110809 observations of local govt improvement & challenges

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Presentation to Secretaria de Estado de Planejamento e Gestas, Governo du Rio de Janeiro, 9 August 2011

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  • Murray, J.G. (2009) ‘Towards a common understanding of the differences between purchasing, procurement and commissioning in the UK public sector’, Journal of Purchasing and Supply Management, 15 (3) pp.198-202.
  • 110809 observations of local govt improvement & challenges

    1. 1. Observations of local government improvement & challenges Dr Gordon Murray
    2. 2. Service allocation
    3. 3. The structure of English local government
    4. 4. 1957: Interdependence <ul><li>Treaty of Rome </li></ul><ul><ul><ul><li>Equal treatment </li></ul></ul></ul><ul><ul><ul><li>Non-discrimination </li></ul></ul></ul><ul><ul><ul><li>Proportionality </li></ul></ul></ul><ul><ul><ul><li>Transparency </li></ul></ul></ul><ul><ul><ul><li>Objectivity </li></ul></ul></ul><ul><li>‘ Central Purchasing’ </li></ul>
    5. 5. 1974: The Poulson Affair <ul><li>Corruption in award of contracts </li></ul><ul><li>Code of Conduct for councillors and officers </li></ul>
    6. 6. 1979: Thatcherism <ul><ul><li>Commissioning council </li></ul></ul><ul><ul><li>TQM </li></ul></ul><ul><ul><li>Performance management </li></ul></ul><ul><ul><li>Cost reduction </li></ul></ul><ul><ul><li>Make/Buy </li></ul></ul><ul><ul><li>Compulsory Competitive Tendering </li></ul></ul><ul><ul><li>Privatisation </li></ul></ul><ul><ul><li>Private Finance Initiative </li></ul></ul>
    7. 7. 1997: Modernisation & localism <ul><li>Reinvigorating democracy </li></ul><ul><li>Best Value </li></ul><ul><li>CPA – from ‘poor’ to ‘excellent’ </li></ul><ul><li>Beacon Councils </li></ul><ul><li>‘ The Third Sector ‘Voice’ and ‘Choice’ </li></ul><ul><li>Byatt Review & National Procurement Strategy </li></ul><ul><li>Policy through procurement </li></ul><ul><li>Strategic Commissioning </li></ul><ul><li>Localism </li></ul><ul><li>‘ Total Place’/Community Budgets/Pooled budgets </li></ul>
    8. 8. 2010: Austerity <ul><li>28% cuts in local government grant </li></ul><ul><ul><li>Front loaded </li></ul></ul><ul><li>Self regulation </li></ul><ul><li>Sector led improvement </li></ul>
    9. 9. The Local Government Group Funding Central gov’t grant Member council subscriptions Fee earning services
    10. 10. LG Improvement & Development <ul><li>Local government’s own improvement agency formed in 1999 </li></ul><ul><li>‘ Top sliced’ support </li></ul><ul><ul><li>Peer review </li></ul></ul><ul><ul><li>Beacon Councils </li></ul></ul><ul><ul><li>Advice, guidance and support </li></ul></ul><ul><li>National grant funded programmes </li></ul><ul><li>Fee earning services </li></ul><ul><li>Knowledge collection & sharing </li></ul><ul><li>Communities of Practice </li></ul><ul><li>A voice with central government </li></ul>
    11. 11. LGID procurement examples <ul><li>National Procurement Strategy for local government </li></ul><ul><li>Procurement Beacon Councils </li></ul><ul><li>Member & Senior Manager guides to Procurement </li></ul><ul><li>Member & Senior Manager procurement training </li></ul><ul><li>Leadership Academy training </li></ul><ul><li>Procurement Fitness Checks </li></ul><ul><li>Passport 2 Procurement eLearning </li></ul><ul><li>Local Procurement Performance Indicators </li></ul><ul><li>Productivity & Efficiency Exchange </li></ul>
    12. 12. What do you mean when you refer to procurement?
    13. 13. Purchasing, procurement & commissioning What’s the difference?
    14. 14. The commissioning cycle Strategic needs assessment Decide priorities and outcomes Plan and design services Optional appraisal Sourcing Delivery Monitor and review The commissioning cycle
    15. 15. The commissioning and purchasing cycles, and procurement Strategic needs assessment Decide priorities and outcomes Plan and design services Optional appraisal Sourcing Delivery Monitor and review The commissioning cycle Determine the need Supplier selection Contracting Ordering Expediting Follow-up/ evaluation The purchasing cycle procurement
    16. 16. Procurement structural options
    17. 17. Centralised The Market Dept Dept Dept Dept Procurement Unit
    18. 18. De-centralised The Market Dept Dept Dept Dept
    19. 19. Lead Buyer The Market Dept Dept Dept Lead Dept Procurement #2 Lead Dept Procurement #1
    20. 20. Devolved The Market Dept Dept Dept Dept Procurement Unit
    21. 21. Consortia The Market Council A Council B Council C Council D Public Buying Organisation
    22. 22. Clusters The Market Council D Council F Council H Council M Public Buying Organisation Council A Council B Council C Council E Council I Council J Council K Council L Council G Cluster A Cluster B Cluster C
    23. 23. Shared service The Market Council A Council B Council C Procurement Unit
    24. 24. Anticipated savings <ul><li>Shared services </li></ul><ul><ul><li>25% </li></ul></ul><ul><li>Community budgets </li></ul><ul><ul><li>15% </li></ul></ul>
    25. 25. Getting to collaboration
    26. 26. Collaboration strategy Conversation (networking) Coordination Cooperation Collaboration (Derived from Huxham, 1996)
    27. 27. 10 Lessons <ul><li>Political organisations are not the same as private sector </li></ul><ul><li>Learn to walk before you run </li></ul><ul><li>Political leadership critical </li></ul><ul><li>Focus on outcomes </li></ul><ul><li>Objectives differ </li></ul><ul><li>Optimum organisational development position differs </li></ul><ul><li>Invest in skills development </li></ul><ul><li>KPIs should be tailored to reflect outcomes and change management </li></ul><ul><li>Planned change doesn’t just happen but needs to be led and supported </li></ul><ul><li>Unplanned change happens and we need to increase environmental scanning and risk assessment skills </li></ul>
    28. 28. Making a difference is not easy: Persever www.slideshare.net/DrGordonMurray [email_address] www.twitter.com/DrGordy

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