Publications> Purchasing Update - Volume 70 December 2007

Purchasing Update - Volume 70 December 2007

A new era for procurement in Queensland

Welcome to the last purchasing update for 2007. It has certainly been a big year for procurement in the Queensland government with 2007 launching a new era in procurement. The Service Delivery and Performance Commission’s (SDPC) review of procurement and logistics in the Queensland government provided a number of recommendations to Cabinet which will impact on the way procurement is delivered across the sector. The recommendations address the complexity of procurement in the Queensland government and provides opportunity to maximise the benefits gained through implementing a new procurement model and by improving our procurement capability.

Given the challenges ahead, and to bring about the degree of change required, the SDPC recommended a Queensland Government Chief Procurement Office (QGCPO) form from the existing Queensland Purchasing division to play a stronger role in procurement across government. The office was officially established in October 2007.

The establishment of QGCPO is a significant highlight for 2007 however it’s not the only one. In 2007, QGCPO delivered; two important whole of government arrangements for fuel and desktop personal computers, portable computers and servers, completed consultation with all departments/agencies, Government Owned Corporations as part of the review of the State Purchasing Policy and assisted with the clean up of Cyclone Larry by coordinating the disposal of 300 lots of ex-government equipment and successfully conducted Procurement Capability and Performance Assessment (PCPA) reviews of Main Roads and Corrective Services. CIPS Australia also recognised the excellence of the procurement professional graduate program QGCPO coordinates across government with an honorable mention in the category of Best People Development Initiative – a significant achieve for a program in only it’s second year.

In 2008, QGCPO will have a major role to play through its work in assisting agencies to build and maintain the required capability to properly manage in excess of $10 billion in procurement expenditure. Business assessment tools, training programs, expert consultancy services and a sector wide program for the coordinated management of common use supplies and services are included in the QGCPO’s scope of work for 2008, as well as the roll out of the new State Procurement Policy.

From all the staff at QGCPO we wish you all a safe and relaxing break over the festive season and look forward to your support in 2008 as the Queensland government continues to improve procurement practices and strive for considerable savings and efficiencies across government to benefit our Queensland communities.

Procurement capability and performance assessment process

As part of the commitment by QGCPO to assist agencies, the QGCPO Procurement Performance Group (PPG) has continued to develop the procurement capability and performance assessment methodology and its implementation. So far we have completed these assessments with Main Roads, Queensland Health and Corrective Services. We’ve taken time out to enhance the model prior to our major roll out commencing 2008. However, the concept of the assessment itself will not change as it is aligned with international benchmarks for best practice procurement. Please refer to our website: Procurement Capability Performance and Assessment Reviews for more detail on the assessment process or contact one of the friendly PPG crew (ph: 3225 2664). In short, this new business tool will assist agencies to assess the “health” of their procurement function and compare it to international best practice benchmarks.

PPG are also gearing up in terms of a few extra resources, especially while Tom Murphy (Manager of PPG) and Mark Hoffman (Project Manager) are seconded to the SDPC Procurement and Logistics Implementation Office. Tim Van Leuven, Project Manager, and Robert Houston, Data Analyst, are the latest additions to our team. Tim has a strong background in public sector procurement. Robert is a specialist data analyst and statistician. His work with Aaron Sobey has enabled us to fast track the agency data profiles. If we’ve completed your agency’s profile for 2006-07 you would have noticed that the turn-around time of these profiles have been greatly improved compared to last year.

If you require a profile for the development of your agency, please contact us early to schedule a suitable time.

For more information please contact: Hubertien Wichers: 3224 8356.

Extension of existing mobile panel arrangement

Just a reminder that the Strategic Information and ICT CEO Committee have endorsed (refer Meeting Notes of 6 March 2007 for Agenda Item 3) the extension of the Mobile Panel Arrangement, together with mandating the following sourcing strategies for mobile telephone services, until 30 November 2008:
All departments and budget-funded agencies:

transfer all existing CDMA, GSM and 3G services in operation with Telstra to the Whole-of-Government Mobile Plan;
transfer all existing CDMA mobile services from Optus to Telstra’s Whole-of-Government Mobile Plan; and
acquire all new CDMA services exclusively from Telstra, under the Whole-of-Government Mobile Plan.

