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Developing Capable Health and Social Care Organisations: Commissioning and Procurement in Context A Systems Approach to Commissioning Change in a Problematic world
Commissioning v Procurement: Competing Process or Synthesising Design?
What are the benefits of Commissioning? Stating that >90% of problems are due to the design of the “System” and not to people avoids blame. Note that people are integral part of an open adaptive system. In others words, it should be recognised  systems are social, economic, technological and not just linked processes and activities  How does Commissioning help us with the issues of procurement? ,[object Object],[object Object]
Scope of Common Competencies
The Continuum between Hard & Soft Systems Approaches  (What is the balance point?)  Hard Approaches Things dominate the  problems and its setting Soft Approaches People dominate the  problems and its setting A continuum exists between these poles A critical question is. What is the balance point from which to Commission AND what is the level of system or subsystem Maturity, Culture, Learning  AND Which Procurement Procedure and Model of Competition will work?
What is a Commissioned System? General Systems Model - A simple view of a System .  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
A Simple view of a System A System Inputs ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],A system is a construct or collection of different elements that together produce results not obtainable by the elements alone. The elements, or parts, can include people, hardware, software, facilities, policies, and documents; that is, all things required to produce systems-level results. The results include system level qualities, properties, characteristics, functions, behaviour and performance. The value added by the system as a whole, beyond that contributed independently by the parts, is primarily created by the relationship among the parts; that is, how they are interconnected (Rechtin, 2000). Outputs Controls/ rule set Feedback
The Existing Procured System  closed – deterministic and no concept of subsidiarity or decision making derogation) Activity Flow Inputs Pull Flow Waste / 7 Mudas Demand Customers Outputs Feedback ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Controls/ rule set System Boundary
Closed – Deterministic System Closed systems models involve recursive patterns of feedback Viability depends on maintaining identity and stability Self-construction limits feedback and stifles feedforward In the “closed” systems perspective, a system is analysed in terms of its own information and perspective  Boundary is regarded as closed Organisational meaning:  Emphasising stability,  group loyalty, security, clear boundaries and tight controls Sources: Bateson, Beer, Maturana, Varela
An Open Commissioned System Open systems models shows dynamic relationships between the organization and the environment Viability depends on maintaining critical interchanges between system and the Environment Sources: Emery, Miller, Rice, Trist The open systems perspective emphasizes exchanges of information and energy with the environment.  The Boundary is regarded as porous and may be diffuse.  Organisational meaning:  Emphasising  flexibility, collaboration, consensus building and authentic communication.
Multiple Perspectives  A viable Systems View – How does optimising processes at an operational level help development of capability?
What are the Issues we are addressing? A Messy Unbounded Problem? Is Procurement the answer? It is not a simple cause and effect problem it is about the relationship between Decision Making Cycles
Tame v Wicked Problems
“ Messy/Wicked  Problems” Diagnosis Analysis Tame problems may be quite complex, but the lend themselves to  analysis  and solution by known techniques, for example: Six Sigma, Lean Sigma, TPS, TQM and  TPM methods
Clarifying The Results ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],External Environment STEEPV Determines the context in which the system of interest has to operate System 2 System 3 System 5 System 4 System 9 System 5 System 7 Containing  System Sibling  Systems System of  Interest – local context System Boundary Interconnections Relationships & Emergent properties External Systems 1 External System …n
Commissioning Perspectives  Whose System of Interest? what's in, what's out? The Procurement view Operations View Finance View
February 19, 2010 Start with Systems  maps and rich pictures Complexity and multiple  Relationships and scenarios (story boards)  Can be added later If required, schematics and one line diagrams can be produced at a detailed level Overall System Architecture Initial Capability Model System of  Interest 1 st  Resolution Model Process Logic
Likeliest Intervention for Performance Improvement Tame Problems are suited to low level procurement procedures “ Messy/Wicked  Problems” Including “special causes” Note; innovation often falls into this area and requires high end permissions and procurement procedures  Clarifying the Problem? What is the systems of interest? Tame problems   may be quite complex, but the lend themselves to analysis and solution by known techniques. Complex behaviour can be based on simple rules Rule Set Complex Many Value Analysis to understand sources of value, cost and performance  Diagnosis  to understand relationship between sources of value (context)  and value chain; determine and set boundaries. Rule Set: Simple /Few Simple Analysis to understand cost and performance, e.g.  Six and Lean Sigma, BPR More complex  end-to-end Process Analysis needed to construct value chain and understand, cost, value and performance Process Complexity Simple Process Complexity Complex
Clarifying The Problem ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Where do we make the intervention? Clarifying The Problem? Where do we Start? At what level do we start? How do we set scope and boundaries How we identify airs of concern?' ,[object Object],[object Object],[object Object],Systems Level, e.g. Viable System Model -Supply Chain Transactional level A la “lean thinking”, e.g. Order Entry
What elements of the Landscape do we have to Change to Achieve: ,[object Object],[object Object],[object Object],[object Object],[object Object]
Can Requirements Management (procurement) be applied to people services? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
What are we Commissioning: Innovation and Continuous Improvement? Customer focus – long term market growth – customer retention Initial payback and long term social dividend Performance Criteria People, process, culture Usually technology Orientation Usually spread Can be high Risks Conventional know-how's and state of art Conventional know-how's and state of art Stimulus Collective Select few with know how Approach Everybody Select few with know how Involvement Incremental Intermittent Change Slow small steps Fast – big steps Pace/time frame Long term – long lasting Short term - dramatic Effect Continuous Improvement Innovation (Breakthrough)
Which Rule Set has Primacy ,[object Object],[object Object],[object Object],[object Object]
Creative Holisms ,[object Object],[object Object],[object Object],[object Object],Systems Thinking  System Engineering TQM TACIT KNOWLEDGE Behavioural Know How Increased Understanding Commissioning

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Commissioning And Procurement

  • 1. Developing Capable Health and Social Care Organisations: Commissioning and Procurement in Context A Systems Approach to Commissioning Change in a Problematic world
  • 2. Commissioning v Procurement: Competing Process or Synthesising Design?
