Reverse Auctions are a proven way to save millions of dollars in government procurement. With the Obama Administration seeking substantial savings on federal purchasing, competitive bidding – dubbed "eBay in reverse" – has emerged as a vital part of their strategy. Here we report an update on the federal government’s efforts overall and highlight what is being done at the U.S. Customs and Border Protection Service (CBP), in combination with FedBid, their private sector online marketplace provider.
Introduction
ell, one thing we know, when governments at any level – and around the world – want to save taxpayer’s monies in their procurement operations, the easiest – and often the best – strategic move they can make is to employ reverse auctions as a strategic part of their purchasing of all kinds of goods, commodities, and services.
The Director of the White House’s Office of Management and Budget (OMB), Peter Orzag, last week released a report updating the American people on President Obama’s procurement reform efforts. These efforts target procurement reforms to to save $19 billion in FY 2010, and $40 billion in FY2011. In announcing this effort in December 2009, President Obama stated: ”After years of irresponsibility, we are once again taking responsibility for every dollar we spend, the same way families do.” At the same time, Jeffrey Zients, the OMB’s Deputy Director for Management, observed: “No business, large or small, could survive the continued waste and mismanagement the federal government has experienced. It’s illogical, it’s unacceptable, and we will fix it.” (Source: Obama’s EBay in reverse aims to cut costs).
Reverse Auctions
Reverse auctions – dubbed with the marketing title of “eBay in reverse” by the Administration – are a big part of the effort and endorsed as a major way to save the federal government – and all of us as taxpayers – big dollars through introducing new levels of competition and transparency in the contracting process. And the effort is paying huge dividends in terms of savings for federal agencies who have made the switch to using reverse auctions. Director Orzag calls attention to the work being done by the Department of Homeland Security (DHS) (http://www.DHS.gov/) and the U.S. Customs and Border Protection Service (CBP) (http://www.CBP.gov/) by highlighting the DHS success story:
* DHS Saves $40 Million in Reverse Auctions
Reverse auctions – where vendors bid prices down to win an agency’s work – are helping agencies increase competition and save millions of dollars on their purchases of commercial off-the-shelf products. In FY 2009, DHS conducted more than 2,500 reverse auctions for approximately $340 million in goods, resulting in savings of more than $40 million. Documentation of each auction is captured on-line so that contracting officers and other agency officials can consider this information in developing more informed costing strategies for future needs.
Source: Cutting Waste and Saving Money Through Contracting Reform: July 7, 2010
This effort has been endorsed by many groups, including the Project On Government Oversight (POGO) (http://pogo.org/), which in a piece entitled, “Fed Contracting: So Hot!,” stated that: “POGO has promoted the use of reverse auctions in the past, and we believe that it is a great way to effectively use competition to get deals.” (Source: http://pogoblog.typepad.com/pogo/2010/07/fed-contracting-so-hot.html)
Analysis
So, kudos to John Ely, Executive Director of the Office of CBP Procurement, and to all the CBP leadership and contracting staff for “taking the ball and running with it” to help revolutionize the way the federal government does business and to save a great deal of precious taxpayer dollars (with the help of their private sector partner on the project, FedBid {http://www.fedbid.com/}, a Vienna, VA-based online marketplace provider). If more federal and state agencies adopted reverse auctions as a strategic part of their procurement efforts, just imagine how much more effective – and efficient – we could make the public sector!
Biography
David C. Wyld (dwyld@selu.edu) is the Director of the Reverse Auction Research Center (http://reverseauctionresearch.blogspot.com/). He currently serves as the Robert Maurin Professor of Management at Southeastern Louisiana University in Hammond, Louisiana. He is a noted expert on reverse auctions and e-procurement topics, being widely published on the topic and a recognized academic expert/consultant/speaker in the area.
Read more:
How to Revolutionize Governmental Buying: The Customs and Border Protection Service Blazes The Way in The Federal Sector with Reverse Auction Buying
++++++++++++++++++++++
RefBan
Saturday, July 17, 2010
Friday, July 16, 2010
Great Commentary on the New Illinois Reverse Auction-Enabling Law - and a Bit of Backstory on the Crain's Chicago Business Article on the Matter
I've been waiting to comment on a recent piece that ran in Crain's Chicago Business regarding the just-enacted law authorizing reverse auctions in the State of Illinois. It appeared on July 12, 2010, and you can read the article here:
Illinois' new reverse-auction bidding process squeezes suppliers
Now, for a bit of backstory, as the head of the Reverse Auction Research Center and one of the leading academic experts in the area, I was interviewed by the story's author, Paul Merrion. Well, Mr. Merrion chose not to use my material and my quotes on the benefits of reverse auctions for the public sector and lots of details that I provided to him on what has been done successfully by national, state and local governments by shifting procurement spending to reverse auctions and introducing competitive bidding to replace opaque processes and "good old boy" deals. In the name of fairness and objectivity, while I spoke of the benefits and some potential pitfalls to avoid from "lessons learned" by other jurisdictions, I "stuck to my guns" in regards to my belief - based on a decade's worth of research and market monitoring - that reverse auctioning is a great fit for much of government spending. What Mr. Merrion chose to do instead was to feature the "insights" of Dr. Robert Emiliani, A Professor of Engineering and Technology at Central Connecticut State University. As anyone who has followed the reverse auction market knows, Dr. Emiliani has been a long-time critic of reverse auctions, and while so, Mr. Merrion chose not to include any of my mostly pro-reverse auction material/quotes, while allowing Dr. Emiliani to offer his opinion that: "(Reverse auctions are)It's bad for the state, it's bad for Illinois business. You're screwing your trading partner. How long do you think you can get away with that?"
