lessons from the front line achieving effective delivery of the … · 2020-01-23 · an economic...

Lessons from the front line Achieving effective delivery of the development agenda

www.pwc.co.uk

PwC International Development Conference 2012 – Summary Report

Contents

PwC International Development Conference 2012

Contents

Foreword: Dr David Armstrong, PwC 1

Development works: Mark Lowcock, DFID 2

The ‘new normal’ for developing economies: Dr Andrew Sentance CBE, PwC 4

Financing the future: Dr Celine Herweijer (Chair), PwC 6

Bridging the gap: Will Day (Chair), PwC 8

Innovations in service delivery: Dr Frannie Léautier (Chair), The African Capacity Building Foundation

10

Moving beyond sport in development: Alexandra Chalat and Adam Hall, Beyond Sport 12

Overview and emerging themes: Dr Simon Maxwell CBE, Climate and Development Knowledge Network

14

Annexes 15

Annex 1: Four big international development questions 16

Annex 2: DFID supplier breakfast session: procuring value for money 17

WORKING DRAFT

Conference photography supplied by Russell Philippe

Foreword

PwC’s seventh annual International Development Conference, held on 26 October 2012, attracted over two hundred senior individuals from public, private and voluntary organisations and NGOs. The event was held at PwC’s office in More London and involved a series of plenary and panel sessions on a range of important development issues.

By sharing their experiences from around the world, the conference speakers passed on valuable and practical lessons learnt from designing and implementing innovative international development projects.

This report is a reminder of the key messages that emerged throughout the day. It presents a short summary of the key plenary and panel sessions in the order in which they happened on the day.

More detailed information is available on our conference website http://events.pwc.com/ID_Conference . This includes presentations, videos, speaker biographies and copies of the three PwC publications that we produced as part of our three conference panel sessions.

I would like to extend a very sincere thanks to our key speakers and panel members, all of whom made such a positive contribution to the success of the conference.

I look forward to seeing you at PwC’s next International Development Conference, which will be held in 2013. Please do not hesitate to get in touch if you would like any further information. My contact details can be found at the end of this report.

Dr David Armstrong Partner, PwC, International Development Team

PwC International Development Conference 2012 1

“This conference is all about sharing information, developing networks and relationships and, most importantly, about all of us doing development better.”

Dr David Armstrong, PwC

http://events.pwc.com/ID_Conference

Plenary Session 1: Development works A view from DFID on development myths and priorities Mark Lowcock, Permanent Secretary, DFID

Four myths dispelled

Myth 1: Development efforts are doomed to failure

Despite claims of “over-ambitious” 2015 targets, many have been met and some exceeded. For example, from 2000 to 2010 poverty was halved, access to education improved dramatically, infant mortality plummeted, and the clean water target was met five years ahead of schedule.

Myth 2: Aid has not actually influenced this success

Annual global aid levels have increased in the past decade from $60 to $130 billion. These have been accompanied by dramatic increases in childhood immunisation, out of school children returning to education, and lives saved due to HIV/AIDS and anti-malaria programmes. However, measurement is essential and more monitoring and evaluation is needed, to identify and learn from successes and failures. Ultimately, aid is essentially a catalyst; the real drivers of progress are national policies, institutions and citizens.

Myth 3: We can not afford promised levels of aid

David Cameron is committed to the 0.7% target for aid (as a proportion of GDP). This pledge acknowledges that aid is in our national interest, as prosperity in the developing world can create new markets for the UK, while stable states reduce the threat of terrorism. Likewise issues such as

climate change, asylum, migration, pandemics and the war against illicit drugs can only be successfully tackled by engaging with emerging countries to work together on solutions.

Myth 4: Aid organisations often waste and misuse funds

Aid is vulnerable to corruption, but fraud levels are low and many lost funds are recovered. Nevertheless, there is no room for complacency, constant vigilance is required to support national audit offices and public accounts committees and collaboration is needed with law enforcement agencies. Multilateral agencies such as the World Bank and the UN system could be more effective and the UK is helping improve value for money.

