Process & Capability Assessments

Data-Driven Analysis of Workflows, Capabilities, & Performance to Identify Gaps, Prioritize Improvements, and Build Roadmaps

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The Market Reality

Procurement processes are the operational backbone of the function—yet most evolve through accretion rather than design. Workarounds become permanent fixtures. Exceptions become the rule. And without deliberate continuous improvement, inefficiencies compound over time, draining resources and eroding stakeholder confidence.

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The consequences of poorly designed and implemented processes are significant:

• Strategic work gets crowded out — Nearly 60% of procurement leaders say they lack time for strategic activities because tactical tasks consume their day (Deloitte, 2024). This isn't a capacity problem—it's a process design problem.

• Value leaks through process gaps — World-class procurement teams achieve 74.9% spend under contract, compared to the average of 59.5% (Ardent Partners, 2024). That 15-point gap represents contracts not executed, compliance not enforced, and savings not captured—all process failures.

• Addressable spend goes unaddressed — The average procurement team sources only 44% of addressable spend, while world-class organizations source 60% (Ardent Partners, 2024). When processes are cumbersome or unclear, stakeholders work around procurement rather than through it.

• Cycle times drive business frustration — Poorly designed approval workflows, unclear handoffs, and redundant steps stretch timelines unnecessarily. Every extra day in a sourcing cycle is a day of unrealized savings and frustrated stakeholders.

• Continuous improvement stalls — Without embedded feedback loops, performance measurement, and governance mechanisms, processes degrade rather than improve. Organizations find themselves re-solving the same problems year after year.

• ROI suffers across the function — World-class procurement delivers 9X payback on investment in procurement capabilities (Hackett Group). Organizations with ad hoc, undisciplined processes see a fraction of that return.

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The gap between average and world-class performance represents millions in unrealized value—but closing it requires disciplined process design, rigorous implementation, and a culture of continuous improvement.

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The Challenge

Procurement processes and capabilities evolve organically over time, accumulating workarounds, redundancies, and skill gaps that drain resources and frustrate stakeholders. Organizations often struggle with:

• Unclear baselines — Without objective measurement, it's difficult to know where you stand or track improvement

• Scattered diagnostics — Problems are identified anecdotally rather than systematically

• Benchmark blindness — Teams lack visibility into what world-class performance actually looks like

• Capability gaps — Process issues are addressed without developing the underlying skills and competencies needed to sustain improvement

• Misaligned priorities — Limited resources get spread across too many initiatives without clear sequencing

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Common symptoms include cycle times that stretch for weeks, approvals that bottleneck at the same points, data scattered across disconnected systems, and category managers spending more time on administrative tasks than strategic sourcing.

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Why TSG Is Different

While many consultants offer process assessments, TSG brings something rare: practitioners who have designed and operated world-class procurement processes at Fortune 100 scale—and who helped define the industry standards against which performance is measured.

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Our Founder, along with several TSG Partners, co-developed the COPC Indirect Procurement Standard alongside CPOs from Microsoft, Amazon, Cisco, HPE, Intuit, and other leading organizations. This isn't a framework we learned from a textbook—it's one we created. We don't just know best practices; we helped define them.

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Deep Domain Expertise That Matters

Generic process consultants can document your workflows and identify obvious gaps. TSG provides domain expertise that transforms operations:

• We've operated at scale — We know what works in theory versus what works in practice. We have designed, implemented, and certified procurement processes at Microsoft and other Fortune 100 companies.

• We understand the trade-offs — Speed versus control, standardization versus flexibility, centralization versus business unit autonomy. We've navigated these tensions in high-stakes environments.

• We assess holistically — Process efficiency means nothing without the capabilities to execute. We evaluate people, skills, structure, and governance alongside workflows.

• We've benchmarked against the best — Not just external studies, but first-hand experience with what world-class actually looks like inside leading procurement organizations.

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Our Approach

TSG's assessment methodology combines industry-standard frameworks with practical experience to deliver actionable improvements. We don't produce shelf-ware assessments—we deliver implementable recommendations with clear business cases and roadmaps. This approach provides objective benchmarks against which we measure performance—not consultant opinions.

Assessment Framework

We evaluate performance across multiple dimensions that determine procurement effectiveness:

These dimensions include:  

Strategic Sourcing:  Category management maturity, sourcing methodology, supplier selection processes, savings capture and tracking

Supplier Management:  Relationship governance, performance management, risk monitoring, supplier development

Procure-to-Pay:  Requisition-to-receipt cycle time, touchless processing rates, policy compliance, maverick spend control

Contract Management: Contract coverage, compliance monitoring, renewal management, obligation tracking

Data & Analytics:  Spend visibility, reporting capabilities, insight generation, decision support

Organization & Talent: Structure, capabilities, capacity, development pathways, stakeholder alignment

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Capability Maturity Model

Beyond process assessment, we evaluate organizational capability across five maturity levels:

1. Ad Hoc— Processes are informal and reactive; outcomes depend on individual effort

2. Developing— Basic processes exist but lack consistency; limited measurement

3. Defined— Standardized processes with clear ownership; performance tracked

4. Managed— Data-driven optimization; proactive management; strong governance

5. World-Class— Continuous improvement culture; strategic business partner; industry-leading performance

This model helps identify not just where you are, but what specific capabilities need development to reach the next level.

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Deliverables

Current-State Documentation : Process maps, performance baseline, pain point analysis, capability assessment, and stakeholder input synthesis

Gap Analysis: Objective assessment against industry benchmarks and best practices, with clear prioritization of improvement opportunities across process and capability dimensions

Capability Development Plan : Specific recommendations for building skills, competencies, and organizational capacity to sustain improved performance

Future-State Process Designs : Detailed specifications for optimized workflows, including roles, systems, controls, and metrics

Business Case Quantification:  ROI projections for recommended improvements, including cost savings, efficiency gains, and risk reduction

Prioritized Roadmap:  Sequenced implementation plan balancing quick wins with strategic initiatives, including resource requirements and dependencies

Implementation Support : Optional engagement to guide execution, change management, and capability development

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" We don't just know best practices—we helped define them."