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Winning your audienceThe DNA of engagement
Identify l Influence l Achieve
APMP UK 14th Annual Conference 2016
Tilting the Playing Field
Use the Social Value Act (2012) for Competitive Advantage
Hugo Minney
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What is this session about?
Value for Money – and PROVING IT
Understand the procurement thought process and
Show value-add they way the buyer wants to see it
Get involved in the DESIGN stage and “write the tender”
Control the evaluation process
Public Sector is a huge market – and you can leverage SVA
Using the Public Services (Social Value) Act 2012 for competitive advantage
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Who am I?
Dr Hugo Minney, PhD, Fellow APM, Fellow CMI, Chartered Manager, Registered Project Professional
Chief Executive, TyneHealth GP Federation
Chief Executive, The Social Return Company
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Structure of this talk
Procurement and the European Procurement Rules
The Social Value Act – and how YOU can use it
An example – Durham County Council
EXERCISE – Benefits Mapping
Taking action on what you’ve learnt
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Procurement environment
External influences on Procurement
LegalEU Treaty PrinciplesUK Public Contracts
RegsFreedom of
Information Act
PoliticalLocalism ActModernising
Commissioning
EconomicSpending Review
SMEs and Economic
Development
EnvironmentalCarbon Reduction
targetsOther environmental
sustainability priorities
TechnologicalE-ProcurementTransparency Requirements
SocialLocalism
Third Sector and Community GroupsEquality & Diversity
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European Procurement Rules
• Major Clients – Transport, Policing, Justice, Health, Local Authority
• Major Services – Construction, IT, Paperwork, Business Services, Personal Services
The Scope
• usually means cheapest – often with no recognition of lifetime costs
• Does “Bigger” always mean better?• What about past record, and delivery of
promises (chance for the unscrupulous)?
“Best Value”
In UK, nearly 40% of GDP is public sector spend. Of this, around 30% is external spend. That’s £150 billion! Who wants some of that?
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What is the “Public Services (Social Value) Act 2012”?
Requirement to consult on service design, BEFORE procurement,
and take into account results of consultation,
Identify Local Priorities – and put a value
Can take past record into account
OR can do nothing – it’s a very loose act
“An Act to require public authorities to have regard to economic, social and environmental well-being in connection with public services contracts…”
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An Example: Durham County Council
Darren Knowd – Head of Procurement responded to request from Ted Salmon – Regional President FSB (Federation of Small Businesses) in 2013
Taskforce established to make “something” happen
HM invited to represent voluntary and non-profit sector and support small business
£571m external spendMonitors its spending:- with SMEs- in North East /
Durham County
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Durham County Council – what they did
Training for local businesses in responding to tenders
Access – influence strategy, understand perception of value
Making it easier for small business and informal consortia to bid
Monitoring performance to ensure lifetime best value (honesty)
Use standards & frameworks to reduce bid costs – and standardise across North East region
Represented on national panels eg discuss removal of PQQ
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How to understand your local situationBuyers use techniques like Benefits Mapping to identify
preferred solutions and prioritise projects
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A “tidy” Benefits Map
Enablers/ given Actions/ Projects
End State(Needs to look like)
Strategic Objectives
Use of Resources
Decision process
Decision quality
PerformanceManagement
Budget
Systems
Processes
People
Guidance
Whole system results
National KPIs
Local presentation
Public
Service User
Staff
Cross system impacts
Resources
MEANS WAYS ENDS
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SROI (Social Return on Investment)
Establishing Scope• Service, time, stakeholders, h2 engage
Map outcomes• From interviews• & cross-reference
Evidence and value• Triangulate and desk-based research• Assigning a value and Sanity-check
Establish impact• Attribution• Deadweight• Drop-off
Calculate SROI• Costs (all of them) and attribute. 'in kind' costs?• Avoid double-counting benefits• sensitivity analysis
Reporting, using, embedding
• What should you do more of?• What could be improved?
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Some Examples of Soft Benefits
“I can tell my grandchildren ‘I did a good job this week’ “
Lower Sickness/ Absence
Easier Recruitment/ Retention
Getting much more done
Engaged with corporate objectives – even to MAKE MONEY
People:
Winning your audienceThe DNA of engagement
Identify l Influence l Achieve
APMP UK 14th Annual Conference 2016
ExerciseBenefits Map
Hugo Minney
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EXERCISE – Buyer’s Thought Process
Imagine you are a potential bidder (e.g. Voluntary Sector)
Draw a Benefits Map (link to MAIN AIM)
Mark “Added Value” benefits
• Durham CC – MAIN AIM: Economic Development (jobs, employment) in County Durham and the North East
• Submission – Domiciliary Support
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What it means for local businesses
Upstreaming – designing the specification
Automatic Advantage to local employers
Local Supply Chain
Local Government & Public Sector
The PQQ?
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ACTIONS TO TAKE AWAY
Public Sector procurement is too big to ignore
Consultation Exercises
Relevant contacts
Register on local frameworks
What do you already do? CSR etc
Manage your PR
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Hugo Minney
• 07786 961837
• TyneHealth Ltd is in Whitley Bay, and supports the health and care of 215,000 people in the North East
• Congress of North East Federations supports all of the North East Federations, ie connected to 2million
population
• The Social Return Company develops benefits cases using The Social Return on Investment (SROI) process.
You can read these on Amazon
Association of Bid and Proposal Management
Professionals
www.apmp.org
UK Chapter
Time for questions
