PROCUREMENT CAPABILITY FRAMEWORK

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PROCUREMENT CAPABILITY FRAMEWORK

• Angelina Pillai
• Head of Education
• CIPSA Australasia

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The Chartered Institute of Purchasing Supply
CIPS

• Incorporated by ROYAL CHARTER in UK
• Not-for-profit ethos
• Must act in the public good
• Must act on behalf of the Profession
• Governed by council of 47 elected full members
• 63,000 members in 150 countries
• Peak international procurement body
• MCIPS standard
• Exams available in 72 countries worldwide
• Global markets need global buyers

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The Professional Agenda 2010

• Professionalising procurement
• Developing procurement led solutions
• Ensuring socially responsible procurement
• Balancing risk and total cost
• Improving the organisational interface

5 issues and 25 individual topics
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The Professional Agenda 2010
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The Professional Agenda 2010

• Professionalising procurement
• Implementing standards people process
• Developing procurement led solutions
• Responding to policy changes buy local
• Ensuring socially responsible procurement
• Minimising internal demand driving cutbacks
• Balancing risk and total cost
• Coping with macro-economic impacts GFC
• Improving the organisational interface
• Ensuring procurement fit better process

5 issues with 5 priorities?
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THE PROFESSIONAL STANDARDNational Occupational
Standards of SCM

• Employers and Businesses
• Business Planning
• Staff Development
• Developing and Evaluating Training
• Benchmarking
• Employees and Individuals
• Self Assessment
• Professional and Career development
• Job Satisfaction
• Motivation to learn

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THE CIPS STANDARDFull Membership - MCIPS

• International recognition of accomplishment
• Global standards of excellence in procurement
  over 15,000 MCIPS globally
• Confers the postnominals MCIPS
• Increasingly a pre-requisite for procurement
  roles

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Pathways to Professional Development
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Assessed Programmes

• Building Individuals Overall Capability
• Competency benchmarked against standards
• Comprehensive expected outcomes
• Transferable skills that have broad application
• Knowledge and skills examined to validate
  progress over time
• Achievements are certified

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Assessed Education CIPS Qualifications
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Assessed Education CIPS Qualifications

• Online Learning

• CIPS Course Books/Self Study

• Distance Education Tutor Support
• CIPS workshops

• www.cipsa.com.au

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Assessed Education University Pathway

• Curtin University of Technology (WA)
• Griffith University (QLD)
• CQ University (QLD)
• University of South Australia (SA)
• RMIT University (VIC)
• Southern Cross University (NSW)
• Wollongong University (NSW)
• Lincoln University (NZ) Associate level

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Experiential RoutesProfessional Assessment
Scheme (PAS)

• Designed for procurement practitioners with at
  least 8 years experience and a minimum of 5 years
  in management capacity
• Involves completion of 8 professional critical
  incident (PCI) e-portfolios and an interview
• PCIs benchmarked against the Standard
• Diploma membership awarded whilst progressing
  through PAS

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Experiential RoutesPersonal Development Plan
(PDP)

• Designed for experienced senior procurement
  managers with significant experience in a
  strategic role
• Typical roles include CPOs, GMs in Procurement,
  Procurement Directors, Senior Managers in
  Procurement
• The identification of a PDP is through a
  specially designed questionnaire
• Any area where their profile does not meet the
  benchmark will constitute a development need and
  a plan set to bridge the gap
• Associate membership awarded whilst progressing
  through PDP

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Assessed ProgrammesRE-CAP

• ACADEMIC
• Study the Standard
• Qualifications
• REFLECTIVE
• Demonstrate the Standard
• PAS
• EXPERIENTIAL
• Recognition of the Standard
• PDP

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Non-assessed Programmes

• Building Specific Skills
• Change behaviour quickly
• Keep up with latest tools and techniques
• Knowledge Transfer
• Address Specific knowledge gaps
• Time constraints
• Tailoring required

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Methods of non-assessed training

• Public Programmes
• Inhouse delivery from external suppliers
• Inhouse delivery from internal suppliers
• Mentoring
• Management led

Off the Shelf Adjusted Customised
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Pathways to Professional Development
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Why invest in staff professional development?

• Get more for less
• Procurement must contribute to organisations
  strategic agenda
• Getting the best your procurement people have to
  give
• The cost of NOT investing in professional
  development
• Your corporate memory is retiring
• Professionalism in itself delivers greater value

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Retention the impact of professional development

• 84 - committed to employers who invest in their
  professional development training (Hays workplace
  survey)
• 70 - would look for another job due to a lack of
  professional development training (Hays workplace
  survey)
• 68 - cited professional development as
  extremely important when looking for a new job
  (Seek 2008 Job Satisfaction Motivation Report)

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Professional Developmenttangible value

• For your Organisation
• Better outcomes
• Competitive Advantage
• Greater productivity
• Improved professionalism
• Happier staff
• Greater consistency
• Enhanced corporate capability

• For your Staff
• Better performance
• Improved career prospects
• Greater confidence
• Introduces professional community
• Enhances status
• Develops skill base

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THE FORMULA

• PROFESSIONAL CAPABILITY
• MARKET KNOWLEDGE
• EXCELLENCE

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Why the best time for professional development is
now

• Emerging issues require procurement professionals
  to hit the ground running
• Managing greater complexity and higher volatility
  requires better capability
• Is your procurement team ready to take the lead
  on emerging issues like sustainability and carbon
  trading?

• Procurement should volunteer for the job, before
  someone else gets it and makes a hash of it
• (The Buyer, 16th Nov 2009 in his blog on
  www.pponline.com.au)

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Here to help

• CIPS Australasia
• 1300 765 142
• Six websites

www.cipsa.com.au www.cips.org www.cipsaconference
s.com.au www.pponline.com.au www.cpoagenda.com www
.supplymanagement.com