procurement strategy mid-development: scaling up procurement · © julie cordiner session plan...
TRANSCRIPT
![Page 1: Procurement Strategy Mid-Development: Scaling Up Procurement · © Julie Cordiner Session plan •Setting the scene –why consider scaling up your procurement? •Culture and mindset](https://reader034.vdocuments.us/reader034/viewer/2022052521/609ebff5292c9875d93d4291/html5/thumbnails/1.jpg)
© Julie Cordiner https://schoolfinancialsuccess.com
Procurement Strategy Mid-Development:
Scaling Up Procurement
Julie Cordiner
Education Funding Specialist
![Page 2: Procurement Strategy Mid-Development: Scaling Up Procurement · © Julie Cordiner Session plan •Setting the scene –why consider scaling up your procurement? •Culture and mindset](https://reader034.vdocuments.us/reader034/viewer/2022052521/609ebff5292c9875d93d4291/html5/thumbnails/2.jpg)
© Julie Cordiner https://schoolfinancialsuccess.com
Session plan
• Setting the scene – why consider scaling up your procurement?
• Culture and mindset
• Areas of focus when scaling up
• Horizon scanning
• Questions and shared experiences
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© Julie Cordiner https://schoolfinancialsuccess.com
My background
• CIPFA accountant • Former Assistant Director of
Education• Now an independent consultant
supporting schools and academies to achieve sustainable budgets
• Passionate about education• Founded School Financial Success
• Monthly blog• Monthly newsletter for subscribers• School funding guides• Coming soon – online courses
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© Julie Cordiner https://schoolfinancialsuccess.com
Setting the scene
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© Julie Cordiner https://schoolfinancialsuccess.com
Funding shortfall
Pre 2015/16
• Increased funding per pupil
• More pupils
• Growth in staffing: 3 yrs2011 to 2014 Teachers +3.4% TAs +10.9% Support staff +4% Overall +5.4%
2015/16 to 2017/18
• Funding freeze in cash terms per pupil
• More pupils
• Unfunded cost pressures (8.7% by 2019/20 –mainly pay)
2018/19 and 2019/20
• Real terms freeze per pupil
• More pupils in secondary (higher cost)
• Baked-in shortfall increase in deficits
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© Julie Cordiner https://schoolfinancialsuccess.com
The DfE solution
• Implement Integrated Curriculum-Led Financial Planning – review deployment of staff and everything will be fine!
• Savings of 10% (£1bn) can be achieved in non-staffing budgets by reviewing procurement
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© Julie Cordiner https://schoolfinancialsuccess.com
Schools’ Buying Strategy
https://www.gov.uk/government/publications/schools-buying-strategy
• Three strategic aims:
Skills and relationships
Smart consumers
Access to best value every time
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© Julie Cordiner https://schoolfinancialsuccess.com
Why scale up procurement?
Economies of scale leading to savings
Professional approach – build
relationships
Assurance: compliance with
policy & legislation
More strategic –helps you achieve
your vision
Facilitating MAT growth:
streamlining processes
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© Julie Cordiner https://schoolfinancialsuccess.com
Culture and mindset
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© Julie Cordiner https://schoolfinancialsuccess.com
Do this…Then this…
Then this…
You wouldn’t start from here
or
How to get there
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© Julie Cordiner https://schoolfinancialsuccess.com
Trust ethos
• Sense of one entity
• Level of delegated responsibilities: budget management and procurement
• Confidence in level of top slice and how it’s spent
• GAG pooling
• Collaborative response to help individual academies in difficulty – money, time and moral support
• Openness to working with other MATs or LAs
1 10
minimal definitely
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© Julie Cordiner https://schoolfinancialsuccess.com
Starting points in each academy
• Mindset – resistant to change or sanguine about it?
• Attitudes to risk
• What they want compared to what the Trust needs
• In house or external provider
• Contract length
• Expiry dates of existing contracts
• Satisfaction with current performance/problem areas
• Flexibility – will goods or services still be needed?