I would have let Mr. Merrion's one-sided piece go, but now my friend Jason Busch at SpendMatters (http://www.spendmatters.com/) has - as an executive in the field with a great track record and yes, a resident of Illinois, has taken the article and the notion that somehow reverse auctions would be "bad" for his home state to task in a fantastic post, which you can read below:
When Reverse Auctions Come Up Against "The Machine" in the State of Illinois
Anyone and everyone who has a "dog in the hunt" regarding thinking about how to save money and introduce new levels of competition AND transparency in governmental procurement owes it to himself/herself - and to your agency AND to your constituents - needs to read this great rejoinder to the Crain's Chicago Business piece! By all means, forward this piece on to your colleagues and to your elected/appointed governmental officials and managers, not just in Illinois but around the country.
Game, set and match to Jason and to reverse auctions! For more on the truth about reverse auctions and what they can do in both the public and private sectors, become a follower of my blog - and Jason's (http://www.spendmatters.com/).
David
From the Reverse Auction Research Center: http://reverseauctionresearch.blogspot.com/
++++++++++++++++++++++
Are You an iWorker?: Does Your Company Support - or Hinder - Your Use of New Technologies
Many, many of us are today what can be called iWorkers (and though I'm a Mac, the term has nothing to do with Apple - surprisingly enough!). Still, it's the way we get things done today, and technology will play an even more critical role going forward.
Here is a fascinating slide show put together by the folks at CIO Insight. It is based on a rather large, Unisys-sponsored survey of workers from 10 countries, and it has very interesting statistics on where we are today. Still a lot of Luddite managers out there - even in the tech field itself. See and click through the slides at:
http://www.cioinsight.com/c/a/IT-Management/iWorkers-CIOs-Are-In-The-Dark-About-TechSavvy-Employees-676020/?kc=EWWHNEMNL07152010STR1
Very interesting stuff - forward this post on to your colleagues - and particularly your managers! I'll look for your comments here on the blog site.
David
++++++++++++++++++++++
Drunk Russians Drown Escaping Record Heat Wave (VIDEO)
Image via Wikipedia
Proof (well, about 80 proof) that alcohol and water don't mix - especially when the alcohol is clear like Vodka. Watch:
Read the Article at HuffingtonPost
David http://wyl
++++++++++++++++++++++
Top Ten Management on Creating Effective Work Teams: An Overview of Creating Effective Work Teams
Image by Getty Images via @daylifeThis overview of Creating Effective Work Teams was prepared by Elinore Hanby while a Journalism major in the College of Business at Southeastern Louisiana University.
Introduction
This article was produced to educate managers about the different types of work teams and the benefits of having work teams. This article also provides managers with information on how to create effective work teams in their place of business.
The Idea in a Nutshell
Teamwork is a human process and people have inherent team skills; teamwork happens spontaneously all the time, both inside and outside the workplace. Inside the workplace, however, teams are known as work teams. Work teams are groups whose members work intensely on a specific, common goal, using their positive synergy, individual and mutual accountability and complementary skills. Teams can do a variety of things. They have the ability to quickly assemble, deploy, refocus, and disband. They can design products, provide services, negotiate deals, coordinate projects, offer advice and make decisions. There are numerous benefits to having work teams, which is why most organizations today implement the use of such teams.
The Top Ten Things You Need to Know About Creating Effective Work Teams
1. There are four different types of work teams. First is the problem-solving team, which is a team from the same department or functional area that’s involved in efforts to improve work activities or to solve specific problems. Next there is the self-managed work team. This team is a formal group of employees who operate without a manager and are responsible for a complete work process or segment. The third type of team is the cross-functional team, which is a work team composed of individuals from various specialties. Finally, there is the virtual team, which is a type of work team that uses technology to link physically dispersed members in order to achieve a common goal.
