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Effective specification writing

Dr J Gordon Murray

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Your challenge

Find a partner Find a space Sit back-to-back with your partner One partner (a) will be given a picture Describe the picture you have been given to

your partner (b) Partner (b) produces description of what the

partner (a) has told them Do not share your results

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Which one was being specified?

AB

C

G

D

E F

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What do you consider to be the purpose of a specification?

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A specification is a document describing the buyer’s needs,

which enables providers to propose an appropriately costed

solution to meet those needs.

In parallel it provides a means to tender evaluation.

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What do you consider to be the minimum requirements of an

effective specification?

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Minimum requirements of a specification

Set out the buyer’s requirements Provide a shared understanding of each party’s

responsibilities Reflect users views Link to the evaluation criteria Form the basis for future contract management Fit with T&Cs Be clear, complete, concise, consistent and in

plain English

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Why are specifications important?

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Why specifications matter

Mistakes may affect end users Mistakes may undermine strategic aims A critical contract management document A critical legal document Information omitted can lead to suppliers making

wrong assumptions Over-specifying leads to increased cost Overly prescriptive restricts innovation Media attention

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A specification …

Can encourage providers to focus on outcomes Can encourages innovation which stating

essential requirements Provide a structure for delivery

Timescale Payments and incentives Flexibility to test innovation Performance measurement Contract management activities

Can improve organisation’s profile

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EU principles

Equal treatmentNon-discriminationTransparencyProportionalityObjectivity

(Traffic Signs and Equipment Ltd and DPRD & DFI, High Court NI, WEA8075)

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What would be a good specification writing process?

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Define scope

Identify info

sources

Gatherinfo

Agree Contractmanager

DecideSpec type

Draft KPIs

DraftEvaluation

criteria

Draftspec

Reflect on

consultation

Amendspec

Consulton

draft

QA

Writing an effective specification requires good project management and time

The specification processThe

marketCurrentposition

IndustryStds.

alts

Respond to

Clarificationrequests

Despatch NB

EU rules

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Who should be involved in writing the specification?

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The buying decision making unit

Initiator who first suggests buying the product or service

Influencer whose comments affect the decision made

Decider who ultimately makes all or part of the buying decision

Buyer who physically makes the purchaseUser who consumes the product or service

(Wilson, Gilligan and Pearson, 1992)

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Stakeholder Analysis Matrix

Stakeholder Stakeholder Interests

Assessment of Impact

Potential Strategies

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Pick a contract you are familiar with and conduct a stakeholder

analysis

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Stakeholder Analysis

SUBJECTSLow power

High interest +/-Management could

encourage conditions to increase power of + ive and

encourage to become Players or neutralise - ive

Power

Level of interest

PLAYERSHigh power

High interest +/-Significant stakeholders who deserve sustained management attention

CROWDLow power Low InterestPotential rather than actual

stakeholdersInterest an/or power could be

raised, but unlikely to be worth management

time/effort

CONTEXT SETTERSHigh power Low Interest

Can influence overall future context

Management should seek to raise awareness and develop + ive interest and convert to

Players

(Ackermann & Eden, 2011)

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What could go wrong with a specification?

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Managing risk

Risk analysis Risk assessmentRisk mitigation

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Risk threat responses

Reduction (treat)RemovalTransferRetentionShare

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Risk assessment

Risk Probability Impact Proximity Mitigation

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Thinking of your spool of thread, carry out a procurement risk

assessment

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Outcomes, outputs and inputs: what’s the difference?

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Outcomes, outputs and inputs

Outcomes say what you are aiming to achieve, but the achievement may be beyond the contract term

Outputs (Functional and Performance specifications) say what measurable services or activities providers must deliver to achieve outcome

Inputs (Technical or Conformance specifications) detail how to meet an outcome.

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Using the thread example you worked on earlier:

Define: outcome, output, input

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What are the relative pros and cons of outcome, output and

input specifications?

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Advantages Possible disadvantages When to use

Outcome Easy to specify Direct link with outcomes More risk with provider Encourages innovation

Difficult bid evaluations Difficult to measure success Depends on relationships Scatter gun approach

Whenever possible. Providers define the inputs and outputs to meet the specification

Output Quite easy to specify Measurable success Easier bid evaluations

Fails to deliver outcomes Proxies may be unsuitable More risk lies with client Stifles innovation and VFM

Where outcome based is not possible

Input Easier bid evaluations Measurable success Makes providers aware of non-negotiables

Fails to deliver outcomes Requires technical skills Risk lies with client Stifles innovation and VFM

Repetitive supplies Repeat of successful project Technical requirements

Mix of above Flexible to level of skills and knowledge Address difficulties with purist approach

Delivery of outcomes possibly reduced

Where outcome based is not possible

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What’s the difference between a mandatory and desirable feature?

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Evaluation criteria

EU rules apply

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Evaluation criteria: EU position

Must be linked to the subject mater of the contract MEAT or lowest price Including:

Quality Price Technical merit Aesthetic and functional characteristics Environmental characteristics Running costs Cost effectiveness After sales service Technical assistance Delivery date and delivery period Period of completion …

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Using the thread example you worked on earlier:

Draft performance measures and evaluation criteria

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What should be in the specification?

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Specification content1. Background and context2. Current position and any anticipated changes3. Scope4. Required outcomes, and where necessary, proxy outcome

indicators and non-negotiable outputs and inputs5. Target groups6. Geographical area covered7. Volume required8. Interfaces/dependencies9. Delivery timescales and contract period10. Payment terms and incentives11. Key risks and who will be responsible for managing12. Performance measures13. Progress reporting14. Policy through procurement issues15. End of contract16. Person to contact for clarification

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Using the thread example you worked on earlier:

Draft a specification

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How can you ensuring the spec is fit for purpose?

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Market sounding

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Market sounding

Presenting draft specification to the market can: Improve likelihood of receiving bids Increase potential for competition Avoid ‘brand’ specifying Contribute to value analysis and value engineering Demonstrate good will Demonstrate transparency Reduce costs Assist with QA

Heath warning: handle with care, risk manage

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Pass your draft specification to a different team for QA

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QA for specifications1. Is it clear:

Who requires it? What is required? Why it is required? Where it is required? When it is required? How it is required?

1. Could anything have more than one interpretation?

2. Has plain English been used?3. Is the information in the specification still

current?4. Does the specification fit with evaluation

criteria?5. Is it legal?6. Does the specification conflict with T&Cs?7. Has opportunity for fraud been minimised?8. Are there suppliers who can delivery?9. Is it skewed towards a small number of

providers?10. If everything asked for was provided, would

we have what we are really looking for?11. Is risk appropriately allocated?12. Are H&S and equalities addressed?13. Has any change to the budget been signed

off?14. Have stakeholders, particularly users, been

prepared for any change the procurement may bring?

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Recommended reading: CIPS Contract Management Guide

by R.D. Elsey, 2007.

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Effective specification writingDr J Gordon Murray

drgordonmurray@googlemail.comwww.Twitter.com/DrGordy

www.slideshare.net/drgordonmurray