Design And The Public Good

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DESIGN AND THE PUBLIC GOOD: CREATIVITY VS THE PROCUREMENT PROCESS?

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‘DESIGN IS NEITHER AN INTELLECTUAL NOR MATERIAL AFFAIR – BUT SIMPLY AN INTEGRAL PART OF THE STUFF OF LIFE, NECESSARY FOR EVERYONE IN A CIVILISED SOCIETY’ – WALTER GROPIUS

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Design and the public good: creativity vs the procurement process?

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Design and the public good: creativity vs the procurement process? Contents

CONTENTS Foreword

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List of abbreviations

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Introduction

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The context

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Summary of recommendations

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Knowledge

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Create the evidence base

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Design leadership

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Common knowledge

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‘Design is the new management consultancy’

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Skills

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The effective management of creative expertise

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Tailored training

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The role of the Central Office of Information

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Process

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A single, simplified, below-threshold tender approach

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The internal process

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Clearer messaging

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Conclusion

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Appendix

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Bibliography

48

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Design and the public good: creativity vs the procurement process? Foreword

FOREWORD I was pleased to see this report - and even more pleased to read its recommendations.

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Design and the public good: creativity vs the procurement process? Introduction

INTRODUCTION

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Department for Business, Innovation and Skills, ‘Government and the Market’, Going for Growth: Our Future Prosperity, p48 OGC, Policy Through Procurement Action Plan http://www.ogc.gov.uk/documents/PtP_Action_Plan.pdf

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Design and the public good: creativity vs the procurement process? The context

THE CONTEXT The Cox Review

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Pressure to innovate

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Cox, G., ‘Executive Summary’, Cox Review of Creativity in Business: Building on the UK’s Strengths HM Government, ‘Putting innovation at the heart of central government’, Putting the Frontline First: Smarter Government, p51-2 European Commission Staff Working Document, Design as a driver of user-centred innovation

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Why are some elements failing?

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‘How you buy something naturally affects the end result of what you buy. We have decades of history of buying on price instead of purpose.’ - Witness to the inquiry

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Why does this matter?

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‘Trends in Public Sector Expenditure’, Public Expenditure Statistical Analyses 2009 p65 http://www.research-live.com/comment/public-sector-procurement-leaves-small-suppliers-out-in-the-cold/4000837.article Design Council, ‘The role of design in public services’, Design Council Briefing 02, November 2008

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Mulgan, G., NESTA, Ready or Not? Taking innovation in the public sector seriously ‘Putting the Frontline First: Smarter Government.’ Operational Efficiency Programme: final report, 5.29, 5.34 Will Hutton, Staying ahead: the economic performance of the UK’s creative industries Cox, G., Cox Review of Creativity in Business: Building on the UK’s Strengths, p1 NESTA, The Innovation Index: Measuring the UK’s investment in innovation and its effects, p4

‘Everything around us has been designed, but modern design is increasingly a process driven by the end users. When you ask if something is welldesigned you mean is it truly fit for purpose. And many public service systems at the moment are just not fit for purpose’ - Witness to the inquiry

‘THE INQUIRY HAS CONSIDERED THE AREAS OF KNOWLEDGE, SKILLS AND PROCESS IN TURN, MAKING RECOMMENDATIONS FOR IMPROVEMENT ON EACH’

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Design and the public good: creativity vs the procurement process? Our recommendations

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2. A Chief Advisor for design and innovation

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3. A campaign to raise the profile of design

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4. A register of expert advisors

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6. A tailored training programme

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10. An information and advisory service

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KNOWLEDGE

Building policymakers’ and buyers’ understanding of the value of design Create the evidence base

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‘There is a perception of ‘design’ being an expensive option. I would refer you to the saying: ‘if you want to know how expensive design is, look at how expensive bad design is’. ’ - Witness to the inquiry

