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Sustainable Capacity Building for Enhanced Public Procurement Performance. David Smith CB FCIPS. Procurement is ‘ Big Business ’. Customer’s Change Drivers. Private sector. Public sector. Business growth. Reducing debt. Drivers. Financial performance. Service performance.

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sustainable capacity building for enhanced public procurement performance

Sustainable Capacity Building for Enhanced Public Procurement Performance

David Smith CB FCIPS

customer s change drivers
Customer’s Change Drivers

Private sector

Public sector

Business growth

Reducing debt

Drivers

Financial performance

Service performance

Minimising risk

Minimising risk

People Development

Enablers

Process Excellence

Performance

the solutions
The Solutions?
  • Smarter Procurement
  • Trained & Qualified Staff
  • Better and Managed Suppliers
  • Use of Technology
smarter procurement
SmarterProcurement
  • Better understanding of our spend!
  • Incentivised Contracts
  • Investment in People
  • Simplified but improved processes
  • ‘Real’ Market Management
  • Deriving real value from our ‘e-investment
slide6

‘The Enablers to Change’

  • Systems , Processes, Technology and Knowledge - Data
  • Influence
  • Suppliers
  • People
slide7

Our e-Investment

Our e-Challenge

procurement focus
Procurement Focus

CRITICAL

STRATEGIC

Criticality

TACTICAL

LEVERAGE

Value

but e procurement is not
But e-Procurement is not:
  • All about technology
  • A panacea
  • A quick fix
  • A substitute for good practice
  • An end in itself
  • Mechanising existing processes
slide10

Managing Key Suppliers

  • Appointment of Crown Representatives

Cabinet Office Minister Francis Maude said the “… crown representatives will help to achieve value for money by ensuring the government acts a single customer”.

“These appointments follow the renegotiation of contracts with over 50 suppliers since July last year. The renegotiations have saved the Government £800 million”.

what do we expect from the next generation of public sector procurers
What do we expect from the next generation of public sector procurers?
  • Act with Propriety
  • Know what they want to buy and why
  • Market Aware
  • Commercially and financially aware
  • Act on behalf of the public sector
what do we expect from the next generation of public sector procurers1
What do we expect from the next generation of public sector procurers?
  • Improve and drive value from existing contracts
  • Manage corporate demand,
  • Understand the future supply chain
  • Is not averse to risk in procurements but knows decisions must be managed, commercially advantageous and legally sound
slide14

Our People

  • UK Government has over 3,500 people involved in Procurement Activities
  • In Designated Posts’(those that are 100% procurement)
  • Training and Developing based on CIPS qualification and membership
  • Target for Designated Post holders to be CIPS qualified
  • Currently at 80%
  • Procurement Allowance
people development1
People Development

The three R’s

Recruit

Retain

Reward

people development2
People Development

Properly trained, qualified and continually developing procurement staff enable organisations to…

-

-

+

+

Reduce risk

Add value

Improve reputation

Cutsupply chain waste

procurement people development
Procurement People Development
  • Raising the procurement capability across the organisation
  • Providing a framework for People Development
  • Reviewing existing technical competencies, and developing a curriculum of procurement learning and development to meet the needs of our procurement people AND OUR CUSTOMERS!
slide18

Our People – What Skills?

  • Commercials Skills
    • policy, delivery, negotiation, customer relations, supply chain, relationship management, e systems, basic contract law etc
    • MCIPS as a standard
  • Financial
  • Project & Process Management
  • People Management
  • Marketing
  • Risk Management
  • Delivery
  • Ethical
  • Pragmatism!
people development3
People Development

Routes to MCIPS

Three years’ experience

Membership (MCIPS)

Academic

CIPSProfessionaldiploma

AppliedLearning

CIPS Corporate Award Advanced

Practitioner

Experiential

Management Entry Route for senior practitioners

Accredited

Other approved

qualifications

e.g. relevant

MBA or S/NVQ

CIPS Diploma Membership

  • Academic
  • CIPS Diploma
  • Applied Learning
  • CIPS Corporate Award practitioner
slide20
To ensure sustainable procurement delivery in the future, we need to get the right people now but also in 5 and 10 years’ time. We want people of all ages, disciplines and skills to make this the profession of choice.”
biggest motivation of all
Biggest Motivation of All …..

The opportunity to ensure the Procurement Profession, through delivery and behaviour, is valued and appreciated at the very highest levels of business, now and for the future.