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Sustainable Capacity Building for Enhanced Public Procurement Performance

This article discusses the importance of sustainable capacity building in public procurement to improve financial and service performance, minimize risk, and drive business growth. It explores the key enablers of change, such as smarter procurement, trained staff, better supplier management, and the use of technology. The article also highlights the criticality of managing key suppliers and the importance of people development in the procurement profession. The goal is to ensure the procurement profession is valued and appreciated at the highest levels of business now and in the future.

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Sustainable Capacity Building for Enhanced Public Procurement Performance

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  1. Sustainable Capacity Building for Enhanced Public Procurement Performance David Smith CB FCIPS

  2. Procurement is ‘Big Business’

  3. 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

  4. The Solutions? • Smarter Procurement • Trained & Qualified Staff • Better and Managed Suppliers • Use of Technology

  5. 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

  6. ‘The Enablers to Change’ • Systems , Processes, Technology and Knowledge - Data • Influence • Suppliers • People

  7. Our e-Investment Our e-Challenge

  8. Procurement Focus CRITICAL STRATEGIC Criticality TACTICAL LEVERAGE Value

  9. 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

  10. 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”.

  11. People Development

  12. 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

  13. 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

  14. 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

  15. People Development The three R’s Recruit Retain Reward

  16. People Development Properly trained, qualified and continually developing procurement staff enable organisations to… - - + + Reduce risk Add value Improve reputation Cutsupply chain waste

  17. 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!

  18. 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!

  19. 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

  20. 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.”

  21. 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.

  22. Thank you for listening and enjoy…

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