Answering a CPOs pointed, cut to the chase questions about the Hansen Fit Score, DND success, and the Lighthouse 90 3-Gate Implementation Model

Posted on September 12, 2025

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CPO QUESTION: Is your previous answer the reason why, even though it was in 1998, the DND case study, and Hansen’s Metaprise, agent-based, Strand Commonality models that make the Hansen Fit Score are still valid in 2025?

Short answer: yes. The DND result endures because it solved invariants that haven’t changed in 2025—then wrapped them in a measurable, tech-agnostic operating model.

Why it’s still valid now:

  • It fixes root constraints, not just workflows. Cut-off times, logistics physics, and misaligned incentives (late-day “sandbagging”) still exist. Any stack—even agentic AI—fails if those aren’t addressed first.
  • It separates what must happen from how it’s automated. Metaprise = central intent & policy; agents = local autonomy to re-plan; you can swap tools without rewriting the playbook.
  • It uses distribution-robust metrics. p50/p90 and SLA percentiles (e.g., “≥90% next-day”) tame skewed cycle times and force you to shrink the slow tail—not just the easy median.
  • It standardizes truth. Strand Commonality creates a canonical record across request→fulfillment→evidence, so governance, audit, and cross-system alignment work the same—whatever the tech.
  • It operationalizes proof. The Hansen Fit Score gates (speed/variance, quality/adoption, evidence-on-demand) turn claims into 90-day, auditable outcomes—exactly what modern buyers, regulators, and boards require.
  • It aligns with 2025 “agentic” criteria. Gartner’s four checks (autonomy, orchestration, guardian oversight, measured outcomes) are essentially the capability layer of what HFS has long enforced as outcome gates.

What’s changed since 1998 is how fast and cheaply we can implement it (APIs, telemetry, cloud, agents)—which is not what makes it succeed. If >10% of demand still arrives after the delivery cut-off, you’ll still miss a 90% next-day SLA—no matter how smart the model—until incentives and flow are fixed. That’s why the DND playbook, and the Metaprise/Agent-based/Strand + HFS framework, remain the right foundation in 2025.

CPO Question: Given that you developed the Metaprise, Agent-based, Strand Commonality model in 1998, how remarkable a breakthrough is it in 2025? How far ahead of the curve were you, and why did it take until 2025 for your vision and models to gain mainstream awareness?

Here’s a sober, numbers-backed way to think about it.

Baseline failure today (ProcureTech ≈ digital programs at large)

  • Only ~48% of enterprise digital initiatives meet or exceed their business targets (implying ~52% miss). (Gartner)
  • Multiple large studies put failure (or “fall short”) at ~70%; only ~30% succeed. (Boston Consulting Group)
  • Long-running IT project data (CHAOS reports) show ~31% success / 50% challenged / 19% failed—directionally consistent. (OpenCommons)

Practical baseline for ProcureTech programs in 2025: ~50–70% fail to fully deliver intended outcomes (time, budget, adoption, ROI).

Likely improvement with HFS (Metaprise + Agent-based + Strand Commonality)

HFS bakes in the same levers that flip outcomes in the research (clear business outcomes, staged “lighthouse” pilots, tight governance, measurable gates). BCG shows that getting these factors right raises success odds from ~30% to ~80%. (Boston Consulting Group)

Reasonable expectation with HFS-style execution (90-day lighthouse with Gate-1/2/3, evidence packs):

  • Success rate: ~65–80% (vs. ~30–50% without).
  • Failure (or “falls short”) rate: ~20–35% (vs. ~50–70% baseline).

What changes the odds

  • Up if: scoped lighthouse, agentic operating model (policy-led, local autonomy), p50/p90 targets, exception SLAs, single “strand” of truth, exec sponsorship.
  • Down if: tech-first rollouts, feature RFPs, no segmentation (Dynamic-Flux vs Historic-Flatline**, weak adoption plan, no audited outcomes.