Subject to Telstra providing equivalent or better mobile coverage than that provided by Optus, the Department of Main Roads, the Department of Transport and the Department of Health:

transfer existing CDMA, GSM and 3G mobile services from Optus to Telstra’s Whole-of-Government Mobile Plan; and
acquire new CDMA, GSM and 3G mobile services exclusively from Telstra, under the Whole-of-Government Mobile Plan.

With the exception of the Department of Health, the Department of Main Roads and the Department of Transport, departments and budget-funded agencies are free to source any additional GSM or 3G (but not Next G™) mobile services from either Optus or Telstra. Telstra is the sole supplier of Next G™ services (see below).
On 30 March 2007, the State of Queensland committed to the sourcing strategies above under a new Mobile Panel Agreement with Telstra, where the Mobile Panel Arrangement has now been extended until 30 November 2008.A complementary Mobile Panel Agreement was completed with Optus on 2 August 2007.
GITC Schedules A3 – Product and Service List (incorporating Pricing) have been updated to reflect the new offers from both mobile carriers under the Mobile Panel Arrangement.
Both Optus and Telstra offer competitive prices for GSM mobile services.
Significant savings will be accrued by Customers completing new Customer Contracts with either mobile carrier.

Expenditure on Optus mobile services will continue to contribute to meeting the State's commitment to Optus Networks Pty Ltd under the SmartNet Panel Arrangement, details of which may be obtained from the Expenditure on Optus Products and Services website managed by the Panel Contract Authority.

2008 procurement training calendar

The 2008 training calendar is currently in production with the new QGCPO ‘look and feel’ and will be distributed throughout the state and to all current students in early January 2008.

If you would like a copy of the calendar you can email QGCPO at courserego@qgcpo.qld.gov.au or print an A3 copy of the calendar which is available from the Queensland Government Chief Procurement Office website, www.qgcpo.qld.gov.au.

Procurement certification training (levels 1-4) will recommence in February 2008. These dates are now available on line. If you would like further information on any of QGCPO training courses phone: 07 3224 2790 or 07 3235 4333 or visit the Queensland Government Chief Procurement Office website.

The art of persuasion - an important skill for procurement people

Establishing credibility with your stakeholders is the first step required to master the art of persuasion. At some time in your working career you will be required to put a case forward for something that the business really needs or for something you need others to include/purchase in their own work environment. Drawing from Jay A Conger’s article ‘The Necessary Art of Persuasion’ published by Harvard Business Review (HBR) this article takes you through the first step towards establishing credibility with stakeholders through expertise and relationships.

THE NECESSARY ART OF PERSUASION - PART ONE

How do procurement professionals convince their senior executives that procurement has a vital and strategic role in the success of the organisation? The answer may lie in becoming highly effective at the art of persuasion. This article looks at the key elements of effective persuasion drawing from an article published in the Harvard Business Review (HBR) titled ‘The Necessary Art of Persuasion’, by Jay A. Conger. The HBR article examines the ‘four essential steps of effective persuasion’: Establish credibility; Frame for common ground; Provide evidence; and Connect emotionally.

Effective persuasion is more than simply providing a forceful argument and clear direction, regardless of the level in an organisation. It requires establishing credibility as a vital component of building a believable and convincing case for change. Today we will focus on how to establish credibility as an important foundation for the other steps.

Establishing credibility grows out of two sources: expertise and relationships. Before attempting to persuade anyone you need to take an honest assessment on how you rate against both criteria. Expertise is about having recognised credentials in the field, or ‘runs on the board,’ so that people will have a level of trust that you know what you are talking about. Some points from the HBR article to consider are: ‘How will others perceive my knowledge about the strategy, product or change I am proposing? Do I have a track record in this area that others know about and respect?’

