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Public Spend Forum Europe Best Practices Exchange London – February 8 th 2017

Public Spend Forum Europe Best Practices Exchange London – February 8 th 2017. Welcome to Public Spend Forum Europe. Welcome to the most informed, forward thinking and knowledgeable group of public procurement leaders ever assembled in the UK…and across the globe!

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Public Spend Forum Europe Best Practices Exchange London – February 8 th 2017

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  1. Public Spend Forum Europe Best Practices ExchangeLondon – February 8th 2017

  2. Welcome to Public Spend Forum Europe • Welcome to the most informed, forward thinking and knowledgeable group of public procurement leaders ever assembled in the UK…and across the globe! • Thank you for giving up your valuable time • We hope you find today useful in terms of – • Networking • Brief you on PSF progress • Exchange of good practice and useful insight • Update on specific research inc. collaboration and competences

  3. Public Spend Forum UK – Purpose and Plans • Our ultimate aim is to help public procurement and public supply markets work more effectively – “create an open, efficient and innovation-driven market” • We aim to build a global community and a knowledge network - includes best practices, benchmarking and diagnostic tools and learning resources to help public procurement practitioners • In particular, the UK Exchange is aimed to promote cross-sector networking, exchange of good practice, benchmarking and research • Look to open out to a wider (senior) audience

  4. Public Spend Forum UK – Purpose and Plans • Three goals today: • Networking; convene a group that can start to drive this process • Feedback and progress priority areas of work • Try a short “workshop” to see if this group can actually generate useful “content” • We want today to be interactive and participative – Chatham House rules apply (can use what you hear but no attribution please). • We will circulate slides this week and meeting notes shortly.

  5. UK Best Practices Exchange, Feb. 8th 2017 - Agenda

  6. Raj Sharma – Chairman and Founder of Public Spend Forum • Founder and CEO of Censeo consulting • Founder of Public Spend Forum • Board of Overseers, University of Pennsylvania Center for Asian Law • Former Fellow at Center for American Progress, on the Economic Policy and “Doing What Works” Team • Advisor and Partner in “Impact Genome” project to develop predictive capability for social outcomes • Member of Executive Advisory Board at Michigan State University’s Supply Chain Program • Formerly on the leadership team of the “Women in Public Service” program at the Woodrow Wilson Center for Scholars

  7. What is the Public Spend Forum? • Public Spend Forum is a global initiative to help public procurement and public sector market participants to: • Break down silos and connect with peers and experts across the world • Develop global frameworks to address common issues • Curate best practices and benchmark • Learn from leading academics and experts • Formed in partnership with faculty from Michigan State University’s #1 Ranked Procurement and Supply Chain Executive MBA program; advisory/working relationships with other leading institutions such as the World Bank • Board comprised of prominent leaders including former presidential candidate and Maryland Governor Martin O’Malley, Professor Steve Kelman from Harvard University Kennedy School of Government, Professor Jason Saul from Northwestern University Global Academia and Expert Network

  8. 4 key focus areas • Online global community portal where government workforce can connect with state/local/fed/international peers while accessing valuable content • Leaders Forums centered around specific issues (e.g. Procurement Leaders Forum) Global Public Procurement Network • Actionable best practices library accessible to members • Case studies and benchmarking tools • In-depth research studies on topics prioritized by members Best Practices Benchmarking and Global Studies • Online learning resources developed in collaboration with leading universities and academics • Flexible learning approach and cutting-edge content geared towards skills often ignored Learning Network (with Global Academia/Experts) • Curated news and regulations updates from across the public sector News and Regulations

  9. Global Community… Global Community – over 7,000 people participating from across the world part of the community (over 90% government) and accessing various forms of content • Public procurement executives from all around the world (e.g. USA, UK, Romania, Japan) representing federal/state/local governments, non-profits, education and quasi-governmental; private sector executives are regularly invited and participate Leaders Forums – • More than 100 public procurement executives from around the world representing federal, state, local and international governments • “Expert Network” comprised of distinguished academics and experts from across the world • Non-profit, education, quasi-governmental, and private sector executives are regularly invited and participate Academic and global partnerships • Working with Michigan State University and other academic partners (e.g. Steve Kelman from Harvard) • Relationships with multi-lateral organizations such as the World Bank, University of Pennsylvania

  10. Best Practices and Benchmarking • Best practice and benchmarking topics based on World-Class Procurement Function Framework

  11. Best Practices and Benchmarking Global Studies to Inform Global Frameworks “Public Procurement CompetencyModel” Developed in Partnership with The VolckerAlliance Primary Outputs: • Flexible Framework for Public Procurement Competencies, in partnership with the Volcker Alliance • Workforce Assessment Model and Self Assessment Model – Pilots in U.S.

  12. Best Practices and Benchmarking Global Studies to Inform Global Frameworks IT Programs Best Practices Led by Professor David Wyld and PSF “Public Procurement Metrics” In Partnership with Michigan State Univ.