  • 3.
  • 4. Scope of Common Competencies
  • 5. The Continuum between Hard & Soft Systems Approaches (What is the balance point?) Hard Approaches Things dominate the problems and its setting Soft Approaches People dominate the problems and its setting A continuum exists between these poles A critical question is. What is the balance point from which to Commission AND what is the level of system or subsystem Maturity, Culture, Learning AND Which Procurement Procedure and Model of Competition will work?
  • 6.
  • 7.
  • 8.
  • 9. Closed – Deterministic System Closed systems models involve recursive patterns of feedback Viability depends on maintaining identity and stability Self-construction limits feedback and stifles feedforward In the “closed” systems perspective, a system is analysed in terms of its own information and perspective Boundary is regarded as closed Organisational meaning: Emphasising stability, group loyalty, security, clear boundaries and tight controls Sources: Bateson, Beer, Maturana, Varela
  • 10. An Open Commissioned System Open systems models shows dynamic relationships between the organization and the environment Viability depends on maintaining critical interchanges between system and the Environment Sources: Emery, Miller, Rice, Trist The open systems perspective emphasizes exchanges of information and energy with the environment. The Boundary is regarded as porous and may be diffuse. Organisational meaning: Emphasising flexibility, collaboration, consensus building and authentic communication.
  • 11. Multiple Perspectives A viable Systems View – How does optimising processes at an operational level help development of capability?
  • 12. What are the Issues we are addressing? A Messy Unbounded Problem? Is Procurement the answer? It is not a simple cause and effect problem it is about the relationship between Decision Making Cycles
  • 13. Tame v Wicked Problems
  • 14. “ Messy/Wicked Problems” Diagnosis Analysis Tame problems may be quite complex, but the lend themselves to analysis and solution by known techniques, for example: Six Sigma, Lean Sigma, TPS, TQM and TPM methods
  • 15.
  • 16.
  • 17. Commissioning Perspectives Whose System of Interest? what's in, what's out? The Procurement view Operations View Finance View
  • 18. February 19, 2010 Start with Systems maps and rich pictures Complexity and multiple Relationships and scenarios (story boards) Can be added later If required, schematics and one line diagrams can be produced at a detailed level Overall System Architecture Initial Capability Model System of Interest 1 st Resolution Model Process Logic
  • 19. Likeliest Intervention for Performance Improvement Tame Problems are suited to low level procurement procedures “ Messy/Wicked Problems” Including “special causes” Note; innovation often falls into this area and requires high end permissions and procurement procedures Clarifying the Problem? What is the systems of interest? Tame problems may be quite complex, but the lend themselves to analysis and solution by known techniques. Complex behaviour can be based on simple rules Rule Set Complex Many Value Analysis to understand sources of value, cost and performance Diagnosis to understand relationship between sources of value (context) and value chain; determine and set boundaries. Rule Set: Simple /Few Simple Analysis to understand cost and performance, e.g. Six and Lean Sigma, BPR More complex end-to-end Process Analysis needed to construct value chain and understand, cost, value and performance Process Complexity Simple Process Complexity Complex
  • 20.
  • 21.
  • 22.
  • 23.
  • 24. What are we Commissioning: Innovation and Continuous Improvement? Customer focus – long term market growth – customer retention Initial payback and long term social dividend Performance Criteria People, process, culture Usually technology Orientation Usually spread Can be high Risks Conventional know-how's and state of art Conventional know-how's and state of art Stimulus Collective Select few with know how Approach Everybody Select few with know how Involvement Incremental Intermittent Change Slow small steps Fast – big steps Pace/time frame Long term – long lasting Short term - dramatic Effect Continuous Improvement Innovation (Breakthrough)
  • 25.
  • 26.