Chris Newman - ArcBlue Consulting; Social Procurement Australasia - Driving Change: Successful...

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Chris Newman delivered the presentation at the 2014 National Hospital Procurement Conference. The 2014 National Hospital Procurement Conference explored a number of cost-saving measures in the hospital procurement ecosystem. Highlights included sessions on improving efficiency, savings and patient safety within Australian Hospitals. For more information about the event, please visit:

Transcript of Chris Newman - ArcBlue Consulting; Social Procurement Australasia - Driving Change: Successful...

  • The Global Procurement Network National Hospital Procurement Conference: Driving Change: Successful Strategies to Build Influence and Lead Organisational Change in Procurement Capability and Performance Chris Newman Director ArcBlue Consulting [email protected] 0412 318 384
  • The Global Procurement Network
  • The Global Procurement Network ArcBlue Government Procurement Development Activity across Australia/NZ VIC State Government CIPSA Certification Training and Development Programs VIC Local Government Procurement Roadmap development Contract Management Guidelines and Training State Government Local Government SA Local Government Roadmap Program Regional Opportunity Analysis Procurement Capability Assessment / Development Federal Government Contract Management Development Regional Procurement Development Programs Federal Government Gold Coast Council Capability Development and Contract Management WA Local Government Procurement Training Program NZ Government Departmental reviews QLD State Government Contract Management Capability Assessment & Development Program NSW State Government Accreditation Program preparation and assessment Sourcing Project Delivery NSW Local Government Roadmap Program with LGP Procurement Leadership Program Social Procurement Development Sydney Metro Councils Joint Procurement Development Program
  • The Global Procurement Network PMMS Consulting Group ArcBlue Services
  • The Global Procurement Network Presentation Driving Change: Successful Strategies to Build Influence and Lead Organisational Change in Procurement Capability and Performance Why Change? Designing effective change programs Features of successful integrated teams; Influencing stakeholders Stakeholder management Category management Social procurement
  • The Global Procurement Network Why Change?
  • The Global Procurement Network What is Changing? Pressure on Government to do more with less, to collaborate, and to innovate Strategic objectives increasingly being reflected in procurement practice Growing understanding of the role and power of Strategic Procurement Developing personal, organisational, and sector procurement capability Structured Programs to drive change Case Studies, evidence and guidance a growing body of knowledge
  • The Global Procurement Network o Reduce costs drive savings o Internal productivity - streamlining o Reduce risk o Build confidence o Demonstrate professionalism o Political Objectives o Project Delivery o Reputation o TBL Objectives o Capital works and budget planning o Project management and delivery o Collaboration organisational/ sector An increasing focus on procurement The benefits
  • The Global Procurement Network Challenges Increasing pressure on procurement teams Resources not matching growing expectations Lack of influence at senior organizational levels Poor planning creating pressure on Procurement Teams Reliance on Government decision making process that can be slow/ inconsistent/ contradictory Balancing working on and in the business Conflicting priorities Get it done vs. Probity Savings vs. Quality Aggregated vs. local/ SMEs Lack of influence of the whole procurement lifecycle
  • The Global Procurement Network Becoming Strategic in Approach Moving from: Key Features: Cross business team-based collaborative approach Explicit Department involvement; commitment by all stakeholders Inclusive workshop approach that encourages ownership, commitment and knowledge transfer Deep understanding of the category, supply market, suppliers, and business needs Using market knowledge and innovation as a source of leverage Striving to have a deterministic influence on the supply markets Measurement of short, medium and long term goals
  • The Global Procurement Network Designing Effective Change Programs
  • The Global Procurement Network Procurement Reform Programs Local Government Procurement Roadmap Program Partnership with Local Government Peak Bodies and State Governments 175 Councils across 3 States have participated in the last 4 years New Zealand MBIE Procurement Review Program Procurement Effectiveness Review Major Agencies Procurement Health Check Minor Agencies Online Procurement Capability ReviewSmaller Public bodies NSW Government Procurement Accreditation Program Accreditation development support/ assessment: NSW Health, Justice, Police, Education and Communities, Sydney Trains, Rural Fire, SHFA etc. Gap Analysis, Gap Closure, Mentoring, Accreditation CIPS Corporate Certification Program International Benchmark - Standard and Advanced
  • The Global Procurement Network Professional procurement Influencing the business Transactional Order placement Level 1 Emergent Level 2 Basic Level 3 Developing Centre of Excellence across all expenditure Procurement foundations in place with improved controls Some functional and category strategies in place Focus on meeting legislative and compliance requirements Largely unco-ordinated procurement with gaps in compliance Level 4 Advanced Levels of procurement maturity
  • The Global Procurement Network Clear Structures
  • The Global Procurement Network Approaches to Assessment
  • The Global Procurement Network Personal Assessment - Process Overview Procurement Competence Questionnaire * 13 Competencies * 156 Multiple-Choice questions * 100% objective * Completed on-line * Supported through semi- structured interviews Gap Analysis and Benchmarking * Gap Analysis - Score against benchmarks - Score versus peers * Benchmarking - By industry sector - By role - By geographic region - By experience Reporting * Learning footprint - Development priorities - Recommended interventions * Group & Individual reporting
  • The Global Procurement Network 13 common procurement technical competencies Governance, Leadership and Functional Design Supply base and Category Analysis Risk Management Category Strategy and Go-to-Market processes Supplier Appraisal, Evaluation and Audit Contracting and Legal Aspects Finance and Purchase Price Cost Analysis Negotiation and Influencing Supplier Performance, Contract and Relationship Management Transactional procurement and Procure-to-Pay processes E-Procurement and Technology Project Management and Change Sustainability & CSR PCQ - Assessed Procurement Competencies
  • The Global Procurement Network 0.00 1.00 2.00 3.00 4.00 5.00 Procurement Leadership, Governance and Financial Design Supply Base and Category Analysis Risk Management Category Strategy and Supply Market Engagement Supplier Appraisal, Evaluation and Audit Contract Selection & Legal Aspects Pricing, Cost and Financial AnalysisNegotiation and Influencing Supplier Performance, Relationship and Contract Management Transactional Procurement e-Procurement and Technology Project Management and Change Sustainability and Corporate Social Responsibility Group Average (All Roles) Average (Transactional Role) Group Min (Transactional Role) Group Max (Transactional Role) Graphical Results
  • The Global Procurement Network Features of successful integrated teams Leadership with: External focus gaining organisational influence and engaging stakeholders Internal focus clear delegation and program oversight Organisational Governance and on-going buy-in Clear roles and responsibilities Organisational e.g. centre-led model with documented, well-understood roles and responsibilities for Procurement, Business Units, others Team clear, consistent and communicated roles and responsibilities Effective structures A clear Strategy for Development and Continuous Improvement A well established and managed infrastructure Meeting and approval structures Documentation and systems A Program Management Model The right culture Customer Service vs. Compliance On-going training and development programs
  • The Global Procurement Network Organisational Assessment Strategic Procurement External Focus Internal Focus
  • The Global Procurement Network NSW Accreditation Model Procurement Management Plan Procurement Strategies Performance and tracking Strategy Risk management processes Polices and procedures Financial delegations Governance, Control & Policy Business case Specifications Tendering and negotiations Procurement Process Use of tools Training in tools Procurement Tools & Systems Reporting KPIs Procurement data Information Management & Reporting Level of resourcing Organisational design Organisation & Capability Weightings 15% 10% 25% 15% 10% 25%