A SAM program that cannot show its results will eventually lose its budget. The right KPIs prove value, focus effort on what matters, and give leadership a reason to keep investing. The wrong ones, such as counting how many records are in the inventory, describe activity rather than outcomes.
Here are ten KPIs that connect SAM to money and risk, with a formula, a sensible target and an owner for each.
The ten KPIs
| # | KPI | Formula | Healthy target | Owner |
|---|---|---|---|---|
| 1 | Spend under management | Software spend in the SAM system ÷ total software spend | Above 90% | SAM manager |
| 2 | License utilization | Licenses actively used ÷ licenses paid for, per product | Above 85% | Product owners |
| 3 | Idle license cost | Cost of licenses unused for 90+ days | Falling quarter on quarter | SAM manager |
| 4 | Identified savings | Value of savings opportunities found | Pipeline covers next two quarters | SAM manager |
| 5 | Realized savings | Reduction in contract value or avoided cost, confirmed | Agreed annual target | Finance |
| 6 | Renewals reviewed on time | Renewals decided before the notice deadline ÷ all renewals | 100% | Vendor owners |
| 7 | Auto-renewal exposure | Value renewing automatically in 90 days without review | Zero | Procurement |
| 8 | Contracts with owners | Contracts with a named owner ÷ all contracts | 100% | Procurement |
| 9 | Audit readiness | Days needed to produce a license position for a top vendor | Under 5 days | SAM manager |
| 10 | Budget variance | Actual software spend vs plan | Within ±3% | Finance |
The four for leadership
Leadership does not need ten numbers. Four tell the story:
- Realized savings, because it is the reason the program exists.
- Spend under management, because savings are only possible where you have visibility.
- Renewals reviewed on time, because it shows the process works.
- License utilization, because it shows where the next savings will come from.
Identified is not realized
The most common credibility problem in SAM reporting is presenting identified savings as if they were money in the bank. Identified savings arrive early; realized savings follow at the pace of renewals. Showing both lines, honestly, builds more trust than one big number.
How to make KPIs credible
KPIs to avoid
- Report outcomes: money saved, risk reduced, renewals governed.
- Show realized savings with the evidence behind them.
- Keep definitions stable from quarter to quarter.
- Number of records in the inventory: more records do not mean better management.
- Number of tools discovered: interesting, but not an outcome.
- Savings as a percentage of total IT budget: it mixes too many things to be meaningful.
How MI One helps
Frequently asked questions
How often should SAM KPIs be reported?
Monthly for the SAM team, quarterly for leadership.
What is a good license utilization rate?
Above 85% is healthy for most products. A small buffer for growth is sensible; below 70% usually means waste worth acting on.
Who should own the savings number?
Finance should confirm realized savings. It makes the number credible and keeps the program honest.