1. T HE PMA ROUTE TO A HIGH PERFORMANCE P ROCUREMENT T EAM September 2015 Judith Russell

2. C ONTENTS o Coverage o Approach o Structure o Sector performance o Driving high performance o Examples of Good Procurement

3. PMA C OVERAGE o There are currently 96 English HEIs that have undertaken a procurement maturity assessment. o This represents about 75% of the sector and hence provides a very substantial data set for benchmarking o Also two Non HEIs

4. PMA A PPROACH PMAs are a structured approach to understanding the effectiveness of procurement within an institution and across the sector PMA programme is a key recommendation of the 2011 and 2015 Diamond Reports SUPC received funding from Innovation and Transformation Fund to accelerate the programme across England PMA question set based on questionnaire used in Scotland: developed following McLelland efficiency study. Undertaken by independent, experienced procurement professionals Process is action oriented with institutions receiving assessment report, action plan and access to live benchmark data Results are collated to provide sector trends and work with HEPA to support the sector as a whole

5. PMA S TRUCTURE o Evidence based assessment: 53 Questions (October 2013) o 9 procurement attributes addressed: Governance, Reporting and KPIs Organisational, Resources and Skills, CSR, Collaboration IS/P2P, Supplier Strategy and Policy and Category Management o Assessed against 4 levels of maturity o Developing o Tactical o Planned o Superior o Benchmark scores for how your institution compares overall with others and in specific aspects of Procurement o Establishes a baseline for your institution allowing you to visibly demonstrate procurement improvements

6. S ECTOR P ERFORMANCE

7. M ATURITY S TAGE BY N UMBERS AND N ON - P AY S PEND : 2011/15 75% of institutions are in the lower maturity levels - accounting for 63% of spend

8. S CORES A CROSS THE M ATURITY S CALE T WO HEI S DEMONSTRATES SUPERIOR PERFORMANCE M ANY LARGER INSTITUTIONS STILL AT LOWER MATURITY LEVELS R ED LINE – SECTOR AVERAGE SCORE : 38%

9. S CORES A CROSS THE M ATURITY S CALE WITH N ON -P AY S PEND S LVL Smaller institutions are predictably less mature on average than larger institutions. Average VL just progressing into Planned Average 25% Average 41% Average 49% S= Small HEIs: <£100m Income L= Large HEIs: > £100m and < £400m Income VL= Very Large HEIs: >£400m Income

10. 2015: 98 I NSTITUTIONS

11. P ROGRESS FROM 1 ST TO 2 ND PMA S 38 institutions that have undertaken a 2 nd assessment have made an average improvement of 12 percentage points

12. S UMMARY OF K EY F INDINGS o Institutions who have been re-assessed have made demonstrable improvements. On average an institution is progressing 12% between assessments o 75% of institutions are in the lower half of procurement maturity and hence there is opportunity for improvement and efficiency gains o Beacons of superior performance now exist for all attributes o Skills, Collaboration and Organisation are now strongest areas o Category Management, Reporting/KPIs and CSR are now the weakest o Many procurement teams do not cover Estates Procurement o There is a weak correlation between savings and maturity level - possibly not all institutions are reporting all their savings

13. D RIVING H IGH P ERFORMANCE

14. R AISE P ROCUREMENT P ROFILE AND I NFLUENCE o Detailed report outlining your current procurement maturity - a blueprint to develop procurement across your institution o Share across institution across all levels. o Participants views o Raised procurement profile with SMT and procurement committees o Independent objective confirmation of capability o A structure to demonstrate capability o Moving up against benchmark –clear visibility o Enabler for change

15. C LEAR RESOURCED PLAN WITH BUY IN o A comprehensive action plan outlining the steps that should be taken to move towards a higher level of procurement maturity o Participants views o Confirmed support for additional investment and quantified scope for improvement o Identified areas to improve o Clear action plan, especially helpful for a new HoP o Informed decision making on staff training and work priorities

16. B ENCHMARK AND S ET YOUR TARGETS o A sector benchmark comparing your level of maturity with other HEIs o Participants views o Clear targets and measurements for improvement o Identify ‘best in class’ levels o Sharing best practice. HEPA links

17. R ETAINING MOMENTUM o Future assessments o Full o Interim o Single attribute On-line access to dynamically updating benchmark On-line Action Plan Implementation support Spend Analysis P2P Implementation Procurement Strategy and Implementation Plan with Resource Planning Performance Measurement and Reporting

18. E XAMPLES OF SUPERIOR P ERFORMANCE o Governance: Fully documented and communicated procurement strategy -strong link to institution’s strategy. o Reporting/KPIs: Clear performance measures in place. Comprehensive metrics, regularly reported. o Organisational: Complete coverage across whole institution, visible impact, senior ‘peer group’ o Skills: Strong skills and fully trained staff within the central procurement team covering all spend including estates o CSR: Embedded CSR factors in the core procurement processes. Widest view on sustainability

19. E XAMPLES OF SUPERIOR P ERFORMANCE o Collaboration: Active in sharing and leading collaboration efforts. o IS/P2P: Strong process automation and e- procurement coverage. o Supplier Strategy: Good supplier relationship mgt and senior mgt buy-in. o Category Management: MI available to inform category management. Good supply market research and stakeholder involvement