Unlocking innovation through procurement to increase capacity in public services

Dr Gordon Murray23 October 2009

The commissioning cycle

Strategic needs assessment

Decide priorities and outcomes

Plan and design services

Optional appraisal

Sourcing

Delivery

Monitor and review

The commissioning

cycle

Strategic needs assessment

Decide priorities and outcomes

Plan and design services

Optional appraisal

Sourcing

Delivery

Monitor and review

Determine the need

Supplier selection

Contracting

Ordering

Expediting

Follow-up/evaluation

The commissioning

cycle

The purchasing

cycle

procurement

Maximise opportunities throughout

the Procurement Cycle

8. Closure / Review Need

1. Identify Need

2. Develop Business Case

3. Define Procurement Approach

4. Supplier Appraisal5. Tender Evaluation

6. Award Contract

7. ManageImplementation

of Contract

Policy & strategy

• Set innovation as a procurement objective & KPI

• Ensure access to procurement know-how

• Use cross-functional teams• Focus on outcomes/outputs• Publish long-term plans• Develop approach to unsolicited

openings• Encourage early dialogue with the

market• Accept variants• Use ‘lots’ and pilots

Competitive procurement

• Incentivise innovation• Evaluate risks• Evaluate variants• Test the business case

Post award

• Risk/reward share• Embed within contract

management continuous improvement plan

• Collect and learn from the lessons (on both sides)

8. Closure / Review Need

1. Identify Need

2. Develop Business Case

3. Define Procurement Approach

4. Supplier Appraisal5. Tender Evaluation

6. Award Contract

7. ManageImplementation

of Contract

Utilise Gateway Stages

Challenge

Challenge

Challenge

Challenge

Challenge

Challenge

A procurement policy and strategy to unlock innovation

• Strategic objective• Focus on outcomes• Cross-functional teams• Recognise the market as an asset• Performance manage

Unlocking innovation through procurement to increase capacity in public services

Dr Gordon Murray23 October 2009