Procuring Performance Challenges Traditional Procurement Thinking
- Lauri Vihonen
- Apr 22
- 3 min read
Some time ago, I had a conversation with a procurement professional deeply involved in procuring performance. I nodded politely, a bit puzzled – but the idea stuck with me long after. How does this thinking actually work?
I realized I hadn’t given it much thought before. This blog is a reflection on that awakening: Could this mindset be applied to everyday business procurement? And what would it require?
1. What does procuring performance actually mean?
It means focusing not just on what you buy – but on what you are able to do afterward.
It’s not about a single product or service, but about a capability to act.
For example: you’re not buying a CRM system – you’re buying the ability to manage customer relationships more effectively.
You’re not buying a training day – you’re investing in the ability to operate in a new way.
2. Can this be applied to regular business procurement?
Yes – and it should be, especially when the purpose of the procurement is to enable significant change, a strategic shift, or a leap in development.
This thinking is especially relevant in large, high-impact procurements such as:
major system transformations
office relocations
service outsourcing
capability and skill development
operating model redesigns
This doesn’t mean everything needs to be approached this way – but when outcomes and effectiveness truly matter, this thinking makes a difference.
3. How is it different from focusing on business benefits?
Performance is about what your organization is able to do after the procurement.
Business benefits describe the value that results from that ability.
These aren’t opposing ideas – they complement one another.
Think of it like this: performance is the means → business benefit is the goal.
Example:
“We can now deliver customer reports on time” → “Customer satisfaction improves” → “Relationships deepen” → “Revenue grows”
4. What capabilities are needed to procure performance?
Procuring performance is a demanding discipline. It requires strategic thinking, collaboration, and execution – not just transactional buying.
You need:
the ability to define goals functionally
the ability to understand systems and interdependencies
strong collaboration with business, technical experts, and suppliers
change leadership and implementation skills
the judgment to know when a performance-based approach is appropriate
In short, it’s a mindset – but also a capability set that organizations must actively build.
5. How can this be done in practice?
Start with a simple but powerful question:
“What must we be able to do better after this procurement?”
That question leads to better requirement definitions, smarter sourcing, more relevant contracts – and most importantly, better outcomes.
It’s not about doing more work. It’s about working in a better direction.
Summary: What did I learn?
Procuring performance is a powerful lens for improving procurement effectiveness.
Interested in applying this thinking to your own organization? Let’s talk.
Want to explore how the principles of performance-based procurement could work for your business? Book a sparring session, send a message or give me a call.
📅 Book a free 30-minute session – no commitment, just new perspectives.
📧 Get in touch:
Phone: +358 50 4381912
Website: www.leadersbeacon.fi
Best regards,
Lauri Vihonen
Author of the blog Procuring Performance
I’ve written over 150 blogs about procurement development, its role and potential – based on real experiences, mistakes, and successes.
If you’re considering developing your procurement or facing challenges in your organization, I recommend browsing my blogs. You’ll find practical insights, reflections, and concrete tips across industries and situations.
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