2023 has arrived! With the new year comes new priorities, so NASPO has released the 2023 Top Ten Priorities for State Procurement Offices.  Annually, CPOs from each state are surveyed to gain insight into the challenges and goals for public procurement in the upcoming year. NASPO Pulse is here to highlight how state procurement is focused on the future.

Each year, NASPO uses the Top Ten Priorities for State Procurement to inform the topics and issues covered in our educational and research content, conferences, and trainings.  This year, state CPOs determined the following priorities for 2023:

1. Talent Management and Succession Planning
2. Analytics for Data-Driven Decision Making
3. Central Procurement Office as a Strategic Leader
4. Customer Service to Agency Stake Holders
5. Modernizing the Procurement Process
6. Training and Certification
7. Promoting Supplier Diversity
8. Continuous Process Improvement
9. Transparency and Integrity
10. eProcurement

Looking at this year’s priorities, a theme begins to emerge:  procurement offices are building and preparing for emerging challenges and future needs.  Some of these key priorities and trends are highlighted below.

NASPO’s 2022 #6 priority—Talent Management and Succession Planning—has moved to the top of this year’s list.  Many industries and occupations have experienced increased turnover and intensified competition for talent in recent years, including public service. We are now seeing states compete for workers. As procurement offices plan for the future, the importance of talent management and succession planning cannot be overstated.  Succession planning should go hand-in-hand with strategic planning.[i] As you look at your organization’s goals and the steps needed to achieve them, you should also consider the necessary skillsets and personnel for critical positions to reach your objectives.

For more on Talent Management and Succession Planning, check out these NASPO informational resources:

• Succession Planning: Don’t Just Plan for Your Future

• Talent Management in a Changing World

• Recommendations from the Future

• Cronin Webinar Series: Arizona – Developing the Next Generation of Procurement Professionals

The #2 priority for 2023, Analytics for Data-Driven Decision-Making which is up from #7 in 2022, has public procurement offices embracing the information age.  Procurement data analysis strategies have been used in the private sector for more than a decade, and their use is expected to grow exponentially by 2030.[2]  State procurement offices are looking to catch up. Public procurement officials have a world of data to work with. The next step is using that data to improve category, contract, and risk management and using it to identify opportunities for strategic sourcing.

For more on Analytics for Data-Driven Decision-Making, check out these NASPO informational resources:

• Does Your Data Work for You?

• Four Steps to Better KPIs

• NASPO Webinars: Data Analytics Demystified

• Procurement U: Data Analytics Courses

A new priority for 2023, Modernizing State Procurement Processes, fits in naturally with data analytics (2023 priority #2) and eProcurement (2023 priority #10).  This goes beyond just implementing and expanding eProcurement use or embracing new analytical processes.  The emphasis is on efficiency.  Investment in digitization, digitalization, and automation can reduce employee time on tasks and cut down on operational costs and supplies to generate long-term savings.  The move away from paper and ink can also contribute to meeting sustainability goals.

For more on Modernizing the Procurement Process, check out these NASPO informational resources:

• Implementing eGovernment: 3 Lessons from Estonia

• Threats Facing Digital Government: Russell Porter & Dugan Petty

• Cronin Webinar Series: New York Innovates with Online File Requirements System

• Procurement U: Blockchain: An Introduction for Procurement Professionals

If you would like to see how procurement priorities have evolved, check out past Top Ten Priorities lists in the NASPO Content Library.  While you are there, be sure to browse through all of the procurement topics listed to find more informational resources to address your office’s priorities this year.  Keep an eye out for upcoming publications, events, and educational opportunities on NASPO.org as we continue to produce resources based on the Top Ten throughout 2023.

[i] Rodriguez, N. (2022, April 15). The critical importance of succession planning. UCLA Administration. Retrieved December 30, 2022, from https://adminvc.ucla.edu/blog/critical-importance-succession-planning

[2] PR Newswire. (2022, December 8). Global Procurement Analytics market size revenue expected to surpass USD 20.1 billion by 2030, at 24.6% CAGR: Polaris Market Research. Yahoo! Retrieved December 30, 2022, from https://www.yahoo.com/now/global-procurement-analytics-market-size-123000929.html