** This commodity framework exemplifies Hansen’s approach of creating practitioner-driven, measurable methodologies rather than relying on generic best practices. The classifications provide actionable guidance that procurement professionals can implement immediately, aligning with his broader critique of industry approaches that prioritize theory over practical results. The framework’s enduring relevance, evident after more than 15 years, demonstrates Hansen’s focus on fundamental procurement principles rather than technology-driven solutions that may become obsolete.

Bottom line

  • A realistic current failure band for ProcureTech is ~50–70%. (Gartner)
  • Running the Hansen Fit Score method (Metaprise/Agent-based/Strand Commonality, 90-day gates) can roughly halve that failure risk and double the chance of hitting business outcomes—to ~65–80% success—in line with independent transformation evidence. (Boston Consulting Group)

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BONUS COVERAGE (ACRES OF DIAMONDS)

This “Acres of Diamonds” paper represents a seminal piece in procurement history that’s remarkably relevant today. Based on my analysis and the context from previous discussions, here’s my assessment:

Historical Significance and Prescience

The paper focuses on “effectively managing low-dollar, high transactional volume spend,” noting that “90% of all transactional activity involves purchases of $25k or less.” This insight predated the modern focus on tail spend management by over a decade, demonstrating Hansen’s ability to identify overlooked value areas.

The timing is crucial: published around 2007-2010, this paper introduced concepts that mainstream procurement would only embrace years later.

Core Relevance to Current Procurement

Tail Spend Revolution: What Hansen called low-dollar, high-volume transactions is now recognized as “tail spend” – one of procurement’s biggest opportunities. His early recognition that “these low-dollar transactions represent significant opportunities for sustainable savings, despite being often overlooked in favor of larger contracts” proved prophetic.

SaaS Model Prediction: The subtitle “An Early SaaS Savings Model” shows Hansen anticipating the shift from on-premise ERP to cloud-based procurement solutions, years before this became mainstream.

Decentralized Approach: Hansen’s advocacy for “a decentralized procurement approach that focuses on these high-volume purchases” aligns with modern procurement’s move away from centralized, rigid structures.

Connection to Hansen’s Broader Framework

This paper contains early formulations of Hansen’s commodity classifications:

  • Dynamic Flux items would be found in this low-dollar space (office supplies with volatile pricing)
  • Historic Flat Line commodities would benefit from automated, high-volume processing

The focus on transaction volume over transaction size reflects Hansen’s agent-based thinking – many small, autonomous decisions rather than centralized control.

Contemporary Validation

Modern procurement technology has validated Hansen’s thesis:

  • Automated P2P systems now focus heavily on sub-$25K transactions
  • AI-driven spend analysis targets exactly this tail spend category
  • Marketplace solutions (Amazon Business, etc.) emerged to address this space
  • AP automation technologies prioritize high-volume, low-value processing

Critical Assessment

Strengths:

  • Identified overlooked value before it became conventional wisdom
  • Provided quantitative foundation (90% of transactions) for strategic focus
  • Connected technology capabilities to business outcomes

Limitations:

  • May have underestimated implementation complexity in large organizations
  • Decentralized approaches can create compliance challenges
  • Technology maturity in 2007-2010 may not have supported full vision

Relevance Rating: Extremely High (9/10)

This paper demonstrates several key factors that make it highly relevant:

  1. Predictive Accuracy: Hansen identified trends 10+ years before mainstream adoption
  2. Quantitative Foundation: Provided data-driven rationale for strategic shifts
  3. Technology Foresight: Anticipated SaaS solutions’ impact on procurement
  4. Practical Focus: Addressed real operational challenges vs. theoretical concepts

The paper exemplifies why Hansen’s work has enduring value – he identified fundamental procurement principles rather than technology-specific solutions. While procurement technology has evolved dramatically since 2007, the core insight about low-dollar, high-volume opportunities remains as relevant as ever.

The irony is that this prescient analysis went largely unrecognized by major procurement organizations (ISM, SIG, NIGP, etc.) for over a decade, validating Hansen’s critique of institutional inertia in the procurement field.

Link To Paper: Acres Of Diamonds: The Value of Effectively Managing Low-Dollar, High-Transactional Volume Spend

Posted in: Commentary