IMPPM: Master in Procurement Management | Interdisciplinarity and Professionalization

1. What is IMPPM? IMPPM is a full time postgraduate Master Program in English running since 2013 in Rome, partly financed by the European Bank for Reconstruction and Development. Itfollowed an Italian Master started in 2005. Itwasinitallynamed Master in e-procurement, nowitis a Master in Procurement Management. Its 2 (winning?) tenets: «Interdisciplinarity» and …«Discretionality» Professionalization, July 3, 2018 Gustavo Piga, @gustavopiga Director, International Master in Public Procurement Management

2. www.masterprocurement.eu Now. Since …? Module 1       Negotiation and Team BuildingModule 2       Economics of ProcurementModule 3       Legal BackgroundModule 4       Planning and Management of Procurement OperationsModule 5       Competition and ProcurementModule 6       Contract Complaints and DisputesModule 7       Strategic Procurement and Quality ManagementModule 8       Integrity and Anticorruption in Public ProcurementModule 9       Law and Economics of PPPModule 10     Sustainable Procurement Module 11 Emerging Issues in Procurement Module 12    IFI's Procurement ProceduresModule 13     E-procurement Offered by the Schools of: Economics, Engineering, Law

3. Interdisciplinarity For these reasons the EC is developing a policy to promote professionalization of public buyers … Market intelligence, business skills and a focus on skills must become the heart of public purchasing. In short, public procurement needs to become a business skill - rather than an inefficient (at best) or corrupt (at worse) administrative endeavour. Joaquim Nunes de Almeida (EC)

4. Interdisciplinarity What drives the move toward it? “Development”? “it would seem that developing countries are left with the second- best option: the establishment of extensive rules”. Or… Driven by Universities, CPBs, Governments, Societies or….?

5. www.masterprocurement.eu Public and Local, for Bidders and Procurers 2014 Public, for Executives 2016 Public, Private & Defense 2005 Public, Abroad in Rome, 2012 Abroad, Joint Venture 2017

6. Intersectorality Shouldwe mix them? Public, Private & Defense 2005

7. Intersectorality Defense to public, yes Private to public, yes Public to private, yes Public, Private & Defense 2005

8. Talent Management in Large Private Organizations Isyourorganizationstructured to attracttalentedpeople? How to attractthem? How to makethemgrowwithin the organization? How (and if) to retainthem? An Opportunity and a Challenge in the Face of Large Changes in Staff?

9. Internationality Shouldwe mix them? Public, Abroad in Rome, 2012

10. Internationality Thirstiseverywhere, independent of prevailingrules. Public, Abroad in Rome, 2012

11. Intersectorality Onlyonerisk: where to go afterdrinking. Public, Abroad in Rome, 2012

12. Organization Shouldwe «fix» them (up)? Public, for Executives 2016

13. Organization Cooperation in the bureau seems to be by far the mostimportant component of bureau competence in terms of the effects on procurement performance. ThisresultIs … linked to the complexity and multidisciplinaritytypical of procurement. The need to master legal, engineering, economic/strategic and merceologicalskills for differenttypes of goods, works and services and to coordinate the variousphases of the procurement cycle (market analysis, tender design and implementation, contract management and evaluation) makesgood procurement primarily the outcome of team-work. Cooperationamongemployeesistherefore a crucialingredient for a wellfunctioning procurement office. Existing certification programs, however, have mainly targeted individual contracting officers. Our results on the role of cooperation suggest that, while certification of individual contracting officer’s capabilities is certainly welcome and important, it may not be sufficient. Public, for Executives 2016 BUREAUCRATIC COMPETENCE AND PROCUREMENT OUTCOMES Francesco Decarolis, Leonardo M. Giuffrida, Elisabetta Iossa, Vincenzo Mollisi and Giancarlo Spagnolo WorkingPaper 24201, http://www.nber.org/papers/w24201

14. Organization

15. Organization I. Policy … Developing the appropriate policy architecture for professionalisation: to have a real impact, anyprofessionalisation policy shouldcount onhigh levelpoliticalsupport. II. Human Resources … must have the right qualifications, training, skills and experienceneeded for theirlevel of responsibility. Thismeanssecuringexperienced, skilled and motivated staff, offering the necessarytrainingand continuousprofessionaldevelopment, aswellasdeveloping a career structureandincentivesto make the public procurement functionattractiveand tomotivatepublic officers to deliver on strategicoutcomes. III. Systems … ensuring the availability of tools and processes to deliversmart procurement, suchas: e-Procurement tools, guidelines, manuals, templates and cooperationtools, with corresponding training, support and expertise, aggregation of knowledge and exchange of goodpractice.

16. Organization «Whydon’tthey do it?»

17. Why don’t they do it? “How Much Public Money Is Wasted, and Why? Evidence from a Change in Procurement Law” Oriana Bandiera, Andrea Prat, Tommaso Valletti, American Economic Review, December 2009 How much? ≥2% Why? 83%

18. Why don’t they do it? BUREAUCRATIC COMPETENCE AND PROCUREMENT OUTCOMES Francesco Decarolis, Leonardo M. Giuffrida, Elisabetta Iossa, Vincenzo Mollisi and Giancarlo Spagnolo WorkingPaper 24201, http://www.nber.org/papers/w24201 A one standard deviation increase in competence reduces cost overruns by 29 percent and the number of days of delay by 23 percent. It also reduces by half the number of renegotiations. This implies that, if all federal bureaus were to obtain NASA’s high level of competence (corresponding to the top 10 percent of the competence distribution), delays in contract execution would decline by 4.8 million days and cost overruns would drop by $6.7 billions over the entire sample analyzed.

