This year the Procurement Capability Index (PCI) has moved to an online tool, which is faster and easier to use and includes better reporting capabilities.
The PCI is an agency self-assessment tool, created by New Zealand Government Procurement and Property (NZGPP) to support organisations in understanding and developing excellence in procurement practice. While in place for several years, it has recently been upgraded from an Excel-based template to an online PCI tool using the Department of Internal Affairs Self-Assess application.
“The PCI is not just an instrument to measure, but to monitor and evaluate, an organisation’s procurement capabilities along their development path. It’s not about top scores and procurement perfection, but about creating plans to build areas that enable advanced procurement,” says Stephanie Unka, Manager Capability, NZGPP.
The online tool is developed around four capability categories: strategy, systems, delivery and talent, with a user-friendly interface and enhanced reporting capabilities. Users are able to set both twelve month, and medium-long term aspirational targets within the tool. It has built-in approvals and enables users to have ongoing access to the results. Over time, an agency will be able to benchmark against previous results, opening opportunities for enhanced reporting across government agencies and sectors.
As part of the Treasury’s Investor Confidence Rating (ICR) process, investment-intensive agencies will receive a review of their PCI self-assessment by an independent moderator.
“You don’t need to have a large procurement function to use the PCI, as there are different assessments to fit the business size of any agency. A medium-sized agency recently reported their results pointed to a need for strategic change internally and said they received very positive results upon implementing this change,” says Stephanie.
The PCI results will enable better understanding of procurement capabilities across government, and inform NZGPP of the support that agencies may need. It will also make provision for agencies of similar capabilities to form communities of practice, enabling them to learn together.
In future, supplier experiences will also be considered to gain further perspective on procurement performance. This will happen across both ICR and public service agencies.
“The PCI upgrade supports agencies to reflect on and improve procurement practice. It shows them what good procurement capability looks like, provides for benchmarking and enables a supplier feedback mechanism. Our goal is for agencies to grow procurement excellence and to inspire one another in the process,” says Stephanie.