Focus on value for money

Consultants and technical advisors are sometimes seen as expensive and inefficient. However, there is a serious lack of technical capacity in emerging countries, creating a huge multi-billion dollar market for UK firms – mostly not funded by aid.

Value for money is a big priority, hence Justine Greening’s review on technical advisory services.

We welcome transparency and consultants’ charges and fee rates will become more easily available on the internet, driving down costs and improving value for money. New spending controls will scrutinise supplier activities and Justine will meet top suppliers to communicate the message around better value.



Questions from the floor

Q: Once countries have attained ‘middle income’ status, should aid be stopped?

A: The focus should be very much on the poorest and most unstable countries with rapidly growing economies will have less need for aid.

Q: Surely deep rooted problems such as women’s rights and land ownership can’t be tackled by aid?

A: I’m more optimistic than that. Agricultural development is improving every year and levels of violence and murder are falling – both of which are influenced by aid efforts.

Q: Will DFID's efforts to introduce greater scrutiny and transparency slow down the procurement process?

A: I think scrutiny is a good thing as it drives value, impact and effectiveness. We now have an even greater focus on results, and are deploying a higher proportion of our people on programmes and projects.

“We believe that ours is a generation that can end the most extreme poverty across our planet forever. As someone once put it – if not now, when? And if not us, who?”

Mark Lowcock, DFID

3

Plenary Session 2: The ‘new normal’ for developing economies An economic analysis of trends and issues in developing countries Dr Andrew Sentance CBE, Chief Economist Advisor, PwC

The ‘new normal’ – two-speed growth

World GDP measured in US dollars has more than doubled since 2000 but much of this growth has been in the emerging economies. Since 2009, annual growth has been around 1% for UK and around 2% for advanced economies, while in developing nations it has soared by over 6%.

Parts of Asia Pacific are at the heart of this growth; conversely Latin America, the Caribbean and Sub-Saharan Africa have had some weak spots.

Key global drivers of change

Emerging economies are expanding on the back of a highly integrated global economic system. Currently 97% of the world’s population lives in a WTO member country and increased growth is pushing up demand and prices for energy and commodities, further squeezing developed countries’ economies.

Priorities for emerging countries

Drivers of growth include more equitable property rights, access to education and private sector development. Access to finance is vital, including public-private partnerships for infrastructure, health, education and other public services.

How does the new normal impact the development agenda?

Globalisation can support development so it is vital to maintain an open world trading environment.

Strong demand for energy and natural resources is a huge opportunity for those developing economies with natural resources – provided they invest the proceeds wisely.

Key risks include protectionism from threatened Western economies, financial volatility, political instability, weak institutions, and poor governance.


The recovery is different: change in GDP over first three years of recovery

Growth in low income countries: change in GDP in DFID focus countries, 2005-2012

Source: ONS, PwC and IMF. 2012 based on latest IMF and PwC forecasts

0

1

2

3

4

5

6

7

UK (exc oil&gas) Advanced economies Emerging and developing economies

1982-84 1992-94 2010-12

Source: International Monetary Fund, World Economic Outlook Database, Oct 2012

(no data available for Montserrat, St. Helena, Somalia, South Sudan and Occupied Palestinian

Territories)

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

World Advanced economies Emerging and developing economies

Africa Asia Middle East

Caribbean

Ave

rag

e %

an

nu

al ch

an

ge

in

GD

P

Ave

rag

e %

an

nu

al ch

an

ge

in

GD

P



Q: Doesn’t a more open global economy increase the chance of illicit flows of money and corruption?

A: Globalisation can make it harder to scrutinise activity and in a sense was partly responsible for the financial crisis, so continued focus on regulatory compliance is essential.

Q: Are you concerned about China’s highly active approach to aid in Africa? Is this not just a tactic to gain access to natural resources?

A: Ultimately aid is good for Africa, and wealth creation should generate opportunities for businesses around the world – not just from China.

Q: How do we address emerging nations are growing, while in some cases, inequality and poverty is increasing?

A: Globalisation is not a one-way street. As countries get wealthier, they need a free flow of ideas and an important contribution is professional skills to accelerate growth and spread wealth.

