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Competence Framework - 7 of 29

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COMPETENCE 7: PROCUREMENT

The ability to secure the provision of resources, choosing strategies for obtaining best value from supply chains.

Introduction

Procurement is the process for securing the goods and services that are required from external suppliers to satisfy change initiative needs as appropriate.

❶

KNOWLEDGE

Knowledge of the organisation’s approach to procurement.

 

APPLICATION

Establish the type, quality and quantity of the resource requirement.

Consider:

  • The type of relationship with a supplier.
  • The chosen life cycle approach, which may impact the resource requirement.
  • The level of risk that the organisation is willing to take and the amount of control required.
  • The resources available in-house to manage the process.
  • The availability, capacity and capability of suppliers.

 ❷

KNOWLEDGE

Knowledge of what needs to be captured in a procurement specification.

 

APPLICATION

Develop detailed specifications for the procurement of resources for a change initiative.

Consider:

  • The detailed functional and technical specification to deliver the defined requirements.
  • Recognition of which stakeholders need to be engaged.
  • The benefits of engaging specialist support.
  • The way in which contract types will be evaluated.

❸

KNOWLEDGE

Knowledge of the range of technical and commercial options.

 

APPLICATION

Evaluate technical and commercial options for fulfilling the requirements, and agree a procurement plan with relevant stakeholders.

Consider:

  • The governance rules for due diligence, including the preferred supplier list and the organisational financial strategy.
  • The way in which an appropriate procurement plan, which takes into consideration the complexity of the organisational approach, can be developed.
  • Ways to determine value propositions from the available options, both short and long term.
  • What constitutes best value in terms of the options available.
  • Ways to secure stakeholder engagement.

❹

KNOWLEDGE

Knowledge of the internal skills and resources required to support the process, and ways in which negotiation can be conducted.

 

APPLICATION

Negotiate and secure internal resources to effectively deliver a change initiative.

Consider:

  • The governance process to follow.
  • The objectives of a change initiative to be met.
  • The benefit of using appropriate negotiation techniques.

❺

KNOWLEDGE

Knowledge of the organisation’s procurement framework.

 

APPLICATION

Comply with organisational procedures when selecting and negotiating with suppliers, based on a rigorous tendering process.

Consider:

  • What steps need to be followed.
  • The approaches to selecting suppliers.
  • The need for qualified resources to select suppliers.
  • The benefits of knowing ‘what good looks like’.
  • Ways in which priorities and trade-offs can be determined to support the negotiation process.
  • The limits and levels of authority for negotiation.
  • Ways to motivate performance.
  • The benefits of good listening skills.

❻

KNOWLEDGE

Knowledge of the appropriate controls for the contract.

 

APPLICATION

Agree viable contracts and statements of work, in line with organisational requirement.

Consider:

  • Ways to gain a common understanding of the agreed terms and conditions.
  • The need for agreed ownership of activities.
  • The dependencies between activities.
  • The agreed payment mechanism.
  • The requirement to have controls over performance.