public & social sector procurement best practices …...about -the public and social sector...

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PROPRIETARY. Any use of this material, in whole or in part, without written permission of Public Spend Forum is strictly prohibited. © Copyright 2015, Public Spend Forum. All Rights Reserved. 1 www.publicspendforum.net Public & Social Sector Procurement Best Practices Exchange Who are Key Public Procurement Stakeholders? Aligning with Performance Metrics Washington, DC

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Page 1: Public & Social Sector Procurement Best Practices …...About -The Public and Social Sector Procurement* Best Practices Exchange *NOTE about “Acquisition” vs. “Procurement”

PROPRIETARY. Any use of this material, in whole or in part, without written permission of Public Spend Forum is strictly prohibited. © Copyright 2015, Public Spend Forum. All Rights Reserved. 1

www.publicspendforum.net

Public & Social SectorProcurement Best Practices Exchange

Who are Key Public Procurement Stakeholders?Aligning with Performance Metrics

Washington, DC

Page 2: Public & Social Sector Procurement Best Practices …...About -The Public and Social Sector Procurement* Best Practices Exchange *NOTE about “Acquisition” vs. “Procurement”

PROPRIETARY. Any use of this material, in whole or in part, without written permission of Public Spend Forum is strictly prohibited. © Copyright 2015, Public Spend Forum. All Rights Reserved. 2

About

• The Public and Social Sector Procurement Best Practices Exchange is a global initiative to connect public and social sector procurement leaders and collect/disseminate actionable best practices

• In partnership with faculty from Michigan State University’s #1 Ranked Procurement and Supply Chain program; and Spend Matters

• Includes Federal, State, Local and Social Sector leaders; private sector leaders active participants

• Global reach, leveraging Public Spend Forum and Spend Matters offices in Europe and Asia…and advisory roles with the World Bank, Penn Law Center for Asian Law

About- ThePublicandSocialSectorProcurement*BestPracticesExchange

*NOTEabout“Acquisition” vs.“Procurement” – Theterm “procurement” isusedtorefer toallphases oftheprocurement lifecycleincluding needs identification and requirementsdevelopment. Theterm“acquisition” isunique tothefederal government and isgenerallyreferred toasprocurement inall othersectors including state/local/private.

FOR EXCLUSIVE USE ONLY BY AUTHORIZED PARTIES. Please see detailed Copyright agreement at end of this document.

Page 3: Public & Social Sector Procurement Best Practices …...About -The Public and Social Sector Procurement* Best Practices Exchange *NOTE about “Acquisition” vs. “Procurement”

PROPRIETARY. Any use of this material, in whole or in part, without written permission of Public Spend Forum is strictly prohibited. © Copyright 2015, Public Spend Forum. All Rights Reserved. 3

We find it useful to think about aligning key public procurement metrics with major stakeholders groups

Metricsarealsoinformedbyprocurementfunctionoutcomesandrole

PROCUREMENT

ProcurementStaff

• Organization Leadership• PolicyMakers• Oversight&InterestGroups

• External Suppliers

• SpendOwners• ProgramOffices• FunctionalHeads• Requisitioners

“CUSTOMERS” SUPPLIERS

EMPLOYEES

LEADERSANDINFLUENCERS

MetricsExamples:• Spend savings• Procurementfunctioncostmetrics• Socio-economicgoals• Percentofspend“undermanagement”• Oversightmetrics(e.g. GAOreporting,…)

MetricsExamples:• Effectivenessinachievingoutcomes• Customersatisfaction• Procurementservicelevelperformance• Customerbudgetperformance

MetricsExamples:• Employeesatisfaction• Annualturnover• Compensation• Traininghoursperyear

MetricsExamples:• Suppliersatisfactionwithcustomers/buyers

• Percentspendwithapprovedsuppliers

• Percentofsupplierscoveredbysupplierperformanceprograms

ILLUSTRATIONONLY

=Stakeholder Groups

Adapted from:“TheCIPSA-HackettGroupProcurementValue,PerformanceAndCapability Study“

Page 4: Public & Social Sector Procurement Best Practices …...About -The Public and Social Sector Procurement* Best Practices Exchange *NOTE about “Acquisition” vs. “Procurement”

PROPRIETARY. Any use of this material, in whole or in part, without written permission of Public Spend Forum is strictly prohibited. © Copyright 2015, Public Spend Forum. All Rights Reserved. 4

Procurement’s role and influence with stakeholders determines which metrics are most appropriate, which may change over time

Metricscanbeevolvedasprocurementexpandsitsinfluencewithstakeholders(aswellasitscapabilities) – becarefulwhatyouaskfor!