19. Why don’t they do it? Added externalities: Better anti-corruption stance Talking on same terms with private actors Better law-making process Italian new law: “to ensure better competition on technical aspects, price weight should not exceed 30%”. Better reputation The Trip Advisor negativity bias. The less mistakes we do, the greater optimal discretion is granted.

20. Organization I. Policy … Developing the appropriate policy architecture for professionalisation: to have a real impact, anyprofessionalisation policy shouldcount onhigh levelpoliticalsupport. II. Human Resources … must have the right qualifications, training, skills and experienceneeded for theirlevel of responsibility. Thismeanssecuringexperienced, skilled and motivated staff, offering the necessarytrainingand continuousprofessionaldevelopment, aswellasdeveloping a career structureandincentivesto make the public procurement functionattractiveand tomotivatepublic officers to deliver on strategicoutcomes. III. Systems … ensuring the availability of tools and processes to deliversmart procurement, suchas: e-Procurement tools, guidelines, manuals, templates and cooperationtools, with corresponding training, support and expertise, aggregation of knowledge and exchange of goodpractice.

21. Costly? • “Investing in the functiontasked with deliveringthese (efficiency) targets is a clearspend to save business case” • OGC (UK) presentation, Rome, September 2009 • Other country? Save to spend (badly)

22. Organization I. Policy … Developing the appropriate policy architecture for professionalisation: to have a real impact, anyprofessionalisation policy shouldcount onhigh levelpoliticalsupport. II. Human Resources … must have the right qualifications, training, skills and experienceneeded for theirlevel of responsibility. Thismeanssecuringexperienced, skilled and motivated staff, offering the necessarytrainingand continuousprofessionaldevelopment, aswellasdeveloping a career structureandincentivesto make the public procurement functionattractiveand tomotivatepublic officers to deliver on strategicoutcomes. III. Systems … ensuring the availability of tools and processes to deliversmart procurement, suchas: e-Procurement tools, guidelines, manuals, templates and cooperationtools, with corresponding training, support and expertise, aggregation of knowledge and exchange of goodpractice.

23. Organization Do youneed to aggregate organizations to aggregate knowledge?

24. Aggregating knowledge PIANOosees market knowledgeas an essentialelement in public sector procurement and tendering. Know the market. The more familiar a contracting authority is with the market, the more effectivelyit can structureitsrequest. The betteritknows the market in whichitislooking to buy, the betterit can tailorits procurement requirements and judgewhether the offerings are in line with the organisation'saims. Whenyoucollect market knowledge, you are collecting information. You can do that from your desk, butyouwillalsoneed to interface with colleagues and companies.PIANOofacilitatesthisdialogueatregionalmeetings, market meetings with public and private sectororganisations, and at the PIANOo conference.

25. Organization ComparingisnotCompeting Cum-petere: running fast together

26. PS: data and knowledge. The Philippines and non open data The results should not be used to compare the agency’s score against that of other agencies but to provide a benchmark against which it will measure its own subsequent performance. The assessors shall then identify areas of strength (sub-indicators receiving a satisfactory or Very Satisfactory score) where it can continue to improve and weaknesses (sub-indicators rated poor or acceptable) where it needs to develop a specific plan of action. A Plan of Action to Improve Procurement Capacity will then be developed …

27. Organization Public and local, for Bidders and Procurers In association with localstakeholders and tradeassociations 2014

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29. Sportello Appalti Imprese: a national best practice Market researches, studies, analysisaboutneeds and expectations of the procurementactors More than 200 events and workshops in 5 years Master in Management of public procurement (www.mastermaap.it) National association of public buyers

30. The achievedresults: Sardiniancompanies are more competitive compared to the past Fig. Share of awarded tenders by sardinian companies, by value, works, services and supplies, 2012-2016 Since 2012, the share of awardedtenders by Sardinian companies is progressively improving in all sectors (except for supplies) in value terms.

31. They show it! The achievedresults: Sardiniancompanies are more competitive among the otherItalianregions Fig. Share of awarded tenders by Sardinian companies, by number, 2012-2017 , Sardinia and other regions, 2012-2017 (percentage of total) Sardinian companies were awarded 54% of the total number of awards in the three sectors. Sardinia is among the first 10 best performers. 31

32. Competencefeeds competence The achievedresults: Sardiniancontractingauthorities are increasingtheircompetence and procurement «culture» using increasingly sophisticated and innovative purchasing tools 32

33. Going Big Shouldtheymix? Abroad, Joint Venture 2017

34. Going Big Inevitable. How can youhave the sameteacherteach 365 times the samecourse in differentlocations. Abroad, Joint Venture 2017

35. Going Large Best moment for me in Belgrade? Slađana Sredojević Abroad, Joint Venture 2017

36. Going Large Abroad, Joint Venture 2017

37. To conclude Whatcomes first?

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43. Aigerim’s question: what comes first?

44. Aigerim’s question: what comes first? Leadership vs. RiskAversion? Yes, but, not so much a public procurement officer’schallenge, butrather and first one for Heads of Organizations.