2. Teams must have clear goals. If a team is to be effective, a team must have a clear understanding of the goal that they are working to achieve. Members must be committed to the team’s goals. They must know what they are expected to accomplish. Team member’s must also plan and understand how they will work together to achieve their goals.
3. Team members must have relevant skills. Effective teams are composed of competent individuals who have the necessary technical and interpersonal skills to achieve their goals while working well together. Members may have the technical skills, but they also must possess the interpersonal skills needed to work well as a team member.
4. There must be mutual trust within a team. Effective teams are characterized by high mutual trust. Members must believe in each other’s abilities, character, and integrity. Trust, however, isn’t something that is secure. Trust must be maintained and this requires work on every member’s part.
5. A team must have unified commitment. A unified commitment is characterized by dedication to a team’s goals and a willingness to expend enormous amounts of energy to achieve them. Members of an effective team are loyal and show dedication to the team. They are willing to do whatever it takes, and work their hardest, to help their team succeed.
6. Good communication is a must if a team is to be effective. Effective teams have open, participatory communication among members. Members generally know what is going on and are able to convey messages, both verbally and nonverbally, between each other in clearly understandable ways. Members also give feedback to guide one another and correct misunderstandings.
7. Team members must possess negotiating skills. Effective teams are always making adjustments and must be flexible; therefore members must be open to negotiations. It is important that members are able to confront and reconcile differences.
8. Leadership is always important in effective teams. Leaders can help motivate members to follow them through difficult situations. Leaders do this by clarifying goals, assuring that change is possible, increasing self-confidence of team members and helping members to more fully realize their potential. Effective leaders are important to help guide and support a team, but should not try to control a team. It is also important for teams to share leadership roles. Each member should feel responsible for team leadership. One person should not dominate.
9. All effective teams need support, both internally and externally. Internally, the team should have a sound infrastructure, a clear and reasonable measurement system that team members may use to evaluate their overall performance, an incentive program that recognizes and rewards team activities, and a supportive human resource system. The right infrastructure should support members and reinforce behaviors that lead to high levels of performance. Externally, managers should provide the team with the resources it needs.
10. Effective teams must be experimental and creative. Well functioning teams often experiment with different ways of doing things and encourage creativity. Creativity is important in order to think of new ideas for the future. Team members are encouraged to think outside the box.
The Video Lounge
This is a very informative video, which explains some of the benefits of creating teams and provides 9 helpful tips for building great teams.
My Take
The majority of companies and organizations today do use work teams, and I believe there is good reason for that. Teams have proven to be extremely effective and beneficial. I strongly concur with the utilization of work teams in businesses and believe they are extremely helpful and important. Humans do have natural team-building instincts and many work better when they have the support and guidance of team members. Using myself as an example, I prefer being part of a team as opposed to working on my own. I feel more motivated, confident and optimistic. I enjoy the social connection and the feeling of being part of a team, with members all working toward the same goals. While not everyone enjoys working in teams, many people do, and this is one of the many reasons teams are so effective.
References
Coulter, Mary, and Stephen P. Robbins. Management. 10th. Upper Saddle River, New Jersey: Pearson, 2009.
Kazemek, Edward A. (1991). Ten criteria for effective team building. Healthcare Financial Management. Retrieved from http://www.allbusiness.com/human-resources/employee-development-team-building/255479-1.html
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Contact Info: To contact the author of “Top Ten Management on Creating Effective Work Teams,” please email Elinore Hanby at elinore.hanby@selu.edu or elliehanby@yahoo.com.
BIOGRAPHY
David C. Wyld (dwyld.kwu@gmail.com) is the Robert Maurin Professor of Management at Southeastern Louisiana University in Hammond, Louisiana. He is a management consultant, researcher/writer, and executive educator. His blog, Wyld About Business, can be viewed at http://wyld-business.blogspot.com/. He also maintains compilations of his student’s publications regarding book reviews (http://wyld-about-books.blogspot.com/) and international foods (http://wyld-about-food.blogspot.com/).
AN INVITATION TO WORK WITH US, TODAY!
If you enjoyed this publication, why not make one of your own with us! Are you a college or university student from anywhere in the world who would be interested in publishing your work in an edited online journal appropriate to your topic? Such a move can help put muscle into your resume and make a great impression on potential employers and graduate schools (and needless to say – and perhaps most importantly in the age in which we live – likely be the first thing that companies/universities view about you when “Googling” you)! If so, we can help you get that first publication for free (and more if you desire)! Visit Wyld Publishing Services (http://wyldpublishingservice.yolasite.com/) for details. We can work with you to publish your quality essays, research articles/papers, reviews, etc. – and even audio and visual media and PowerPoint presentations – given our network of edited publications and relationship with publishers around the world who want to work with you and your work. Contact us today atdwyld.kwu@gmail.com.
