Elements and Performance Criteria
- Analyse the procurement environment
- Knowledge of the legal, political and financial environment is applied to establish strategic context.
- Relationship between the organisation and its procurement environment is examined and defined.
- Existing and potential stakeholders and their strengths and weaknesses are identified.
- Strengths, weaknesses, opportunities and threats are identified using information that is up-to-date, reflects emerging and predicted trends, and takes account of the possible future procurement interests and activities of the organisation and government directions.
- Organisation's procurement strategies and plans are adjusted in light of information gathered, and comparative targets are identified.
- Any case for possible collaboration with other organisations is supported by evidence, analysed for risks, and is consistent with organisational plans and future directions.
- Analyse procurement capability
- Organisation's strengths, weaknesses, opportunities and threats are considered in light of internal and/or external factors and organisation's strategic procurement goals.
- Analyses of organisational capability take into account possible future procurement interests and activities of the organisation, its strategic industries, collaborators, requirements of government and other organisations.
- Suggestions for improvements to existing organisational structures and procurement systems are made that are realistic and achievable and will aid achievement of the procurement mission statement and strategies drawn from both internal and external stakeholders.
- Consultation on proposed improvements is undertaken with those affected, in time for their views to be taken into account.
- Proposed improvements are justified on the basis of known internal and external factors, and take into account stakeholder needs and expectations.
- Develop and monitor procurement capability
- Improvements to develop procurement capability are implemented in time to meet new circumstances.
- Practical requirements for implementing improvements are comprehensively defined and communicated to those affected.
- Difficulties associated with implementing improvements are identified as early as possible in order to minimise their effect.
- Implemented improvements to organisational structures and procurement systems are monitored, reviewed and modified as required to assist achievement of procurement outcomes.
- Influence and develop strategic industries
- Strategic industries are monitored and opportunities are taken to influence key opinion formers and decision makers to change, encourage and nurture industry capability.
- Problems, limitations and new opportunities in strategic industries are identified in response to internal and external factors and are based on quantitative and qualitative data.
- Ethical methods are used to influence strategic industries, consistent with the organisation's values and procurement policies, and sensitive to the values and practices of key opinion formers and decision makers.
- Establish and manage risk exposure
- Total organisational risk is defined, analysed and monitored to minimise loss and maximise opportunity.
- Risk management system is established, implemented and maintained that is consistent with the organisation's strategic context, goals, risk management policies and nature of its business.
- Performance of risk management system is monitored, reviewed and modified to reflect procurement opportunities and current and emerging trends.