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Working Nationally: Local Government Professional Services Steering Group

Working Nationally: Local Government Professional Services Steering Group. Charlie Short and Georgina Aplin West Midlands People Event 17th July 2009. What does the group do?. Works in 2 main areas:

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Working Nationally: Local Government Professional Services Steering Group

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  1. Working Nationally: Local Government Professional Services Steering Group Charlie Short and Georgina Aplin West Midlands People Event 17th July 2009

  2. What does the group do? • Works in 2 main areas: • Developing procurement strategies for consultancy, temporary staff and other contingent labour across the sector to achieve a joined - up approach • Stimulating collaborative procurement and sharing best practice to support local government in achieving efficiency targets and improved services.

  3. What’s of interest? Why? • Over 70% of professional services spend is within wider public sector Who? • LGPSSG comprises representatives from LG organisations with significant spend or influence in the category area, along with colleagues from OGC • Andrew Foster from the EM IEP represents the RIEPs • Each region is represented – Charlie Short and Debbie Husler from Birmingham represent West Midlands • Buying Organisations NEPO/ESPO represents Pro5 • Audit Commission

  4. How can local authorities benefit? Consultancy CSR 07 Spend £1.8b Target £102m Temp Staff CSR07 Spend £1.8b Target £184m • Potential savings for authorities during the 2008 – 11 period have been identified as up to £286m resulting from this initiative, (could be significantly higher if greater investment of effort is made); strategies include: • Sharing information and expertise, • Working with suppliers, authorities and Professional Buying Organisations to develop improved deals • Adapting and tailoring successful initiatives used by other public sector colleagues eg the Consultancy Value Programme

  5. Where are we now and what are the opportunities?Baseline Questionnaire

  6. Next Steps Regional Action plans and Council feedback Publish and circulate results Complete baseline (min 100 questionnaires) Ongoing support of regional and national work Consultancy and demand management work

  7. How you can feed into the group? • Details of the workings of the group are on the West Midlands Procurement Hub: • http://hub.westmidlandsiep.gov.uk/page.asp?PageRef=87 • Next LGPSSG meeting is 30th September • Birmingham represent IEP WM on the group. • If you have any feedback to assist the group, please get in touch with Charlie, charlie.e.short@birmingham.gov.ukor 0121 464 0099  • Hazel Greaves – Commercial Delivery Manager, Consultancy • hazel.greaves@ogc.gsi.gov.uk or 0207 271 2645 or 07825 781744 • Georgina Aplin – Commercial Delivery Manager, Temporary Staff • georgina.aplin@ogc.gsi.gov.uk or 0207 271 2667 or 07917041211 • Olivia Thomson – Commercial Delivery Manager, Temporary Staff • olivia.thomson@ogc.gsi.gov.uk or 0207 271 2813 or 07920 784181 

  8. Buying and BeyondTemporary Staff and Consultancy Olivia Thomson West Midlands People Event 17th July 2009

  9. Category Priorities • Temp Staff • Continue with Procurement Support • Demand Management • Benchmarking and Standardisation- • Strategic Suppliers- focus on key 6 with supplier forums for 2 largest. • Consultancy • Use baseline information to further assess the opportunity and put a strategy in place • Roll out LG CVP • Increase compliant spend and use of frameworks • Development of strategic supplier management More than just changing the buying.

  10. Multiple contracts with very different Terms and Conditions Fragmented and highly complex supply base - large number of SME suppliers Some regional collaboration - few national PBO frameworks High single source/ non-framework spend Trends Outsourcing both Permanent and Temporary Staffing Collaboration and Knowledge Sharing e.g. benchmarking rates Links with other priorities – economic development e.g. local/ SME agenda, community priorities e.g. worklessness, workforce planning e.g. demand management & redeployment Evolving Models – blends of Master/ Neutral What is the current picture?

  11. Temp Staff Landscape - Models in use

  12. What are the opportunities? • Stop spending: Demand Management • Authorisation, business case, monitoring, dealing with underlying management and HR issues in order to reduce spend • Increase internal capability: Workforce planning • Ensure agency staff are included within your pay and workforce strategy • Deal with skill shortage issues now and for the future to reduce agency staff – collaborative effort required • Increase Collaboration • Joint Procurements • Regional Strategy • Ensure Robust Contract Management

  13. Priorities for OGC • Temp Staff • Continue with Procurement Support • Demand Management • Benchmarking and Standardisation- • Strategic Suppliers- focus on key 6 with supplier forums for 2 largest. • Consultancy • Use baseline information to further assess the opportunity and put a strategy in place • Roll out LG CVP • Increase compliant spend and use of frameworks • Development of strategic supplier management More than just changing the buying

  14. CVP for local government • Background to CVP • Recommendations from 2006 NAO report “Use of Consultants in Central Government” • CVP uses an NAO approved methodology • Principles: • Consistent, controlled and effective use of consultants • NOT about eliminating use of consultants completely • Approach: • Business Case – to establish consultancy is the best solution • Gateway and Governance – to confirm the business case is robust • Performance review – to ensure best value is extracted

  15. CVP Benefits and Savings • How does it work? • Series of processes to be implemented in the organisation, covering Demand Management, Category Management, Contract Management and Additional Controls • Assessment of extent to which these are embedded • Application of a benefits and savings methodology (based on empirical research) • Potential savings • Apply savings % to all spend influenced by the CVP approach • Will vary depending on starting point but 1%-35% • How to get involved: • Contact Hazel Greaves – hazel.greaves@ogc.gsi.gov.uk

  16. Forthcoming work & resources • Baselining questionnaire – picture of the landscape to be used with regions to support development of a regional plan • Tools and guidance – resource definition, agency fees, rates calculator, MSP fee calculator, What good looks like? • Demand Management • Consultancy pricing guide and CVP business case templates • and more to come! • Go to http://www.ogc.gov.uk/temporarystaff_7133.asp • Contacts: • Hazel Greaves – Commercial Delivery Manager, Consultancy • hazel.greaves@ogc.gsi.gov.uk or 0207 271 2645 or 07825 781744 • Georgina Aplin – Commercial Delivery Manager, Temporary Staff • georgina.aplin@ogc.gsi.gov.uk or 0207 271 2667 or 07917041211 • Olivia Thomson – Commercial Delivery Manager, Temporary Staff • olivia.thomson@ogc.gsi.gov.uk or 0207 271 2813 or 07920 784181

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