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Recommendation 1 Improved understanding of design and innovation spend 7KLV UHSRUW FDOOV IRU D UHYLHZ RI FRVWV DQG VDYLQJV LQFOXGLQJ D FRPSUHKHQVLYH DQG DFFHVVLEOH OLEUDU\ RI FDVH VWXGLHV WR GHPRQVWUDWH KRZ GHVLJQ FDQ VDYH PRQH\ IRU WKH SXEOLF VHFWRU DQG LGHQWLI\ ZKHUH UHVRXUFHV DUH FXUUHQWO\ EHLQJ ZDVWHG %HWWHU XQGHUVWDQGLQJ RI *RYHUQPHQW VSHQG RQ GHVLJQ FRXOG SRWHQWLDOO\ EH DFKLHYHG WKURXJK DQ LQGHSHQGHQW H[SHUW UHYLHZ RI H[SHQGLWXUH ZKLFK VKRXOG HVWDEOLVK WRWDO VSHQG LQYHVWLJDWH UHWXUQ RQ LQYHVWPHQW RI JRRG GHVLJQ &$3(; YV 23(; DQG DWWHPSW WR GHWHUPLQH µSXEOLF VDWLVIDFWLRQ¶

17 Innovation across central government, National Audit Office, March 2009. 18 Operational Efficiency Programme: final report, 5.39 19 Feedback from both CABE and the Design Council was strongly supportive of redressing this gap

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CASE STUDY REDESIGNING THE TAX FORM: SAVING TIME AND MONEY

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Design leadership

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Box 1 The Design Ladder21 Step 1: Non-design Design is an inconspicuous part of, for instance, product development and is performed by members of staff who are not design professionals. Design solutions are based on the perception of functionality and aesthetics shared by the people involved. The points of view of endusers play very little or no part at all in the design process. Step 2: Design is styling Design is perceived as a final aesthetic finish of product. In some cases professional designers may perform the task, but generally other professions are involved. Step 3: Design as process Design is not a finite part of a process but a work method adopted very early in product development. The design solution is adapted to the task and focused on the end user and requires a multidisciplinary approach, e.g., involving process technicians, material technologists, marketing and organisational people. Step 4: Design as innovation The designer collaborates with the owner/ manager in adopting an innovative approach to all – or substantial parts of – the business foundation. The design process combined with the company vision and future role in the value chain are important elements.

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http://www.designcouncil.org.uk/ (Danish) National Agency for Enterprise, The Economic Effects of Design, September 2003, p28 http://www.designcouncil.org.uk/About-Design/managingdesign/Eleven-lessons/ The Singaporean Government, as part of their National Design Policy, have instituted an International Advisory Panel on design ‘to develop Singapore into a design hub in Asia, and to grow design into one of the key pillars of economic growth.’ 24 http://www.hmg.gov.uk/innovation.aspx

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‘80% of innovation fails, so you should be very careful in government of pushing innovation as a target – you should push for progress’ - Witness to the inquiry

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25 “We will continue to work with the creative industries in our country, a sector that goes from film and fashion to architecture and the media, to support and extend the one million jobs. And Britain now enjoys its position as the leading creative-industries sector in Europe, and that is something we are determined to maintain and extend� – PM Gordon Brown speaking at Going for Growth Launch (http://www.number10.gov.uk/Page22085); “I don’t think people yet realise just how important architecture and design are going to be to our economic, as well as to our cultural and social future. I believe that the countries that will succeed in the modern world are the countries that have that creativity, are able to show that in practice by architecture, design, fashion, music and everything else that is associated with creative industries. Nowhere are we better placed than in architecture and design� – PM Gordon Brown speaking at No 10 reception for architects, (http://www.architectsjournal.co.uk/news/daily-news/prime-minister-british-design-and-architecture-are-second-to-none/5210866.article) 26 Chapter 5, Summary Recommendations, Operational Efficiency Programme: Final Report, p69 27 Design Council, Designs of the Time: http://www.designcouncil.org.uk/Design-Council/1/What-we-do/Our-activities/20-reasons-to-go-to-Dott/ 28 NESTA, Public Services Lab: http://www.nesta.org.uk/areas_of_work/public_services_lab 29 See Recommendation 5: A Design and Procurement Panel.

