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Achieving greater public value - case study

This case study looks at how a large government agency like the Ministry of Business, Innovation and Employment (MBIE) has taken steps towards embedding broader outcomes into their procurement practice.

Rising to the challenge with a clear action plan

MBIE’s internal procurement team had a simple goal: supporting the organisation with implementing broader outcomes. The team attended workshops run by the Ākina Foundation and the Department of Internal Affairs to share ideas on the subject. Using the resources on New Zealand Government Procurement website on broader outcomes and their discussions from the workshops, they came up with a clear action plan.

Ākina Foundation

Actions to embed broader outcomes

  1. Update the MBIE procurement policy, procedures and templates, and contract templates to reflect the required Supplier Code of Conduct. 
  2. Create a specific role within MBIE to support the broader outcomes work. The role also links to the ‘E-Invoicing’ and ‘Procure 2 Pay’ projects as they open access to government business and ensure the speed at which cash flows through our economy.
  3. Generate buy-in for broader outcomes across all levels of the organisation by proactively:
    1. Meeting with MBIE leadership teams to create awareness of the benefits, 
    2. Working with MBIE Business Groups to look at how they can remove barriers and simplify tender processes to provide greater opportunities for New Zealand and regional businesses, particularly at the planning phase and how they approach the market. 
    3. Conducting ‘Lunch and Learn’ sessions and developing on one-page guidance to assist MBIE Business Groups on how to implement broader outcomes in their work.
  4. Engage with suppliers to generate ideas and support for working towards broader outcomes in procurement.
  5. Track and monitor progress of implementing and achieving broader outcomes.

Supplier Code of Conduct

Bringing suppliers together to start the conversation

In December 2019, the team held a supplier innovation workshop with 25 key suppliers to look at how they could work with MBIE to achieve broader outcomes. We had members of our senior executive team supporting the approach and attending the workshop with Carolyn Tremain, MBIE Chief Executive, and Stewart McRobie, Chief Financial Officer, opening the workshop.

We invited suppliers to bring two ideas focused on achieving broader outcomes – one to share at the workshop (public idea), and the other to share just with MBIE (private idea). In small groups, suppliers shared their public idea and then presented the best ideas back to the wider group. Some of the ideas were quick wins whilst others look to involve multiple government agencies in order to make them a reality.

Renee Le’afa  Ministry of Business, Innovation and Employment Head of Procurement

Reducing emissions and waste

As a result of supplier feedback from the workshop, MBIE internal procurement is now working with their travel management services provider (FCM) to evaluate preferred hotel providers’ social and sustainability practices. Together, MBIE and the travel company have created an evaluation matrix. Hotel providers will be evaluated based on their response to the matrix which will allow business partners the option of selecting a hotel based on benefits to New Zealand.

The travel management services provider is an All-of-Government (AoG) supplier, which means other agencies could adopt a similar approach.

MBIE are also working with NXP, their office consumable supplier, to review their core products to move to more environmentally friendly and fair trade products (e.g. notebooks made from recyclable paper, and moving to eco-friendly cleaning products etc). Like the travel company, they are also an AoG supplier so there are opportunities for other agencies could adopt a similar approach.

Keeping the momentum going

Feedback from the supplier innovation workshop was very positive with attendees saying they felt inspired: 

  • “A great opportunity to reflect on our values as an organisation, how we enact them, and how they align with the MBIE broader outcomes theme.”
  • “The broader outcomes theme made us think outside our day-to-day key performance indicators and think collectively.”
  • “Fantastic initiative, enlightening and thought provoking.’

The MBIE internal procurement team continues to have follow-up meetings with their key suppliers to progress the ideas from the session.

For more information about MBIE’s broader outcomes work, email Kelly McAlpine.

What are broader outcomes?

Government procurement can be used to support wider cultural, social, economic and environmental outcomes that go beyond the immediate purchase of goods and services. Together these outcomes are called broader outcomes. The Government’s new policy on achieving them is set out in the recently revised Government Procurement Rules.

This case study has been published to encourage and inspire government agencies, as they begin to implement the new broader outcomes Rules, with a particular focus on the government’s priority outcomes.

The priority outcome this case study aligns with:

  • Increasing access for New Zealand businesses

It also is an example of:

  • Implementing broader outcomes