NIGP 2015 Innovation Award Winner

Customer Focused Procurement Realignment of Purchasing & Contracting for Customer Service Excellence Jack Pellegrino, CPCM Director, Department of Purchasing & Contracting County of San Diego

Discussion Agenda Customer Focused Procurement – Why is it Important?  A Few Facts about San Diego and our organization  How San Diego DPC began our Journey  The Metrics we used and Our Results  Procurement’s Purpose  Why We Initiated a Journey Toward World-Class  Building a World-Class Procurement Organization - 3 Steps  Our Original Assessment and Kickoff in 2013  Expectations & Commitments of DPC’s Procurement Staff  Some Closing Thoughts to Consider 2 

Delivering Customer Focused Procurement Services Why is it Important ?  Effective & Efficient procurement adds-value to your organization 

Ensures accountability and transparency of funds



Provides for Fair & Open business opportunities

3

County of San Diego Procurement Facts Procurement Spend by Category for 2014-2015 - $1.0B

Awarded Contracts/POs

1,544

4

Procurement’s Purpose Customer/Clients rely on Procurement to:  Acquire the Right quality goods and services  At the Right time (when they need it)  At the Right Price (fair & reasonable)  Compliance with process & legal requirements What Department Customers Expect – “Procurement Expertise supporting their mission” 5

Why DPC Initiated Journey Toward World Class 

Based on feedback from our internal departments … input from our procurement staff … and the County’s Strategic Plan and expectations of County’s CAO 

CoSD’s Strategic Initiative for – Operational Excellence 



We re-aligned our Department to focus on internal department needs, priorities and timelines 

 

San Diego County is the best in the nation for providing exceptional customer service

Matched our staff’s capabilities with customers

Re-established DPC expectations and re-evaluated how we operate Individually committed to “continual improvement”

6

Building a World-Class Procurement Organization Moving Beyond Customer Service to Client Service & Purpose‐Based Procurement 1

Definitions: World-Class: Performs better than anyone in your field Customer: Another person or entity, (internal or external) that needs or is relying on you for something Client: Customer whom you have a deeper relationship; multiple interactions; anticipate needs; more fully consider or represent their needs Purpose-Based Procurement 1 : organization singularly focused on its purpose, creating a culture to simplify what they do, and make decisions based upon how daily work advances purpose 7

Roadmap to World-Class Procurement - 3 Step Process Excellent Customer Focused Procurement

Step 3

Align toward Customers with best suited staff

Step 2

Assess procurement staff skills, performance & alignment Step 1

Assess Customer Needs & Performance Feedback

Continuous Reassessment 8

Building World-Class 1st Step – Current Assessment 

Learn your Customer(s) view point  



Solicit direct feedback on current performance  



Understand their mission Needs and expectations All levels of Customer organization Customer Satisfaction Survey (short, anonymous, with open field for comments)

Use feedback to assess your performance 

Action plan and improvement goals 9

Building World-Class 2nd Step – Staff Assessment 

Procurement Staff Assessment  



Share Customer feedback with Staff  



Ask Staff to develop improvement plan Strategies for Staff to deliver world-class service for Customer

Ask staff to increase communication with Customers  



Knowledge, skill and experience applicable to Customer Identify gaps between Customer’s needs and capability

Regular in-person preferred; Phone instead of e-mail Timely discussion of issues in-person

Establish staff performance expectations

10

3rd 

Considering assessments, align organization  



Toward Customer’s mission, needs and expectations Staff consistently assigned to same Customer

Establish staffing levels necessary to support needs  



Building World-Class Step - Align Toward Customer

Appropriate mix of capabilities Strategies for each Customer to deliver world-class service

Create culture of “enabling Customer to meet its mission”  

In a effective and timely manner In compliance with procurement and legal requirements 11

Continuous Reassessment 

Customer Focused Procurement requires reassessment   



Annual Survey and other regular communication   



Changing needs and expectations New/Changed Customer staff Changed procurement environment (marketplace) Lead to procurement staff reassignments Established procurement team focused on Public Safety Group Aligned Health & Human Services and Public Safety Groups

Expect as Departments needs change, future organization realignments will be appropriate 12

Building World-Class Improving Direct & Candid Communication 

Open, Candid and Productive Communication critical  



Positive Communication builds Trust 



Timely and direct, explore alternatives, and provide recommendations Willingness to openly listen for different views Necessary to resolve difficult issues

Every interaction matters  

Effective communication takes commitment and work Don’t fall back to easy habits and old assumptions 13

Building World-Class Reference Materials & Tools 

Article: Purpose-Based Procurement; Do you know your real purpose? by Brian Utley, published in Government Procurement magazine June/July 2014



Honesty Works! and Just Be Honest by Steven Gaffney  

Real-World Solutions to Common Communication Problems at Work and Home Authentic Communication Strategies that Get Results and Last a Lifetime www.stevengaffney.com 14

Initial Presentation Kickoff 2013

15

Initial Presentation Kickoff 2013

16

Initial Presentation Kickoff 2013

17

Our Results …

Results published 11/14/2014

County Wide Avg.

96/129 74% response

18

DPC Staff’s Expectations & Commitments (established in 2013) 

Provide outstanding customer service by:       



General good practices     



Answering e-mails and phone calls within 4 hours Assuming positive & trusting intent by Customers/staff Fully explain rules and protocols Fully listen to our Customer’s needs and priorities Present alternatives and solutions to issues and concerns, escalate if necessary Address concerns or disagreements directly - Do not Blindside Departments/Staff Do not deliver “issues, concerns, or bad news” via e-mail, meet face-to-face or call Communicate face-to-face if possible or by phone; e-mail quick items Don’t overuse e-mail (Gaffney rule: if it bounces three times, pick-up the phone) Don’t over CC on e-mails; essential cc’s only, only one person for backup Forward calls from your desk to cell phone when telecommuting Don’t turn-on your “Out-of-Office” unless you are gone for extended period

Other  

Common look for e-mail signature block Remove legend on e-mail; e-mails are Public Records, except when properly addressed to County Counsel as TO: CC Subject: Attorney-Client Privileged

19

Present Organization

20

Some Closing Thoughts to Consider Assess your current environment, expectations, and areas for improvement  Establish your plan … to begin YOUR Journey  What can you do today …  Celebrate your accomplishments … tell your improvement story …  Be prepared to adjust your plan … to feedback and changes to your environment 

21

Follow-up Questions Jack Pellegrino, CPM Director, Department of Purchasing & Contracting County of San Diego [email protected] 858-505-6562 Allen Hunsberger Assistant Director (858) 505-6362 [email protected]