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Why procurement fails

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Why procurement fails. Office of Government Commerce (OGC) research: Unclear objectives and success criteria Insufficient involvement of key stakeholders Weak risk management Unclear roles and responsibilities Lack of appropriate skills Weak financial control Lack of market knowledge.

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Why procurement fails

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  1. Why procurement fails Office of Government Commerce (OGC) research: • Unclear objectives and success criteria • Insufficient involvement of key stakeholders • Weak risk management • Unclear roles and responsibilities • Lack of appropriate skills • Weak financial control • Lack of market knowledge

  2. Why procurement fails Ineffective delivery framework Immature commercial relationships Gaps in capacity/ capability Failure Poor procurement process Lack of (senior) ownership Insufficient strategic challenge Too few options Inadequate strategic framework

  3. Inadequate strategic framework • Unclear vision • Direction of travel uncertain • Processes not clear • Mismatch between strategy and delivery

  4. Too few options • Unclear decision criteria • Go with first workable idea • Failure to ask “What else might be possible…?” or “What if..?

  5. Clear Strategic Focus • Robust strategic framework • Rigorous challenge to status quo (external and internal) • Clear decision criteria • Rich range of options • Emphasis on benefits realisation

  6. Mature commercial relationships • Open Book • Mutual benefit • Balance between risk and reward • Well specified contracts • Rights and responsibilities • Managing changes • Dealing with problems

  7. Critical Success Factors Inform Future Procurement Clear Strategic Focus Mature Commercial Relationships Achieving Excellent Procurement Secure Appropriate Ownership Competitive Procurement Effective Delivery Framework

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