LOCOG Procurement - CIPS Conference 2012

Building the profession of the future

In association with:

Gerry Walsh Procurement Director, LOCOG

Delivering gold at the London 2012 Olympics and Paralympics

Building the profession of the future

Singapore,

July 2005

Building the profession of the future

Delivering the Games

Olympic Delivery Authority (ODA)

• £9.3bn for permanent infrastructure,

government funded

Organising Committee (LOCOG)

• £2bn+ for staging the Games, privately

funded

Other delivery partners

• TfL, MoD, Home Office, Met Police,

Host Boroughs, DCMS, IOC and IPC

Sponsors and suppliers

LOCOG Procurement faced a unique

mix of challenges

1. Unprecedented set of requirements

2. The immovable deadline

3. Commercial pressure

4. Temporary organisation

5. Supporting wider aims of London 2012

All under significant public scrutiny

Mission statement

LOCOG Procurement will become respected as a world class

procurement function and support the delivery of successful

Olympic Games and Paralympic Games in 2012

To be successful, LOCOG Procurement needed to:

1. Take on a leadership role within the business

2. Actively focus on risk management

3. Innovate to deliver commercial outcomes

4. Embed value for money principles

5. Maximise benefit from stakeholder relations

London

2012

Artists,

Performance

& Events

Sports

Security Technology

Services Transport

& Logistics

Facilities

Management

& Catering

Venues

& Infrastructure

1. Leadership: Adoption of a

pro-active approach from the start

• Initiation and delivery of a detailed

spend planning exercise

• Aggregation of common

requirements into 8 categories

• Strong relationships established with

key internal functions

• Targets set and communicated with

CEO and Chairman

2. Risk management: Acting with the highest standards

of professionalism

• Keen focus on programme management

• Operation of a CIPS-certified, robust procurement process

• Alignment with PR team for consistent messaging

• Zero tolerance on gifts and gratuities

3. Commercial: Using the power of the Games

to secure unprecedented deals

4. Value for money: Taking a prominent role in areas such

as sustainability, supplier diversity and inclusion

5. Stakeholder relations: Setting clear expectations in

order to maximise benefits from third parties

LOCOG Procurement delivered

significant benefit to the Games

• c890 contracts signed over three year

period from 2009

• Combined value £1.18bn, with

savings at +15% versus budget

• c£40m in revenue from sponsorship

• 70% of suppliers were SMEs, from all

corners of the UK

• External recognition for our work

around sustainability

LOCOG Procurement’s operating

model has been commended

by the IOC

• We are helping the IOC move

Procurement to another level in future

Organising Committees

• The PGM has already been shared

with Sochi 2014 and Rio 2016

• CIPS have held further meetings with

the IOC to enhance their knowledge of

best-in-class procurement practices

Lessons learned from Procurement at LOCOG can be

applied in a wider business context

• Set a clear vision for your team and communicate both

within and outside of your organisation

• Adopt a leadership approach, taking calculated risks when

the time is right

• Hard work and tenacity can secure exceptional results