Over the years, I have had numerous conversations with end-users about the importance of evaluating their Purchasing Card program at a broad level every year or two, separate from the ongoing usage of metrics. Some people refer to the results as a program report card or scorecard, providing a quick summary of areas where the program excels and where it needs improvement. It can be shared with management to open a discussion about program priorities and what to focus on next. To get you started with doing an evaluation, Recharged Education offers a newly updated, complimentary Excel spreadsheet. Keep reading to learn more and to download the file.
About the Spreadsheet
The Components
The first worksheet allows you to assign a rating to 25 different program components (listed below), using a provided drop-down menu of rating options.
Program buy-in
Support provided by accounts payable (AP), procurement, etc.
Relationship with card issuer
Program goals and objectives
Policies and procedures
Procedure manual for the program manager/administrator (PM/PA) role
Backup for the PM/PA
Training for cardholders
Training for managers
Card distribution
Purchase-to-pay process
Card limits/restrictions
Card usage (cards working as intended)
Separation of duties
Compliance by cardholders and managers
Enforcement/accountability for roles
Transaction auditing process
Tax management
Accounting process/interface with finance system
Supplier acceptance of cards
Risk assessment of program
Use of available technology/reporting tools
Metrics usage
Maximization of card opportunity
Capture of revenue share (rebate) incentives
The Ratings
Rather than provide a letter grade (A, B, C, and so on), which are open to interpretation, the rating options include:
Excellent/program strength
Good/satisfactory as-is
Fair/needs some improvement
Notably lacking or problematic
Unsure; need to explore further
Not applicable
At the bottom is a summary of the ratings, showing the count in each category.
Commentary
If you want to add some context to your selected rating for each component, the second worksheet is designed for comments.
Download
Download the spreadsheet for use within your program. Providers, feel free to share with clients.
Final Thoughts
While the “lower” or more negative ratings can help steer program priorities, do not overlook the positive ratings (excellent and good), which represent success that can bolster confidence in the program.
Related Resources
How well is your card program aging? This 2018 blog post includes 15 questions to help you evaluate your program.
Photo by Steve Harvey on Unsplash
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About the Author
Blog post author Lynn Larson, CPCP, launched Recharged Education in 2014. With 20 years of Commercial Card experience, her mission is to make industry education readily accessible to all. Learn more…