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Observations of local government improvement &
challenges
Dr Gordon Murray
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Service allocation
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The structure of English local government
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1957: Interdependence
Treaty of RomeEqual treatmentNon-discriminationProportionalityTransparencyObjectivity
‘Central Purchasing’
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1974: The Poulson Affair
Corruption in award of contractsCode of Conduct for councillors and
officers
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1979: Thatcherism
Commissioning councilTQMPerformance managementCost reductionMake/BuyCompulsory Competitive TenderingPrivatisationPrivate Finance Initiative
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1997: Modernisation & localism Reinvigorating democracy Best Value CPA – from ‘poor’ to ‘excellent’ Beacon Councils ‘The Third Sector ‘Voice’ and ‘Choice’
Byatt Review & National Procurement Strategy Policy through procurement Strategic Commissioning Localism ‘Total Place’/Community Budgets/Pooled budgets
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2010: Austerity
28% cuts in local government grantFront loaded
Self regulationSector led improvement
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The Local Government Group
Funding
Central gov’t grant Member council subscriptions
Fee earning services
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LG Improvement & Development Local government’s own improvement agency formed in
1999‘Top sliced’ support
Peer reviewBeacon CouncilsAdvice, guidance and support
National grant funded programmesFee earning servicesKnowledge collection & sharingCommunities of PracticeA voice with central government
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LGID procurement examples
National Procurement Strategy for local governmentProcurement Beacon CouncilsMember & Senior Manager guides to ProcurementMember & Senior Manager procurement trainingLeadership Academy trainingProcurement Fitness ChecksPassport 2 Procurement eLearningLocal Procurement Performance IndicatorsProductivity & Efficiency Exchange
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What do you mean when you refer to procurement?
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Purchasing, procurement & commissioning
What’s the difference?
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Strategic needs assessment
Decide priorities and outcomes
Plan and design services
Optional appraisal
Sourcing
Delivery
Monitor and review
The commissioning
cycle
The commissioning cycle
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Strategic needs assessment
Decide priorities and outcomes
Plan and design services
Optional appraisalSourcing
Delivery
Monitor and review
The commissioning
cycle
The commissioning and purchasing cycles, and procurement
Determine the need
Supplier selection
Contracting
Ordering
Expediting
Follow-up/evaluation
The purchasing
cycle
procurement
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Procurement structural options
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Centralised
The Market
Dept
Dept Dept
Dept
Procurement Unit
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De-centralised
The Market
Dept Dept Dept Dept
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Lead Buyer
The Market
Dept
Dept
Dept
Lead DeptProcurement
#2
Lead DeptProcurement
#1
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Devolved
The Market
Dept Dept Dept Dept
Procurement Unit
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Consortia
The Market
CouncilA
CouncilB
CouncilC
CouncilD
Public Buying Organisation
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Clusters
The Market
CouncilD
CouncilF
CouncilH
CouncilM
Public Buying Organisation
CouncilA
CouncilB
CouncilC
CouncilE
CouncilI
CouncilJ
CouncilK
CouncilL
CouncilG
Cluster ACluster B
Cluster C
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Shared service
The Market
CouncilA
CouncilB
CouncilC
Procurement Unit
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Anticipated savings
Shared services25%
Community budgets15%
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Getting to collaboration
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Collaboration strategy
Conversation (networking)
Coordination
Cooperation
Collaboration
(Derived from Huxham, 1996)
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10 Lessons1. Political organisations are not the same as private sector
2. Learn to walk before you run
3. Political leadership critical
4. Focus on outcomes
5. Objectives differ
6. Optimum organisational development position differs
7. Invest in skills development
8. KPIs should be tailored to reflect outcomes and change management
9. Planned change doesn’t just happen but needs to be led and supported
10. Unplanned change happens and we need to increase environmental scanning and risk assessment skills
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Making a difference is not easy:
Persever
www.slideshare.net/DrGordonMurray
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