PROCUREMENT CAPABILITY DEVELOPMENT STRATEGY 2020-22

Introduction 1

Governance and Reporting 3

Capability Development Strategy 5

Strategy Pillar 1: Leadership 7

Strategy Pillar 2: Talent 9

Strategy Pillar 3: Recognition 11

Strategy Pillar 4: Highly Qualified Workforce 13

Strategy Pillar 5: Targeted, Personalised Learning 15

Strategy Pillar 6: Workforce Data Analytics 17

Contents

The Board oversees $5.1 billion of goods and services expenditure per year. Uplifting the capability of the State’s procurement and contract management workforce will contribute to improved value for money outcomes and improved government services.

1.1 Capability Development and the Board

1.3 Our Workforce Capability Development Vision

1.7 Collaborative Development of this Strategy

1.2 Strategy Scope and Purpose

1.6 Importance of Procurement and Contract Management Function

1.4 Our Workforce Capability Development Objective

1.5 Agile Strategy

The State Procurement Act 2004 (the Act) established the State Procurement Board (Board) to oversee procurement operations for public authorities. The functions of the Board include to assist in the development and delivery of training and development courses and activities relevant to the procurement operations of government agencies.

Our vision is for South Australian Government public authorities to have a highly qualified, technically skilled workforce of procurement and contract management professionals. Our procurement and contract management workforce is agile, innovative, forward thinking, with a high level of commercial acumen. The procurement and contract management functions within agencies are strategic enablers of overall value for money for agencies as well as delivering broader government objectives.

The Board’s Capability Development Strategy 2020 – 2022 has been developed in consultation with agency Heads of Procurement. It draws on recommendations from the South Australian Productivity Commission’s Final Report: Inquiry into Government Procurement Stage 1. In developing this strategy, the Board has referenced emerging procurement trends, the Australasian Procurement and Construction Council’s Future Procurement Skills Requirements: A More Strategic Approach – Strategies for Recruiting and Retaining Staff and engaged with its procurement capability development counterparts in other Australian Government jurisdictions. This document draws on a broad range of information sources to ensure the best practice approach is taken to shaping the State’s procurement and contract management workforce capability over the next three years.

The purpose of this strategy is to define the Board’s procurement and contract management capability development priorities and targets for 2020 to 2022. This strategy applies to procurement and contract management personnel within South Australian Government public authorities. It excludes prescribed authority procurement and contract management staff.

The objective of this strategy is to improve the overall capability of the South Australian Government’s public authority procurement and contract management workforce, year on year, from 2020 to 2022.

The procurement landscape is fast changing – there are new emerging procurement skills. Technologies such as artificial intelligence, blockchain and automation are moving at a fast pace and legislation is subject to change (e.g. introduction of new modern slavery law). This Capability Development Strategy 2020 – 2022 is designed to be agile. The strategy is arranged around key capability development pillars and targets that allow for the Board’s objectives to be articulated whilst at the same time providing the flexibility to respond to changes in the macroenvironment as they arise within the three-year period. An agile strategy equips the Board with the ability to respond quickly to emerging trends, changing business needs, and stay at the forefront of procurement and contract management best practice. The Board will take a proactive approach to identify emerging trends in the sector, future procurement skills and the next generation of capability development opportunities. The Board will continue to collaborate with other jurisdictions and continually adapt its offering.

Introduction

“As governments seek to deliver a

greater range of community services, they are looking to the procurement

profession to deliver more strategic and sustainable value for money

outcomes that are aligned with government priorities and subject to

continuous improvement.”1

1 Future Procurement Skill Requirements: A More Strategic Procurement Approach – Strategies for Recruiting, Engaging and Retaining Staff, pg 5, Australasian Procurement and Construction Council, 2018

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The Procurement Policy, Governance and Capability Team will develop an annual operational work plan, aligned to this strategy.

Metrics for each of the key capability performance indicators will be reported quarterly to the Board. This data will be used to measure performance against each of the capability development strategic targets and goals.

This Capability Development Strategy will be reviewed at least annually by the Board. Together with a quarterly review of the data, these mechanisms will ensure an agile approach is maintained.

Governance and Reporting

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“What distinguishes organisations with

excellent reporting is the board and management’s mutual understanding

of their respective roles in the governance ecosystem, as well as a willingness to challenge each other and have constructive dialogue.”2

2 Source: https://aicd.companydirectors.com.au/advocacy/governance-leadership-centre/practice-of-governance/ board-reporting-improving-the-quality-without-increasing-the-quantity

The Board’s capability development approach will be based on the 70/20/10 learning principles. The 70/20/10 model is “based on the principle that 70% of learning comes from experience, experiment and reflection; 20% derives from working with others and 10% comes from formal interventions and planned learning solutions”.3

2.1 Overview

2.2 Capability Development Strategy Pillars

The strategy aims to provide ‘something for everyone’ to suit the wide range of learning needs of the State’s procurement and contract management workforce. From formal qualifications to bite size learning on hot topics, the capability development offering will be diverse and inclusive.

