which is precisely what the manager wants to encourage.

A. Quantitative measure: This captures numerical data (e.g., number of complaints, satisfaction scores) but fails to explain the reasons behind the numbers.
B. Numerical measure: This is a synonym for a quantitative measure and is unsuitable for collecting descriptive, reason-based feedback.
C. Binary measure: This offers a simple 'yes/no' or 'pass/fail' outcome, providing no depth or explanation for the user's sentiment.

1. CIPS L4M3 Commercial Contracting Study Guide (2018)

Chapter 5: Measuring and Improving Performance

Section 5.2 'Key performance indicators (KPIs)'. The guide distinguishes between 'hard' (quantitative) KPIs and 'soft' (qualitative) KPIs

noting that soft KPIs are used to measure subjective aspects like satisfaction and relationship quality. Capturing the 'reason why' falls directly under this qualitative category.

2. Lysons

K.

& Farrington

B. (2020). Procurement and Supply Chain Management (10th ed.). Pearson. In Chapter 20

'Performance Measurement

' the text explains that while quantitative measures are common

qualitative or 'soft' measures are essential for assessing aspects like customer satisfaction and supplier relationships

which cannot be easily reduced to a single number (pp. 589-591).

3. Neely

A.

Gregory

M.

& Platts

K. (2005). 'Performance measurement system design: A literature review and research agenda'. International Journal of Operations & Production Management

25(12)

pp. 1228-1263. This academic paper discusses the importance of a balanced set of measures

including those that capture qualitative feedback to understand the drivers behind quantitative results

such as customer satisfaction. (DOI: https://doi.org/10.1108/01443570510633639).