“The main barriers to private sector development, in my view, include red tape, corruption, high taxes and, above all, unpredictable government policies.”

Andrew Sentance, PwC

Panel Session 1: Financing the future Mobilising private sector capital for climate change and development Dr Celine Herweijer (Chair), PwC Abyd Karmali, Bank of America Merrill Lynch (BofAML); Josué Tanaka, European Bank for Reconstruction and Development (EBRD); Matthew Wyatt, DFID

Introduction

This panel session involved a discussion around mobilising private sector capital for climate change and development. It was chaired by Celine Herweijer and panel members were Matthew Wyatt, Josué Tanaka and Abyd Karmali.

There is a critical need to tap into private investment and industry to grow developing economies, reduce poverty and protect our planet. Companies invest four times more in developing countries than aid donors. The ‘new normal’ means businesses will look for growth in developing markets.

Governments should help create a positive environment for companies and investors to deliver jobs, services and products – and provide domestic tax revenue.

The 2009 Copenhagen UN climate talks pledged $100 billion per year by 2020 to help developing countries respond to climate change. Much of this will come from the private sector. The UN Framework Convention on Climate Change estimates that 85% of finance to address climate change must be private.

The UNFCCC Green Climate Fund (GCF) to be homed in South Korea is a major distribution channel for climate finance, and includes a dedicated private sector facility. Innovative public finance mechanisms and public-private partnerships will be keen to capitalise on the GCF.

Key issue: What are the roles of public and private finance in climate change investment in countries like Kenya?

Matthew Wyatt, DFID

The private sector seeks stability, trust and confidence in returns. Relatively small amounts of well-directed public finance can help to leverage large-scale private investment. DFID is finding new ways to support innovative technologies and instruments that can scale up private finance for green investments.

Josué Tanaka, EBRD

EBRD launched its Sustainable Energy Initiative (SEI) in 2006 to increase its financing of energy efficiency and renewable energy projects. Reflecting its mandate and hybrid nature as a public institution operating with private sector instruments, EBRD SEI financing

recently reached a milestone of €10 billion for 552 projects with a total value of €33 million. Two-thirds of these projects are with the private sector including industries, SMEs, local banks and project developers.

Abyd Karmali, BofAML

BofAML has three roles: mobilising capital markets to invest; directing corporate, institutional and retail clients to low-carbon investment opportunities; and thought leadership and collaboration with initiatives like the private sector facility of the GCF. BofAML has committed US$50 billion over the next 10 years through activities such as: raising equity and debt capital for innovative companies in the low-carbon sector; commercial lending to companies undertaking climate-friendly projects; and deploying risk.

Summary

Climate change interventions tend to be uncoordinated due to the lack of international consensus and a weak carbon price.

There is little incentive for private financiers to mobilise capital, although investors will be interested if the risk/return profile is reasonable, especially in middle income countries.

All players must work together to increase investment and build confidence. For example, the GCF should be structured to attract potential investors, be responsive to beneficiaries and partner effectively with the private sector.


A challenge (by video) from Kenya, Stephen King’uyu, Ministry of Environment and Mineral Resources

Kenya’s Government supports a low carbon, climate-resilient future and encourages private sector investment in climate and development projects (e.g. through special tariffs and tax exemptions). Private sector players are helping improve policy instruments and remove barriers to investment. In this video clip, Stephen posed a key issue for the panellists to discuss.



Q: How is climate change impacting the global economy?

A: Although there are insufficient formal incentives to get involved in sustainable initiatives, private equity in Africa is booming, with a host of innovative social businesses springing up. Nevertheless, a global deal would help to demonstrate that a low carbon future is possible.

Q: Trading of carbon-based bonds is currently challenging. What is going to change that?

A: Hopefully, there is only a temporary lull in the carbon price. There are over $100 trillion in assets in pension funds and we would like to tempt some of this into carbon funds such as the Rainforest Bond, which puts a price on not cutting down trees.

“Private investors need to be confident that the country they’re investing in has stable regulations and policies, rule of law, transparency and strong anti-corruption measures. They also need a visible pipeline of investable projects.”

