b'ManagementSix Key Insights for the U.S. from theStandardizing and leveraging usage data and buying U.K.s Category Management Initiative fewer standard versions of common goods can drive The U.K.s initiative has been in place longersavings. This was exemplified in the U.K.in its approach and is more mature than the U.S. effort. Its pioneeringto the software category where it: standardized software experiences offer a potential roadmap for otherdata; used spend analysis to negotiate with resellers governmentsnational, state, or local to get started, asand publishers as a single government buyer; created well. Following are six key insights drawn from the U.K.a governmentwide software exchange; and helped program that may be helpful specifically to the U.S. categorydepartments inventory their licenses by vendormanagement initiative as it continues to evolve: size and type.Category management requires managing spending, To ensure the category management initiative isnot just obligations. Detailed, accurate, and sustainable, it should be integrated into a broadercurrent accounting that enables spending visibility governmentwide procurement strategy. The U.K.sand control have led to U.K. price and demand category management initiative gained strength andmanagement savings and ongoing identification of compliance in part because it was the operationalsavings opportunities. In contrast, the U.S. government framework for achieving a broader transformation of theprimarily relies on proxy spending information from U.K. governments procurement system.a less accurate, poorly categorized database and Executing a governmentwide procurement strategy takestransaction-level data from preferred category contracts.empowered, dogged leadership. Sweeping and deep government management change, such as procurement transformation, requires both political sponsorship and powerful executive leadership. In the U.K., theBuying as One: Category Management2008 financial crisis guaranteed political support forLessons From the United Kingdom government spending cuts.by By Anne LaurentUsing a strategic supplier management approach can result in greater value from suppliers that contract with multiple agencies. The U.K. has adopted a stringent performance monitoring and reporting scheme for suppliers that hold a significant number of contracts withbusinessofgovernment.orgmultiple government agencies. Counting subcontracts enables better visibility, oversight, and deployment of spending with small businesses. The U.K. government has set a socio- businessofgovernment@us.ibm.comeconomic goal of spending 33 percent of its contract dollars with small and medium-size enterprises (SMEs) by 2020. However, the U.K. governments SME goals include spending that goes directly to SMEs as well as indirectly to those that work in the supply chains of(202) 551-9342larger businesses. 100 www.businessofgovernment.org The Business of Government'