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Using the Public Services (Social Value) Act 2012 for competitive advantage

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European procurement rules, and government tender process, takes a lot of work. Only the biggest companies can afford a bid team. wouldn't you like to tilt the playing field in your favour? The little-used Social Value Act 2012 can be used as a tool for good. This presentation includes a workshop at the Association for bid and Proposal Management Professionals' 2016 conference on Oct 20th at Wokenfield Park

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Winning your audience The DNA of engagement Identify l Influence l Achieve APMP UK 14th Annual Conference 2016 Hugo Minney
2 What is this session about? Value for Money – and PROVING IT Understand the procurement thought process and Show value-add they way the buyer wants to see it Get involved in the DESIGN stage and “write the tender” Control the evaluation process Public Sector is a huge market – and you can leverage SVA Using the Public Services (Social Value) Act 2012 for competitive advantage
3 Who am I? Dr Hugo Minney, PhD, Fellow APM, Fellow CMI, Chartered Manager, Registered Project Professional Chief Executive, TyneHealth GP Federation Chief Executive, The Social Return Company
4 Structure of this talk Procurement and the European Procurement Rules The Social Value Act – and how YOU can use it An example – Durham County Council EXERCISE – Benefits Mapping Taking action on what you’ve learnt
5 Procurement environment External influences on Procurement Legal EU Treaty Principles UK Public Contracts Regs Freedom of Information Act Political Localism Act Modernising Commissioning Economic Spending Review SMEs and Economic Development Environmental Carbon Reduction targets Other environmental sustainability priorities Technological E-Procurement Transparency Requirements Social Localism Third Sector and Community Groups Equality & Diversity
6 European Procurement Rules • Major Clients – Transport, Policing, Justice, Health, Local Authority • Major Services – Construction, IT, Paperwork, Business Services, Personal Services The Scope • usually means cheapest – often with no recognition of lifetime costs • Does “Bigger” always mean better? • What about past record, and delivery of promises (chance for the unscrupulous)? “Best Value” In UK, nearly 40% of GDP is public sector spend. Of this, around 30% is external spend. That’s £150 billion! Who wants some of that?
7 What is the “Public Services (Social Value) Act 2012”? Requirement to consult on service design, BEFORE procurement, and take into account results of consultation, Identify Local Priorities – and put a value Can take past record into account OR can do nothing – it’s a very loose act “An Act to require public authorities to have regard to economic, social and environmental well-being in connection with public services contracts…”
8 An Example: Durham County Council Darren Knowd – Head of Procurement responded to request from Ted Salmon – Regional President FSB (Federation of Small Businesses) in 2013 Taskforce established to make “something” happen HM invited to represent voluntary and non- profit sector and support small business £571m external spend Monitors its spending: - with SMEs - in North East / Durham County
9 Durham County Council – what they did Training for local businesses in responding to tenders Access – influence strategy, understand perception of value Making it easier for small business and informal consortia to bid Monitoring performance to ensure lifetime best value (honesty) Use standards & frameworks to reduce bid costs – and standardise across North East region Represented on national panels eg discuss removal of PQQ
10 How to understand your local situation Buyers use techniques like Benefits Mapping to identify preferred solutions and prioritise projects
11 A “tidy” Benefits Map Enablers/ given Actions/ Projects End State (Needs to look like) Strategic Objectives Use of Resources Decision process Decision quality Performance Management Budget Systems Processes People Guidance Whole system results National KPIs Local presentation Public Service User Staff Cross system impacts Resources MEANS WAYS ENDS
12 SROI (Social Return on Investment) Establishing Scope •Service, time, stakeholders, h2 engage Map outcomes •From interviews •& cross-reference Evidence and value •Triangulate and desk-based research •Assigning a value and Sanity-check Establish impact •Attribution •Deadweight •Drop-off Calculate SROI •Costs (all of them) and attribute. 'in kind' costs? •Avoid double-counting benefits •sensitivity analysis Reporting, using, embedding •What should you do more of? •What could be improved?
13 Some Examples of Soft Benefits “I can tell my grandchildren ‘I did a good job this week’ “ Lower Sickness/ Absence Easier Recruitment/ Retention Getting much more done Engaged with corporate objectives – even to MAKE MONEY People:
Winning your audience The DNA of engagement Identify l Influence l Achieve APMP UK 14th Annual Conference 2016 Hugo Minney
15 EXERCISE – Buyer’s Thought Process Imagine you are a potential bidder (e.g. Voluntary Sector) Draw a Benefits Map (link to MAIN AIM) Mark “Added Value” benefits • Durham CC – MAIN AIM: Economic Development (jobs, employment) in County Durham and the North East • Submission – Domiciliary Support
16 What it means for local businesses Upstreaming – designing the specification Automatic Advantage to local employers Local Supply Chain Local Government & Public Sector The PQQ?
17 ACTIONS TO TAKE AWAY Public Sector procurement is too big to ignore Consultation Exercises Relevant contacts Register on local frameworks What do you already do? CSR etc Manage your PR
18 Hugo Minney • Hugo.minney@nhs.net • 07786 961837 • TyneHealth Ltd is in Whitley Bay, and supports the health and care of 215,000 people in the North East • Congress of North East Federations supports all of the North East Federations, ie connected to 2million population • The Social Return Company develops benefits cases using The Social Return on Investment (SROI) process. You can read these on Amazon
Association of Bid and Proposal Management Professionals conference@apmpuk.co.uk www.apmpuk.co.uk www.apmp.org UK Chapter Time for questions

