Embedding collaboration at the core of public procurement
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The document discusses embedding collaboration in public procurement. It notes that public procurement accounts for 315 billion annually and argues that winners will be those who can best address uncertainty, complexity and innovation through collaborative partnerships. It advocates engaging stakeholders in conversation to understand needs and manage risks, managing competition based on capabilities rather than just price, and fully committing to collaborative behaviors, structures and decision-making. The goal is establishing strategic partnerships across the public and private sectors to improve value for money in procurement and the delivery of public projects.
Embedding collaboration at the core of public procurement
- 1. Embedding collaboration at the core of public procurement EFCA Conference - Oslo 2015 Annick De Swaef, ir. managing partner ConsensaConsulting 15/06/2015 1Consensa Consulting 息 2015 All Rights Reserved
- 2. 315 billion 15/06/2015 2Consensa Consulting 息 2015 All Rights Reserved
- 3. Our capability to collaborate 15/06/2015 3Consensa Consulting 息 2015 All Rights Reserved Architecture Engineering Construction Banking & insurance Urban planners Legal, financial & tax advisory Technical installations Technology & telecom Politicians Government Administrations Public private partnerships Project consortiaMultinationals Companies SMEs Strategic alliances Integrated building team
- 4. Do we need to do more ? 15/06/2015 4Consensa Consulting 息 2015 All Rights Reserved
- 5. Be competitive, be collaborative 15/06/2015 5Consensa Consulting 息 2015 All Rights Reserved Public 315 billion Private
- 6. Be competitive, be collaborative 15/06/2015 6Consensa Consulting 息 2015 All Rights Reserved Public 315 billion Private
- 7. Be competitive, be collaborative 15/06/2015 7Consensa Consulting 息 2015 All Rights Reserved Public 315 billion Private
- 8. Be competitive, be collaborative 15/06/2015 8Consensa Consulting 息 2015 All Rights Reserved Public 315 billion Private
- 9. Be competitive, be collaborative 15/06/2015 9Consensa Consulting 息 2015 All Rights Reserved Public 315 billion Private
- 10. The winner is the one who can 15/06/2015 10Consensa Consulting 息 2015 All Rights Reserved Urgency & agility - Obtain quick & argumented go/no go decision of partners - Deploy fast the required capabilities within his ecosystem Uncertainty & risk - Tap into market insights and leads through partners - Share and manage risks with trusted partners Complexity & innovation - Co-create and monetize new knowhow with partners - Create a joint culture of continuous learning and improving
- 11. Do they need to do more ? 15/06/2015 11Consensa Consulting 息 2015 All Rights Reserved
- 12. The winner is the one who can 15/06/2015 12Consensa Consulting 息 2015 All Rights Reserved Reliability & consistency - Provide a clear & realistic view on available budgets - Assign competent staff and well-trained personel to projects Business acumen & governance - Understand & leverage dynamics of business environment - Share and manage risks with selected contractors Flexibility & focus - Welcome new solutions/innovations from business partners - Create an organizational culture of learning and improving
- 13. They versus Us 15/06/2015 13Consensa Consulting 息 2015 All Rights Reserved Public 315 billion Private ?? Public procurement Project delivery ?
- 14. Private Public Strategic partnerships 15/06/2015 14Consensa Consulting 息 2015 All Rights Reserved Business case (VfM) Policy Strategy Public procure ment Project delivery Operations 315 billion
- 15. Strategic partnerships 15/06/2015 15Consensa Consulting 息 2015 All Rights Reserved ENGAGE IN CONVERSATION MANAGE COMPETITION COMMIT TO COLLABORATE
- 16. Engage in conversation 15/06/2015 16Consensa Consulting 息 2015 All Rights Reserved PPP D&C or turnkey Lump sum fixed cost/time Alliance Self managed Construction risk carried by Owner National Alliance Contracting Guidelines, Australian Government, July 2011, p17 RISK ALLOCATION RISK TRANSFER FULL RISK OWNERSHIP Control & compliance
- 17. Engage in conversation 15/06/2015 17Consensa Consulting 息 2015 All Rights Reserved Vendors RISK TRANSFER OEM Alliance Internal teams Risk spectrum - Business alliances, Robert L. Porter, Joint ventures Acqui- sitions Mergers Licensing agreement FULL RISK OWNERSHIP 100% equity0% RISK SHARING Control & compliance Alignment & command Collaborate & create
- 18. Engage in conversation 15/06/2015 18Consensa Consulting 息 2015 All Rights Reserved Managing expectations - Talk open about investment opportunities and risks - Source state-of-the-art process & program mngt expertise Example : roadshows & stakeholder platforms - Gather direct feedback from all involved stakeholders - Reality check on willingness to invest and commit - Detailed mapping of potential conflicts - Reward new solutions and alternative scenarios - Create viable timeframe for formation of consortia - Include promising ideas and harsh feedback into next steps
- 19. Manage competition 15/06/2015 19Consensa Consulting 息 2015 All Rights Reserved SCOPE BUDGET PLANNING
- 20. Manage competition 15/06/2015 20Consensa Consulting 息 2015 All Rights Reserved ? VALUE CREATION RELATIONSHIP KNOWLEDGE
- 21. Complexity Manage competition 15/06/2015 21Consensa Consulting 息 2015 All Rights Reserved Execution Innovation Investment Requirements Urgency Uncertainty Referals Selecting partners based on best for project capabilities, foundation course Consensa Shared risksAllocated risks PROJECT management capabilities ALLIANCE management capabilities Fail fastDont fail if if
- 22. Manage competition 15/06/2015 22Consensa Consulting 息 2015 All Rights Reserved Selection based on excellence - Necessity of mature project management capabilities - Cross-organizational collaboration requires alliance capabilities Example : Strategic alliances - Value creation on a win-win-win basis - Collaboration (incl. operational planning) before deal closing - Evolutive contracting and flexibel exit clauses - Clearly defined alliance roles and responsabilities - Regular healthchecks on alliance operations - Regular joint brainstorm sessions on new opportunities
- 23. Commit to collaborate 15/06/2015 23Consensa Consulting 息 2015 All Rights Reserved Senior executives Operational managers Project teams Project board team team team team B2B Collaboration Intern G2G Collaboration Intern Alliance managers
- 24. Commit to collaborate 15/06/2015 24Consensa Consulting 息 2015 All Rights Reserved Collaborative behavior - Joint management structure & governance framework - Joint (change) programs that focus on learning organization Example : Alliance contracting - Risk and opportunity sharing - Commitment to no disputes - Best-for-project unanimous decision-making processes - No fault, no blame culture - Good faith - Transparency
- 25. 315 billion 15/06/2015 25Consensa Consulting 息 2015 All Rights Reserved ENGAGE IN CONVERSATION MANAGE COMPETITION COMMIT TO COLLABORATE Business case (VfM) Policy Strategy Public procure ment Project delivery Operations
- 26. THANK YOU ! www.consensaconsulting.com 15/06/2015 26Consensa Consulting 息 2015 All Rights Reserved
Editor's Notes
- #2: Reviewen in het Engels + vertalen in het Frans (en Nederlands)