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Common knowledge

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‘They (clients) can’t see what they can have. Our job is one of helping them gaze into a crystal ball . . .’ - Witness to the inquiry

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Recommendation 3 Campaign to recognise the value and raise standards of design and innovation *RYHUQPHQW VKRXOG FRPPLW WR WKH SURPRWLRQ RI WKH EHQH¿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¿QDQFLDO VWUDWHJLF DQG VRFLDO LPSDFW 7KH GHYHORSPHQW RI WKLV RQOLQH UHVRXUFH ZRXOG DFW WR LQVSLUH FRPPLVVLRQHUV DQG PDQDJHUV WR GHPDQG PRUH RI GHVLJQHUV

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‘Design is the new management consultancy’31

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http://noisydecentgraphics.typepad.com/design/2006/06/the_future_of_g_1.html European Innovation Scoreboard 2008 International Design Scoreboard, p59 Dr Jason Potts and Kate Morrison, NESTA, Nudging Innovation, April 2009 Dr Jason Potts and Kate Morrison, NESTA, Nudging Innovation, April 2009 Innovation consultancy IDEO are a perfect example: http://www.ideo.com/ http://www.designcouncil.org.uk/briefing02

‘Government tries to choose design, when actually it needs to get better at choosing designers’ - Witness to the inquiry

25

Design and the public good: creativity vs the procurement process? Knowledge

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‘Where design can help government is very strategically, by helping managers in government lead. We can do more than create pretty signs, we can help these agencies of government work out what an excellent customer experience is’ - Witness to the inquiry

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Recommendation 4 A register of expert design and innovation advisors 7R IDFLOLWDWH D PRYH WR PRUH RXWFRPH EDVHG FRPPLVVLRQLQJ *RYHUQPHQW VKRXOG HVWDEOLVK D UHJLVWHU RI GHVLJQ DQG LQQRYDWLRQ VSHFLDOLVWV DYDLODEOH IRU SROLF\PDNHUV DQG SXEOLF VHFWRU PDQDJHUV ZLWK PLQLPXP SURFXUHPHQW ZRUN WR DGYLVH RQ V\VWHP VHUYLFH DQG SURGXFW GHYHORSPHQW DQG PRUH HIIHFWLYH SURFXUHPHQW

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http://www.designcouncil.org.uk/Design-Council/1/What-we-do/Our-activities/Public-services-by-design/ ‘Recently published research commissioned by the Cabinet Office and carried out by the Sunningdale Institute again makes the case for a Whitehall policy culture that seeks out, captures and values frontline insights and experiences in order to ensure policies that are practical, effective and relevant’ – Operational Efficiency Programme: final report, 5.30

26

‘THE ANSWER TO THE PROBLEM CANNOT BE TO ASK A LOT OF DESIGNERS TO GO THROUGH A COMPLEX APPLICATION PROCESS AND THEN DO CREATIVE WORK FOR FREE – WHICH IS AGAINST OUR TRADE ASSOCIATION GUIDANCE’

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Design and the public good: creativity vs the procurement process? Skills

SKILLS

Improving the capacity and skills of design and innovation procurers The effective management of creative expertise

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Box 2 Failings in the management of creative expertise Frequently-occurring complaints from both buyers and suppliers: - miscommunication and misunderstandings between commissioners and procurers - artificial dividing of projects into smaller procurement tasks, often when an integrated approach would be more effective - poor knowledge of how to write a design brief – suppliers complained of having to negotiate ‘the straitjacket of a bad brief’ – or evaluate a tender - under-appreciation of design skills: demands for free creative pitching and an unwillingness to pay ‘the right price’ for design - ‘Value for Money’, although defined by the OGC and NAO as ‘Optimising the cost of delivering a service or goods over the full life of the contract rather than minimising the initial price’, is still often interpreted as lowest cost Overall: a confusing lack of consistency in process.

