You are still the one that makes me shout
Still the one and I wouldn’t switch
We’re still having fun, and you’re still the one…
Lyrics from the song “Still The One” by Orleans
With the decision to resume my speaking schedule (I had taken time off to write three books), I have had the great opportunity to really get a feel for what is happening from a global perspective.
Through recent journeys to London (eWorld) and Stockholm (IBX Capgemini Executive Summit), emerging trends such as the non-consultancy approach, public sector procurement transformation and, the globalization of the supply chain were at the top of the list of most procurement professionals. Even the utilization of social media and social networking had broken through from the “what I had for lunch” misperception to being seen as a viable communication/collaboration tool.
Ultimately these sojourns, as will be the case with upcoming keynotes, provide an important point of reference in terms of challenging the veracity of past ideas and opinions regarding a variety of topics. Challenging the accepted norms or mainstream thinking – especially your own, is an incredibly important exercise because it ensures an ongoing relevancy of your views and ultimately the opinions and advice one shares with their readers.
For example, hearing how major consultancy firms recognize the need to abandon long adhered to revenue models based on engagements that extended over years, in favor of a model that will now span months and even weeks and produce a clear outcome or result within that shortened time frame is interesting and a bit exciting. One can thank the emergence of the on-demand or Software-as-a-Service “SaaS” technologies for being a key driver in this transformation.
In short, the epiphanic significance of this coming to terms of a changing reality is on the same scale as was probably the realization that the world wasn’t flat but round.
While shifting perceptions impact some long-held beliefs inspiring a change in direction, with others the deluge of new insights only serve to reinforce that which has and continues to work well.
Like the invention of the wheel, designs as well as the materials used to produce the end product may evolve, but the basic underlying “foundational” principles remain the same.
In this regard, and although not perfect – what after all is, the Commonwealth of Virginia’s eVA program is still a coruscating example of what can happen when you get it right!
Commonwealth of Virginia
As the only North American expert invited to join the SSON Roundtable discussion on the recently released Sir Philip Green review of the policies and practices which currently define how the UK Government acquires goods and services, I found myself once again referring to eVA (as well as eProcurement Scotland) as the defacto public sector models that everyone should emulate.
Now I can assure you that this ongoing “endorsement” of eVA is not merely a rubber stamping exercise that is based upon familiarity and laziness. As a kid, I used to like taking things apart (although I wasn’t always adept at putting them back together), in an effort to understand how things worked. That indigenous curiosity has stayed with me to this day, and as a result provides a unique and discerning lens through which I view almost every situation.
In the case of eVA, the cornerstone attributes of the program’s enduring effectiveness is linked to it’s people, the on-going and earnest desire to review and where warranted test new technological developments and a model that generates enough revenue to be largely self-funding.
This means that the brain-trust behind the eVA program is in essence at the helm of their own ship, where the path of self-determination has taken precedence over the usual abdication strategy of most governments who treat the challenges of running a purchasing apparatus within the realms of the public sector as a hot potato to be passed off versus seeing it as an opportunity to be embraced.
Now if only they could find a way to bottle or package the eVA formula . . . stay tuned!
Media Bites:
The following links are to broadcasts regarding the legislative review (JLARC) of the Commonwealth of Virginia’s eVA program which first aired in July 2009; The JLARC Review: Phantom Echoes of Discontent? and, The Virginia Legislative Review of eVA Call-In Show.
The second broadcast was a call-in show, in which vendors called in to express their thoughts regarding eVA. Great segments to listen to if you would like a more in depth understanding of the Virginia program.
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JOHNNY HOLMES
October 30, 2010
Hello Everyone, I have watch your video clip, regarding SwaM Vendors. I have been a SwaM Vendor for two years and we have had no contracts to compete for and if we did we were left out. My # is SWaM 663618. I have won two contracts from my catalog,what can I do to be more competitive. Also, my website/catalog will accept credit cards.
Thanks, Holmes&Holmes Associates
procureinsights
October 30, 2010
Thank you for taking the time to comment Mr. Holmes. I will forward your comments to the head of the eVA program.
Please do not hesitate to encourage others to write in with their comments and I will do what I can.
Jonathan Ford
December 1, 2010
Your characterization of eVA as a shining example of something done right tells me you are out of touch with real-world (non-government) business. EVA may be better than other government procurement systems, but compared to the real world, its rigid, convoluted, bloated structure and non-conforming, error-plagued web functions are a time-wasting, tear-your-hair-out joke.
procureinsights
December 1, 2010
Thank you for your comments Jonathan. Despite my mother’s assertion that everyone likes me is likely not the case, the same can be said for eVA. Not everyone is going to like eVA.
That said let me provide you with a little bit of insight relative to my support (I guess you could call it support) of eVA over the years so at least you know I am not howling at the proverbial moon.
To start 85% of all eProcurement initiatives in both the public and private sectors fail to deliver the expected results. Some reports put this at an even higher number.
Examples from the public sector include Marin County, the City of Houston and the VHA to name just a few. In the private sector you do not have to look any further than Hewlett-Packard (who ironically offers implementation services in this arena) FoxMeyers Drugs and Whirlpool. Once again, these are just a few of the private sector organizations who make up the 85% failure rate.
So why do I believe that eVA is the exception to the rule?
One of the key challenges with most initiatives, especially in the public sector), is what is known as supply base erosion. This means that due to a cumbersome bid process in which a growing number of suppliers believe that they have zero chance of winning and therefore see tendering as little more than a means through which a government buyer can justify a decision that as already been made under, stop responding to bid requests.
The rate of erosion can be significant over a relatively short period of time, and is reflected by data that shows between 80 to 90 % of the business is going through only 10 to 20% of the total registered supply base.
In 2001, when eVA was launched, there was a total of 26,000 suppliers of which only 23% received orders (re won contracts).
By 2007, the supply base grew to 34,000 registered suppliers and (this is the key point), more than 43% of the total supply base received orders (re won contracts). Today, these numbers have continued on an upward trend.
So based on data alone such as contract distribution, while most government programs are struggling with a shrinking supply base, Virginia’s is not only growing in terms of the number of suppliers, but in the all important distribution of business category.
As long as this trend continues, the Commonwealth is likely going to continue to produce solid results in terms of delivering value to Virginia taxpayers.
This being said, there are a number of potential challenges on the near horizon. One of which I like to call my car maintenance analogy.
Specifically, when you buy a new car everything works (at least it is supposed to). However, if you fail to properly maintain the re oil changes parts replacement etc. eventually it will fall into disrepair.
eProcurement platforms are no different, especially with the advent of agent-based SaaS solutions which are similar to an improved replacement auto part that is designed to deliver better gas mileage or a safer drive.
If I were asked what is my greatest concern with eVA, it would be in this area.
All this being said, within the context of the track record of both public and private sector program failures, eVA as the title of my post states is still the one.