Harmonization of the tendering process seems like a tremendous task. Local laws are so different from country to country, making you ask yourself, how can it be achieved? Also, what are the benefits of harmonization and how can a tendering organization accomplish it? This blog focuses on discussing these aspects.
The necessity for leadership in a tendering organization has been covered in a previous blog, as well as the importance of tendering and related resources. In an upcoming blog, portfolio lifecycle will be covered. Here, we discuss establishing governance in various contexts.
A harmonized tender governance is not easily achieved. It takes a lot of effort to align multiple countries and regions toward a common approach. We need to make sure harmonization works, particularly for validating return on investment.
We performed the first benchmarking study on this topic, which revealed some worthwhile findings.
First, there are no “laggard organizations” (defined as those who self-assess as having big issues not allowing them to submit tenders properly) with harmonized governance. Therefore, having some form of governance increases the quality of the overall tendering organization, thus improving tendering processes and performance. Our study showed a clear link between governance and well-functioning processes.
Like every strategy, there are multiple flavors. Governance can be harmonized at the global level with one single view. It can be regionalized from a global framework or even localized at the country level.
But there are no clear-cut governance solutions. In fact, it often depends on a multitude of contextual factors within your organization. It’s absolutely possible to have a well-functioning localized governance but a global governance that is not entirely effective. Questions need to be answered before deciding what the appropriate level of governance is for your organization. A “one-size-fits-all” solution does not exist.
Finding the Right Balance: Leveraging Other Policies
Typically, linking your tender governance with other processes facilitates adoption. If your pricing governance is localized, it may be better to follow this approach. Your contracting guidance is another document that could be leveraged.
Tender management usually lies in the middle of those points, as it may involve some international reference pricing and other factors such as the size of the tender and/or net prices threshold. Overall, the best approach is finding the right balance between a complete global governance and multiple, fragmented localized governance.
Ideally, a global governance is implemented, which achieves the benefits of standardization across markets while providing flexibility for regional and local adoption in order to maintain or gain country-specific advantages.