How We Think

Who and what’s an informed purchaser? In simple terms, an informed purchaser is someone who gets the best value-for-money – and that applies to any procurement, whether you’re shopping for a new car or buying essential goods for the Commonwealth. The challenge for procurement practitioners and those working in the government sector is that ‘the Commonwealth,’ ‘the State’ or ‘the Territory’ can be seen as an abstract concept, along the lines of ‘big government’ or faceless or nameless processes. However, a simple way to think about being an informed purchaser, and any procurement process is to ask yourself – what would I do if I were spending the money? The first step is to do a little research – and that applies equally to buying submarines, power plants or the family ute.

It’s fair to say that Shakespeare was not thinking about Artificial Intelligence (AI) in late 16th Century England when he put quill to parchment – and coined that phrase in Henry VI, Part 2. But the sentiment has endured well into the 21st Century – and it’s been echoed in gleeful predictions about the demise of lawyers and the legal profession.

The word ‘audit’ can often invoke anxiety for many individuals and businesses. On top of the anxiety, not knowing what to expect during the audit process can create apprehension. Apprehension leads to worry. Worry leads to potential and actual errors in financial or other records, as well as compliance issues. All of those issues can be uncovered during an audit, along with ‘unforced errors’ that may not paint a fulsome picture of your organisation, its staff and operating procedures. Audits also require significant time and resources to prepare for, which may disrupt regular operations. For individuals without much experience with or about audits, this can increase uncertainty about how to prepare and what will be evaluated. Those factors will exacerbate the inherent worry, anxiety and apprehensions that will arrive with the auditors.

Bias, fraud and corruption happen. And in every culture, country and industry. Australia is no exception to that rule, nor is government immune as an industry, particularly considering the sheer scale of Commonwealth and State Governments’ procurement activities.

The world of commercial negotiations is a complex one, where negotiators regularly grapple with a central dilemma - how do we achieve the best deal without sacrificing our personal integrity?

In a recent meeting, I mentioned to a colleague that one of their clients might benefit from undertaking a ‘Greenbelt Project’ and by applying Lean Six Sigma (L6S) principles to the client’s administrative practices. Cue the blank looks from my colleague.