Programme and Project Management, including MSP and PRINCE2

Programme Procurement Strategy - 2

In Programme Procurement Strategy - 1 I briefly reviewed the approach from the OGC Risk Allocation Model for Project Strategy and Procurement.

Thinking about how to apply that approach to my own programme, I quickly realised that the range of changes we are seeking to deliver (across technology services, business processes and management capabilities) does not easily sit into a single risk assessment.

So I’m still attracted to the risk-based approach, but it is going to need substantial de-composition of the programme to apply it meaningfully.

I’m going to start with the Blueprint, since that is where our final outcomes are defined. For each area of the Blueprint I will examine each outcome, and analyse against the risk framework from the OGC guide.

Programme Procurement Strategy - 1

I need to put together an analysis of procurement options for the programme I am shaping, as first steps in devising a procurement strategy.

The main online reference I have found so far is the OGC’s Risk Allocation Model for Project Strategy and Procurement (pdf).

The first part of that document examines the suitability of different contract types in relation to the nature of the organisation and the programme goal:

  • Understand overall programme goal
  • Think about life-cycle of that goal, and of the sponsoring organisation – i.e. Volatility
  • Understand the difference between Inputs, Outputs and Outcomes
  • The more volatile the goal or the organisation, the less likely that you will be able to successfully procure for Outcomes, or possibly even for Outputs.

The document then goes on to consider the risks related to organisational capabilities. The earlier in the value chain Inputs-Outputs-Outcomes, the more skills are required within the organisation for integration and change management, and the more vulnerable you are to opposition from within.

The last area of consideration is the ability of the market to supply a particular  service.

Once all three areas have been analysed, it’s likely that further iteration will be required to converge the  solution.