Push and pull to stop mavericks

15 February 2007
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15 February 2007 | Paul Snell

Buyers believe that using a combination of "carrot" and "stick" methods is the best way to control maverick spend.

The latest SM poll of 100 buyers shows that 57 per cent think using incentives and punishments in tandem is the most successful way to reduce unauthorised spending. Many called for understanding, education and communication with non-buyers to ensure they comply with purchasing procedures.

Buyers were also urged to be flexible, providing incentives if the problem happened once but punishing staff if rules were repeatedly broken. Yet some questioned why staff should be rewarded for disobeying rules. "Naming and shaming" and withdrawal of purchasing rights were suggested punishments.

Others said if a firm had reached the stage of handing out punishments and incentives, it was too late, and problems should be resolved earlier in the process.

SMfeb2007

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