Procurement Target Operating Model
Client Context
Barking & Dagenham Council's central procurement team, consisting of six members providing category management and business analysis services, had not revisited its purpose, vision, or role in many years. Despite significant changes in the council's needs and the procurement profession, the team's structure and approach remained outdated. Recognising the need for a strategic shift, the council commissioned us to review the procurement function and develop a target operating model that would reposition the central team as a more strategic service.
Our Approach
Our engagement focused on transforming the central procurement team into a strategic function that could better support the council's evolving needs. Key activities included:
Vision and Mission Development: Collaboratively worked with the procurement team to develop a new vision and mission aligned with the council's corporate strategy and goals.
Risk Management Alignment: Conducted workshops with Finance, Procurement and Audit teams to align the corporate risk management process with the proposed model for managing risk in procurement and contracts.
Hub and Spoke Model: Developed a 'hub and spoke' model, positioning the central procurement team as a strategic service with three primary roles:
- Leadership and Governance: Providing leadership, governance and oversight of procurement activities across the organisation.
- High-Value Procurements: Leading the most complex and high-value procurements with expert professional expertise.
- Support for Departmental Purchasing: Supporting devolved departmental purchasing for lower-value and less complex procurements.
Training Model: Created a 'passport to procure' training model, establishing mandatory training for staff involved in different levels of purchasing activity and requiring CIPS qualifications for those regularly handling high-value procurements.
Job Descriptions and Benchmarking: Provided a full suite of model job descriptions and pay benchmarking information for procurement roles to ensure the team was competitively positioned.
Outputs and Outcomes
The transformation of Barking & Dagenham’s procurement function resulted in several key outcomes:
A newly defined vision and mission for the procurement team, fully aligned with the council’s strategic objectives.
A cohesive risk management approach that integrates procurement and contract risks into the broader corporate framework.
Implementation of a hub and spoke model, enhancing the central team’s role in strategic leadership while supporting departmental purchasing needs.
Introduction of a comprehensive training programme to build procurement capabilities across the organisation, with clear pathways for professional.
About Us
Human Engine is a leading management consultancy with specialisms in strategy, transformation, digital, commercial, procurement and projects.
Founded in 2018, we have partnered with more than 50 local authorities, central government, NHS organisations and national charities to help transform their strategies, operations and cultures.
Our mission is to help individuals and organisations to do the best work of their lives. We do this by blending first-hand, practical experience of the problems we help our clients solve with award-winning consulting expertise and an approach based on trust, collaboration and partnership.