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Using the Public Services (Social Value) Act 2012 for competitive advantage

  • 1. Winning your audience The DNA of engagement Identify l Influence l Achieve APMP UK 14th Annual Conference 2016 Hugo Minney
  • 2. 2 What is this session about? Value for Money – and PROVING IT Understand the procurement thought process and Show value-add they way the buyer wants to see it Get involved in the DESIGN stage and “write the tender” Control the evaluation process Public Sector is a huge market – and you can leverage SVA Using the Public Services (Social Value) Act 2012 for competitive advantage
  • 3. 3 Who am I? Dr Hugo Minney, PhD, Fellow APM, Fellow CMI, Chartered Manager, Registered Project Professional Chief Executive, TyneHealth GP Federation Chief Executive, The Social Return Company
  • 4. 4 Structure of this talk Procurement and the European Procurement Rules The Social Value Act – and how YOU can use it An example – Durham County Council EXERCISE – Benefits Mapping Taking action on what you’ve learnt
  • 5. 5 Procurement environment External influences on Procurement Legal EU Treaty Principles UK Public Contracts Regs Freedom of Information Act Political Localism Act Modernising Commissioning Economic Spending Review SMEs and Economic Development Environmental Carbon Reduction targets Other environmental sustainability priorities Technological E-Procurement Transparency Requirements Social Localism Third Sector and Community Groups Equality & Diversity
  • 6. 6 European Procurement Rules • Major Clients – Transport, Policing, Justice, Health, Local Authority • Major Services – Construction, IT, Paperwork, Business Services, Personal Services The Scope • usually means cheapest – often with no recognition of lifetime costs • Does “Bigger” always mean better? • What about past record, and delivery of promises (chance for the unscrupulous)? “Best Value” In UK, nearly 40% of GDP is public sector spend. Of this, around 30% is external spend. That’s £150 billion! Who wants some of that?
  • 7. 7 What is the “Public Services (Social Value) Act 2012”? Requirement to consult on service design, BEFORE procurement, and take into account results of consultation, Identify Local Priorities – and put a value Can take past record into account OR can do nothing – it’s a very loose act “An Act to require public authorities to have regard to economic, social and environmental well-being in connection with public services contracts…”
  • 8. 8 An Example: Durham County Council Darren Knowd – Head of Procurement responded to request from Ted Salmon – Regional President FSB (Federation of Small Businesses) in 2013 Taskforce established to make “something” happen HM invited to represent voluntary and non- profit sector and support small business £571m external spend Monitors its spending: - with SMEs - in North East / Durham County
  • 9. 9 Durham County Council – what they did Training for local businesses in responding to tenders Access – influence strategy, understand perception of value Making it easier for small business and informal consortia to bid Monitoring performance to ensure lifetime best value (honesty) Use standards & frameworks to reduce bid costs – and standardise across North East region Represented on national panels eg discuss removal of PQQ
  • 10. 10 How to understand your local situation Buyers use techniques like Benefits Mapping to identify preferred solutions and prioritise projects
  • 11. 11 A “tidy” Benefits Map Enablers/ given Actions/ Projects End State (Needs to look like) Strategic Objectives Use of Resources Decision process Decision quality Performance Management Budget Systems Processes People Guidance Whole system results National KPIs Local presentation Public Service User Staff Cross system impacts Resources MEANS WAYS ENDS
  • 12. 12 SROI (Social Return on Investment) Establishing Scope •Service, time, stakeholders, h2 engage Map outcomes •From interviews •& cross-reference Evidence and value •Triangulate and desk-based research •Assigning a value and Sanity-check Establish impact •Attribution •Deadweight •Drop-off Calculate SROI •Costs (all of them) and attribute. 'in kind' costs? •Avoid double-counting benefits •sensitivity analysis Reporting, using, embedding •What should you do more of? •What could be improved?
  • 13. 13 Some Examples of Soft Benefits “I can tell my grandchildren ‘I did a good job this week’ “ Lower Sickness/ Absence Easier Recruitment/ Retention Getting much more done Engaged with corporate objectives – even to MAKE MONEY People:
  • 14. Winning your audience The DNA of engagement Identify l Influence l Achieve APMP UK 14th Annual Conference 2016 Hugo Minney
  • 15. 15 EXERCISE – Buyer’s Thought Process Imagine you are a potential bidder (e.g. Voluntary Sector) Draw a Benefits Map (link to MAIN AIM) Mark “Added Value” benefits • Durham CC – MAIN AIM: Economic Development (jobs, employment) in County Durham and the North East • Submission – Domiciliary Support
  • 16. 16 What it means for local businesses Upstreaming – designing the specification Automatic Advantage to local employers Local Supply Chain Local Government & Public Sector The PQQ?
  • 17. 17 ACTIONS TO TAKE AWAY Public Sector procurement is too big to ignore Consultation Exercises Relevant contacts Register on local frameworks What do you already do? CSR etc Manage your PR
  • 18. 18 Hugo Minney • Hugo.minney@nhs.net • 07786 961837 • TyneHealth Ltd is in Whitley Bay, and supports the health and care of 215,000 people in the North East • Congress of North East Federations supports all of the North East Federations, ie connected to 2million population • The Social Return Company develops benefits cases using The Social Return on Investment (SROI) process. You can read these on Amazon
  • 19. Association of Bid and Proposal Management Professionals conference@apmpuk.co.uk www.apmpuk.co.uk www.apmp.org UK Chapter Time for questions

