Government themes

Data-led approach. Since our 2014 contract management report, government has improved the data it holds about contracts and suppliers. But it has some way to go in establishing benchmarks and sharing information across departments. Our emerging best practice reinforces the need for a data-led approach, including around government being a more 'intelligent client'; knowing in more detail what suppliers are doing; and gaining a collective, ongoing understanding of the market and its available options.

Trusted advisor role. The Cabinet Office is continuing to develop the commercial profession. It continues to encourage commercial teams to promote best practice rather than purely enforce procurement regulations. Emerging best practice on the importance of getting the right commercial strategy in place, and how commercial and operational teams can work together from initial consideration of commercial options through to preparing for termination, shows why this needs to be significantly improved.

Skilled commercial profession. We are concerned that government tries to do more than it has the capability to do. The Cabinet Office's capability programme is beginning to increase the number of trained commercial staff. This should improve commercial and contract management and help to ensure that there is the right staffing mix across high-profile contracts.

Organisational themes

Governance. Since 2013 we have seen departments attempt to make significant improvements to their commercial governance. Throughout our insights, we highlight the significant role played by business owners. They have a role to play in developing a strategy continuing through to ensuring that the right outcomes are achieved. We have also highlighted the need for staff to be supported by an organisation that works. Organisational structures need to be clear and effective at entity-level to be able to flow down into the processes for individual contracts.

Portfolio management. Departments segment their contract portfolio according to risk, although the sophistication of their approaches varies. Segmentation needs to be right given its importance to tailoring contract resources and understanding what suppliers are doing. Departments should maintain a comprehensive view of current and future contracts so they can actively manage their full commercial risk.

Supplier relationship management. Government widely recognises the concept of 'supplier relationship management', although many departments are still in the early stages of setting up their management processes. Emerging best practice on developing a strategy, remaining an attractive customer and sustaining competition reinforces the need to focus on managing relationships with suppliers.