  13. Learning and Development • Mission: “To help accelerate skills development so people can realize their true potential and deliver maximum impact for their organizations” • A Holistic Learning and Development Philosophy that goes beyond formal training • Experiential Activities • Cases • Self-directed research • Problem solving games • Training & Education • Learning Paths • Webinars • Virtual & in-person events • How-to collections • Collaboration and Intellectual Curiosity • Continuous exposure to best practices and different perspectives • Collaboration online and offline • Blogs and Discussion Forums

  14. Training should go beyond process training to critical skills/practices that matter Metrics and Critical Practices Study, in Partnership with Michigan State University Public Procurement Competency Study with the Volcker Alliance

  15. Curriculum is focused on the most impactful competencies • Customer & Market Engagement • Early Customer Engagement • Stakeholder Engagement • Supplier Engagement • Functional & Analytical Skills • Problem Solving & Critical Thinking • Requirements Planning • Stakeholder Analysis • Cost & Price Analysis • Market Analysis Interpersonal & Professional Effectiveness Process & Policy Comprehension High Impact Curriculum • World-class Procurement • Managing Contracts and Suppliers (COR) • Leading World-Class Procurement • Leading Teams • Communication & Collaboration • Personal Productivity and Time Management • Mindfulness Global Academia and Expert Network In partnership with leading universities and academics

  16. Delivery through a world-class platform Flexible on when you start Use best mediums to teach (video, case studies, webinars, gaming, etc.)

  17. Trump/White House Agenda • What we all know: NOTHING • What we do know based on conversations: • Large suppliers more on edge about directly being confronted • More focus on buying American…procurement professionals already inferring even without direct policy guidance • More focus on outsourcing with hiring freeze • Uncertainly in adoption and commitment to technology…limited engagement with tech community • Future of key Obama initiatives: • Category Management – expected to continue • Innovation Labs – expected to continue • Internal IT initiatives – not certain about future • Talent leaving in droves …worrisome development

  18. What others are recommending to Trump White House • Synthesis of recommendations: • Improve “speed to outcome” … by simplifying process, incentivizing risk, and holding government and supplier accountable for outcomes • Improve access to innovation … by simplifying RFPs, using “emergent technology provisions” • Encourage companies to submit “alternative solutions” • Improve government culture to focus on results, speed and innovation • Improve communications with industry • Manage contract performance more rigorously • Standardize data and leverage technology

  19. Agenda

  20. Procurement Collaboration Study • Look at lessons learned and potential recommendations for the future covering both “group buying” and “shared services” approaches to procurement • Carried out half a dozen interviews • Review of previous work – largely NAO reports • On-line survey completed by c80 people

  21. Procurement Collaboration Study • Surrey and East Sussex “shared service” – key learnings • A gradual approach has worked well – procurement actually a trail-blazer for other functions • Be sensitive to culture, ways of working – organisations are different • Build key relationships • De-personalize process redesign etc., make everyone feel involved rather than just choosing the “dominant partner’s” way of working • Challenges around buy-in from key stakeholders (e.g. commissioners) • Benefits • Resilience - easier to attract and retain good staff • Expertise can be shared e.g. deep property and construction procurement expert • Collaboration has driven efficiencies and allowed certain developments like eInvoicing • The direct cost of function has been reduced but the service has been protected • Aggregation of spend has brought benefits, not just in price terms – more attention from suppliers

  22. Procurement Collaboration Study • London Universities Purchasing Consortium – key learnings • A very slow but steady growth in university collaboration over the years • Feeling of ownership amongst members is key; small annual fee helps that, as do governance structures and service orientation • Some categories easier than others; e.g. property a challenge • National co-operation among four consortia in the sector – four not necessarily the “correct” number but doubt that one would be the best answer • Aggregation is important – but must meet specific sectoral needs • Now offering an “outsourcing” service to smaller members – that may well have applicability in other sectors • Some mixed messages from CCS but generally good relationship

  23. Procurement Collaboration Study • Yorkshire Purchasing Organisation – key learnings • Owned by local councils with a profit share approach that helps with buy-in, also serves thousands of schools • Extended ownership beyond initial founding organisations • Funded via suppliers; customer service is a key differentiator • “Procurement is power” in local authorities; stakeholders want the control that spending money gives them • But mandation “does not build sustainability into the system” • Close partnership with CCS, shared work including award-winning projects such as insurance contracts • “Constant changes of personnel” in CCS has caused some issues • Technology will be the game-changer

  24. Procurement Collaboration Study • London Council Collaboration (and previous experiences) – key learnings • Collaboration in sector can work – but easiest in specific circumstances; where never done before – no existing skin in the game • Or “below the radar” (£2M saved on London Postal contract) • Barriers from officers and members – power, empires e.g. transport officers • Also different cultures (centralised, decentralised etc.) • Suppliers also guilty of undercutting work • Rationale for shared service approach is growing – attracting good staff a struggle, headcount reduction, move to contractor working • Opportunity to maintain resilience as well as economies of scale • Happening in Harrow – should get to viable point • Harmonise tools, processes, use best practice, do it once • Appears to be new mood in CCS, genuine will to be helpful, positive

