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Evidence Guide: PSPPROC705A - Establish strategic procurement context

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

PSPPROC705A - Establish strategic procurement context

What evidence can you provide to prove your understanding of each of the following citeria?

Analyse the procurement environment

  1. Knowledge of the legal, political and financial environment is applied to establish strategic context.
  2. Relationship between the organisation and its procurement environment is examined and defined.
  3. Existing and potential stakeholders and their strengths and weaknesses are identified.
  4. 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.
  5. Organisation's procurement strategies and plans are adjusted in light of information gathered, and comparative targets are identified.
  6. Any case for possible collaboration with other organisations is supported by evidence, analysed for risks, and is consistent with organisational plans and future directions.
Knowledge of the legal, political and financial environment is applied to establish strategic context.

Completed
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Relationship between the organisation and its procurement environment is examined and defined.

Completed
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Existing and potential stakeholders and their strengths and weaknesses are identified.

Completed
Date:

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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.

Completed
Date:

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Evidence:

 

 

 

 

 

 

 

Organisation's procurement strategies and plans are adjusted in light of information gathered, and comparative targets are identified.

Completed
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Any case for possible collaboration with other organisations is supported by evidence, analysed for risks, and is consistent with organisational plans and future directions.

Completed
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Analyse procurement capability

  1. Organisation's strengths, weaknesses, opportunities and threats are considered in light of internal and/or external factors and organisation's strategic procurement goals.
  2. 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.
  3. 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.
  4. Consultation on proposed improvements is undertaken with those affected, in time for their views to be taken into account.
  5. Proposed improvements are justified on the basis of known internal and external factors, and take into account stakeholder needs and expectations.
Organisation's strengths, weaknesses, opportunities and threats are considered in light of internal and/or external factors and organisation's strategic procurement goals.

Completed
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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.

Completed
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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.

Completed
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Consultation on proposed improvements is undertaken with those affected, in time for their views to be taken into account.

Completed
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Proposed improvements are justified on the basis of known internal and external factors, and take into account stakeholder needs and expectations.

Completed
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Develop and monitor procurement capability

  1. Improvements to develop procurement capability are implemented in time to meet new circumstances.
  2. Practical requirements for implementing improvements are comprehensively defined and communicated to those affected.
  3. Difficulties associated with implementing improvements are identified as early as possible in order to minimise their effect.
  4. Implemented improvements to organisational structures and procurement systems are monitored, reviewed and modified as required to assist achievement of procurement outcomes.
Improvements to develop procurement capability are implemented in time to meet new circumstances.

Completed
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Practical requirements for implementing improvements are comprehensively defined and communicated to those affected.

Completed
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Difficulties associated with implementing improvements are identified as early as possible in order to minimise their effect.

Completed
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Implemented improvements to organisational structures and procurement systems are monitored, reviewed and modified as required to assist achievement of procurement outcomes.

Completed
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Influence and develop strategic industries

  1. Strategic industries are monitored and opportunities are taken to influence key opinion formers and decision makers to change, encourage and nurture industry capability.
  2. 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.
  3. 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.
Strategic industries are monitored and opportunities are taken to influence key opinion formers and decision makers to change, encourage and nurture industry capability.

Completed
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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.

Completed
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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.

Completed
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Establish and manage risk exposure

  1. Total organisational risk is defined, analysed and monitored to minimise loss and maximise opportunity.
  2. 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.
  3. Performance of risk management system is monitored, reviewed and modified to reflect procurement opportunities and current and emerging trends.
Total organisational risk is defined, analysed and monitored to minimise loss and maximise opportunity.

Completed
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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.

Completed
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Performance of risk management system is monitored, reviewed and modified to reflect procurement opportunities and current and emerging trends.

Completed
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Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Competency must be demonstrated in establishing a strategic procurement context consistently and in accordance with legislative and organisational requirements.

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Assessment must confirm the ability to:

use recognised techniques to analyse the procurement environment, including state of the supply market, stakeholder issues, and organisational and government context for the procurement

use recognised techniques to analyse the buying organisation's procurement capability

make recommendations to improve and develop procurement capability

implement improvements to procurement capability

use ethical methods to influence and develop strategic industries to improve value for money opportunities

apply sophisticated risk management techniques.

Candidates for this qualification must demonstrate a high level of understanding of underpinning knowledge and the ability to apply this to practical workplace situations.

Context of and specific resources for assessment

The unit of competency is to be assessed in the workplace or a simulated workplace environment.

Access may be required to:

legislation, policy, procedures and protocols relating to procuring goods and services and managing contracts at the strategic level

codes of conduct and codes of practice

long-term government policy papers, such as White Papers

strategic procurement plans and direction statements

published performance audits or similar relating to strategic procurement issues

workplace scenarios and case studies relating to a range of strategic procurement activities.

Method of assessment

The following assessment methods are suggested:

questions to assess understanding of relevant legislation and procedures

review of strategies and approaches adopted for establishing strategic procurement context

preparation of formal written papers covering strategic procurement issues

review of strategic plans, strategic procurement plans, long-term budgets, risk assessments, industry assessments, supplier capability assessments, market research, industry engagement plans, responses to performance audits covering strategic procurement issues and other documentation prepared or reviewed by the candidate in a range of contexts

review of stakeholder engagement approaches adopted by the candidate.

