Draft Public Procurement Metrics and Performance Framework

At the April 2017 Global Leaders Exchange meeting, Ash Bedi of Public Spend Forum presented and facilitated the discussion to solicit feedback on a new public procurement metrics framework, based on the global study led by Public Spend Forum and Michigan State University’s Professor Joseph Sandor. The framework is a common tool that can government agencies can use to measure and improve performance in procurement and acquisition.

Highlights of this discussion:

The draft metrics framework includes an overarching framework as well as specific measures, a “Balanced Scorecard” of sorts for public procurement.

The framework is explicitly aligned with public procurement outcomes and key public procurement capabilities necessary to achieve those outcomes. We identified this alignment as missing in much of the secondary research we conducted to date in support of this study.

• The framework was well received by the group as it consists holistically of 6 key areas:
  • Customers (e.g. actual value achieved by customer in relation to goals and mission, customer satisfaction)
  • Suppliers (e.g. supplier performance and perception of working relationship with the organization)
  • Procurement function indicators (e.g. savings, spend under mgmt., procurement function cost)
  • Social goals and policy compliance (e.g. achievement of social policy goals and adherence to regulations set forth by the relevant governing body / bodies
  • Workforce perception and capabilities (e.g. procurement function staff skill and satisfaction levels)
  • Procurement organizational capabilities (e.g. core procurement organizational capabilities required of world-class organizations to achieve best in class levels of performance)
• The draft metrics framework is inclusive of what is referred to as the “Big A” in U.S. federal terminology, referring to the broader strategic acquisition function from requirements planning through contract award and on through contract and supplier performance management (and actually starts even before requirements planning and includes overall procurement planning to support customers’ mission and the broader organization mission).

• The group discussed clarifications to the draft public procurement framework, including:
  • Of the 6 components of the framework, one is labeled “procurement performance”. Since the entire framework is itself procurement/acquisition performance, we will relabel this component
  • The framework should explicitly call out measurements pertaining to resources – inclusive of both people and technology/automation.
• The group provided suggestions for driving adoption, namely:
  • For each of the four public procurement value components of the framework, address 1) what public procurement professionals can do today with limited resources and 2) what can professionals drive for in the future
  • Include customers as part of driving adoption of the framework (e.g. explain what procurement functions will need from customers, how customers’ input will be solicited, how procurement can better engage with customers)