Readers’ comments from last week on Spend Matters

We take a look at your comments on our articles from the past week.

How to make stakeholders hate you: Number 5 – Focus purely on savings

The fifth piece in a short series on managing stakeholders, approached from a slightly different angle..

Bitter and twisted calls out a common mistake:

“Crow about savings but never own up to costly mistakes”

Gerard Chick questions how we define value:

“I agree with you that value is the word that we should use on 99% of occasions we talk to stakeholders; but what do you mean by value?

As value is difficult to define precisely moreover and as it is used frequently, loosely and in a number of contexts how do we define it in supply management? to us I guess that value has the following connotations:

• Value is relative to an alternative – value cannot be judged in isolation.
• Value is composite and decomposable – value can be analysed into a set of value drivers – for example – time, cost, quality and service
• Value can be used in several contexts – in B2B relationships it tends to be economic in nature, but other aspects such as the emotional, environmental and social value may also be considered.
• Value is measureable/quantifiable – economic value might be see as revenue, or cost savings; but other aspects have their own forms of measures such as Intellectual Property Right (IPR).

Value management relies on multiple streams of information from inside and outside the organisation – both internal and external perspectives are necessary.

Information about customers, competitors, demand, offers, costs and production constraints are all used in value management and Procurement is well placed to make this their own.

So what do YOU mean by value?”

UK government procurement – response to PASC issued

We take a look at the Government’s Response to the PASC’s Sixth Report of Session 2013–14…

Ian Taylor thinks:

“Central government doesn’t get it that local government is already far better at working with SME’s and whilst it still has some really odd ways of going about things that a good dose of standardisation would help – a top down approach to 400 individual political entities will not work. I feel that’s why cabinet office isn’t being clear on its strategy because it knows deep down it will reek havoc and kick up one heck of a stink. I sincerely hope I’m wrong and that GPS/CCS/OGC decide to focus on getting central government right and realise that’s going to take much more than the rest of the decade.”

Tom Catuk knows the Cabinet Office has good intentions:

“I’d say that the effort going into the creation of the Crown Commercial service indicates that the cabinet office / government is serious about getting it right, from the centre outwards.

They have employed some significant brainpower in putting this together, and let’s hope they don’t waste it and revert to type – ie only do what’s easy (such as frameworks) and thereby fail to tackle the department procurement head on…”

Trevor Black said:

“Sir Humphrey will be delighted that his successor is a chip off the old block. I long for the day when I can say with confidence that at the heart of Government there are professionals who understand how the commercial world works and that they are the leaders in the world on procurement.”

Thanks as always to everyone who reads and comments!

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