A Category Manager Approach to Collaboration within People Services Date 25th November 2016 1PM Elizabeth McKenna, STAR Procurement Lynda Brookes, STAR Procurement

Introductions INTERACTIVE Elizabeth McKenna – background Lynda Brookes - background STAR – background Any specific objectives for the session? Red Cards INTERACTIVE

What we will cover Ice Breaker Category Management Collaboration – Break Out Session Tools and Tips Objective Review Q&A

Ice Breaker

The Brief STAR is the collaborative procurement service for Stockport, Trafford and Rochdale Councils therefore collaboration is our remit; we deliver under 3 categories People, Place and Professional. In the People Category we deliver on public health, children’s and adults services and education in terms of procurement. Our session will be looking at what we did from inception of STAR to establish category management and to collaborate with the 3 authorities and wider AGMA authorities. Attendees will go away with the tools and tips for category management and how to collaborate with other authorities, the NHS and CCG’s.

Category Management Getting Started Where We Are Category Management Plan Risks and Opportunities for the People Category

Category Management Getting Started Three distinct Categories Each Category has a Category Manager People (Adults / Children’s& Education / Public Health) Place (Works, Highways & Environment) Professional (Professional, ICT & Office) Pro-class We use pro-class and allocate each classification to a Category Manager Category Manager knowledge and Pro-classes help us to identifyopportunities for collaboration The classification relate to what we are buying and not who we buy for

Category Management Where We Are We have a comprehensive Contract Register of all contracts for three Authorities split into the three categories All Stakeholder are linked to a Category Manager as their main contact in STAR Category Managers are specialist in their areas We have a data analyst sitting in our Business Improvement Team to assist with category scrutiny. We have dedicated Legal Support

Category Management Category Management Plan Principles Objectives What we to achieve and do Objectives Short Medium Long Term Category Management Plan Each Category Manager is required to produce a category plan for each area

Category Management Principles Have a detailed spend map across the entire category, updated quarterly. Be a driver of sustainable savings (when, where, why and how) across the Category. Engage with the wider organisation to understand how procurement can be a driver across the value chain. Identify Projects for collobaration Ensure that value is realised through robust contract management and supplier relationship management.

Category Management Objectives Short Term Contracted Spend Look at contract end dates / extension options / quick wins Benchmark against other authorities who also use similar organisations for services Off Contract Spend Highlight savings we can make by entering into a contract, benchmarking in key areas, find quick solutions e.g. Frameworks Highlight the legal consequences of our actions through exemptions (e.g. challenge, reputational damage) Stakeholder Savings Proposals and priorities Look at contract end dates / extension options Any saving as a result of offer additional term? Any scope to review specification identify any aspect of the service under utilised and reduce spend, Any oportunity to add social value?

Category Management Objectives Proactive Medium Term Plan Any contract extensions to allow co-termination and future collaboration activity Identify new procurement activity required Consider short term contract to allow collaboration opportunities Identify suppliers for future price negotiations Proactive Stimulate the Market (Tendering Tips, Future procurements) GM Devolution & LD Fast Track Provide Contract Procedure Rule Training to Star Medium Term Plan We now need to enforce the importance of being strategic. Using the data we need to meet with services and stakeholders to understand the priorities for the next financial year and beyond.

Category Management Objectives Proactive Long Term Plan Category Management via Contract Register Work with commissioners to identify Statutory Responsibilities in the People Category. Identify area for collaboration Proactive Promote openness for idea sharing and service re-design Supplier Relationship Management Continuous SWOT Analysis to the ever changing conditions associated with the People Category. Progress the stimulation of the market by using PIN Notices and Soft Market Testing

Category Management Challenges & Opportunities for the People Category Reducing budgets / fee rates by too much Some services have been stripped as far as possible making further savings or even delivering in budgets difficult Promoting local providers in each authority Prioritising work from all Stakeholders/Customers Understanding how strategies including personalisation align with procurement strategy Opportunities Collaboration Shared Learning Innovation at STAR. Reducing budgets / fee rates by too much – impact on quality of service, potential negative press, damage relationships with providers Some services have been stripped as far as possible making further savings virtually impossible – will need to look at creative ways to support Commissioners to make efficiencies. This could include working with providers around collaboration Promoting local providers in each authority – Rochdale in particular very supportive of local providers

Collaboration What is collaboration? Two or more people or organisations working together to create or achieve the same goal A form of partnership working – can be for a one off project or a permanent arrangement The merging of different services to form one holistic vision

Collaboration How do STAR use collaboration? Two main ways We collaborate with other authorities (Including both STAR & Wider AGMA / GM) We promote and facilitate collaboration within the supply chain

Collaboration What Drives Collaboration Deliver efficiency savings through sharing costs Deliver improved or better integrated services Develop stronger buying power Share knowledge, information and best practice Clear shared aims

Collaboration Steps for Collaboration Identify a project, opportunity or problem Identify potential partners Ensure buy-in from Stakeholders Understand what the collaboration wants to achieve Understand the Benefits and Risks project or opportunity this could be a tender we are working on with other AGMA / NW authorities or an opportunity we want providers to collaborate together on. Understand what the collaboration wants to achieve – know why we are doing this Improved service Integrated approach Shared ideas Financial savings Greater buying power buy-in from Stakeholders AGMA collaboration – MOU’s (Director level by-in) Provider collaboration (market events – time in the tender to collaborate) Understand the Benefits and Risks Benefits and Risks Benefits Will there be cost savings Will it improve services for people Will it add value to your organisation - eg – transfer of skills, better ways of working, continued benefit after the initial project (eg. One organisation do HR the other payroll) Are the benefits measurable Risks Can you maintain your objectives as part of bigger group Will the specification be compromised Is the time and investment worth the outcome Is there too much reliance on the project lead

Collaboration - examples STAR / GM Collaboration LD Ethical Framework GM Residential for Children’s Service Sexual Health Home Care Provider Collaboration The Carers Service Winter Pressures

How Did STAR Collaborate CPR’s Common T&C’s Common Tender Docs One Stop Website Social Media Collaborative Market Engagement Events Training Social Value Tender Tips STD Documents The Chest

Tools and Tips Understand that collaboration will take longer Early engagement is essential Have a project sponsor with over al accountability Ensure buy-in from the top MOU’s between collaborating authorities Clear aims for the project Clear timeline Clear objectives and stage successes Keep momentum Clear roles and responsibilities Clear evaluation of success Allow time for approvals throughout the project Clear on-going contract management

Q&A and Objectives Questions? Review Objectives @STARProcurement Contact me with any queries: Elizabeth McKenna MCIPS Head of Strategic Procurement People Email: elizabeth.mckenna@star-procurement.gov.uk Mobile: 07811983687