The Capability Development Strategy is comprised of six interrelated pillars:

1. Leadership2. Talent – identification, attraction and retention3. Recognition4. Highly qualified workforce – qualifications, certifications, professional memberships5. Targeted, personalised learning6. Workforce data analytics

A summary of this strategy is provided at Attachment 1.

Capability Development Strategy

3 Source: https://702010institute.com/702010-model/ 5 6

70 / 20 / 10 LEARNING MODEL

70%20%

10%

On the job EXPERIENCE

Mentoring & coaching SOCIAL

Structured courses, programs & reading FORMAL

Importance of Leadership

Leadership is an integral part of this strategy and key to maximising the value of the procurement function across government. Heads of Procurement and personnel in leadership positions play a pivotal role in inspiring and motivating their teams. It is essential that our leaders have the appropriate leadership skills to guide the profession within their agencies. Agency Heads of Procurement will be champions of the profession and suitably skilled in leadership. The Board will provide a range of leadership initiatives to build leadership capability across the sector.

Communities of Practice

The Board will establish communities of practice which will be led by subject matter experts. These communities of practice will provide a forum for sharing learnings, best practice and thought leadership on key topics.

Leadership Professional Development Opportunities

Through its procurement capability development products and solutions panel contract, the Board will offer immersive leadership programs, leadership qualifications and leadership training tailored to the procurement profession and the South Australian Government context.

Strategy Pillar 1: Leadership

“Leadership is about setting a direction.

It’s about creating a vision, empowering and inspiring people to want to achieve

the vision, and enabling them to do so with energy and speed through an effective

strategy. In its most basic sense, leadership is about mobilising a group of people to

jump into a better future.” John Kotter

7 8

Ensuring a Pipeline of Talent

The sustainability of the profession requires the attraction, retention and identification of a pipeline of talent. The Board will implement initiatives to attract individuals to the profession, including graduate recruitment, and promoting the profession such that employees in other sectors are encouraged to join procurement and contract management roles. Graduates joining the profession will participate in a 12-month tailored procurement graduate program.

Attraction, Identification and Retention

The Board will offer a broad range of capability development and recognition initiatives to ensure the South Australian public sector attracts and retains the best talent. The Procurement Policy, Governance and Capability Team will continue to collaborate with the across jurisdictional Australasian Procurement and Construction Council (APCC) to promote the profession nationally.

Procurement Recruitment

The Board will provide recruitment guidance for agencies to ensure a consistent and best practice approach to the recruitment of procurement and contract management staff across the South Australian public sector. The guidance will include identification of essential capabilities, qualifications and skills required for each role type.

Strategy Pillar 2: Talent

“The key is to embed engagement and

retention strategies into ongoing management activities, such as identifying who maybe

interested in a new work activity, performance discussions, and determining which training

and development activities should be priorities. The key is tailoring these strategies to the

needs/desires of the individual.”5

“Developing a whole of government or agency graduate programs are an effective way to establish a long term recruiting leadership pipeline of top graduates into the public sector.”4

9 10

4 Future Procurement Skill Requirements: A More Strategic Procurement Approach – Strategies for Recruiting, Engaging and Retaining Staff, pg 24, Australasian Procurement and Construction Council, 2018 5 Future Procurement Skill Requirements: A More Strategic Procurement Approach – Strategies for Recruiting, Engaging and Retaining Staff, pg 28, Australasian Procurement and Construction Council, 2018

Importance of Recognition

Employee recognition has a broad range of organisational benefits - it can uplift employee job satisfaction, boost morale, enhance team spirit, increase productivity and assist with retention. Agency Heads of Procurement and senior managers within agencies are encouraged to embed a culture of recognition as part of their leadership.

Recognition Awards and Events

The Board has established a procurement academic excellence recognition initiative. The Board will issue an open call for applications once a year for eligible personnel who have excelled academically in completing a procurement or contract management qualification. Qualifications can be achieved via a broad range of pathways - University, Vocational Education and Training providers, and the Chartered Institute of Procurement and Supply (CIPS). Winners will receive a small financial prize for further professional development of their choice, as well as attendance at a celebratory recognition event hosted by the Board. Category winners will receive a signed certificate of procurement academic excellence recognition signed by the Board’s Presiding Member.