There are a number of ways to test whether you may be perceived as possessing the requisite level of expertise. Firstly, test your ideas with colleagues or other stakeholders in order to get a ‘reality check’ on your ideas before going too much further. If you have a weakness in terms of expertise, consider learning more about the area, for example, by getting assigned to a project or team that would increase your knowledge, formal or informal eduction or training, or by simply speaking with knowledgeable people in the area. Another option is to bring in recognised external experts or specialists who can bolster your case. Finally, try launching a pilot project to ‘demonstrate on a small scale your expertise and the value of your ideas.’

Building relationships involves empathising with the key stakeholders in your target audience and determining the best approach to help them move with you. The HBR article points out that: ‘Indeed people who are known to be honest, steady and reliable have an edge when going into any persuasion situation. Because their relationships are robust they are more likely to be given the benefit of the doubt.’ One way to build relationships is to get out and engage one-on-one with all of the key people you plan to persuade. The main purpose of this exercise is not to try convincing them of your case, but to listen to their perspectives and show your willingness to be open to their ideas. As the article points out: ‘To persuade meaningfully, we must not only listen to others but also incorporate their perspectives into our own.’ Another option is to ‘involve like-minded co-workers’. Like minded colleagues who have already established relationships with the target audience can be powerful advocates of your cause. The key point is that establishing credibility, in terms of expertise and relationships, is the foundation for effective persuasion. The next article in this series will address ‘Framing for common ground’, focussing on the key messages in presenting your case.

Procurement professional graduate program 2008

Fifteen new graduates will undertake the accelerated program of learning and on the job training in procurement in 2008. This year the field of applicants was very competitive with a record number of applications received by QGCPO.

Since its debut in 2006, the Procurement Professional Graduate Development Program has helped launch the careers of 22 graduates as procurement professionals in departments/agencies and Government Owned Corporations including; Queensland Police Service, Tarong Energy, Emergency Services, QR, Queensland Transport, Education Queensland, QBuild, Main Roads, CorporateLink, Queensland Health and QGCPO. Encouragingly the graduate program is getting more interest from other government agencies who are expressing enthusiasm in participating in 2009.

Interest from graduates in the regions is also increasing since the commencement of the program with placements in Rockhampton, Townsville, Mackay, Maryborough and the Sunshine Coast.

Attracting, training and retaining new graduates to be the next generation of procurement professionals in the Queensland Government is integral to developing procurement capability with the government sector.

Look out for further updates next year to learn about our new graduates for 2008.

Graduate Profile - Jessica Hall, Queensland Health

Jessica Hall
Queensland Health

Where did you study at university, what did you study, did you enjoy your degree?
Queensland University of Technology (QUT);
Bachelor of Business (major: international business; minor: marketing); and
Masters of International Business.
I thoroughly enjoyed the international business subjects as they were challenging and covered a range of issues across world markets.

How did you find out about the Procurement Professional graduate program?
A friend from university told me about government graduate programs and the QUT website provided me with information on how to apply.

Why did you choose procurement as a career?
I thought that it would be interesting and the demand for procurement professionals within the market showed that this was a growing industry that offered a variety of stable career paths.

Describe the procurement area in the Agency you work for, what type of projects do they work on?
Throughout Health Services Purchasing and Logistics there is a focus towards strategic procurement and sourcing through the development and use of contracts, policy, supply chain integration strategies, performance measures and catalogue management.

Where do you see the procurement profession heading in the future?
The procurement profession will continue to expand and provide a greater variety of jobs, as both private and public enterprises begin to recognise procurement units as important assets that assist in maintaining efficient business processes.

What do you like to do outside of the office environment, any interest sports or hobbies?
Motorbikes, bicycles and socialising with friends

Where do you see your career path leading?
At this stage there are endless opportunities so it is difficult to determine my career path at this point in time.

Jessica’s Manager Peter Laing talks about the procurement function in the agency and the type of work Jessica is doing as a Graduate.

