Developing Leadership Potential in the Sector Why Procurement

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Developing Leadership Potential in the SectorWhy
Procurement?
AUPO Conference University of Bournemouth 4
September 2008 Alison Johns Head of Leadership,
Management and Governance
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Leading Procurement

• The Efficiency Agenda
• Achievements of the Procurement Profession
• HEFCEs Leadership Role
• Leadership and Governance in Procurement
• Upping your Game

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Procurement in Higher Education
The procurement profession in the higher
education sector is to be congratulated on
delivering increased efficiencies for their
institutions
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Procurement in Higher Education
.and there is untapped potential for you to
deliver further efficiencies for the benefit of
your institutions
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The Efficiency Agenda

• Releasing resources to the front line
• - Peter Gershon, July 2004
• Transformational Government Enabled by
  technology
• - Nov 2005
• CSR04 Target DfES 4.3bn
• CSR07 Target DIUS 1.5bn

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CSR04 Outcomes

• CSR04 target - 89.5m
• CSR04 outcome - 100.03
• Achieved through
• - Collaborative procurement
• - E-procurement
• - Institutional efficiencies

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CSR07 Targets

• Grant letter total efficiencies - 500m
• Procurement efficiencies - 75m
• - Institutional efficiencies
• - E-procurement
• - Collaborative procurement
• CSR07 period March 2011
• Baseline is at CSR04 (2007/08) period

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Support for the promotion of effective
procurement in the HE Sector HEFCEs approach

• Engaging with institutional senior management to
  increase awareness and understanding of the role
  that effective procurement can play in delivering
  institutions aims and objectives.
• Integrating and co-ordinating collaborative
  procurement activities in the HE sector, building
  on the successful arrangements that already
  exist.

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Risks

• Micro-management
• Working through sector bodies
• Non-engagement with efficiency agenda not using
  EMM tool
• RPC collect and and report in summary form
• HEIs do not engage at strategic level
• Increased involvement of key sector bodies in
  providing lead role
• HEIs do not secure VFM
• Cont support via JISC for Procurweb and UUKSPG

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• What is leadership?

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Is it about politics?

• Politics (n)
• strife of interests masquerading as a contest of
  principles
• Ambrose Bierce
• The Devils Dictionary

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Is it About

• the exercise of power?

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• INFLUENCE

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Governance and Procurement
Governing bodies should ensure that value for
money in procurement is achieved through
obtaining assurances that

• adequate procurement policies and procedures are
  in place
• policies and procedures are consistently applied
  and there is compliance with relevant
  legislation.
• 
  Source Guide for members of higher education
  governing bodies in the UK CUC Nov 2004

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Reflective Practice

• How well are we doing on procurement?
• How do we know?
• What are our procurement targets?

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Audit Committee Value for money
Principle 2 Terms of reference The role and
responsibilities of the audit committee should be
set out in written terms of reference and should
include to...

• Satisfy itself that suitable arrangements are in
  place to promote economy, efficiency and
  effectiveness...
• 
  Source Handbook for Members of Audit Committees
  in Higher Education Institutions, CUC, Feb 2008

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The role of the audit committee
In fulfilling its responsibility, the audit
committee needs to be aware of

• the aims and objectives for pursuing VFM within
  the institution
• the way in which the institution plans to achieve
  VFM during the year
• the processes undertaken and, if appropriate, the
  principal benefits that the institution has
  received/should receive as a result.
• 
  Source Handbook for Members of Audit Committees
  in Higher Education Institutions, CUC, Feb 2008

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What is value for money?
Value for money is commonly understood to be a
combination of

• Economy the ability of achieve an outcome while
  minimising the consumption of resources
• Efficiency the ability to do something well or
  achieve an objective without wasted energy or
  effort
• Effectiveness the ability to achieve the
  best/desired result.
• 
  Source Handbook for Members of Audit Committees
  in Higher Education Institutions, CUC, Feb 2008

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Value for Money?

• When HEIs say they are hard up.
• How are they using procurement more effectively?
• How can they?

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Institutional Efficiencies CSR04

• 60 institutions made EMM returns
• Procurement efficiencies - 38m
• 55 of sector in England not returning EMM
• Estimate of efficiencies unreported 40m

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Spreading the Influence

• Hard to get at areas
• - ICT
• - Estates
• - Libraries
• - Energy
• UUK SPG is beginning to spread its influence
• - Benchmarking
• - Skills development etc
• - UUK, GuildHE, AHUA, BUFDG

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Reflective Practice

• What is your challenge function to the system?
• What is your relationship to with the
  specification process?
• How can you get your voice heard enough to be
  proactive in the system?
• How do you get people to understand what you do?

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Role Clarification
Prescribed
Perceived
Contracts Job descriptions Legal requirements
Expectations Needs
ROLE
Personal
Values and attitudes Beliefs Knowledge and
experience
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Spreading the Influence

• Influence at institutions
• - Publicise successes
• - Influence strategy
• - Demonstrate worth
• Partnership with
• - Colleagues in HEIs
• - Purchasing consortia
• - UUK SPG
• - AUPO

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EXCEED

• STRATEGIC LEADERSHIP FOR PROCUREMENT PROFESSIONALS

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Programme Structure

• Pre-course preparation
• 3 key modules over 9 months
• - Module 1 the Leadership Challenge in Higher
  Education focuses in developing the foundations
  of inspirational leadership.
• - Module 2 Developing Judgement focuses on
  techniques to select the right approach for the
  right situation at the right time
• - Module 3 Making it Happen focuses on the
  ability to influence and enable others to
  implement strategy and transform people and
  organisations.
• Programme concludes with a Capstone Day
• - Into the Future focuses on the will and
  discipline to maintain the momentum of the
  programme and continue to develop as leaders.
• Additional facilitated group meetings and
  personal coaching sessions

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AUPO Vision Statement
Each university should appoint a highly
experienced and qualified Chief Procurement
Officer (CPO) normally termed as the Head or
Director of Purchasing or Procurement and they
should be suitably positioned within the senior
management structure to be able to effectively
influence not just the procurement process but
other relevant business processes.