Celine Herweijer, PwC

Matthew Wyatt DFID

Josué Tanaka European Bank for Reconstruction and Development

Abyd Karmali Bank of America Merrill Lynch

7

Panel Session 2: Bridging the gap Matching projects and finance to achieve development impact at scale Will Day (Chair), PwC Caroline Ashley, Business Innovation Facility; Lisa Curtis, DFID; Phil Giesler, Unilever Introduction

This panel session involved a discussion around matching projects and finance to achieve development impact at scale It was chaired by Will Day and panel members were Caroline Ashley, Phil Giesler and Lisa Curtis.

Inclusive businesses combine commercial return with positive development outcomes, increasing income and providing access to relevant goods or services. However, surprisingly few examples have been scaled up. There are a number of options for supporting projects, mainly centred around small and medium-sized businesses. Support can come in many forms, including concessionary funding, investment infrastructure and support for skills and training.

Mapping development impact and financial returns

The figure opposite sets out a schematic for considering the financial return and development impact of business projects. Projects in the top right quadrant should attract commercial investment. High impact projects that fall short of the private sector hurdle rate of return can be strengthened commercially or linked with more patient capital.

Key issue: How can development projects expand to a larger scale?

Caroline Ashley, Business Innovation Facility

Projects are sought that have potential for a good development impact and a good commercial return but need help to achieve this. Profit is not a dirty word

and NGOs, and donors work alongside businesses and investors to develop suitable partnerships. There are a host of exciting innovations with inclusive potential including low-carbon cooking fuels and solar power.

With the right support, companies can construct professional business plans and sustainable business models.

Phil Giesler, Unilever

Unilever has pledged to grow its business while also achieving a lower environmental footprint. Much of our focus is on the consumer, encouraging reduced water usage or recycling, using less plastic wrapping.

Our involvement with NGOs, local businesses and health workers drives strong development outcomes, as well as promoting our products in the developing world and building loyalty – all linking to drive a sustainable approach.


Lisa Curtis, DFID

Grants do not tend to encourage strong commercial discipline and a new model of returnable capital applies donor support more flexibly. Working with bigger businesses can have a far greater impact and scale, but remains a challenge. Returnable capital helps justify working with larger better resourced partners.

Summary

Grant funding will ultimately gravitate towards projects that help the poor participate more actively in society. Impact investments are more market driven than donor driven. They are also a potential long-term financing solution for projects offering modest rates of return. If impact investments can develop into a recognised asset class, there may be potential for this market to grow substantially.



Q: How can the private sector do more to help inclusive business?

A: Through greater cooperation with government and other local stakeholders, private companies can help improve the infrastructure that enables them to sell their products.

Q: Can the private sector alone be the main catalyst for change in emerging countries?

A: The disruptive nature of private capital can have a positive effect, but there needs to be a degree of risk sharing with local stakeholders.

Q: Are private companies too concerned with profit?

A: Many are actually very patient with their capital and envisage lengthy investment periods that are in line with local government expectations.

“It’s a minefield for donors trying to assess the opportunities that could lead to both environmental and commercial success.”

Will Day, PwC

Phil Giesler Unilever

Lisa Curtis DFID

Caroline Ashley Business Innovation Facility

9

Panel Session 3: Innovations in service delivery How new ways of working can improve services and empower citizens Dr Frannie Léautier (Chair), The African Capacity Building Foundation Gillian Mann, DFID; Toby Porter, Save the Children; Ben Taylor, Daraja

Introduction

This panel session involved a discussion around how new ways of working can improve services and empower citizens. It was chaired by Dr Frannie Léautier and panel members were Gillian Mann, Toby Porter and Ben Taylor.

The market for service delivery has become more diverse and dynamic, involving private and public sector players. Technology enables cooperation and empowers citizens to call service providers to account and demand better services. However, it is difficult to measure the precise impact of innovation on development.

Key issue: How can we create an environment that stimulates innovation?

Gillian Mann, DFID - Service delivery and accountability

Governments have a responsibility to provide basic services, including health and education, to all citizens, including the poor, and need to be held accountable for such provision.

