Business Modelling In Strategic PlanningPublic Works & Government Services Canada

Procurement Renewal

Mike LachapelleVirginie Ethier

Lynn Ménard

2Creating and using business models to change the business

Linking the business model to the Branch strategic structure

Background

17th Annual Report to The Prime Minister on the Public Service of Canada: by the Clerk of the Privy Council: March 2010

Public service renewal must extend beyond the workforce to address the nature of the public service workplace…doing business better and more efficiently based on innovative approaches, best practices and new business models.

In our view, the circumstances are right for the Public Service to reassess and transform its models for delivering on the business of government.

Fourth Report to the Prime Minister: Prime Minister’s Advisory Committee on the Public Service:February 2010

Is understanding business models important

Why did we build a new business model for procurement

mandated to deliver a renewed vision for procurement across the Government of Canada

The Minister & DM of PWGSC

drive the changes needed to accomplish the vision and strategy for the renewal of procurement across the GC

Acquisitions Branch & Procurement Renewal Office

Business Model Project

build a comprehensible model of the business operations of Acquisitions Branch and a new business model that reflects the renewed business strategy

What did we accomplish A target business model with a 5-7 year

window for implementing built on:

A procurement classification structure based on complexity, integrated with risk;

A services structure for procurement services and specialized services deliver by the Branch and the Regions;

A proposed Program Activity Architecture for the Branch aligned to the current business model and future model;

A portfolio of renewal projects within in a clear strategy to deliver the innovations

Business Model

How did we do it

Three key phasesUnderstand

Design

Implement

Building a new business model

Understand Case Studies let us:• test framework in context• examine facets in detail• build overall picture

Research gave us:• broad view of the business• variations in business lines• challenges and issues

Business Strategy

Business Organization Information Technology

Business Model

Business Model

Business Design

VisionMission

PrinciplesValuesGoals

PeopleStructure

PoliciesProcesses

Information

SoftwareHardwareNetworksData

Rationale

BUSINESS MODEL CANVAS

BUSINESS MODEL CASE STUDIES

Small & Medium Enterprises

Seized Property Management

Crown Assets Distribution

Building a new business model

Design Built the as-is model:• re-iteratively • adjust language and views• standardize key concepts

Identified innovations:• analyse the as-is model• consider the challenges• co-create many ideas

ACQUISITIONS AS-IS MODEL

bring people together to talk about:

the clients… the challenges… the as-is…

…and to generated ideas on how to create innovation in service delivery to improve the business

BUSINESS DESIGN EXPERIENCE

Building a new business model

Built prototypes:• collected ideas into 5 prototypes • tested the prototypes with

operations• gave feedback to decision- makers

Created to-be model:• selected innovations most likely

to succeed• identified challenges met and

benefits expected

Design

Easier for BusinessesPrototype model 5

Create a Advisory Council of Business for the ADM

Provide advisory and analytical services to all vendors

Expand regional structures to engage all vendors Establish a single site vendor registration for the

government of Canada Enable electronic bidding by resolving outstanding

legal and policy issues Adopt more common commodity classification

structure

BUSINESS MODEL PROTOTYPE

Prototype model 5

Departments& Agencies

PWGSC

Easier for Businesses

Create

Advisory Councilof Business

All Suppliers

Advisory &AnalyticalServices

Provide

Regional DeliveryStructure

Expand

Single Registration For GC

Establish

E-Bidding

Enable

Adopt

NewCommodity

Classification

BUSINESS MODEL PROTOTYPE

Departments& Agencies

PWGSC

Create

Advisory Councilof Business

All Suppliers

Advisory &AnalyticalServices

Provide

Regional DeliveryStructure

Expand

Single Registration For GC

Establish

E-Bidding

Enable

Adopt

NewCommodity

Classification

Prototype model 5 Easier for Businesses

BUSINESS MODEL PROTOTYPEResults of Operations Staff Votes

ACQUISITIONS AS-IS MODEL

AS-IS MODEL CHALLENGES

ACQUISITIONS INNOVATIONS

INNOVATION BENEFITS

ACQUISITIONS TO-BE MODEL

Building a new business model

Strategy:• build strategy map • identify priorities

Projects:• manage a portfolio of projects to

achieve new business model • integrate ongoing projects with

planned initiatives

Implement

Innovation Strategy Map

Strategic Integration

Business Model to Strategic Planning

Program Activity Architecture

Strategic Plan

Business Plan

Project PortfolioStrategy map

Service Lines Service Bundle Services Value to Client

Standard

Complex

Routine Support

Procurement Planning

Procurement Consulting

Business Intelligence

Procurement

Contracting

ProcurementSupport

Knowledge Intensive Business

Services

Delivered good or service

Analysis

Instruments

Guidance

Enterprise

Policy Advisory

Asset Disposal

Asset Trustee

Organization Certification

Professional Certification

Product & Service Certification

Specialized

Asset

Standards

Revenues

ManagedAsset

Standards

Certification

Commodity Management

Acquisitions Service Structure

AB – Proposed PAA – Services View

2011-2012 Acquisitions BranchPAA Structure Draft:for presentation purposes only

1.1.2. Procurement Support

1.1.2.1. Routine Procurement Support

1.1.2.2. Commodity Management

1.1.2.1.1. Routine Contract Service

1.1.2.1.2. Freight Services

1.1.2.1.3. Travel Booking

1.1.2.2.1. Commodity Planning

1.1.2.2.2. Procurement Instruments

1.1.2.2.3. Commodity-Based Directories

1.1.2.2.4. Supplier Registration

AB – Proposed PAA – Services View

2011-2012 Acquisitions BranchPAA Structure Draft:for presentation purposes only

Seized Property Management Directorate

1.1.2. Procurement Support

1.1.4. Assets Management

1.1.2.1. Routine Procurement Support

1.1.3.1. Advisory Services

1.1.3. Knowledge Intensive Business Services

1.1.1. Contracting1.1.1.1. Standard Contracting

1.1.4.1. Assets Seizure

1.1.4.2. Assets Disposal

1.1.3.1. Property Seizure Advisory Services

1.1.4.1.1. Seizure Coordination

1.1.4.1.2. Asset Trustee

1.1.4.1.3. Seizure Standards & Practices

1.1.4.2.1. Seized Property Disposal

AB – Proposed PAA – Organization View

2011-2012 Acquisitions BranchPAA Structure Draft:for presentation purposes only

Questions

Business Modelling for Strategic Planning

Thank You!

For more information on:

Acquisitions Branch Strategic Planningvirginie.ethier@tpsgc-pwgsc.gc.calynn.menard@tpsgc-pwgsc.gc.ca

Business modellingmike.lachapelle@tbs-sct.gc.ca