REVIEW

Raising the bar

The recent London Contracts and Supplies Group Conference and Exhibition provided expert advice on the new efficiency targets, writes GO Features Editor Morven MacNeil.

The recent London Contracts and Supplies Group (LCSG) Annual Conference ‘Procurement – dispelling myths and slaying dragons’, held at the Marriott Grosvenor Square, London, gave delegates from the South East plenty to think about in terms of the efficiency targets set in Comprehensive Spending Review 2007 (CSR07).

Opening the conference, Bob Hillman, Chairman of the LCSG, explained that CSR07 and the new efficiency agenda introduced by the Government raised the bar to a new level, as regards new challenges for the public sector and local government in particular. Measured against the target set in the previous spending review in 2004, local authorities have already demonstrated their ability to deliver impressive results with over £3 billion cash savings made, against the collective target of £1.5 billion.

However, Mr Hillman stressed: “Local authorities need to raise their game further to meet the new tests. The new collective target is £5 billion, and to meet these challenges, local authorities need to develop and implement deliverable procurement and efficiency strategies which fit our local and regional circumstances.”

Mr Hillman commended delegates, whom he believed were instrumental in successfully driving change throughout their organisations with regards to better value procurement. But he added: “Now we need to widen our vision and work together with our counterparts in other disciplines to deliver the efficiency agenda on issues such as shared services and service transformation.

“We are seeking to dispel the myth that collaboration and joint working is too complex or difficult, or indeed not worthwhile. We hope to make a contribution to slaying one of two dragons by showing that breaking down some of the barriers can deliver some exceptional benefits.

“We hope, therefore, to give renewed confidence and inspiration to those of you in the public sector to engage in joint working – perhaps in some areas for the first time or in seeking additional areas where you can work productively with partners to add further value and accomplish greater savings.”

Speakers set the scene in terms of the new efficiency agenda and pointed delegates in the direction of how to achieve these goals. Speaker from outside the public sector gave an external perspective on the dynamics and human aspects of working together successfully. There were also distinguished speakers from local authorities in London, charged with delivering both the strategies and outcomes on behalf of their respective authorities.

Chief Executive of London Councils John O’Brien commented on the changes brought about by CSR07 and informed delegates that around £185 million has been allocated to the nine regions of the new Regional Improvement and Efficiency Partnership (RIEP) programme on top of the fund mentioned in CSR07 in order to achieve local improvement.

He also commended the work of the Regional Centres of Excellence (RCEs), saying: “The RCE has given us a really good platform to build from; nearly 80 per cent of the funding that has been made available to the RCE has been spent on frontline projects.

“The changing national landscape and building on the foundations in efficiency translates into what is going to happen in London now that we are moving into a merged RIEP.”

Ken Cole, Director, SPS Consultancy Ltd and outgoing Director of the LCE, highlighted the importance of in-sourcing and tools such as e-auctions in delivering cashable savings: “If you find the private sector is not delivering, there’s nothing better than establishing your own operation and watching the costs come down when you set up some competition.”

Jane West, Director of Finance and Interim Director of Resident Services, London Borough of Hammersmith and Fulham, explained how the council met their budget gap and outlined their plans for the future.

She emphasised the importance of tracking savings: “Quite often as organisations we miss out on finding efficiencies because we don’t manage to grasp them back from people’s budgets.

“It is an uphill challenge to keep going on a reducing cost base. The only way we can balance the budget is to find efficencies and this will continue into the foreseeable future. It is particularly acute in London but through procurement and shared services you can contribute to that agenda. It will stretch you all to your limits but I’m sure we’re all up for that challenge.”

The prestigious LCSG Awards for Outstanding Contributions in Procurement were also presented at the end of the conference.

The lucky winners were:

• Training and Development Project – London Borough of Camden
• Recruitment Shared Services Partnership – London Borough of Sutton
• Individual Contribution – Barbara Ratnayake, London Borough of Ealing
• Business Development Unit – London Borough of Havering