Navigating public sector procurement

At a recent panel discussion co-organised by IPEC and Digital Leaders, experts shared valuable insights on overcoming these challenges and driving successful outcomes.

Effective governance is key to fostering innovation. Elizabeth Vega OBE, Group CEO of Informed Solutions, highlighted that governance should be agile and adaptive, supporting decision-making processes that prioritise outcomes over rigid procedures. This approach encourages transparency and collaboration, as demonstrated by her organisation’s practice of keeping key subcontractors visible to the client. "Governance should be an enabler, not a blocker," she noted, emphasising the importance of flexibility in governance structures.

A crucial element of innovation is creating a culture where diverse perspectives are welcomed. Elizabeth emphasised the importance of an environment where "people feel safe to express their beliefs in a constructive way," allowing for respectful yet challenging discussions that can lead to real change. She added, "Innovation thrives where there's psychological safety, enabling people to question the status quo without fear."

Demonstrating value through case studies is another essential strategy. Elizabeth noted that while a single case study might not cover all bases, multiple case studies can collectively highlight relevant aspects of a solution, reducing perceived risks and showcasing capabilities to potential clients. "It's not about one perfect case study; it's about a portfolio that tells the full story," she explained.

Flora McFarlane, Head of Growth & Partnerships at VivaCity, shared her approach to overcoming challenges by securing early adopters who are eager to innovate, such as Oxfordshire and TfL. These cornerstone clients played a critical role in validating their technology, making it easier for more risk-averse clients to consider adoption. Flora stressed the importance of understanding procurement teams' needs and constraints, and working closely with them to navigate obstacles. "We had to be patient and persistent, demonstrating our value in every conversation," she said, highlighting the importance of perseverance in the public sector landscape.

Darren Kelly, Central Government Capture Lead for UK Public Sector at Amazon Web Services (AWS), highlighted the need for early engagement and education to align procurement teams with the specific solutions being considered. He pointed out, "The procurement manager is an expert in the procurement process and not necessarily an expert on what they're buying," underscoring the value of clear communication and collaboration early in the procurement cycle. Darren also stressed, "If you engage early, you get to shape the conversation. It's all about building trust and educating the buyer about your solution."

The new Procurement Act 2023 offers opportunities for more flexible frameworks, which could greatly benefit both suppliers and buyers. Darren noted that open frameworks extending up to eight years can provide the flexibility needed to accommodate evolving technologies like AI and cloud services, allowing for new suppliers to be added as needs change. "These longer frameworks allow for a dynamic marketplace that can evolve with technology, rather than being locked into outdated solutions," he commented.

Legal insights from Jenny Beresford-Jones and Shailee Howard from Mills & Reeve, added another layer of strategic advice. Jenny stressed the importance of staying updated with legal changes to gain a strategic advantage, while Shailee highlighted the value of not just meeting legal requirements but strategically planning engagement with the procurement process to maximise opportunities for innovation. Shailee noted, "Understanding the legal landscape isn't just about compliance; it's about leveraging the rules to create better opportunities."

The discussion also touched on the delicate balance between innovation and alignment with organisational goals. Elizabeth suggested techniques such as empowering individuals to speak up, building skills alongside implementing solutions, and maintaining regular touchpoints to monitor cultural and emotional alignment, not just compliance metrics. She summed up by saying, "It's about ensuring that innovation aligns not just with the letter of the law but with the spirit of the organisation's mission."

In summary, the panellists underscored the importance of building long-term relationships, understanding the unique dynamics of public sector procurement, and consistently demonstrating value through transparent and flexible approaches. As Rikesh Shah, Head of IPEC, summed up, the key to success lies in understanding the service owner’s problems, building lasting relationships, and focusing on creating long-term value over many years through innovation.

IPEC is currently partnering with four local authorities, addressing some of the key industry challenges and helping them find solutions through innovative procurement strategies. We are keen to hear from local authorities about some of the challenges they are currently facing as they look ahead into the next year. Reach out to us at contact@ipec.org.uk.