Procurement Services

Working to achieve Excellent Procurement

Best Practice Contract Management Workshop

Proactive Contract management
Glenn
Yates
October 2007
Process Improvement Manager

Step Change Procurement

Step Change Procurement Building Blocks

IPT

Best Value Sustainable Procurement

..the best combination of quality and whole of
life costs, incorporating corporate social responsibility
Procurement Services

Page 2

Essex County Council

Step Change Procurement

What are typical contract management pain points?

Realising benefits from contracts/value for money?
Increasing expectations of stakeholders (ECC, end customers, others?)
Changing requirements over time?
No sight/input to the contract and/or service specification?
Lack of (or poor quality) specifications and KPIs?
Poor supplier performance &/or relationships?
Internal cross-team communication?
No evidence to support ECC position at service review meetings?
Too many suppliers/contracts to manage?
Skills (commercial, negotiation, relationship., time management....)?

Procurement Services

Page 3

Essex County Council

Step Change Procurement

Key Aspects of Proactive Contract Management

CLEAR
CONTRACT
SPECIFICATIONS

PAYMENT IS
LINKED TO
PERFORMANCE

KEY ASPECTS OF
PROACTIVE
CONTRACT
MANAGEMENT

CONTINUOUS
IMPROVEMENT

Procurement Services

ACKNOWLEDGEMENT
OF STAKEHOLDER
NEEDS

PERFORMANCE
MEASURED
AGAINST KPIS

COLLABORATIVE
RELATIONSHIPS

Page 4

Essex County Council

Step Change Procurement

ECC Proactive Contract Management Model

4 Ps
OGC
LCE (You & Your Contractor)
ECC experience
Private Sector experience

Procurement Services

Page 5

Essex County Council

Step Change Procurement

The Foundations
5 key inputs to proactive contract management:
1. Contract terms and conditions: -

How we manage risk

2. Contract specifications: -

Performance & relationship framework

(output specs/method statements)

3. Human resources: -

Contract management team skills

4. Documented processes : -

How we manage service delivery

and contractual performance

5. Relationships & communication: - How we communicate with stakeholders and

manage key relationships

Procurement Services

Page 6

Essex County Council

Step Change Procurement

Gap Analysis Questionnaire

Compare current process with ECC pcm model
Identify gaps
Recommend actions to target gaps
Provide support resources
provide Support
Process development
Training programme
eContract management

Procurement Services

Page 7

Essex County Council

Step Change Procurement

Training Programme Oct 08 March 09

You & Your Contractor - LondonMet
Managing self
Managing others
Influencing
Personal organisation
Managing meetings
Personal brand
Commercial awareness & contracts

Procurement Services

Page 8

Essex County Council

Step Change Procurement

Key Challenges
Original business case benefits
Where is the contract, what's in it?
Part of procurement cycle
Cross team & directorate communication

Maybe obvious but contract specs, t&cs define what needs to be

managed
We need to manage our suppliers not the other way around
Change & flexibility
Soft skills

Procurement Services

Page 9

Essex County Council

Procurement Services
Working to achieve Excellent Procurement

for your time......

October 2007

Step Change Procurement

AGENDA
10.00 10.10

Introduction: Richard Hawtin - Asst Director Procurement ECC

10.10 11.20

Break-out into 4 syndicate groups

11.20 11.30

Break

11.30 11.50

Sue Farrow, Sourcing, Procurement & Contract

Management Suffolk County Council

11.50 12.20

Implementing BPCM at Essex County Council - Glenn Yates

12.20 12.40

SRM at Essex County Council Ian Hollingworth

12.45 13.30

Lunch (a light buffet lunch will be provided)

13.30 13.50

Anton Bull, Head of Procurement & Service Improvement

Norwich City Council

13.50 15.05

Break-out into 4 syndicate groups

15.05 15.15

Break

15.15 15:35

CM in Adult Health Care & Well Being at ECC Karine Williams

15.35 15.55

eContract management at ECC Chris Penney Innovations Manager

15.55 16.00

Close Glenn Yates

Procurement Services

Page 11

Essex County Council