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SEE Policy Booklet 01, November 2009, Integrating Design into Regional Innovation Policy, p9 Using the power of public procurement, Cox Review of Creativity in Business, p35 80% of design agencies employ fewer than 5 people http://www.ogc.gov.uk/key_policy_principles_creating_opportunities_for_smes_and_third_sector_organisations.asp

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Recommendation 5 A Design and Procurement Panel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¿JXUHV UHFRJQLVHG E\ WKH 2*& DQG FKDLUHG E\ WKH QHZ UROH RI *RYHUQPHQW &KLHI $GYLVRU IRU 'HVLJQ DQG ,QQRYDWLRQ

‘There seems to be an absolute acceptance to pay for science but a reluctance to pay the right price for creativity – creative thinking or design’ - Witness to the inquiry

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Tailored training

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Box 3 The ‘Design Does It’ categories of designer 1 The ‘consultant’ designer is focused on finding the right problem, using conceptual thinking, and is oriented towards improving the way something works functionally – thereby making it better. 2 The ‘visionary’ designer is focused on exploring problems (rather than working with a given solution), by using conceptual thinking methods that are oriented towards bringing a unique twist to something – making it new, fresh and eye-catching. 3 The ‘contractor’ designer is focused on

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http://www.telegraph.co.uk/news/uknews/1553545/Olympic-chiefs-under-fire-for-puerile-logo.html http://www.civilservice.gov.uk/my-civil-service/networks/professional/gps.aspx http://www.civilservice.gov.uk/my-civil-service/networks/professional/gcn.aspx Putting the Frontline First: Smarter Government p52

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Recommendation 6 A tailored training programme ,Q SDUWQHUVKLS ZLWK *36 DQG *&1 WKH 'HVLJQ %XVLQHVV $VVRFLDWLRQ VKRXOG UHIUHVK DQG H[SDQG WKH µ'HVLJQ 'RHV ,W¶ WUDLQLQJ DQG GHYHORSPHQW SURJUDPPH IRU FRPPLVVLRQHUV DQG SURFXUHUV RI GHVLJQ WR LQFOXGH WUDLQLQJ LQ GHVLJQ SURFXUHPHQW DQG IRU VHUYLFHV EH\RQG WKH UHDOP RI PDUNHWLQJ DQG FRPPXQLFDWLRQV GHVLJQ 7KH FRXUVH RXJKW WR SODFH HPSKDVLV RQ GHPRQVWUDWLQJ YDOXH IRU PRQH\ WKURXJK GHVLJQ 7KLV UHSRUW FDOOV IRU DOO *RYHUQPHQW GHSDUWPHQWV DQG 1'3%V WR HQFRXUDJH WUDLQLQJ WKURXJK D QHZO\ DFFUHGLWHG FRXUVH RI WKLV NLQG DORQJVLGH WKRVH RIIHUHG E\ &,% &,06 DQG &,35

48 See the Design Council’s ‘Design Bugs Out’ Case Study, p42

‘Designers know about risk – design is one of the ‘riskiest’ industries. The design process is a simple human activity of trial and error. If you punish people for errors they will not trial. There needs to be a way of rewarding controlled failure’ - Witness to the inquiry

Design and the public good: creativity vs the procurement process? Skills

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‘People buy from people. A problem with procurement, inherently, is it’s a barrier to the relationship’ - Witness to the inquiry

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A mismatch with current policy

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Recommendation 7 An Appropriate Role for the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¶V YDOXH LV LQ SURYLQJ D QHW VDYLQJ RQ EXON SXUFKDVH DQG UHSHDW EXVLQHVV

50 51 52 53 54

Department for Culture, Media and Sport, Creative Britain: New Talents for the New Economy, February 2008 HM Treasury, Accelerating the SME Economic Engine: Through transparent, simple and strategic procurement, November 2008 OGC, Driving Innovation Through Public Procurement, 2009 HM Government, Putting the Frontline First: Smarter Government, December 2009 DCSF is experimenting with a potential model: http://prweek.com/channel/PublicSector/article/983180/Department%20for%20Children,%20 Schools%20and%20Families%20to%20streamline%20government%20comms/

‘GOVERNMENT TRIES TO CHOOSE DESIGN, WHEN ACTUALLY IT NEEDS TO GET BETTER AT CHOOSING DESIGNERS’

35

36

Design and the public good: creativity vs the procurement process? Process

PROCESS

Transforming the procurement process for design and innovation A single, simplified below-threshold tender approach

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‘You can answer the question in a very human way: why should anyone invest a lot of time and effort, put themselves under a high level of scrutiny, with a lot of information about their business, for a very low possibility of gain?’ - Witness to the inquiry

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HM Treasury, Accelerating the SME Economic Engine: Through transparent, simple and strategic procurement, November 2008

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‘I’ve yet to use an e-procurement system that comes anywhere near to meeting government guidelines on usability.’

