Iteration is the process of using insights from one step or stage to refine the subsequent step or stage. It is a key feature of the agile procurement framework that underpins Test and Buy Innovation.
Read more about agile procurement.
An iteration plan identifies potential learning points and insights that could emerge at each stage of the innovation buying journey. An iteration plan is not usually part of the suite of documents used in procurement, but is strongly recommended for innovation buying projects because it:
- helps buying teams anticipate what could change and when
- creates flexibility to respond to emerging risk profiles
- provides scaffolding for change governance
- gives approvers confidence that an agile procurement will be well managed.
Why innovation buying strategies change
When buying known solutions, procurement strategies tend not to change once they have been approved. Change is more likely when we are open to a range of solutions. Uncovering new information is a positive sign that innovation is occurring. New information results in evolved understanding of preferred solutions and their risk profiles. Adapting the procurement approach is an indicator that innovation is being managed responsibly.
Changes to procurement approaches should therefore be expected and welcomed. NSW Government buyers face the challenge of completing a procurement strategy and getting it approved before approaching the market. On top of this, buyers must ensure that any change decisions are well-governed. They have obligations to safeguard probity and comply with procurement policies, agency processes and delegations.
This page supports NSW Government buyers to iterate a procurement strategy and give decision-makers confidence in how changes will be managed.
When to develop your iteration plan
Buying teams should discuss iteration planning early in the Discovery phase. They should develop a structured approach to iteration and change management concurrently with the Business case step.
Depending on the complexity of the solution and project requirements, iteration planning can take a few hours to several days.
The output of this step should be an iteration plan that articulates what changes are expected, when they are expected and how they will be managed by the buying project. It should include any formal 'gates' between testing stages. The buying team will draw on the iteration plan to create a procurement strategy in the Plan phase of procurement and to prepare market-facing documentation in the Source phase.
Who to involve
Buying teams should consult a wide range of stakeholders as part of iteration planning. Expand the boxes below for suggested stakeholders to include and how they can contribute to the process.
Risk expertise can help ensure the approach to iteration is transparent, fair, well-documented and stands up to scrutiny. Risk experts and buying teams should go into this exercise with a shared understanding that adaptation is a critical way to manage risk.
Risk experts can then help ensure that each iteration supports capturing new risks and implementing controls at each stage.
For example, upon receiving and evaluating supplier proposals, the buying team may need help capturing and managing new risks that are uncovered with the emerging solutions. A risk expert can help plan for this.
Buyers should consult with central ICT and digital teams in their agency or department early in the iteration planning process. This is to ensure they identify relevant ICT stakeholders who will need to provide technical expertise.
When applying an outcome-focus, detailed technical specifications only begin to emerge as suppliers propose solutions. ICT teams have specialist knowledge of how to identify and use technical insights, which will be critical through the iteration process.
This helps ensure proposed solutions are assessed for strategic alignment at the appropriate stage. It also helps ICT teams plan the availability of certain domain experts to align with stages that require more technical input or evaluation.
Innovation procurement can require greater procurement support than projects buying known solutions. Clarifying roles, responsibilities and time commitments early will help procurement teams better plan resourcing, support buyers and prevent delays.
As more information is uncovered and lessons are learned, procurement involvement may be needed through the iteration process to:
- ensure procedural fairness for requirements and evaluation
- facilitate communication with suppliers
- ensure compliance with policies.
Service designers (or similar role types) are skilled to lead mobilisation and challenge framing activities and facilitate workshops. The outputs from a well-run kick-off workshop will set up the initial iteration planning meeting for success.
In addition, they can help refine insights from market research, requirements, evaluation, staged engagement activities and lessons learned.
Buying teams should engage business function owners, solution owners and users as part of iteration planning to get their input on, and plan for their availability for:
- stakeholder identification and (where relevant) facilitating partnerships
- defining requirements
- developing evaluation criteria
- end user testing
- participating in the evaluation process
- identifying new insights and agreeing on any actions or adaptations
- iterative quality assurance.
Probity advisors serve as a witness to ensure that iteration planning follows strong communication, evaluation and governance structures as new information is uncovered. If engaged early, they can help design well-governed and probity-rich decision gates and communication processes. The iteration plan needs to consider probity in how iteration outcomes are communicated to suppliers as the procurement progresses.
Resources to develop your iteration plan
Plan for and manage changes to the strategy over the life of a procurement.
Tailor content to explain why change is expected, and provides confidence.
Learn about objectives, information needs, risks, costs, approvals and processes for each stage.