Procurement strategy pointers: How to establish an internal approvals process that streamlines decision making and reduces risk

It’s usual for high value government projects to take years of exhaustive planning, consultation and negotiation to get a major infrastructure initiative underway – and for every major decision to require sign-off from an array of internal decision makers.

It’s their collective responsibility to ensure a project is worthwhile and well planned, and that procurement is conducted in accordance with the relevant government regulations in their jurisdiction.

A well-defined internal approvals process is the mechanism that enables this to occur. It minimizes risk, maximizes accountability and increases the likelihood of project success. Having one in place before an RFT/RFP is launched is crucial.  

Given the significant sum of money that’s likely to be at stake – today, many major infrastructure initiatives have billion-dollar price tags – it’s something public sector entities can’t afford to get wrong.

Doing things by the book

Being able to demonstrate that a project is being progressed via a review and approval process that’s consistent, transparent and auditable is vital. 

Major projects are subject to intense scrutiny, and project leaders need to be able to show they’ve put explicit approval workflows in place and are following them to the letter.

Some of the benefits of doing so include fewer misunderstandings, more efficient decision making, quicker procurement timelines, tighter financial control and better adherence to internal policies, legal requirements and industry standards.

Conversely, in the absence of a clearly defined internal approvals process, an organization faces the ever-present dangers of delayed decision making, inefficient allocation of resources, unauthorized spending and exposure to legal and regulatory risks. In a worst case scenario, a poorly managed procurement process can damage its reputation and threaten the viability of the project.

But for government entities that don’t take advantage of technology, getting timely sign-off from multiple layers of management, and keeping track of the approval status of multiple decisions simultaneously, can be challenging.

Struggling to progress projects through the approval chain

That’s because major projects are becoming ever-more-complex and data rich.

Using legacy communication platforms and processes to disseminate lengthy reports, proposals, contracts and other commercially sensitive documents to internal decision makers is inefficient and insecure.

It’s all too easy for documents that are sent up the line for approval on paper to be lost, stolen or misplaced, while if they’re shared by email, they can be accidentally or deliberately copied or forwarded.

Should a data leak occur at any stage of the planning and procurement process, the fall-out is likely to be significant. The inability to safeguard commercial-in-confidence documents – and commentary from decision makers on their contents – reflects badly on the entity running the project and may be career limiting for the individuals deemed to be responsible.

Manual approval workflows can slow down decision making, push out project timelines and make it impossible for project leaders to maintain visibility over the status of their project.

Incorporating amendments, maintaining version control and preserving clear audit trails tends to be a time consuming, error prone affair too, for project and procurement teams operating in manual mode.

Tools to make the task easy

This is where technology has a transformational role to play. It makes it easy for project and procurement teams to share documents with decision makers at all levels and to log their comments, amendments and approvals.

Deploying a single, secure online data repository that incorporates automated approval workflows makes it easy to track the plethora of interactions and modifications that occur when reports are being commissioned, proposals assessed and contracts negotiated.

Using an online data repository as a single source of truth – a secure hub where all documents and details relating to project planning and procurement are captured and stored – enables public sector entities to adhere to a proper approvals process and maintain the comprehensive audit trail taxpayers expect when public money is being spent.

Deploying a virtual data room to automate your approvals process

Given the benefits they can deliver, it’s easy to see why public sector organizations are investing in  virtual data rooms to help them manage major infrastructure projects. The term is used to refer to a secure online space where confidential documents are stored and shared with authorized parties.

Virtual data rooms can help organizations bring efficiency and rigor to the internal approvals process, by replacing legacy record keeping and document distribution processes and practices with streamlined, secure digital alternatives.

Deploying one minimizes the complexity that’s historically been associated with managing internal approvals for major projects. It’s enabling technology that reduces the risk of actions being taken which haven’t been officially sanctioned and allows project and procurement teams to move ahead with confidence.

Optimizing your procurement and project management practices

It’s easier to progress a high value public sector project with the right tools. A virtual data room allows you to manage the internal approvals process efficiently, in a manner that’s transparent and auditable.

Select a solution that’s been developed by professionals with firsthand experience planning, procuring and overseeing major infrastructure initiatives and you’ll give your team the best chance of capitalizing on the benefits this transformative technology can deliver.

If you’d like to learn more about how virtual data rooms are helping government agencies make smarter procurement decisions or see for yourself how this transformative technology can streamline internal approvals, Ansarada stands ready to assist. Get in touch to talk to one of our public sector procurement specialists.