t he pma route to a high performance p rocurement t eam september 2015 judith russell
TRANSCRIPT
THE PMA ROUTE TO A HIGH PERFORMANCE PROCUREMENT TEAM
September 2015
Judith Russell
CONTENTS
o Coverageo Approacho Structureo Sector performanceo Driving high performanceo Examples of Good Procurement
PMA COVERAGEo There are currently 96
English HEIs that have undertaken a procurement maturity assessment.
o This represents about 75% of the sector and hence provides a very substantial data set for benchmarking
o Also two Non HEIs
PMA APPROACH
PMAs are a structured approach to
understanding the effectiveness of
procurement within an institution and across the
sector
PMA programme is a key recommendation of the
2011 and 2015 Diamond Reports
SUPC received funding from Innovation and
Transformation Fund to accelerate the
programme across England
PMA question set based on questionnaire used in
Scotland: developed following McLelland
efficiency study. Undertaken by
independent, experienced procurement professionals
Process is action oriented with institutions receiving assessment report, action
plan and access to live benchmark data
Results are collated to provide sector trends and
work with HEPA to support the sector as a
whole
PMA STRUCTUREo Evidence based assessment: 53 Questions (October 2013)o 9 procurement attributes addressed: Governance, Reporting
and KPIs Organisational, Resources and Skills, CSR, Collaboration IS/P2P, Supplier Strategy and Policy and Category Management
o Assessed against 4 levels of maturityo Developingo Tacticalo Plannedo Superior
o Benchmark scores for how your institution compares overall with others and in specific aspects of Procurement
o Establishes a baseline for your institution allowing you to visibly demonstrate procurement improvements
SECTOR PERFORMANCE
MATURITY STAGE BY NUMBERS AND NON-PAY SPEND: 2011/15
75% of institutions are in the lower maturity levels - accounting for 63% of spend
SCORES ACROSS THE MATURITY SCALE
TWO HEIS DEMONSTRATES SUPERIOR PERFORMANCEMANY LARGER INSTITUTIONS STILL AT LOWER MATURITY LEVELSRED LINE – SECTOR AVERAGE SCORE: 38%
SCORES ACROSS THE MATURITY SCALE WITH NON-PAY SPEND
S L VL
Smaller institutions are predictably less mature on average than larger institutions. Average VL just progressing into Planned
Average25%
Average41%
Average49%
S= Small HEIs: <£100m IncomeL= Large HEIs: > £100m and < £400m IncomeVL= Very Large HEIs: >£400m Income
2015: 98 INSTITUTIONS
Key
Sector minimum and maximum score for the attribute
Sector average score
Institution achieved score
2nd and 3rd Quartiles
PROGRESS FROM 1ST TO 2ND PMAS
38 institutions that have undertaken a 2nd assessment have made an average improvement of 12 percentage points
SUMMARY OF KEY FINDINGSo Institutions who have been re-assessed have made
demonstrable improvements. On average an institution is progressing 12% between assessments
o 75% of institutions are in the lower half of procurement maturity and hence there is opportunity for improvement and efficiency gains
o Beacons of superior performance now exist for all attributeso Skills, Collaboration and Organisation are now strongest
areaso Category Management, Reporting/KPIs and CSR are now the
weakesto Many procurement teams do not cover Estates Procurement o There is a weak correlation between savings and maturity
level - possibly not all institutions are reporting all their savings
DRIVING HIGH PERFORMANCE
RAISE PROCUREMENT PROFILE AND INFLUENCE
o Detailed report outlining your current procurement maturity - a blueprint to develop procurement across your institution
o Share across institution across all levels.
o Participants viewso Raised procurement profile with SMT
and procurement committeeso Independent objective confirmation
of capabilityo A structure to demonstrate
capabilityo Moving up against benchmark –clear
visibilityo Enabler for change
CLEAR RESOURCED PLAN WITH BUY IN
o A comprehensive action plan outlining the steps that should be taken to move towards a higher level of procurement maturity
o Participants views o Confirmed support for additional
investment and quantified scope for improvement
o Identified areas to improveo Clear action plan, especially helpful
for a new HoPo Informed decision making on staff
training and work priorities
BENCHMARK AND SET YOUR TARGETS
o A sector benchmark comparing your level of maturity with other HEIs
o Participants viewso Clear targets and measurements for
improvemento Identify ‘best in class’ levelso Sharing best practice. HEPA links
RETAINING MOMENTUM
o Future assessmentso Fullo Interimo Single attribute
On-line access to dynamically updating benchmark
On-line Action Plan Implementation support
Spend Analysis P2P Implementation Procurement Strategy and
Implementation Plan with Resource Planning
Performance Measurement and Reporting
EXAMPLES OF SUPERIOR PERFORMANCEo Governance: Fully documented and communicated
procurement strategy -strong link to institution’s strategy.
o Reporting/KPIs: Clear performance measures in place. Comprehensive metrics, regularly reported.
o Organisational: Complete coverage across whole institution, visible impact, senior ‘peer group’
o Skills: Strong skills and fully trained staff within the central procurement team covering all spend including estates
o CSR: Embedded CSR factors in the core procurement processes. Widest view on sustainability
EXAMPLES OF SUPERIOR PERFORMANCE
o Collaboration: Active in sharing and leading collaboration efforts.
o IS/P2P: Strong process automation and e-procurement coverage.
o Supplier Strategy: Good supplier relationship mgt and senior mgt buy-in.
o Category Management: MI available to inform category management. Good supply market research and stakeholder involvement