with responsibility for measured by providers alliance contracting. based KPIs required understood board/staffing groups. them (joint and checked due to aligned commissioning) independently incentives in contract Price performance Buying Resource analysis and KPIs change over time mechanism aligns with arrangements seek gap identification Outcomes are to reflect changing Means established to outcomes sought to recognise the undertaken expressed in ‘whole business conditions deal with supply community person’ terms rather causality/exogenous but may not be Non-compliance than relating to Advanced negotiation Board and workforce factors – such as acted upon behaviour identified particular issues strategy development plan randomised control by both supplier and tailored to Multi-period negotiation groups business and resolved Outcomes have been Managing provider requirements and strategies developed and quickly co-created with relationships identified gaps rehearsed external stakeholders Feedback loop Supplier Multiple rounds of established to review Managing leakage management Pooled / flexible negotiations with Significant scope for outcomes and act framework Processes are in place resources suppliers eliminated at how outcomes would accordingly that minimise the Close relationships each stage be delivered opportunity for with suppliers (i.e. Discussions on solutions Predisposition towards leakage e.g., on-line localised Sourcing & demand Commissioning and price are separated plurality of supply / ordering platform – partnerships) used Strategy integrated management (price discussed last) mixed economy / to create where this is with legislation and Procurement fitness for purpose Price discussions focus competition policy guidance and appropriate categories are on areas of variance in requirements, Leakage is reported defined purely from supplier submissions including the PHN on a real time basis a supplier set Select vendor and contract Funding Agreement perspective with Leakage issues
with responsibility for them (joint commissioning) Outcomes are expressed in ‘whole person’ terms rather than relating to particular issues Outcomes have been co-created with external stakeholders Significant scope for how outcomes would be delivered Commissioning Strategy integrated with legislation and policy guidance and requirements, including the PHN Funding Agreement measured by providers and checked independently Means established to deal with causality/exogenous factors – such as randomised control groups Feedback loop established to review outcomes and act accordingly Sourcing & demand management Procurement categories are defined purely from a supplier set perspective with alliance contracting. Price performance mechanism aligns with outcomes sought Advanced negotiation strategy Multi-period negotiation strategies developed and rehearsed Multiple rounds of negotiations with suppliers eliminated at each stage Discussions on solutions and price are separated (price discussed last) Price discussions focus on areas of variance in supplier submissions Select vendor and contract based KPIs required due to aligned incentives in contract KPIs change over time to reflect changing business conditions Non-compliance behaviour identified by both supplier and business and resolved quickly Managing leakage Processes are in place that minimise the opportunity for leakage e.g., on-line ordering platform – where this is appropriate Leakage is reported on a real time basis Leakage issues understood Buying arrangements seek to recognise the supply community but may not be acted upon Managing provider relationships Supplier management framework Close relationships with suppliers (i.e. localised partnerships) used to create competition board/staffing groups. Resource analysis and gap identification undertaken Board and workforce development plan tailored to requirements and identified gaps Pooled / flexible resources Predisposition towards plurality of supply / mixed economy / fitness for purpose
PHN%20Designing%20and%20Contracting%20Services%20v0.1.docx