public & social sector procurement best practices …...about -the public and social sector...
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Public & Social SectorProcurement Best Practices Exchange
Who are Key Public Procurement Stakeholders?Aligning with Performance Metrics
Washington, DC
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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.
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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“
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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 “
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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
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