Assisting health services perform a

CAPABILITY ASSESSMENT capability assessment at the

organisational, business unit, or
TEMPLATE individual procurement personnel level

Background Capability assessment process

The capability assessment process can be used to assess capability at the organisational, business unit, or individual procurement The four key steps to assessing capability:
personnel level. It identifies current procurement capability as well as capability gaps to drive continuous improvement.
1. Determine appropriate level for capability assessment
Audience 2. Perform a capability assessment
3. Does the organisation have the required capability?
 Chief Executive Officer (CEO) or delegate
4. Build capability (where necessary).
 Procurement Function Heads
 Chief Procurement Officer (CPO).

Capability Criteria Current Assessment Gaps Identified Capability Development Plan

Process – Governance
Is there a procurement policy in place?
Is there a procurement strategy in place that details the
health services strategic direction for procurement
activities?
Is there a formally stipulated decision –making process
and probity requirements relating to procurement
activities?
Is there a system in place for identification and
management of procurement related risks?
Are the responsibilities of procurement personnel clearly
communicated and monitored?
What is the approval process for delegation of authority
relating to procurement activity?
Is spend monitored to ensure compliance with policies
and value for money principles?
Process – Procurement Planning
Are regular and constructive procurement planning
processes undertaken?
Is a standard procurement process documented and
consistently applied?
Is there a central group that supports the development of
contracts?
Is there a complaints management and dispute resolution
process in place to address and resolve procurement
related complaints?
Process – Sourcing
Are there documented category plans in place for key
categories?
Are activities undertaken to identify opportunities to
aggregate spend with other business units/agencies,
including joint tenders or being a lead for a collective
agreement at a regional/state level?
Are suppliers and stakeholder relationships actively
managed during the sourcing process to assist in the
achievement of quality procurement outcomes?

Capability Assessment Template | 1

CAPABILITY ASSESSMENT Assisting health services perform a capability

TEMPLATE assessment at the organisational, business unit,

or individual procurement personnel level

Capability Criteria Current Assessment Gaps Identified Capability Development Plan

Is a broad set of information used for analysis of key
categories?
Are there initiatives to identify innovative or demand
reduction opportunities?
Process – Contract Management/Performance Management
Is there a contract management framework in place which
enhances the efficiency and effectiveness of procurement
activity undertaken?
Are supplier and stakeholder relationships actively
managed on an on-going basis to assist in the
achievement of quality procurement outcomes?
Are there clear performance requirements in place for
suppliers that are actively managed?
Is procurement spend reporting used to proactively
identify cost reduction or service improvements?
Is the performance of the procurement function known,
monitored and used to drive continuous improvement?
Is external benchmarking used to identify performance
gaps, set target performance levels, and identify process
change to close the gaps?
People
Is procurement viewed as strategic by senior
management?
Are there personnel with specific procurement
knowledge?
Are there mechanisms to encourage teamwork and
collaboration on procurement activities?
Do recruitment, personnel and training considerations
explicitly integrate the skills needed to meet procurement
objectives?
Do Personnel have a level of procurement understanding
appropriate for their level of procurement engagement?
Systems
Are there tools in place that facilitate a systematic and
consistent approach to procurement and purchasing
activities?
Is procurement data managed and stored in a way which
facilitates accurate expenditure reporting and tracking?
Are procurement policies, tools, contract data and
training information available in a consistent technology
platform and format?

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