110809 observations of local govt improvement & challenges
DESCRIPTION
Presentation to Secretaria de Estado de Planejamento e Gestas, Governo du Rio de Janeiro, 9 August 2011TRANSCRIPT
Observations of local government improvement &
challenges
Dr Gordon Murray
Service allocation
The structure of English local government
1957: Interdependence
Treaty of RomeEqual treatmentNon-discriminationProportionalityTransparencyObjectivity
‘Central Purchasing’
1974: The Poulson Affair
Corruption in award of contractsCode of Conduct for councillors and
officers
1979: Thatcherism
Commissioning councilTQMPerformance managementCost reductionMake/BuyCompulsory Competitive TenderingPrivatisationPrivate Finance Initiative
1997: Modernisation & localism Reinvigorating democracy Best Value CPA – from ‘poor’ to ‘excellent’ Beacon Councils ‘The Third Sector ‘Voice’ and ‘Choice’
Byatt Review & National Procurement Strategy Policy through procurement Strategic Commissioning Localism ‘Total Place’/Community Budgets/Pooled budgets
2010: Austerity
28% cuts in local government grantFront loaded
Self regulationSector led improvement
The Local Government Group
Funding
Central gov’t grant Member council subscriptions
Fee earning services
LG Improvement & Development Local government’s own improvement agency formed in
1999‘Top sliced’ support
Peer reviewBeacon CouncilsAdvice, guidance and support
National grant funded programmesFee earning servicesKnowledge collection & sharingCommunities of PracticeA voice with central government
LGID procurement examples
National Procurement Strategy for local governmentProcurement Beacon CouncilsMember & Senior Manager guides to ProcurementMember & Senior Manager procurement trainingLeadership Academy trainingProcurement Fitness ChecksPassport 2 Procurement eLearningLocal Procurement Performance IndicatorsProductivity & Efficiency Exchange
What do you mean when you refer to procurement?
Purchasing, procurement & commissioning
What’s the difference?
Strategic needs assessment
Decide priorities and outcomes
Plan and design services
Optional appraisal
Sourcing
Delivery
Monitor and review
The commissioning
cycle
The commissioning cycle
Strategic needs assessment
Decide priorities and outcomes
Plan and design services
Optional appraisalSourcing
Delivery
Monitor and review
The commissioning
cycle
The commissioning and purchasing cycles, and procurement
Determine the need
Supplier selection
Contracting
Ordering
Expediting
Follow-up/evaluation
The purchasing
cycle
procurement
Procurement structural options
Centralised
The Market
Dept
Dept Dept
Dept
Procurement Unit
De-centralised
The Market
Dept Dept Dept Dept
Lead Buyer
The Market
Dept
Dept
Dept
Lead DeptProcurement
#2
Lead DeptProcurement
#1
Devolved
The Market
Dept Dept Dept Dept
Procurement Unit
Consortia
The Market
CouncilA
CouncilB
CouncilC
CouncilD
Public Buying Organisation
Clusters
The Market
CouncilD
CouncilF
CouncilH
CouncilM
Public Buying Organisation
CouncilA
CouncilB
CouncilC
CouncilE
CouncilI
CouncilJ
CouncilK
CouncilL
CouncilG
Cluster ACluster B
Cluster C
Shared service
The Market
CouncilA
CouncilB
CouncilC
Procurement Unit
Anticipated savings
Shared services25%
Community budgets15%
Getting to collaboration
Collaboration strategy
Conversation (networking)
Coordination
Cooperation
Collaboration
(Derived from Huxham, 1996)
10 Lessons1. Political organisations are not the same as private sector
2. Learn to walk before you run
3. Political leadership critical
4. Focus on outcomes
5. Objectives differ
6. Optimum organisational development position differs
7. Invest in skills development
8. KPIs should be tailored to reflect outcomes and change management
9. Planned change doesn’t just happen but needs to be led and supported
10. Unplanned change happens and we need to increase environmental scanning and risk assessment skills
Making a difference is not easy:
Persever
www.slideshare.net/DrGordonMurray
www.twitter.com/DrGordy