In all cases, practical assessment should be supported by questions to assess underpinning knowledge and those aspects of competency which are difficult to assess directly. Candidates for this qualification must demonstrate a high level of understanding and practical workplace application of underpinning knowledge. Questioning techniques should suit the language and literacy levels of the candidate.

Guidance information for assessment

Sufficient evidence must be gathered to ensure the person can achieve the unit outcome and apply the competency in different situations or environments.

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

BSBFIM701A Manage financial resources

BSBINN801A Lead innovative thinking and practice

BSBREL701A Develop and cultivate collaborative partnerships and relationships

PSPETHC701A Lead and influence ethical practice in the public sector

PSPMNGT703A Lead and influence change

PSPMNGT704A Undertake enterprise risk management

PSPPROC704A Influence and define strategic procurement direction

PSPPROC706A Evaluate and improve strategic procurement performance.

Required Skills and Knowledge

Required skills

communication skills to:

consult and negotiate with stakeholders at the highest levels of organisations and the community

engage in strategic networking, within probity boundaries, with key stakeholders

build and manage effective working relationships

convey complex ideas to a wide range of audiences

persuade and influence, within probity boundaries, stakeholders and decision makers

read, write and approve business cases, plans, reports, submissions and other high level complex documents

teamwork skills to:

provide leadership within the organisation

manage strategic relationships

manage teams of expert negotiators in functions such as finance, legal, technical and engineering

respond to diversity

refer issues to the correct person

problem-solving skills to:

apply decision-making processes or methodologies

identify and resolve strategic procurement issues

apply understanding of supplier issues and supply chain management in the context of strategic procurement

initiative and enterprise skills to:

manage procurement performance and identify, assess and implement opportunities for performance improvement

apply OHS, environmental, sustainability and corporate social responsibility practices in the context of strategic procurement

planning and organising skills to:

undertake research and business analysis relating to strategic procurement and high level business issues

manage financial and other resources

manage strategic procurement systems, processes and policies

learning skills to keep up-to-date with:

best practice examples in strategic procurement

relevant procurement legislation, policies and procedures

technology skills to:

operate organisational IT systems

use electronic procurement templates

Required knowledge

commonwealth, state or territory, and local government legislation, policies, practices and guidelines:

relating to strategic procurement, including environmental purchasing guidance

such as OHS and equity and diversity

organisational procurement policies, practices and approval processes

government procurement environment

probity principles and issues

codes of conduct, codes of practice and standards of individual behaviour relating to strategic procurement

risk management systems

financial rules and regulations relating to strategic procurement

legal requirements of government procurement and contracting

competition theory as it relates to strategic procurement

strategic industry development

strategic procurement planning processes

delegation authorities

organisational structure

organisational procurement performance

procurement best practice standards

equal employment opportunity

OHS requirements relevant to strategic procurement

environmental, sustainability and corporate social responsibility principles relevant to strategic procurement

Range Statement

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Strategic context may include:

financial

operational

competitive

political

public perception or image

social

cultural

client

legal aspects of organisation's functions

nature of supplier market

environmental and sustainability issues

corporate social responsibility.

Stakeholders may include:

end users

customers or clients

sponsors

potential providers or suppliers

current providers or suppliers

technical or functional experts or advisers

commonwealth, state or territory, and local government

the organisation

other public sector organisations

employees, unions and staff associations

industry bodies

local communities

lobby groups and special user groups.

Collaboration may include:

public private partnerships (PPP)

strategic financing arrangements

build, own, operate and transfer type arrangements

cooperative procurement opportunities with other public sector organisations

lead agency arrangements.

Factors may include:

value of business

complexity of marketplace

capacity of market

supply chain

political influence

political imperatives

budgetary constraints

collaborative arrangements

Australian industry involvement requirements

environmental issues

extent of competition

value for money considerations

degree of dependency of organisation on procurement

where and why the need arises and for which unit or location

level of risk, complexity and sensitivity of the procurement

new capability or replacement/enhancement of existing resources

intellectual property ownership

policy requirements or changes, e.g. ethical and social.

Procurement capability may include:

procurement systems, structures and processes used in organisation

procurement guidance documents developed by organisation

procurement or other relevant capability frameworks

staff profile in terms of experience, skills and knowledge

procurement training programs.

Industry capability may include:

structure of marketplace

impact of globalisation

location of suppliers

maturity and sophistication of suppliers

capacity of industry to absorb work in the volume that is required

willingness of industry to move into new areas of business to provide required goods or services

staffing profiles of industry and skills shortages or surpluses

industry training programs.

Organisational risks may include:

supplier failure to meet agreements

government failure to meet agreements

political and public sensitivities

community lobbying

asset security and threat management

information security and threat management

physical security and threat management

health management issues

industrial relations issues

terrorism and world events

impact of globalisation

contingency management and business continuity

change management

environmental and sustainability issues

corporate social responsibility issues

corruption risks

probity risks.