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- Witness to the inquiry

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Recommendation 8 A single approach for tendering below threshold projects :H UHFRPPHQG WKH LQVWLWXWLQJ RI D VLQJOH DSSURDFK IRU SURFXULQJ GHVLJQ DQG LQQRYDWLRQ EHORZ WKH 2-(8 WKUHVKROG $ JUHDWHU EHQH¿W IRU JRYHUQPHQW ZRXOG EH DFKLHYHG E\ DSSO\LQJ D VLQJOH VLPSOL¿HG SURFHVV DV UHFRPPHQGHG LQ WKH *ORYHU UHSRUW 7KH '%$ VKRXOG ZRUN ZLWK WKH 2*& RQ SXEOLFLVLQJ EHVW SUDFWLFH DQG GHYHORSLQJ VHFWRU VSHFL¿F VHPLQDUV LQ KRZ WR SURFXUH DQG VXSSO\ VHH 5HFRPPHQGDWLRQ $ WDLORUHG WUDLQLQJ SURJUDPPH

56 HM Treasury, Accelerating the SME Economic Engine: Through transparent, simple and strategic procurement, November 2008

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The Internal Process

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‘most of our clients in the public sector do their level best to avoid getting involved in the procurement system’ - Witness to the inquiry

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‘Our most successful experiences have been working with people that have bent the rules: ‘flexible interpretation’.’ - Witness to the inquiry

Design and the public good: creativity vs the procurement process? Process

CASE STUDY A TYPICAL EXAMPLE OF POOR PRACTICE THIS IS A FIRST HAND ACCOUNT FROM A DESIGN AGENCY APPLYING TO BE ON A LOCAL AUTHORITY DESIGN AND MEDIA SERVICES FRAMEWORK

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Design and the public good: creativity vs the procurement process? Process

Recommendation 9 A best practice pilot :H UHFRPPHQG WKH GHYHORSPHQW RI D EHVW SUDFWLFH SLORW IRU WKH SURFXUHPHQW RI FUHDWLYH VHUYLFHV EHJLQQLQJ ZLWK D VHOHFW QXPEHU RI :KLWHKDOO GHSDUWPHQWV 'HVLJQ SURFXUHPHQW ZRXOG EH DQ LGHDO WHVW EHG IRU UHVROYLQJ W\SLFDO GLI¿FXOWLHV ZLWKLQ GHSDUWPHQWV DQG HYROYLQJ VRPH VLPSOHU SURFXUHPHQW PHWKRGV ,I VXFFHVVIXO WKH PRGHO FRXOG EH UROOHG RXW DFURVV WKH ZLGHU SXEOLF VHFWRU

‘I suspect the communication internally is not eloquent enough in some respects to be able to brief the procurement person as to what they should be trying to achieve’ - Witness to the inquiry

Design and the public good: creativity vs the procurement process? Process

Clearer messaging

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Design and the public good: creativity vs the procurement process? Process

CASE STUDY DESIGN BUGS OUT: EFFICIENCY ACHIEVED THROUGH A NEW APPROACH TO PROCUREMENT

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43

Design and the public good: creativity vs the procurement process? Conclusion

CONCLUSION

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‘There’s a confusion in this country between designers as artists and … as people who are agents of change in organisations’ - Witness to the inquiry

44

Design and the public good: creativity vs the procurement process?

45

Design and the public good: creativity vs the procurement process? Appendix

APPENDIX

A possible prototype Public Sector Design Buying Process - Initial Decision Tree What are you commissioning?

What is your budget?

Process

Corporate identity Branding Packaging Annual reports Digital (non web) Website Exhibition/Events Literature Product design Service design Innovation

Up to £12,000

Three written quotes

£12,001 - £60,000

Short list - 3 to 6 to pitch

£60,001 - £100,000

Long list - short list, 6 to pitch

Over £100,001 (inc framework or roster)

Full OJEU process

(DBA)

What are you commissioning?

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Design and the public good: creativity vs the procurement process? Appendix

Definition of terms

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Creativity

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Design and the public good: creativity vs the procurement process? Appendix

Panel Members

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