october 2007 good practice contract management collaboration workshop output from syndicate sessions...
TRANSCRIPT
October 2007
Good Practice Contract Management Collaboration workshop
Output from syndicate sessions 6/10/08
Procurement Services Working to achieve Excellent Procurement
Essex County Council
Step Change Procurement
Page 2Procurement Services
Benefits of introducing good practice contract management
(GPCM)
• Cost savings
• Improvement in quality of service
• Increased customer satisfaction
• Addresses wider stakeholder requirements
• More likely to get the service you want/paying for
• Increased innovation
Essex County Council
Step Change Procurement
Page 3Procurement Services
Benefits of introducing good practice contract management (2)
• More likely to get VFM through life of the contract
• Maintains the customer/supplier balance/allocation of risk
Reduction in risk
• Improved consistency
• Improved customer/supplier relationships
• Opportunity for reflection feedback/learning mechanism
Essex County Council
Step Change Procurement
Page 4Procurement Services
How do you measure the benefits of good practice contract
management
• Agree definitions first
• Identify what needs to be measured
• Identify data that needs to be collected
• Base line first, then compare, identify trends
• Gateway review process
• Reduction in costs over defined period
• Customer satisfaction feedback
Essex County Council
Step Change Procurement
Page 5Procurement Services
How do you measure the benefits of good practice contract
management (2)
• Different measures for different contracts
• Proportionate measures viz value and risk
• Identify risk of not applying GPCM
• Move to open book accounting
• Seek feedback from suppliers
Essex County Council
Step Change Procurement
Page 6Procurement Services
Key challenges when implementing good practice contract
management
• Defining ‘good’ practice
• Defining who is responsible for what
• Strategic support, acceptance of the need, availability of resources
• Availability of skills
• Getting people to consideration of GPCM in business cases and
specifications
• Difficulty in defining effective KPI’s
• Difficulty in defining quality related KPI’s
Essex County Council
Step Change Procurement
Page 7Procurement Services
Key challenges when implementing good practice contract
management (2)
• Change management
• Locating/collating contract information
• Management of framework contracts
• Communication between all parties (e.g.. Quality management
finance, corporate procurement, suppliers etc.)
• Relationship management
• Linking payment with performance
• Balance between clear and flexible specifications
input/output specs
Essex County Council
Step Change Procurement
Page 8Procurement Services
Examples of GPCM
• Early involvement of CM in procurement cycle
• Continuous improvement
• Supplier input pre-tender
– supplier briefings/meet the buyer events
• Use of standard t&c’s
• Knowing the specification and contract
– Operational Contract Guides
• Stakeholder mapping/management
• Benefits realisation reviews
Essex County Council
Step Change Procurement
Page 9Procurement Services
Examples of GPCM (2)
• Link with project management process
• Benchmarking
• Exit plan and business continuity in contracts
• Contract review – lessons learnt – input to new contracts
• Collaborative relationships with suppliers
• Help suppliers deal with govt. agencies
• Obligations database
• Centralised contract repository system
October 2007
Thanks for your time
Procurement Services Working to achieve Excellent Procurement