Good Governance = Good Business
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1 Good Planning = Good Governance = Good Business Presented by: Maurie McKenzie ArcBlue Consulting
2 ArcBlue Government Procurement Development Activity across Australia/NZ Qld State Government Translink Contract Management Capability Assessment WA Local Government Procurement Training Program Spend Analysis SA Local Government Roadmap Program Regional Opportunity Analysis SA State Government Procurement Transformation Federal Government State Government Local Government VIC State Government CIPSA Certification Training and Development Federal Government Contract Management Development Regional Procurement Development Programs Procurement Capability Assessment / Development VIC Local Government Procurement Roadmap development LEAP Program Contract Management Guidelines and Training Local Buy Reporting Dashboard and Council training and development Gold Coast Council Capability Development and Contract Management Training NSW State Government Accreditation Program preparation and assessment Procurement Project support NSW Local Government Roadmap Program with LGP Procurement Leadership Program Social Procurement Development Metro and Regional Collaborative Procurement development NZ Government Departmental reviews ArcBlue Consulting All rights reserved 2
3 High Influence of Probity and Ethics in Procurement Rigid Ideal Uncoordinated Value for money achieved Low 1. Detailed inflexible process 2. Probity and ethics used to drive compliance 3. Arms length supply relationships Chances are the organisation is missing opportunities to get the best value outcome One size fits all Rigid approach 1. Well planned, flexible and commercial focus process. 2. Procurement a solutions provider 3. Ideal relationships established for each category of spend To maximise value for money, probity and ethics should be applied to each aspect of the procurement cycle with common sense and flexibility Approach to probity and ethics 1. Anything goes process (often with the best intent). 2. Procurement seen as an obstacle. 3. Relationships with suppliers too close for organisation s best interests Risk that compromise the best value outcome for the organisation could be missed and remain untreated Anything goes Uncoordinated Approach ArcBlue Consulting All rights reserved 3
4 Corporate Procurement Planning Sourcing Strategy Market Engagement Contract Management Identify Strategic Sourcing Opportunity as per Corporate Procurement Plan (CPP) Demand Analysis Supply Market Analysis Develop Procurement Strategies Supplier Evaluation and Selection Managing Supply Arrangements Purchasing Activity (orders, receipts, payments) ArcBlue Consulting All rights reserved 4
5 How good is your organisational wide procurement activity? The City of Port Philip is currently undertaking a Corporate Certification Journey who s next? Awarding Body ArcBlue Consulting All rights reserved 5
6 Corporate Procurement Planning Sourcing Strategy Market Engagement Contract Management Identify Strategic Sourcing Opportunity as per Corporate Procurement Plan (CPP) Demand and Needs Analysis Supply Market Analysis Develop Sourcing Strategies Supplier Evaluation and Selection Managing Supply Arrangements Purchasing Activity (orders, receipts, payments) ArcBlue Consulting All rights reserved 6
7 We need a planned and co-ordinated approach to delivering Procurement across the business Corporate Business Plan Business Services Strategic Plan Other Directorate Plans HR Business Plan IT Strategic Plan Financial Strategy Corporate Procurement Plan Without a holistic business wide Procurement strategy in place, you won t know whether or not your procurement function and activity is aligned with the corporate strategy or how well it s performing ArcBlue Consulting All rights reserved 7
8 Key Steps in Corporate Procurement Planning Understand your current procurement capability and performance Identify what is important to your organisation and the procurement function Create a vision and (what does success looks like) Develop strategies with measurable targets that demonstrate success Implement, track and report outcomes ArcBlue Consulting All rights reserved 8
9 Corporate Procurement Planning Allocate planning time to do this well The value is in bring stakeholders along with you key steps can be simplified for others to follow ArcBlue Consulting All rights reserved 9
10 Three key inputs: Business Information Strategic Plans Forecast Budget Capital Programs Market/Economic Data Regional Economic Forecasts Major Commodity Indices Supply Market Activity (Ibis World) Organisational Spend Profile Category Supplier Transactions Trends Contracts Geo PCard ArcBlue Consulting All rights reserved 10
11 Three key processes: Supply Positioning Supply Risk internal and external Category Focussed Informs strategies (sourcing and resourcing) Gap analysis Resources (number and skills) to match the profile Policies and Processes Systems and tools Supply Risk Supply Positioning Relative Cost Directional Strategies Category directional strategies Maximising existing solutions (LGP) Focus on Business objectives ArcBlue Consulting All rights reserved 11
12 Three key outputs: Implementation Plan Key Strategies Time frames Resourcing Resource Development plan Appropriate coverage of all activity Right skill sets focussed development planning Category Sourcing Priorities Business wide priorities Target benefits Enables a focus on what is important rather than what s next ArcBlue Consulting All rights reserved 12
13 How should we approach Corporate Procurement Planning? Keep it simple Involve organisational stakeholders in all stages Improve data and information over time Improve decisions and strategies over time Use the plan as the driver for good procurement and good governance across the organisation Monitor and report progress as part of the business reporting process Key focussing on your own influencing skills to continue to bring people along with you ArcBlue Consulting All rights reserved 13
14 Good Planning = Good Governance = Good Business Thank You. For more details contact: maurie.mckenzie@arcblue.com.au Mob: ArcBlue Consulting All rights reserved 14
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