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Local performance indicators for procurementDr Gordon Murray13th April 2005

www.idea.gov.uk

www.idea.gov.uk

What makes for improvement?• Leadership• Organisational culture• Resource and performance management• User focus and community engagement

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www.idea.gov.uk

Background• National Procurement Strategy for local government

project with IDeA, AC, 4Ps, SOPO • Part of a ‘Library of Local Performance Indicators’: Joint

IDeA/AC initiative• Local • Voluntary• There are 34 potential indicators• www.local-pi-library.gov.uk/LIBRARY_ALL_PIS.ASP?MEN

UID=2925

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Assumptions• You have a corporate procurement strategy• It’s aligned with corporate objectives• The strategy is being implemented• You’re concerned with the implementation of the NPS• You’ll not use all the indicators

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www.idea.gov.uk

How to use• Consider the purpose• Consider the audience• Start from corporate procurement strategy objectives• Select the most appropriate indicators• Develop a baseline against which to monitor improvements• Compare performance with others for lessons learnt

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Indicators should be at different levels • Strategic• Major projects• Purchasing, including e-procurement• Equalities and competition

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www.idea.gov.uk

What might I chose?

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Strategic Major projects

Purchasing Equalities

LIB/P1NPS Strategy

implementation

LIB/P14Predictability:

Time to procure

LIB/P20Commodity goods price comparison

LIB/P33SME satisfaction with the council

LIB/P2Skills development

LIB/P18Change in

construction costs

LIB/P22Average invoice

value

LIB/P34 Third sector

satisfaction with the council

LIB/P4Aggregation:

Corporate contracts, etc

LIB/P25Percentage of

corporate spend through e-orders

LIB/P5Aggregation: Collaboration

LIB/P30Percentage of

corporate spend through p-cards

LIB/P7Gateway reviews

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Suggestions for Surrey Procurement Network• Consider a benchmarking club• Consider how you can benefit most

– NOT from merely comparing scores – but comparing how better scores have been achieved

• Collect lessons learnt • Develop council and network plans to improve scores

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Questions welcomed

www.idea.gov.uk

www.idea.gov.uk

Local performance indicators for procurementDr Gordon Murray13th April 2005

www.idea.gov.uk