How to measure efficiency savings

3 October 2007

04 October 2007

Public sector buyers should follow six steps to quantify efficiency savings.

Michael Whitehouse, the assistant auditor general of the National Audit Office, said they should provide a reliable baseline that can be used to track efficiency improvements and show the trajectory of procurement activity. "This has been a major problem, largely because government information systems are not as reliable as they might be."

Addressing the CIPS/SM Efficient & Sustainable Public Sector Procurement event, he added savings estimates are acceptable, but the underlying assumptions and figures must be reliable. Buyers should talk with their suppliers to discover where the savings arose and how. The durability of the savings and their impact on the quality of service must also be determined.

Finally, they should have a clear and open feedback dialogue with the organisation.


SMoct2007

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