SUPPLIERS

CUST

OMER

S

LEADERS & INFLUENCERS

EMPLOYEES

Increasing Influence &

ValueImprovemymission

Hitmytargets

Freeupbudget

Get itcheap

Get itquick

E-Order

Awardedbusiness

Jointcostmgmt

Jointbusinessimprove-ment

Jointstrategicdevelopment

Innovationleverage

Programsupport;reqplanning

Costsavings; proactiveriskmgmt

Pricesavings

Supplyassurance;transaction mgmt

Apaycheck

Adecent job

Agrowthenvironment

Careerinprocurement

Careerinbusinessandpublicpolicymgmt

Influence & Value LevelsLevel 5Innovation Mgmt

Level4Demand/CustomerMgmt

Level3TotalCostMgmt

Level2PriceMgmt

Level1TransactionMgmt

Adapted from:“TheCIPSA-HackettGroupProcurementValue,PerformanceAndCapabilityStudy “

Page 5: Public & Social Sector Procurement Best Practices …...About -The Public and Social Sector Procurement* Best Practices Exchange *NOTE about “Acquisition” vs. “Procurement”

PROPRIETARY. Any use of this material, in whole or in part, without written permission of Public Spend Forum is strictly prohibited. © Copyright 2015, Public Spend Forum. All Rights Reserved. 5

Your Points of Contact

RajSharma

PierreMitchell

AshBedi

Rajisathoughtleaderfocusedonstrengtheningthemanagement capacityofthesocialandpublicsectors.Rajadvisesleadersingovernmentandsocialsectorsonapplyingprovenpracticestoimproveperformance,transformprocurementanddelivermorevaluetocustomers/constituents.Rajco-foundedthePublicSpendForumandalsoservesasCEOofCenseoConsultingGroup,afirmrecognizednationallyforitsaward-winningcultureandimpact.Healsoservesonseveralboards,includingHigherAchievementandMichiganStateUniversity’sExecutiveAdvisoryBoardforthesupplychainprogram.AndhehaswrittenasafellowfortheCenterforAmericanProgressandtheWoodrowWilsonCenter’sWomeninPublicServiceProject.Contact:[email protected]

FormerPresidentandCEOofCreativeProcurementStrategies,JosephSandorwasappointedtheHoagland-MetzlerEndowedProfessorofPracticeinSupplyManagement atTheEliBroadCollegeofBusinessofMichiganStateUniversityin2006.DuringhistimewithCreativeProcurementStrategies(CPS) SandoradvisedclientssuchasHarley-Davidson,JohnDeere,Electrolux,Rolls-Royce,Whirlpool,Hewlett-Packard,IBM,Motorola,ConAgra,Delphi, Sandia, SchlumbergerandtheUSAF.Sandorhasoverfortyyearsproactivesupplymanagementexperiencewithprogressivelyincreasingresponsibilitiesemphasizing costprevention/reduction,teambuilding,strategicsupplierallianceformation,systemsdevelopment,logisticsoptimization,sharedservices,inventorycontrolandcostmodeling.Contact:[email protected]

PierreMitchell,SeniorAdvisoratthePublicSpendForumandChief ResearchOfficerandManaging PartnerofAzulPartners,Inc.,has25yearsofprocurementandsupplychainindustryandconsultingexperience, andisarecognizedprocurementexpertspecializinginsupplyprocesses,practices,metrics,andenabling toolsandservices.Heisaregularcontributortobusinesspublications,afrequentpresenteratindustryeventsaroundtheworldandcountshimselffortunatetohaveservedandinteractedwithsomanyCPOs andfutureCPOs.PierreisaSr.AdvisorandregularcontributortoPublicSpendForum.Contact:[email protected]

AshBediisamemberofthePublicSpend Forummanagement team, responsibleforoverallbusinessstrategyandresearch.Ashhasmorethan25yearsofexperience inbothconsultingandindustry,withexpertiseintheareasofstrategicplanning, procurementandsupplymanagement. Ashbringsablendofprivatesectorandgovernmentindustryexperience, havingworkedwithFortunecompaniesaswellasnumerousfederalagencies. Ashhasalsobeen afrequentpresenterathighprofileforumsincludingInstituteofSupplyManagement, National AssociationofPurchasingManagers, SourcingInterestsGroup,andNationalContractManagementAssociation.AshpreviouslyworkedatA.T.Kearney andCenseo ConsultingGroup,among others.Contact:[email protected]

ProfessorJoeSandor

Page 6: Public & Social Sector Procurement Best Practices …...About -The Public and Social Sector Procurement* Best Practices Exchange *NOTE about “Acquisition” vs. “Procurement”

PROPRIETARY. Any use of this material, in whole or in part, without written permission of Public Spend Forum is strictly prohibited. © Copyright 2015, Public Spend Forum. All Rights Reserved. 6

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