What should be done with processes that neither have high strategic value nor contribute to operational performance?

Study for the CIPS Introducing Procurement and Supply (L2M1) Test. Engage with flashcards and multiple choice questions, each question includes hints and explanations. Ace your exam with confidence!

When assessing processes that neither hold high strategic value nor enhance operational performance, the most logical step is to eliminate them. These processes often do not justify the resources or attention required to maintain them, as they provide little to no benefit to the organization’s goals or efficiency.

Elimination allows organizations to streamline their operations, reduce waste, and focus on more valuable activities that can improve both strategy and performance. By removing these non-essential processes, businesses can allocate resources—such as time, money, and personnel—to areas that contribute more significantly to their success, ultimately fostering a more effective and efficient operational model.

Retaining processes that do not add value can lead to inefficiencies and can divert important resources away from more impactful activities. Outsourcing might make sense for certain functions, but in this context, if the processes lack value, outsourcing them would still incur costs without delivering benefits. Forming strategic alliances typically aims to enhance capabilities or enter new markets, making it inappropriate for processes that do not exist as value drivers. Therefore, focusing on elimination is the most effective approach to improving organizational performance in this scenario.

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