Accountability requires monitoring and measuring of outputs (e.g. health services) and outcomes (e.g. treated illness). Decentralised governance can improve accountability by ensuring bringing decision makers, service providers and service users closer together.

Innovative tools such as mobile phone texting services or other applications can improve accountability further by

giving each of these groups more direct access to each other. However we need to make sure that the use of new technologies does not further marginalise the poor.

Toby Porter, Save the Children – Balancing long and short term goals

One million children under the age of five die every year in Nigeria, 35% of them due to causes attributed to malnutrition.

The DFID supported project ‘WINNN: Working to Improve Nutrition in Northern Nigeria’ aims to address this issue through a twin-track approach.

The method is to treat severe acute malnutrition and promote better nutrition, while strengthening government leadership and the overall primary health care system.

The focus is to first build government capability, then move onto accountability and responsiveness. The engagement of local elders is critical in this process. However, there are near-impossible trade-offs between saving lives in the short-term and achieving sustainable prevention.

Ben Taylor, Daraja (Tanzanian NGO working on governance and accountability) - Learning from failure

Almost half the points for gathering water in rural Tanzania are currently not working, so a simple scheme was developed to enable citizens to report damaged or non-functioning water points via mobile phones.

Despite extensive media coverage, the response was miniscule, with only a handful of reports communicated via a text message or phone call.

Two obstacles to engagement were identified. Firstly, women are the majority who gather water but men are more likely to own mobile phones. Secondly, people are wary of criticising authorities and damaging their own position within local society.

The two lessons learnt are that new technology is not a magic bullet, and that solution design has to be right for the location and culture of those affected.

Summary

It is important to understand context, infrastructure and access to technology locally. New technology has great potential, but not everywhere or in every sector. Old technology – radio for example – shouldn't be forgotten in the rush to use new Information and Communications Technology (ICT).

Technology can only complement rather than replace constructive state-society engagement. For this to work, citizens must have the voice and political space to engage with authorities and hold them accountable.




Q: How do you encourage and spread innovation?

A: Innovation is a mechanism for improvement but doesn’t necessarily involve technology – it could mean a very simple solution. Don’t get hung up on IT as this may be expensive and fail to address what are often very simple problems.

Q: How do you overcome apathy and a fear of risk-taking?

A: To win over local people, it’s important to demonstrate positive results, develop reward structures (if possible) and engage citizens in the solution.

“We need to find ways to sustain development by engaging people. Innovations can come from engagement but solutions that are imposed will not last.”

Dr Frannie Léautier, The African Capacity Building Foundation

Gillian Mann DFID Ben Taylor

Daraja

Toby Porter Save the Children

11

Plenary Session 3: Moving beyond sport in development Sport and social change in developing countries Alexandra Chalat and Adam Hall, Beyond Sport

Beyond Sport is a global organisation that promotes, develops and supports the use of sport to create positive social change across the world. Since 2009, the organisation has reached 135 countries and supported over 60 programmes.

The Beyond Sport Annual Awards celebrate the best programmes around the world that have made a real different in their communities.

It achieves social change in a number of ways, for example, through an annual Summit that brings together leading global sporting and non-sporting figures. This has included the involvement of individuals such as David Beckham, Michael Johnson and Tony Blair to educate, inspire and celebrate the use of sport as a way to address social issues.

As a private company, Beyond Sport is able to bring in commercial sponsorships, and has a business-savvy approach to partnering with both the private and the public sector.

Examples of two supported projects

• Ex-gang members in Venezuela joined rugby teams as a controlled outlet for aggression and a means of team building, helping reduce crime and giving individuals a meaningful role in society.

• Girls in rural India were encouraged to play netball to build self-esteem and counter traditional negative images of women.

Case study: sport, gangs and international development

Adam is an ex-gang member from North East London who dropped out of school and had poor future prospects. His sudden interest in cricket at the age of 15 quite literally changed his life. By pursuing his passion he eventually became a professional cricket coach, winning UK ‘National Young Coach of the Year’ from the ECB (England & Wales Cricket Board).

