THE PMA ROUTE TO A HIGH
PERFORMANCE PROCUREMENT
TEAM
September 2015
Judith Russell
CONTENTS
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Coverage
Approach
Structure
Sector performance
Driving high performance
Examples of Good Procurement
PMA COVERAGE
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There are currently 96
English HEIs that have
undertaken a
procurement maturity
assessment.
This represents about
75% of the sector and
hence provides a very
substantial data set for
benchmarking
Also two Non HEIs
PMA APPROACH
PMAs are a structured
approach to understanding
the effectiveness of
procurement within an
institution and across the
sector
PMA programme is a key
recommendation of the 2011
and 2015 Diamond Reports
SUPC received funding from
Innovation and
Transformation Fund to
accelerate the programme
across England
PMA question set based on
questionnaire used in
Scotland: developed following
McLelland efficiency study.
Undertaken by independent,
experienced procurement
professionals
Process is action oriented with
institutions receiving
assessment report, action plan
and access to live benchmark
data
Results are collated to provide
sector trends and work with
HEPA to support the sector as
a whole
PMA STRUCTURE
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Evidence based assessment: 53 Questions (October 2013)
9 procurement attributes addressed: Governance, Reporting
and KPIs Organisational, Resources and Skills, CSR,
Collaboration IS/P2P, Supplier Strategy and Policy and
Category Management
Assessed against 4 levels of maturity
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Developing
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Tactical
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Planned
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Superior
Benchmark scores for how your institution compares overall
with others and in specific aspects of Procurement
Establishes a baseline for your institution allowing you to
visibly demonstrate procurement improvements
SECTOR PERFORMANCE
MATURITY STAGE BY NUMBERS AND NONPAY SPEND: 2011/15
75% of institutions are in the lower maturity levels - accounting for 63% of spend
SCORES ACROSS THE MATURITY SCALE
TWO HEIS DEMONSTRATES SUPERIOR PERFORMANCE
MANY LARGER INSTITUTIONS STILL AT LOWER MATURITY LEVELS
RED LINE – SECTOR AVERAGE SCORE: 38%
SCORES ACROSS THE MATURITY SCALE
WITH NON-PAY SPEND
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Average
25%
L
Average
41%
VL
Average
49%
Smaller institutions are predictably less mature on average
than larger institutions. Average VL just progressing into
Planned
S= Small HEIs: <£100m Income
L= Large HEIs: > £100m and < £400m Income
VL= Very Large HEIs: >£400m Income
2015: 98 INSTITUTIONS
Key
Sector minimum and maximum score for the attribute
Sector average score
Institution achieved score
2nd and 3rd Quartiles
PROGRESS FROM 1ST TO 2ND PMAS
38 institutions that have undertaken a 2nd assessment have made an
average improvement of 12 percentage points
SUMMARY OF KEY FINDINGS
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Institutions who have been re-assessed have made
demonstrable improvements. On average an institution is
progressing 12% between assessments
75% of institutions are in the lower half of procurement
maturity and hence there is opportunity for improvement
and efficiency gains
Beacons of superior performance now exist for all
attributes
Skills, Collaboration and Organisation are now strongest
areas
Category Management, Reporting/KPIs and CSR are now
the weakest
Many procurement teams do not cover Estates
Procurement
There is a weak correlation between savings and maturity
level - possibly not all institutions are reporting all their
savings
DRIVING HIGH PERFORMANCE
RAISE PROCUREMENT PROFILE AND
INFLUENCE
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Detailed report outlining your
current procurement maturity - a
blueprint to develop procurement
across your institution
Share across institution across all
levels.
Participants views
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Raised procurement profile with SMT
and procurement committees
Independent objective confirmation of
capability
A structure to demonstrate capability
Moving up against benchmark –clear
visibility
Enabler for change
CLEAR RESOURCED PLAN WITH BUY IN
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A comprehensive action plan
outlining the steps that should be
taken to move towards a higher level
of procurement maturity
Participants views
Confirmed support for additional
investment and quantified scope for
improvement
o Identified areas to improve
o Clear action plan, especially helpful for
a new HoP
o Informed decision making on staff
training and work priorities
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BENCHMARK AND SET YOUR TARGETS
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A sector benchmark comparing your
level of maturity with other HEIs
Participants views
Clear targets and measurements for
improvement
o Identify ‘best in class’ levels
o Sharing best practice. HEPA links
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RETAINING MOMENTUM
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Future assessments
Full
o Interim
o Single attribute
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On-line access to dynamically updating
benchmark
On-line Action Plan
Implementation support
Spend Analysis
 P2P Implementation
 Procurement Strategy and
Implementation Plan with
Resource Planning
 Performance Measurement and
Reporting
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EXAMPLES OF SUPERIOR PERFORMANCE
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Governance: Fully documented and communicated
procurement strategy -strong link to institution’s
strategy.
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Reporting/KPIs: Clear performance measures in
place. Comprehensive metrics, regularly reported.
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Organisational: Complete coverage across whole
institution, visible impact, senior ‘peer group’
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Skills: Strong skills and fully trained staff within the
central procurement team covering all spend
including estates
CSR: Embedded CSR factors in the core procurement
processes. Widest view on sustainability
EXAMPLES OF SUPERIOR PERFORMANCE
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Collaboration: Active in sharing and leading
collaboration efforts.
IS/P2P: Strong process automation and eprocurement coverage.
Supplier Strategy: Good supplier relationship
mgt and senior mgt buy-in.
Category Management: MI available to inform
category management. Good supply market
research and stakeholder involvement