Editor's Notes

  1. 15:00
  2. Public sector body can identify local priorities which will automatically form part of any tender evaluation Liverpool – reducing inequalities Durham – building local economic growth Can put a value on achievement of local priorities Can take past record into account Requirement to consult on service design, BEFORE procurement, and take into account results of consultation OR can do nothing – it’s a very loose act
  3. 15:05 – When did it happen and what was my role?
  4. Training for local businesses in how to respond to tenders Access to Procurement (documented and above board) to discuss strategy, future possible procurement, whether to respond Turnover requirement removed, new contract structures including associations, frameworks to allow small business & reduce risk on council Monitoring performance to ensure lifetime best value rather than just at procurement Use standards to reduce bid costs eg NEPO, NEPRO* Seeking to get all public sector bodies in two LEPs to use same forms or central register (NEPO & NEPRO) to reduce bidding costs Represented on national panels eg discuss removal of PQQ
  5. Establishing Scope Which service Over which time period & how long to look for benefits Groups of stakeholders Who are the relevant stakeholders (and who are also stakeholders) Method for engagement Map Outcomes Outcomes elucidated from interviews Categorise and assign to stakeholder groups Cross-reference for clarity – which outcome impacts group(s) Putting a value, & ensuring it is robust Establish Impact Attribution Other factors – deadweight (what would have happened anyway), drop-off (how long do benefits last, how fast do they drop off) Who does it impact, and do they agree to accept the impact? Negative Impacts & recognition (& credibility) Calculate SROI Ensure captured all costs Financial cash releasing, Financial Non-Cash Releasing, Soft (with a financial value) Capture all benefits but avoid double-counting Max & Min, sensitivity Reporting, using & embedding Stakeholder review & comments What should you do more of What could be improved
  6. Automatic Advantage to local employers (or organisations which employ locally) Opportunities for local supply chain (make sure you either are one, or use them) It’s worth bidding for Local Government business (and there’s a lot of it) BUT is there really an advantage to removing the PQQ?
  7. Get involved in CONSULTATION EXERCISEs Get to know the relevant departments of your nearest Local Authorities (start with Procurement) Register on local frameworks what Community Value do you already add (apprenticeships, support local charity, sponsored activity) and what appeals to director/ staff interest Write about it and manage your PR