Through its marketing reach the Board will shine a light on best practice within the sector – such as promoting the procurement academic excellence recognition initiative award winners, agency teams and projects short-listed for professional association awards and other good news stories.

Strategy Pillar 3: Recognition

“Recognition is a privilege, not just another item

on your to-do list. As a leader you have the privilege of feeding people’s souls and helping

them feel great about themselves. And by feeding their souls, you’ll feed yours in return.”6

6 Source: https://hbr.org/2016/05/recognizing-employees-is-the-simplest-way-to-improve-morale.html11 12

Qualifications

Through its procurement capability development products and solutions panel contract, the Board will offer procurement and contract management qualifications at a range of levels. Qualifications will be offered in the traditional face to face classroom style, online and as a blended approach.

The Board recognises that self-funding qualifications can be a barrier which prevents individuals from studying a qualification. Accordingly, the Board has established the procurement and contract management qualification support fund which provides a retrospective financial contribution to individuals who successfully complete a qualification and have fully or partially self-funded their studies.

Agencies play a pivotal role in supporting the professional development of their staff, including allowing time away from the office to attend lectures.

Certifications and Professional Programs

The Board recognises the value of professional certification and encourages agencies to support their staff to achieve this through the International Association for Contract and Commercial Management (IACCM) and CIPS or equivalent.

The Board has implemented a CIPS Corporate Award Program as a blend of South Australian public sector and private sector staff. On completion, staff will obtain CIPS Diploma status and will be well placed on the pathway to undertaking further study and achieving MCIPS.

Professional Memberships

The Board encourages agencies to subscribe to professional associations such as CIPS and IACCM for their procurement and contract management personnel. Professional membership provides access to resources such as articles, webinars, conferences, networking opportunities and generally assists with keeping up to date on best practice within the sector both nationally and internationally.

Strategy Pillar 4: Highly Qualified Workforce

“It is important to introduce and support a range

of vocational and university pathways to bring young people into the profession.”7

13 147 Future Procurement Skill Requirements: A More Strategic Procurement Approach – Strategies for Recruiting, Engaging and Retaining Staff, pg 24, Australasian Procurement and Construction Council, 2018

A ‘Something for Everyone’ Approach

The Board will offer a broad range of procurement capability development opportunities. These will range from short term opportunities such as a one-day training course, to longer term commitments like formal qualifications. People learn in different ways and have different preferred learning opportunities depending on their career stage and personal circumstances. By offering a broad range of capability development options, the Board aims to offer something to suit everyone.

External Professional Development Opportunities

Where appropriate, the Board will promote relevant external procurement events offered through professional associations, the local Women in Procurement group and other relevant professional development opportunities.

Role of Agencies

Agencies have a key role to play in building the capability of their procurement and contract management staff. Managers should regularly discuss performance and professional development opportunities with their staff; in particular during half yearly formal performance development reviews. Agencies should to invest in and support their staff to uplift the overall capability of the South Australian Government’s procurement and contract management workforce.

Strategy Pillar 5: Targeted, Personalised Learning

“The approach to personal development

goes beyond simply sending staff on training courses; encourage open conversations with team members

around their aspirations and capabilities to ensure the best outcome for the

individual and the department.”8

8 HAYS Salary Guide 2019, Section 3, Page 4, https://www.cips.org/PageFiles/139857/CIPS_Hays_Section3_0119_WEB.pdf15 16

Workforce Demographics

The Board will maintain a clear demographic profile of the workforce. This will include obtaining a more accurate quantification of the number of people in procurement and contact management roles across the sector and by agency. The Board will also obtain demographic information such as age, gender and position level to inform workforce planning, succession planning and performance against gender equality targets.

Benchmarking

The Board will undertake regular skills analysis of its procurement and contract management workforce. The assessment will identify the strengths and opportunities for improvement for the workforce as a whole.

Strategy Pillar 6: Workforce Data Analytics

“Key Performance Indicators are a pertinent part of measuring the

successes and failures of … business. A KPI allows business owners and managers

to get an overview of how their business – or individual departments – is

performing at any given time.”9

9 Source: https://www.forbes.com/sites/louismosca/2019/06/18/key-performance-indicators-101-why-theyre-impor tant/#325f54e42652

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For further information or enquiries, please contact us at:

State Procurement BoardProcurement Policy, Governance and CapabilityDepartment of Treasury and Finance Email: stateprocurementboard@sa.gov.au Phone: +61 8 8226 5001 Website: www.spb.sa.gov.au

A capability development initiative of the State Procurement Board.