Describe the procurement area in your agency.
Health Services Purchasing & Logistics (HSPL) is the business process owner for procurement in Queensland Health and has four major roles:

a contract management role to identify, implement, manage and review cross-organisation contracts that increase purchasing value for money for the following product categories:

clinical consumables and devices,
pharmaceuticals,
medical equipment,
pathology supplies,
information technology and services, and
other miscellaneous commodities of high relative spend;

a business improvement leadership role to:

identify, plan, implement and measure outputs and improvements to the organisation’s purchasing and logistics business processes and systems; and
ensure the effective delivery of training and development opportunities and qualifications for staff involved in the Queensland Health (QH) supply chain;

a corporate governance role to:

maintain the Corporate Purchasing Plan, Agency Purchasing Policy and Procedures and other strategic procurement documents in accordance with Queensland Government and Queensland Health policies and procedures;
consult and provide advice regarding the application of such documents; and
manage purchasing delegations to support controlled and best practice purchasing processes;

an eco-efficiency leadership role to identify, plan, implement and measure strategies to reduce energy, water usage and greenhouse gas emissions, whilst maintaining the existing functionality and continuity of patient care.

What type of work is your Procurement Graduate working on?
Jessica is working in the Purchasing & Logistics Business Improvement Unit (PLBIU) and has responsibility for procurement performance measurement and management and secretariat responsibilities for the Queensland Health Purchasing and Logistics Policy and Strategy (PALPAS) committee

What are the organisational benefits of participating in the program?

The benefits to Queensland Health include the ability to have high quality, tertiary trained staff participate in procurement training and development, contribute to changes and improvement of processes and systems and interact with staff at a range of levels. If graduates are able to be retained in the system, the benefit to Queensland Health is multiplied and this is one of HSPL’s objectives, to be regarded as an employer of choice through a structured professional development program.

Graduate Profile - Donna Smith, Shared Services Agency

Donna Smith
Shared Services Agency

Where did you study at university, what did you study, did you enjoy your degree?
I graduated from Griffith University with a Bachelor of Business majoring in Management and Hotel Management. I found the courses to very practical and interesting. I really enjoyed the variety of courses that were available through the business degree.

How did you find out about the Procurement Professional graduate program?
I searched the Queensland Government Job website for graduate positions.

Why did you choose procurement as a career?
When I first applied for the graduate procurement position, I was certain what procurement entailed. But once I did some research into the topic I found it to be something I thought I could gain a lot of work satisfaction from, i.e. achieving value for the public’s money. From my initial research I though Procurement would be a great learning opportunity and would offer me an interesting career path. Most importantly, I could see that procurement would offer variety and challenge to the work day.

Describe the procurement area in the Agency you work for, what type of projects do they work on?
I work for the Strategic Procurement Sections (SPS) of Corporate and Professional Services (CAPS). CAPS is the shared service provider to the Department of Education, Training and the Arts. We deal with Consultancies, Preferred Supplier Arrangements, GITC Contracts and Standard Contracts. The types of projects we work on are extremely varied, as you would expected for the once of the largest organisations in Queensland. Some of the our most recent projects include Provision of Influenza Vaccinations; Supply of clothing, Goods and Sponsorship for Metropolitan school sport; Printing of Education Views Magazine; School Water Efficiency Program - Toilets and Urinals; Review and Evaluation of Skills First Program and Development and Delivery of Auslan Studies.

Where do you see the procurement profession heading in the future?
I foresee the procurement profession will soon be seen by all within the business environment as an essential business tool to ensure success in all purchasing activities. This will only happen with the hard work of procurement professionals advocating the essentiality of the procurement process. In some organisations this has already happen, but with others there is still a lot of work to be done to convince stakeholders. I see a key emerging trend that procurement professionals need to consider now and into the future is environmental impact of their purchasing decisions. As procurement professionals we have a responsibility to set examples within our business environment.

What do you like to do outside of the office environment, any interest sports or hobbies?
On the weekends I like to spend time with family and friends. I like to go to the movies or watch DVD’s at home, go dirt bike riding with friends and family, going to the beach and going on holidays in our caravan.

Where do you see your career path leading?
I am really enjoying the procurement professional and would like to continue learning all aspects of this industry. In the future I would enjoy being in a leadership position, but not necessary a management position. Another avenue that I would like to explore is project management. I think that this would be an opportunity to expand my experience and knowledge of procurement practices whilst gaining new skills. I am looking to continue within the Queensland Public Sector.

