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PWGSC Relationship with Procurement Transformation Client Engagement Sector Customer Departments & Client Engagement Agencies PWGSC Relationship with Procurement Transformation Client Engagement Sector Customer Departments & Client Engagement Agencies Presented to: Public Procurement Service of South Korea Presented by: Antony Mc. Manus Senior Director Client Engagement Sector Date: December 4, 2007

Client Engagement Mandate To help and support government departments improve procurement practices, processes and Client Engagement Mandate To help and support government departments improve procurement practices, processes and delivery and lower costs: • To partner with departments in transforming the procurement business model • To identify and implement procurement change management strategies • To manage the client “interface” including messages and activities • To present, market and support PWGSC’s procurement transformation services and tools with client departments 2

Client Engagement Approach Focus on achieving procurement improvement for Gov’t of Canada § Assignment Client Engagement Approach Focus on achieving procurement improvement for Gov’t of Canada § Assignment of Account Executives to individual departments § Engagement with departments using a disciplined and defined process, including assessment of procurement strengths, spend, business case, and detailed procurement plan (defining specific initiatives and actions to achieve improvements) with ongoing refresh § Maximize client adoption of PWGSC’s existing and new procurement instruments and tools (including Go. CM, STSI, Green Procurement, policy changes). § Propose demand management ideas, concepts, best practices § Conceptualise and implement a whole of government approach in delivering procurement services § Expand the Client Advisory Board (CAB) approach, where new Acquisition Branch initiatives, policies and practices are presented to clients in order to identify client based impact analysis, while providing a open forum for consultation 3

Client Engagement Sector Activities n Quarterly reviews (engaged departments) • Review with departments their Client Engagement Sector Activities n Quarterly reviews (engaged departments) • Review with departments their Procurement Cost Improvements, incl: – Validated savings on contracts – Estimated savings driven by AB driven Commodity Strategies n Opportunity Reports • Assess with the client department their top spend - target and deliver/update to include these commodities n Procurement Plans/Refresh • Assist the client department by developing a detailed Procurement Plan including a review of their organization’s procurement spend, sun setting or new programs, major projects and list of commodities they plan to procure, in order to define and update initiatives and activities to improve procurement (improved process, better strategies, new instruments, etc) n Service Levels Agreements • Define, develop and agree on a Service Level Agreement with the client department to meet their requirements 4

Validated/ Proven Engagement Process Procurement Spend Management Tools Acquisitions • Go. CM Day-to-Day Procurement Validated/ Proven Engagement Process Procurement Spend Management Tools Acquisitions • Go. CM Day-to-Day Procurement • STSI • Spend Cube • AIS CONTINUOUS IMPROVEMENT Commodity Management Refining Core Procurement Instruments Policy Mandatory Standing Offers *S 8/S 9 Implementation Plan Procurement Planning Engaged Client Quarterly Refresh Procurement Business Cases Tracking and Reporting * Go. C Procurement Best Practices Analytics * (51 + … ) Focus Groups -CAB -4 depts reengaged. * Procurement Help Desk Support * Wave 3 Spend Analysis Wave 2 Cluster (10 – 50) Procurement Consultancy (SMEs) * Self Assessments Procurement Issue Management Wave 1 Super 9 (0 – 9) *Governance (interdepartmental/TBS/etc. ) Foundation Services Client Engagement/Consultancy: enhanced flexible service delivery to clients LEGEND Started * Planned * Enhancing 5

Enhanced Procurement Services for Departments n Solid Foundation in place • Proven/validated engagement process: Enhanced Procurement Services for Departments n Solid Foundation in place • Proven/validated engagement process: all departments to be approached end FY 2007/08 • Substantial understanding of departments spend (Spend Cube – 90%+ of Go. C Spend) • Tools to support departments: including Go. CM and STSI, AIS, SOI, etc • Approach builds on significant professional experts (incl. AT Kearney) • Delivers ongoing support for day-to-day procurement • Enhanced procurement instruments for departments (Commodity Management) • Policy initiatives (mandatory standing offers, S. 8/S. 9 DPWGS Act) n Departments’ Response: • Generally positive, engaged, and significant buy-in • Recognition of value of process and services • Commitment to continue in long-term partnership • Commitment to work with PWGSC to refresh strategies, analyse spend, use new tools and procurement instruments • Need to recognize varying degrees of engagement by clients (strong to minimal): • Need for DM to DM engagement to reinforce commitment/address issues 6