Procurement Target Operating Model
The Context
Luton Borough Council is undergoing a significant transformation, with procurement identified as a key area for improvement. In anticipation of the Procurement Act coming into force in February 2025, the council sought to modernise its procurement function to enhance efficiency, strengthen governance, and ensure compliance with new regulatory requirements.
The Requirement
Human Engine was commissioned to conduct a comprehensive review and develop a new Procurement Target Operating Model (TOM) that:
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Aligns with best practices and regulatory requirements, including the Procurement Act 2023.
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Enhances governance and clarity in roles and responsibilities.
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Maximises value for money while ensuring flexibility to meet service delivery needs.
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Supports the organisation in achieving its Luton 2040 aims.
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Improves efficiency and strategic procurement capability.
The Programme
We followed a four-stage process throughout the project, detailed below:
1. Engage and Explore
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Collected data/information relating to procurement activities across LBC. This included insights into existing processes, governance structures, policies, performance metrics and team structures.
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Engaged in over 20 targeted interactions with key stakeholders across the whole council, including those in the Corporate Procurement team, regular users of Corporate Procurement and senior stakeholders.
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Undertook benchmarking analysis of processes, thresholds, team sizes, structures, and practices against industry best practices and those of neighbouring and statistically similar local authorities.
2. Devise and Develop
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Assessment of the previous procurement operating model to review alignment with best practices and strategic objectives, adaptations required to ensure compliance for the Procurement Act, while also identifying avenues for improvement.
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Synthesised findings to develop a set of recommendations for operating model development, focusing on:​
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The Procurement team’s strategic objectives and policies to guide procurement activities in alignment with organisational goals.​
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Establishing transparent governance mechanisms and streamlined processes to ensure compliance and efficiency in procurement.​
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Team structure and size – definitions of roles, responsibilities, and reporting structures to optimise performance and resource allocation.
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Feedback session held with key stakeholders, including project sponsors and senior leadership, to explore recommendations and ensure alignment with LBC goals. ​
3. Iterate and Improve:
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Developed a plan for transitioning to the recommended operating model including clear timelines, milestones, and resource requirements.
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Collated all findings and recommendations into a comprehensive draft report, including team structure, roles and responsibilities, governance processes and thresholds.
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Presentation of draft report to project sponsors and leadership for feedback, ensuring agreement of recommendations and alignment with LBC goals.
4. Confirm and Conclude
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Secured sponsor and senior leadership buy-in and sign-off following the previous engagement session
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Delivered the final report containing all findings, recommendations and the implementation plan.
The Outcomes
Key Outcomes:​​
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A new procurement operating model agreed upon by key stakeholders and adopted by the council
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A recommended Corporate Procurement structure, including an additional 7 posts
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A recommended change in approach towards procurement activity – to category management. This is important in supporting the delivery of over £2m savings Human Engine have worked with the council to identify.
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A new governance process to streamline requirements and ensure a proportionate approach is applied to procurement and contract management related governance
About Us
Human Engine is a Financial Times top-ranked management consultancy with specialisms in strategy, change, digital, commercial and projects.
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It was founded in 2018 with a belief that the public sector deserves better than it gets from traditional consulting firms – more human, more personal and more knowledgeable of the reality of delivering modern public services.
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We have worked with dozens of public sector organisations to help transform their strategies, operations and cultures to be more agile, commercial and entrepreneurial in order to achieve financial sustainability and improved outcomes for customers and communities.
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Our mission is to help individuals and organisations to do the best work of their lives.  We do this by blending first-hand experience of the problems we help our clients solve with award-winning consulting expertise and an approach based on trust, collaboration and partnership.
