The government is committed to achieving positive cultural, environmental, social and economic outcomes from its procurement activities. Together, these are called broader outcomes.
Government agencies are expected to leverage their procurements to achieve broader outcomes.
The information on this page is designed to help you to develop policies to incorporate broader outcomes into your procurement activities. As a starting point, you should develop a broader outcomes procurement strategy.
Strategy is all about our choices. As individual procurement teams and agencies, we have limited resources to manage. Because of this, it’s important to recognise that we may not be able to deliver broader outcomes in every procurement activity. By developing and implementing a strategy, we can prepare ourselves to make the best choices for our resources to maximise the broader outcomes we can deliver on.
Having a strategy can also help the different teams in your organisation to a get shared view of how you can work together to use procurement to meet the needs of your organisation and to deliver broader outcomes for New Zealand.
For your strategy to be most successful, it should include:
|1. Leadership's commitment to delivery broader outcomes||1. Agency opportunity analysis||1. Governance arrangements for broader outcomes|
|2. Any relevant broader outcomes learnings to date||2. Agency broader outcome priority areas||2. Monitoring and reporting framework|
|3. High-level approach for procurement activities||3. Action plan (including strategy review dates)|
In many agencies more than one area has purchasing responsibilities. To develop a successful broader outcomes procurement strategy, you’ll need to work together with all of the different teams and people who have these responsibilities. You may need to consult with your finance, environment and procurement officers, and specialist teams, such as construction, energy, or IT.
Developing an effective strategy will help your agency to balance competing priorities and to deliver multiple outcomes using the resources you have. As part of developing your strategy, you should engage with your Senior Leadership Team to make sure they understand and support the government’s expectation that agencies use procurement to deliver better public value by helping to achieve broader outcomes. This means getting their support to formally determine the intentions and objectives of the strategy, and how these align with your agency’s and the government’s priorities. If you don’t yet have senior level sponsorship for your broader outcomes strategy, this should be a priority for your agency.
Many agencies have been delivering procurement projects that are helping to achieve broader outcomes. It’s important to have a good understanding of what your agency is already doing to help achieve broader outcomes, and what it’s learned about their delivery so far.
These learnings can help you to:
There are also many cross-government initiatives, which could influence how your agency decides to implement broader outcomes. It’s important to understand how your agency fits into this wider picture and where your risks and opportunities are.
Think about how your agency contributes to wider government priorities, including work on:
Use an opportunity analysis to work out which procurement activities offer the best opportunities to deliver broader outcomes. You’ll need to engage with the market and key stakeholders to do this. Make sure you consider:
When you have a good understanding of the different opportunities your agency has to achieve broader outcomes, the next step is to prioritise them. After you identify the minimum requirements you need to apply to your agency’s designated contract areas, you should focus on those areas where your agency can make the biggest difference.
When determining your agency’s priorities, you should consider the government’s priority outcomes areas which are:
Depending on the objectives and functions of your agency, you may wish to consider a range of other factors when setting your priorities. But it’s important to remember that not every procurement can help deliver every broader outcome.
It’s important to check and validate your proposed broader outcomes priorities align with your agency’s goals and values, and are used to inform the objectives for your procurement policy and strategy.
The objectives for your broader outcomes procurement strategy should be specific, measurable, achievable, realistic and timely so that you can measure how you’re tracking against them.
As a quick check, make sure the broader outcomes priorities you set:
As part of your broader outcomes procurement strategy, you’re encouraged to outline the high-level changes you will make to your procurement approach to help achieve your broader outcomes priorities. This can also be useful for informing changes to procurement policies.
If your agency hasn’t already made changes in the following areas, you may wish to consider:
Good governance is critical to the successful delivery of any strategy – broader outcomes is no different. As part of the developing a broader outcomes procurement strategy, specific governance arrangements for prioritising, delivering, and monitoring broader outcomes should be put in place. These arrangements should take into account your agency’s unique operating environment and both guide the delivery of your strategy, and provide assurance that it’s being delivered.
It’s a good idea to align your governance approach with related organisational structures where they exist.
Make sure you’re clear on the roles and responsibilities of different people and teams in your agency who need to be involved with your broader outcomes procurement strategy. You may wish to do this using a RASCI model, which can help you to identify the roles that are responsible and accountable, can offer support, or need to be consulted or informed.
Some options that agencies may wish to consider in governance are:
New Zealand Government Procurement and Property (NZGPP) is developing a government-wide reporting framework to help implement broader outcomes, which agencies will be required to contribute to over time. NZGPP will update to agencies as the framework progresses.
While the framework is still under development, your agency should have systems and processes in place to:
This could mean providing regular progress reports to a governance board or the senior leadership team. This can be done in standalone reporting, or built into existing reports. This will give them oversight of broader outcomes, identify risks and opportunities as they develop, and help them to make informed decisions about the direction of the strategy.
At a minimum, your agency should have a central register of contracts that can be used to provide a view of your spend.
When you know what your priorities are, and have a clear idea about what can be done differently, the next step is to put in place an action plan to make sure you can deliver on broader outcomes.
A good action plan should:
You may also wish to think about having different action plans for the different levels of strategic procurement at your agency. These include:
Where appropriate, your plans may include working with other agencies. This can increase your influence on the market and encourage innovation through procurement. To make it easier to work together, you may wish to consider setting up working groups with other agencies in your region. You can then use these groups to share lessons learned, good practice, and opportunities to deliver broader outcomes through collaborative procurement.
Agencies should have in place sound procurement practices that enable the agency to monitor implementation of the strategy down to the contract level and identify risks and opportunities as they develop. Reporting should enable governance structures to have appropriate oversight of Broader Outcomes, and make informed decisions about the direction of the strategy.
From time to time, you’ll need to review your strategy and consider if you need to update it to keep up-to-date with emerging risks and opportunities.