Among the findings presented by the external auditors, the greatest concern for the supply manager should be that "teams are cited for their failure to meet performance criteria." Performance Criteria: Failure to meet performance criteria indicates that the supply management teams are not achieving the expected standards and objectives. This can significantly impact the overall effectiveness and efficiency of the supply management function.
Accountability: Not meeting performance criteria suggests issues with accountability and could reflect poorly on management practices, training, and resource allocation within the supply management department.
Operational Impact: Persistent failure to meet performance criteria can lead to operational inefficiencies, increased costs, and potential disruptions in the supply chain.
Reference:
Kaplan, R.S., & Norton, D.P. (1996). The Balanced Scorecard: Translating Strategy into Action. Harvard Business Review Press.
Drucker, P.F. (1954). The Practice of Management. Harper & Row.