Peter Naujoks, Director Strategic Procurement

Establishing a best practice procurement capability

Establishing a best practiceprocurement capability

- Design- Procurement Framework- Deployment- Making the change stick- Next steps

DESIGN

Establish a University wide strategic procurement framework to extract maximum value from external spend

Organisational culture and structure

• 10 faculties and 10 divisions• 6 campuses• Autonomy and independence• Wide range of goods and services• High volume, low value transactions

Not necessarily a “green field”!

• Organisational and compliance culture• Existing governance structure• Existing policy, procedures and

guidelines• Existing supply arrangements• Sources of influence and support• Change fatigue

Avoid the temptation to start fixing things

time was taken to ensure a coherent approach was designed and developed

2007 Jan - Sep 2008 Oct -Dec 2008 to Dec 2010

PROCUREMENT FRAMEWORK

Need to extract value, NOT the creation of a checklist/process approach based on policies and procedures

3 key elements

• Capability• Compliance• Support

Procurement Framework

The devil is, as always, in the detail

• Ownership• Accountability• Consequence

Management

• Policy• Guidelines• Templates

Procurement Processes

<$200K

>$200K

• Performance monitoring• Compliance monitoring• Supplier management• Specification improvement• Data capture & analysis• Process improvement

Extracting maximum value

DEPLOYMENTLong term view to establish the culture change

Winning the hearts and minds

• Ensure credibility• Short term wins• Engagement• Communication• Training

MAKING THE CHANGE STICKReinforcing the culture change

Champions of change

• Promote the benefits of the framework• Identify and implement changes• Promote the co-ordination of

procurement• Sponsor the development and delivery of

procurement strategies

Challenges

• Compliance• Influenceable spend • Number of staff• Accountability• Independence

Top down…

• Monthly reporting• Linking lost opportunities with budget

increase requests• Professional, researched fact based

analysis• Direct engagement• Identifying improvement opportunities

…bottom up

• Training• Best practice examples• Direct support and engagement• Strong customer focus• Pragmatic and realistic solutions• Utilising other organisational aims

NEXT STEPSLong term objective, adoption is not expected until 2010

After building and deploying

• Consolidate• Lift capability• Increase influence

QUESTIONS