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Read more:
Top Ten Management on Creating Effective Work Teams: An Overview of Creating Effective Work Teams
++++++++++++++++++++++
Thursday, July 15, 2010
Reverse Auctions: Are They Well-suited for Procuring Telecom Services?
What is appropriate for procurement through competitive bidding? Often, that depends on who you’re talking to – and what their motivation might be. Here we address the subject of telecom services and what the impact of using reverse auctions can be on purchasing these important, but costly, services today.
What can – and cannot – be the subject of reverse auctions always provokes an interesting debate – whether it is standing in a group by the finger foods at a conference, in a classroom setting doing training, or here on the Web. The truth is that quite often, whether from limited perspectives/experience or from corporate self-interest, organizations will fall into the trap of thinking that what they need to buy in terms of goods and services are not the “right fit” for reverse auctioning.
Telecom services are an interesting area. What can be more generic than voice/data/wireless services – so long as the service levels are specified and vendors are properly vetted and screened. However, Veramark Technologies, Inc., (http://www.Veramark.com/) a Rochester-NY based provider of Telecom Expense Management (TEM) and Call Accounting has recently taken on the subject in their blog post (read below):
Reverse Auctions – Do They Have a Role in Telecom Expense Management?
(http://blog.Veramark.com/2010/07/reverse-auctions-do-they-have-a-role-in-telecom-expense-management.html)
Not surprisingly, Veramark’s perspective is that telecom services are “too complex” to be subject to reverse auctioning. They state:
Reverse auctions are often not the right choice for sourcing telecom services because there are typically few potential providers, which will limit the price impact of competitive bidding. But more importantly, the variety and complexity of carrier contracts cannot be negotiated in the context of a simple bidding war. They typically call for face-to-face negotiations in which the customer’s greatest asset is knowledge of their own usage and spend data along with the carrier’s performance history. While rates are important, the ultimate cost for telecom services is a product of SLAs (service level agreements), service plan selections, and other negotiated terms and conditions.
Hmmm. I would argue that this is just the type of service that should be put to the test through competitive bidding. With proper up-front work done both to iron-out very clear specifications (i.e. the service level agreements) and to ensure that the potential suppliers fully understand – and can fully comply with them, then a reverse auction will ensure that the organization is getting the absolute best market price on what can be a very significant part of its overall procurement outlay.
Think about how much your organization is spending in total for telecom services – what would it mean if you could cut 5-10-20% off that amount. If you are in the private sector, this could have significant impact on your bottom-line. In fact, it could very well be the difference between being in the black (being profitable) or staying in the red (losing money)! And if you are a procurement executive in the public sector, every dollar saved on what are – in essence - ceteris paribus (so long as the service is there – are you listening AT&T?) - generic services, this will save taxpayer dollars in a time of great budget challenges. These savings are especially significant today, as savings of thousand – perhaps tens or even hundreds of thousands of dollars when we are talking about telecom spending – will allowing your agency to have resources for other pressing needs – and make the procurement area – and yourself – a hero!
So, what are you doing to explore how to strategically apply reverse auctions in your procurement operations? Contact us here at the Reverse Auction Research Center http://reverseauctionresearch.blogspot.com/ to learn more about how to learn more about how leading companies and government agencies – both large and small – around the world are leveraging the power of reverse auctioning to their benefit.
BIOGRAPHY
David C. Wyld (dwyld.kwu@gmail.com) is the Robert Maurin Professor of management at Southeastern Louisiana University in Hammond, Louisiana. He is a management consultant, researcher/writer, and executive educator. His blog, Wyld About Business, can be viewed at http://wyld-business.blogspot.com/. He also serves as the Director of the Reverse Auction Research Center (http://reverseauctionresearch.blogspot.com/), a hub of research and news in the expanding world of competitive bidding. Dr. Wyld also maintains compilations of his student’s publications regarding management concepts (http://toptenmanagement.blogspot.com/), book reviews (http://wyld-about-books.blogspot.com/) and international foods (http://wyld-about-food.blogspot.com/).
Read more:
Reverse Auctions: Are They Well-suited for Procuring Telecom Services?
++++++++++++++++++++++
Fired Over Twitter: 13 Tweets That Got People CANNED
Image via Wikipedia
Remember kids, they don't call it a "digital footprint" for nothing! This is why it is SOOOOOOO very important to think about what you say and what you put online. These folks learned the lesson the hard way, and unfortunately, it took them less than a minute to type out those 140 characters or less to ruin their standing with their companies. While the Internet is a place where we can freely roam (for now), such freedom can come back to - how shall we say it politely - "bite you in the butt!"
Read the Article at HuffingtonPost
David http://wyl
++++++++++++++++++++++
Subscribe to:
Posts (Atom)