October 2007 Procurement Services Working to achieve Excellent Procurement Best Practice Contract Management Workshop Proactive Contract management Glenn Yates Process Improvement Manager

Essex County Council Step Change Procurement Page 2Procurement Services Step Change Procurement – Building Blocks Best Value Sustainable Procurement …..the best combination of quality and whole of life costs, incorporating corporate social responsibility IPT

Essex County Council Step Change Procurement Page 3Procurement Services What are typical contract management pain points? Realising benefits from contracts/value for money? Increasing expectations of stakeholders (ECC, end customers, others?) Changing requirements over time? No sight/input to the contract and/or service specification? Lack of (or poor quality) specifications and KPIs? Poor supplier performance &/or relationships? Internal cross-team communication? No evidence to support ECC position at service review meetings? Too many suppliers/contracts to manage? Skills (commercial, negotiation, relationship., time management....)?

Essex County Council Step Change Procurement Page 4Procurement Services Key Aspects of Proactive Contract Management PERFORMANCE MEASURED AGAINST KPIS PAYMENT IS LINKED TO PERFORMANCE CLEAR CONTRACT SPECIFICATIONS CONTINUOUS IMPROVEMENT ACKNOWLEDGEMENT OF STAKEHOLDER NEEDS COLLABORATIVE RELATIONSHIPS KEY ASPECTS OF PROACTIVE CONTRACT MANAGEMENT

Essex County Council Step Change Procurement Page 5Procurement Services ECC Proactive Contract Management Model 4 Ps OGC LCE (You & Your Contractor) ECC experience Private Sector experience

Essex County Council Step Change Procurement Page 6Procurement Services The Foundations 5 key inputs to proactive contract management: 1. Contract terms and conditions: -How we manage risk 2. Contract specifications: -Performance & relationship framework (output specs/method statements) 3. Human resources: -Contract management team skills 4. Documented processes : -How we manage service delivery and contractual performance 5. Relationships & communication: -How we communicate with stakeholders and manage key relationships

Essex County Council Step Change Procurement Page 7Procurement Services Gap Analysis Questionnaire Compare current process with ECC pcm model Identify gaps Recommend actions to target gaps Provide support resources provide Support –Process development –Training programme –eContract management

Essex County Council Step Change Procurement Page 8Procurement Services Training Programme Oct 08 – March 09 You & Your Contractor - LondonMet Managing self Managing others Influencing Personal organisation Managing meetings Personal brand Commercial awareness & contracts

Essex County Council Step Change Procurement Page 9Procurement Services Key Challenges Original business case benefits Where is the contract, what's in it? Part of procurement cycle –Cross team & directorate communication Maybe obvious but contract specs, t&cs define what needs to be managed We need to manage our suppliers not the other way around Change & flexibility Soft skills

October 2007 for your time Procurement Services Working to achieve Excellent Procurement

Essex County Council Step Change Procurement Page 11Procurement Services AGENDA – 10.10Introduction: Richard Hawtin - Asst Director Procurement ECC – 11.20Break-out into 4 syndicate groups – 11.30Break – 11.50Sue Farrow, Sourcing, Procurement & Contract Management Suffolk County Council – 12.20Implementing BPCM at Essex County Council - Glenn Yates – 12.40SRM at Essex County Council – Ian Hollingworth – 13.30Lunch (a light buffet lunch will be provided) – 13.50Anton Bull, Head of Procurement & Service Improvement Norwich City Council – 15.05Break-out into 4 syndicate groups – 15.15Break – 15:35CM in Adult Health Care & Well Being at ECC – Karine Williams – 15.55eContract management at ECC – Chris Penney – Innovations Manager – 16.00Close – Glenn Yates