Recognising the impact sport had upon his life, Adam has become heavily involved with voluntary activity, setting up sporting programmes around the world in Afghanistan, the Caribbean, Africa and Asia. He has since become an integral staff member in Beyond Sport as its International Development Manager.

Summary

The success of Beyond Sport challenges conventional views of ‘development’ and achieves all-important engagement. The organisational skills required in linking up diverse stakeholders should not be underestimated, nor should the entrepreneurial approach that encourages private sector participation.


Adam Hall Beyond Sport


Question from the floor

Q: How can you get the private sector involved to help subsidise your initiatives?

A: It’s actually not as hard as you think, as corporate social responsibility is high on every company's agenda and can also help them commercially in the long run.

“This is not about conventional sporting success; it’s about using sport to change lives.”

Alexandra Chalat, Beyond Sport

13

Plenary Session 4: Overview and emerging themes Dr Simon Maxwell CBE, Climate and Development Knowledge Network (CDKN)

The development business must be led by ideas

Although delivery is very important, the conference showed that development professionals also have a responsibility to engage with theory, grapple with ideas, and learn as they work. The development business has the same mission statement, but a new job description

We hold the same ideals of human development and poverty reduction, but will need to work in new ways, with four key areas of focus. First, it is important to understand the world, recognising the ‘new normal’ of two-speed growth allied with concern over rising inequality. Development has to adapt to the rise in middle income countries and the rapid decline in the number of non-fragile

low income countries, as well as the disruptive impact of climate change which will lead to a restructuring of the world economy.

Secondly, there may be fewer countries needing traditional financial flows in future years, with global issues taking centre stage, such as climate change, disease, food shocks, migration and crime. New actors will also be more prominent, including emerging powers, new philanthropists and the private sector. Thirdly, results and value for money will become even more critical, especially in low income countries where resources are extremely limited.

The range of remarkable innovations in aid instruments should be celebrated; helping to address new areas with new stakeholders – often in partnership.

Finally, DFID and the wider development community will have to balance its competencies, ensuring it can carry out traditional aid management as well as engaging globally on cross-cutting issues like climate change. In doing so, it will help maintain a strong focus on value for money and results.

All this matters, because the future development agenda is very much in play

The High Level Panel on the MDGs and political work on the SDGs must be brought together and informed by new thinking about development. The Commons Select Committee has launched a new enquiry on the future of development cooperation (inviting submissions up to December 2012). Meanwhile, it will be important for development professionals to work together to preserve the core values of the mission statement, including human development, sustainability, human rights and equity.


“We have the same mission statement, but a new job description.”

Simon Maxwell, CDKN

Contents


WORKING DRAFT

Annex 1: Four big international development questions 16

Annex 2 : DFID supplier breakfast session: procuring value for money 17

Annexes

15

Annex 1: Four big international development questions Interactive group session

During the morning session of the event, delegates were asked to complete a short questionnaire relating to ‘four big questions’ in international development. The results are shown in the charts below.

16

Q1. Over the next 10 years should the UK stick with its existing commitment to spend 0.7% of national income on aid?

(n = 129)

Q2. To what extent is there a role for donors and governments to encourage the involvement of the private sector in international development?

(n = 129)

Q3. Should the next generation of global development goals give the same prominence to addressing climate change as they do reducing poverty?

(n = 129)

Q4. What is the one development issue that you most want the post-2015 agenda to address?

The one word responses to this question were analysed and presented in a visual in which the size of the words is directly linked to the number of delegates who mentioned that word.


Yes, stick with it 78%

No, lower 3%

No, higher 14%

Not sure / maybe 5%

Yes, there's a major role

80%

Yes, but it's a modest role

18%

No, there's not a

significant role at all

1%

Not sure 1%

Yes 64%

No 19%

Not sure 15%

Other 2%

Annex 2: DFID supplier breakfast session: procuring value for money Martin Bowden and Nick Ford, DFID

Update on DFID’s commercial strategy

DFID’s commercial strategy has four key work streams:

• Improving project design • Supplier selection and tendering • Supplier performance

management • Strengthening commercial

capability and capacity.