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© Julie Cordiner https://schoolfinancialsuccess.com
Engagement -persuasion
• Building a business case for a more collaborative Trust-level approach – rationale and benefits
• Consider governance approaches
• Information gathering on all the options - reassurance
• Consulting as you develop specifications
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© Julie Cordiner https://schoolfinancialsuccess.com
Engagement –planning
• High-level plan for the change – aims, actions, savings targets, responsibilities, timescales
• Plan for objections/obstacles – develop your response
• Communicate successes annually
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© Julie Cordiner https://schoolfinancialsuccess.com
Compromise
Standardised specifications to maximise savings
Established processes
Local & SMEs vs national
Price:quality balance
How savings are treated
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© Julie Cordiner https://schoolfinancialsuccess.com
Capacity and capability
Dedicated staff with time to
devote to the task
With the right skills
Status - supported to make changes
Know when external expertise
is needed
Linked to networks for best practice sharing
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© Julie Cordiner https://schoolfinancialsuccess.com
Will the reward be proportionate to the effort ?
A key question:
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© Julie Cordiner https://schoolfinancialsuccess.com
Discussion
Discuss and record your own big issues when scaling up procurement to Trust level
Which are the top three in your group?
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© Julie Cordiner https://schoolfinancialsuccess.com
Homework…
Goods/service Issues that might emerge
Level of risk and likelihood
Solution Effort/reward balance
Develop your thinking across a list of potential goods and services – narrow down areas worth exploring for Trust-level procurement or even wider collaboration
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© Julie Cordiner https://schoolfinancialsuccess.com
Areas of focus when scaling up procurement
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© Julie Cordiner https://schoolfinancialsuccess.com
Checklist (1)
• Strategic focus (services that fit with vision)
• Mapping existing practices/processes and reviewing them to support new services
• Specifications – standardisation if possible
• Timescales – better prices for longer contracts but need flexibility to allow for changes
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© Julie Cordiner https://schoolfinancialsuccess.com
Checklist (2)
• Approach – frameworks or competitive tendering
• EU thresholds – across contract period
• Compliance with policies and legislation, Academies Financial Handbook, funding agreement etc.
• Phasing contract dates to avoid overwhelm
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© Julie Cordiner https://schoolfinancialsuccess.com
Checklist (3)
• Contract terms and negotiation – need to reflect your definition of success, incentivise quality
• Consider flexibility requirements – higher cost
• Contract management capacity – most relevant metrics, watchfulness, tackle problems early
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© Julie Cordiner https://schoolfinancialsuccess.com
Checklist (4)
• Regular review – surveys of academies, analyse data, effectiveness of processes
• Preparation for contract expiry – lessons learned
• Knowing when to outsource elements of process
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© Julie Cordiner https://schoolfinancialsuccess.com
Discussion
Which areas will you need to prioritise, to make them fit for purpose?
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© Julie Cordiner https://schoolfinancialsuccess.com
Horizon scanning
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© Julie Cordiner https://schoolfinancialsuccess.com
What lies ahead?
• Spending Review – submission and decisions
• Any increase may not replace amounts lost 2015-2018
• Drive to move more academies into MATs – how do you feel about growth?
• Pressure to achieve VfM likely to increase, along with focus on whole life costs – overall efficiency including back office functions
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© Julie Cordiner https://schoolfinancialsuccess.com
Impact of Brexit?
• Guidance on ‘no deal’ Brexit: public procurement regulations will remain broadly unchanged https://www.gov.uk/guidance/public-sector-procurement-after-a-no-deal-brexit
• It will take time to introduce new regulations if we leave with a deal
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© Julie Cordiner https://schoolfinancialsuccess.com
Questions/sharing experiences
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© Julie Cordiner https://schoolfinancialsuccess.com
Procurement Strategy Mid-Development:
Scaling Up Procurement
Julie Cordiner
Education Funding Specialist