  25. Public Sector Collaboration Survey Pretty good spread – a bias towards education perhaps …

  26. Public Sector Collaboration Survey A good spread of organisations in terms of size

  27. Profile of survey respondents

  28. Surprisingly high; collaboration is more than just the “tail spend” for most

  29. Most are in the “fair to pretty good” range in terms of happiness

  30. Which Categories Are Best Suited To Collaboration? • Best for collaboration – strong agreement • Office products • IT Hardware • Energy • IT software / services • Majority positive, some doubts • Travel • Temporary labour • Professional services • Fleet and transport • Waste management • Limited potential • Medical products • Learning and development • Facilities management • Construction • Social care Interesting – but there may be a historical familiarity / competence element here too as well as the intrinsic properties of the category

  31. What are the three most important success factors for collaboration to work well?

  32. What are the benefits of using CBOs?

  33. What are the negatives of using CBOs?

  34. What are the benefits of shared services?

  35. What are the negatives of shared services?

  36. What are the benefits of joint buying?

  37. What are the negatives of joint buying?

  38. Procurement Collaboration Study • A few overall emerging messages – • Collaboration is a vital part of the landscape and we should celebrate the many successes more than we do • But we should not under-estimate the difficulties given procurement collaboration is often not aligned with wider strategic picture • There are some clear messages around the benefits of “ownership” and customer service for CBOs • Issues with internal stakeholders and specification of goods and services need to be front of mind • Opportunity for smaller procurement shared service models to maintain resilience in difficult times • CCS needs to develop its wider public sector strategy with care and we would suggest will benefit from positive working with other CBOs

  39. Agenda

  40. RISK AVERSION • At our first meeting, we talked about the need for public procurement people to be less risk averse. • But … how might we address that? • What do we mean by “risk averse”? • What sort of behavior would we like to see? • How might we help procurement people behave in that way? Which particular skills, knowledge, capabilities are needed to develop a less risk averse population?

  41. Agenda

  42. Public Procurement Competency • Adrian Kamellard – Cabinet Office programme

  43. Public Procurement Competency • “The four professional levels covered in this document make up our senior cadre of commercial staff, responsible for ensuring that the Civil Service achieves excellence in all its commercial activity. Typically, this group will be made up of Grade 7/ 6 staff and above. However, the reason why we are establishing these new levels is that they will not be tied directly to traditional Civil Service grades. Instead, they are tied to attainment of specified competency levels in Judgment & Leadership, together with Expertise in commercial skill areas. The four levels, from the least to most senior, are: • Commercial Lead: Typically, a commercial manager who provides leadership and management to a small team and actively seeks to build their capability. • Associate Commercial Specialist: Typically, a commercial specialist who is a leader within the departments commercial function, actively building capability across the function. • Commercial Specialist :Typically, a commercial specialist who is also a senior leader within the department and actively builds commercial capability across the organisation. • Senior Commercial Specialist: Typically, a senior departmental leader, specialising in commercial, with responsibility for a directorate or key business function”.

  44. Public Procurement Competency • “Attributes for Government Commercial Professionals: • Section A: Judgement and Leadership • 1. Business Acumen and Commercial Judgement • 2. Leadership Skills and Capability • Section B: Expertise • 3. Strategy and Policy Development • 4. Understanding Needs and Sourcing Options • 5. Procurement Process • 6. Contract and Supplier Management • 7. Complex Deals”

  45. Public Procurement Competency • e.g. Business Acumen and Commercial Judgement – Associate Commercial Specialist • Demonstrates resilience in interactions with suppliers and across the team, defending the departments position. • Considers the cumulative impact on own business area of implementing Change (culture, structure, service and morale). • Presents technical issues to senior stakeholders and helps them arrive at decisions by acting in an advisory capacity. • Involves partners to deliver a business outcome through collaboration. • Acts as a role model in supporting and energising teams to build confidence in their ability to deliver outcomes. • Understands the wider teams commercial capability and experience and identifies any skill gaps. • Coaches and supports colleagues to take responsibility for their own development through providing accountability, varied assignments and on-going feedback. Uses their bank of experience to provide examples to those they coach. • Promotes knowledge and resource sharing within the commercial function. • Influences stakeholders to take active steps to eliminate corruption, fraud and unethical behaviour in supply chains.  

  46. US Public Procurement Workforce Competency Study • Sponsored by the Volcker Alliance • Goal was to develop a simple, universal framework for public procurement competencies • Conducted secondary research and engage with over 40 public procurement leaders • Developed a draft competency model and validate with project shapers • Exposed respondents to competency model and have them evaluate gaps

  47. Study Output: Public Procurement Competency Model

  48. Identified Workforce Competency Gaps

  49. Next steps • Assessments tools for (1) Overall workforce assessment and (2) Self-Assessment • Pilot with a US County in California and a State • Any recommendations for pilots in the UK???

  50. Agenda

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