Donna’s Manager, Clayton Moulds, talks about the procurement function in the agency and the type of work Donna is doing as a Graduate.

Describe the procurement area in your agency.
The Strategic Procurement Section provides advice to agency clients on the application of State and departmental purchasing policy and procedures. We provide purchasing training for all departmental personnel requiring a procurement delegation and are responsible for producing the agency’s purchasing policy and the Corporate Procurement Plan. We provide support for all procurement activities over $100,000 and become involved in a diverse range of procurement projects from significant ICT purchases to the establishment of Preferred Supplier Arrangements for school resources.

What type of work is your Procurement Graduate working on?
Donna has been involved in a wide range of procurement activities including the purchase of ICT goods and services, establishment of Preferred Supplier Arrangements and contracts for consultancy services. Donna has been involved in the development of invitation to offer documents, evaluation plans and contracts. Donna has participated in contract negotiations with suppliers and has debriefed unsuccessful offerors, as well as providing policy advice to agency clients.

What are the organisational benefits of participating in the program?
We have welcomed the opportunity to introduce Donna to procurement in the public sector and believe that she has gained a good grounding in principles which will stand her in good stead for a future in the procurement arena. Our participation in the program has contributed to the number of experienced and enthusiastic candidates for future permanent jobs in public sector procurement which we see as a significant benefit to all agencies.

Graduate Profile - Rhiain Llewellyn, QBuild

Rhiain Llewellyn
QBuild

Where did you study at university, what did you study, did you enjoy your degree?
I completed a Bachelor of Business Management, majoring in Sport and Recreation Management and Event Management at the University of Queensland. Sport and Recreation Management was an area I particularly enjoyed studying during my time at University.

How did you find out about the Procurement Professional graduate program?
I came across the program through searching the University of Queensland career hub website. I then went about seeking more information on the program by visiting a university careers day.

Why did you choose procurement as a career?
Although I enjoyed what I studied at university, obtaining entry into my chosen field was highly competitive, therefore I went in search of other opportunities and came across the procurement professional graduate program. I chose procurement as a career because it has many varied elements and provided opportunities for future development and growth.

Describe the procurement area in the Agency you work for, what type of projects do they work on?
I am a member of QBuild’s, Capability and Development team. We are responsible for the Creation and Review of QBuild Procurement Policies, Procedures, forms and letters as well as being responsible for the development and Facilitation of QBuild procurement training.

Where do you see the procurement profession heading in the future?
I believe that procurement is vital to business practice and that procurements profile will only continue to rise with further recognition of its importance to the success of business operations. The implementation of e-procurement is a vital component to perfecting the procurement process. I also believe that further procurement educational opportunities should be provided to our high school and university students to ensure procurements future.

What do you like to do outside of the office environment, any interest sports or hobbies?
My passion is sport. I play soccer, both outdoor and indoor. I love AFL and I am a supporter of the Brisbane Lions. I also enjoy listening to music and cooking.

Where do you see your career path leading?
In the short term I would like to continue gaining experience in the area’s of policy and procedure development, as well as in the development and facilitation of training. My long term goals are to obtain a management position and seek opportunities in my chosen area of Sport and Recreation Management

Rhiain’s Manager, Gary Martin, talks about the procurement function in the agency and the type of work Rhiain is doing as a Graduate.

Describe the procurement area in your agency.
Procurement in QBuild ranges from strategic direction, sourcing and policy making at head office to operational procurement functions at twelve regional offices. While our procurement focus is on construction works there is substantial procurement activity in the broader spectrum of goods and services.

What type of work is your Procurement Graduate working on?
We expose our graduates to the operational and hands on aspects of procurement at our regional offices before giving them greater exposure to, and involvement in, the strategic aspects. Rhiain spent her first four months of the programme at our busy Brisbane City regional office and has just joined our head office team where she is assisting in the review of procurement policies and procedures and in the development and facilitation of our procurement training courses.