Managing Commercial Contracts and Providers in the Public Sector
Explore the significance of commercial contract management in the UK public sector, focusing on the substantial financial investments in contracts. Discover insights on how others are tackling this challenge and learn about the initiatives by Central Government to enhance commercial contract management practices.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
Commercial contracts and providers - a blessing or a curse? CIPFA/CfPS Councillors' Conference September 2018 Walter Akers Partner walter.akers@rsmuk.com 07561 327662 AUDIT | TAX | CONSULTING
Why does commercial contract management matter? Walter Akers walter.akers@rsmuk.com 07561327662
Context The UK public sector spends more money on contracts than it spends on providing services itself. * NAO Commercial and contract management: insights and emerging best practice Nov 2016 Walter Akers walter.akers@rsmuk.com 07561327662
Context The UK public sector spends more money on contracts than it spends on providing services itself. Staff Contracts 194 billion 26% 242 billion 31% * NAO Commercial and contract management: insights and emerging best practice Nov 2016 Walter Akers walter.akers@rsmuk.com 07561327662
Context The UK public sector spends more money on contracts than it spends on providing services itself. Staff Contracts Local Government Contracts 194 billion 26% 242 billion 31% * NAO Commercial and contract management: insights and emerging best practice Nov 2016 69 billion Walter Akers walter.akers@rsmuk.com 07561327662
Context The UK public sector spends more money on contracts than it spends on providing services itself. This is why commercial contract management Staff Contracts Local Government Contracts 242 billion 31% matters 194 billion 26% * NAO Commercial and contract management: insights and emerging best practice Nov 2016 69 billion Walter Akers walter.akers@rsmuk.com 07561327662
How are others tackling this challenge? Walter Akers walter.akers@rsmuk.com 07561327662
How are others tackling this challenge? What is Central Government doing to improve commercial contract management? Three focus areas: 1 2 3 Government Commercial Function Department / Organisation Contracts Walter Akers walter.akers@rsmuk.com 07561327662
What are the high impact areas to focus on? Walter Akers walter.akers@rsmuk.com 07561327662
Critical success factors Recognise that the day job has changed Delivering services yourself is very different to managing third parties to deliver services. A significant amount of service delivery (be it directly or indirectly through outsourced support functions) is actually delivered by third parties through a commercial arrangement. Therefore a crucial step in enhancing value from contracts is to put contract management at the heart of the organisation s activity. Walter Akers walter.akers@rsmuk.com 07561327662
Critical success factors Successful commercial outcomes are ultimately a result of good commercial leadership Recognise that the day job has changed Delivering services yourself is very different to managing third parties to deliver services. A significant amount of service delivery (be it directly or indirectly through outsourced support functions) is actually delivered by third parties through a commercial arrangement. Therefore a crucial step in enhancing value from contracts is to put contract management at the heart of the organisation s activity. This is arguably the most important factor to get right. Leaders should set the right tone from the top, creating a commercial culture across the organisation and show an active interest in getting best value from providers. Walter Akers walter.akers@rsmuk.com 07561327662
Critical success factors Successful commercial outcomes are ultimately a result of good commercial leadership Recognise that the day job has changed Invest in peoples commercial skills Delivering services yourself is very different to managing third parties to deliver services. A significant amount of service delivery (be it directly or indirectly through outsourced support functions) is actually delivered by third parties through a commercial arrangement. Therefore a crucial step in enhancing value from contracts is to put contract management at the heart of the organisation s activity. Your relationships and contracts with third party providers are among your most valuable assets. Are your teams equipped with the knowledge and skills to manage them? This is arguably the most important factor to get right. Leaders should set the right tone from the top, creating a commercial culture across the organisation and show an active interest in getting best value from providers. Walter Akers walter.akers@rsmuk.com 07561327662
Critical success factors Successful commercial outcomes are ultimately a result of good commercial leadership Recognise that the day job has changed Invest in peoples commercial skills Delivering services yourself is very different to managing third parties to deliver services. A significant amount of service delivery (be it directly or indirectly through outsourced support functions) is actually delivered by third parties through a commercial arrangement. Therefore a crucial step in enhancing value from contracts is to put contract management at the heart of the organisation s activity. Your relationships and contracts with third party providers are among your most valuable assets. Are your teams equipped with the knowledge and skills to manage them? This is arguably the most important factor to get right. Leaders should set the right tone from the top, creating a commercial culture across the organisation and show an active interest in getting best value from providers. Attention to detail Effective commercial governance of contracts is built on robust processes that are supported by good data and a keen eye for the detail. Walter Akers walter.akers@rsmuk.com 07561327662
Critical success factors Successful commercial outcomes are ultimately a result of good commercial leadership Recognise that the day job has changed Invest in peoples commercial skills Delivering services yourself is very different to managing third parties to deliver services. A significant amount of service delivery (be it directly or indirectly through outsourced support functions) is actually delivered by third parties through a commercial arrangement. Therefore a crucial step in enhancing value from contracts is to put contract management at the heart of the organisation s activity. Your relationships and contracts with third party providers are among your most valuable assets. Are your teams equipped with the knowledge and skills to manage them? This is arguably the most important factor to get right. Leaders should set the right tone from the top, creating a commercial culture across the organisation and show an active interest in getting best value from providers. Getting best value from your providers doesn t stop when you sign the contract Attention to detail Effective commercial governance of contracts is built on robust processes that are supported by good data and a keen eye for the detail. Whilst value can be lost at every stage of a contract s life, most often the leakage occurs post award and over its operational life. Walter Akers walter.akers@rsmuk.com 07561327662
Closing Third party organisations are now at the heart of Local Government. They deliver many services directly to residents and run back office functions in most Councils. Successful Local Authorities will be those that put commercial contract management at the heart of what they do. If you would like to know more about the topic discussed in this presentation or to attend one of our training courses on commercial contract management, please contact me at walter.akers@rsmuk.com or connect with me at linkedin.com/in/walterakers Walter Akers walter.akers@rsmuk.com 07561327662