DFID’s commercial strategy remains consistent with a focus on improving value for money through increased commercial capability driving a shift to payment by results and improved contract/supplier performance management.

With the current environment of a growing aid budget, greater media and public scrutiny of how taxpayer’s money is spent and a perception of organisations profiteering from poverty reduction, there is a greater importance on ensuring value for money from supplier contracts than in achieving spending targets.

DFID has therefore accelerated its commercial transformation, which is supported by the new Secretary of State initiating revised spending controls, with Ministerial approval now required at the point of commitment for all supplier contracts over £1 million.

Key priorities for DFID

At design stage:

• Improved pipeline visibility • More emphasis on early market

engagement • Stronger commercial thinking and

value for money focus in business cases

• Consider market capacity during design (especially in fragile states).

At supplier selection and tendering stage:

• Increased use of output based pricing

• Focus on adding value and improving value for money

• Increasing volume through new frameworks

• Reductions for procurement timescales (LEAN) without compromising effectiveness.

At post contract award stage:

• Pay only for performance and strengthen application of output based payment

• Improve performance and relationship management with major suppliers

• Strengthen commercial and contract management focus and skills at front line.

Group discussion exercise

17 PwC International Development Conference 2012

Session objectives

• Update on DFID’s procurement and commercial strategy • Share information on key priorities and initiatives • Provide opportunity for DFID to hear from delegates and discuss key

topics

What should DFID expect from its suppliers?

Group feedback

• What should suppliers expect from DFID? What about the other way around – a 'compact' of some sort?

• Fair and reasonable profits, with risk versus appropriate reward and improved performance

• The consultants and bidders actually know things are not deliverable, but are under such pressure that they go ahead regardless; thus we all need to agree to stop the ‘game playing’.

How can suppliers improve value for money and then work with DFID to demonstrate this?

Group feedback

• Inherent tension between the various project objectives, and the difficulties in setting baselines against which to measure and demonstrate outputs

• Use profit for capacity building –and be honest about what it can actually achieve

• Utilise lessons learnt from inception phases for the delivery phase, particularly for output contracts with greater use of break clauses

• DFID tenders are increasingly going through large framework contracts. While working well in many cases, these bring their own challenges. Small consultancy groups are being squeezed out of the market by the bigger players; DFID needs to consider whether it is locking out new entrants

• Inception phases are too short, especially when they follow the new, and much truncated framework process

• Over-ambitious to expect suppliers to have the dream team ready to deploy as quickly as DFID want

• DFID encourages suppliers we challenge project design, yet when you challenge the design there is a risk of the bid being marked down

• DFID needs to be clearer about its requirements if it wants suppliers to improve performance.

www.pwc.co.uk/publicsector

This publication has been prepared for general guidance on matters of interest only, and does not

constitute professional advice. You should not act upon the information contained in this publication

without obtaining specific professional advice. No representation or warranty (express or implied) is given

as to the accuracy or completeness of the information contained in this publication, and, to the extent

permitted by law, PricewaterhouseCoopers LLP, its members, employees and agents do not accept or

assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or

refraining to act, in reliance on the information contained in this publication or for any decision based on it.

© 2012 PricewaterhouseCoopers LLP. All rights reserved. In this document, “PwC” refers to

PricewaterhouseCoopers LLP (a limited liability partnership in the United Kingdom) which is a member firm

of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.

Contact

David Armstrong PwC +44 (0) 7713 680266 [email protected]

Karen Lennon PwC +44 (0) 07725 706669 [email protected]

The Public Sector Research Centre is PwC’s online community for insight and research into the most pressing issues and challenges facing government and public sector organisations, today and in the future. The PSRC enables the collaborative exchange of ideas between policy makers, opinion formers, market experts, academics and practitioners internationally. To register for this free resource visit www.psrc.pwc.com

Join the debate. www.psrc.pwc.com

http://www.pwc.co.uk/publicsector

mailto:[email protected]

mailto:[email protected]

lessons from the front line achieving effective delivery of the … · 2020-01-23 · an economic...

Documents