Strategic procurement for councillors

Learning the lessons from procurement disasters of our time

Leadership Academy Graduate Summer School

Dr Gordon Murray

4 August 2010

How can councillors manage strategic procurement risk?

The key strategy for members?

Procurement Positioning Model

Bottleneck Strategic

Routine Leverage

Supply Market Complexity/

Risk

Expenditure

Procurement Cycle

8. Closure / Review Need

1. Identify Need

2. Develop Business Case

3. Define Procurement Approach

4. Supplier Appraisal5. Tender Evaluation

6. Award Contract

7. ManageImplementation

of Contract

8. Closure / Review Need

1. Identify Need

2. Develop Business Case

3. Define Procurement Approach

4. Supplier Appraisal5. Tender Evaluation

6. Award Contract

7. ManageImplementation

of Contract

Gateway Stages ‘Peer Review’

Challenge

Challenge

Challenge

Challenge

Challenge

Challenge

Procurement Disasters of our time

For each case study

1. Analyse the news article and summarise

2. Identify the main issues and what went wrong

3. Identify the stages in the procurement cycle when effective scrutiny could have been used to reduce the risk

4. Identify which questions you would have asked at that stage/s

5. Prepare to feedback

So what?

What are the key lessons for us?

So what?

1. Asking questions fundamental to procurement risk management

2. Procurement requires skilled teams3. Ensure appropriate procurement portfolio positioning4. Optimise collaborative procurement5. Clearly articulate the need in outcomes and performance6. Consider alternative solutions 7. Ensure all costs considered (Total Acquisition Costs)8. Check the contract provides all you need9. Ensure sufficient time 10. Apply risk management

Imagine a tool for …

Collaborative KnowledgeSharing

CollaborativeProblem Solving

On-line conferences,

debates, hotseats

Benchmarkingwith signpoststo improvement

A library which is comprehensive

& intuitive

Realtime document co-

production

Learning the lessons from procurement disasters of our time

gordon.murray@local.gov.uk

www.slideshare.net/drgordonmurray

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