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CIPS Level 6 Strategic Programme Leadership (L6M5)

The CIPS Level 6 Strategic Programme Leadership (L6M5) unit focuses on developing a deep understanding of leadership approaches in strategic procurement and supply chain programmes. This unit covers essential aspects such as contracting for programmes, leadership approaches, financial and management control, and the influence of organisational culture in achieving programme success.

It is particularly valuable for procurement and supply professionals who play a strategic role in managing large-scale procurement initiatives. Learners will gain insights into various contracting models, investment appraisal methods, programme cost management strategies, and cultural influences on programme execution.

Unit Objectives

The main objectives of learning CIPS Level 6 Strategic Programme Leadership (L6M5) are:

• To equip learners with the necessary knowledge and skills to manage large procurement and supply chain programmes effectively.
• To enable learners to evaluate different contracting forms and pricing mechanisms in programme execution.
• To develop an understanding of how financial and management information contributes to programme performance.
• To assess the role of organisational and national culture in programme leadership.
• To analyse the implications of programme closure on the supply chain.

Learning Outcomes

The significant learning outcomes of the unit CIPS Level 6 Strategic Programme Leadership (L6M5) are demonstrated below:

LO1: Understand contracting for programmes

This learning outcome focuses on the various contracting options available for programmes and major projects. Learners will compare client-coordinated approaches, EPC/design and build contracts, management contracting, public-private partnerships, and other contractual models. They will evaluate different contract forms used in programme management, including NEC, FIDIC, JCT, IMechE, and CIPS model contracts, while comparing their core terms and schedules. Additionally, learners will assess pricing mechanisms, such as fixed lump sum pricing, activity schedules, target costing, and cost-reimbursable contracts. Investment appraisal methods, including payback analysis, discounted cash flow, net present value (NPV), and internal rate of return (IRR), will also be explored. By mastering this learning outcome, learners will be equipped with contract evaluation and investment appraisal skills essential for strategic programme management.

LO2: Understand programme leadership approaches

This learning outcome focuses on strategic leadership in programme management, with an emphasis on cost management, financial performance, and supply chain impact. Learners will assess strategic cost management approaches, including fixed vs. variable pricing, budgetary control, value engineering, and consortium-based procurement. The use of financial and management information for programme performance will be explored, covering budget estimation, monitoring, claims control, and remedial actions. Learners will also analyse the impact of programme performance on the supply chain, such as default losses, damages, warranties, termination clauses, and specific performance obligations. Additionally, the implications of programme closure will be assessed, focusing on client acceptance, deliverable installations, audits, knowledge management, and review processes. By mastering this outcome, learners will develop strategic decision-making and leadership skills for managing complex procurement programmes.

LO3: Understand the role of culture in achieving programme success

This learning outcome explores organisational and national culture and their impact on programme success. Learners will critically assess organisational culture, including its meaning, key elements, levels, and types (power, task, role, and person culture). The influence of national culture on programmes will be analysed, considering language, religion, laws, politics, education systems, and social values. Additionally, learners will explore tools and techniques for cultural change, such as behavioural adjustments, education vs. persuasion, workforce restructuring, and recruitment policies. By mastering this outcome, learners will gain the ability to navigate cultural dynamics, foster collaboration, and drive successful programme outcomes.

Assessment Criteria

The assessment of CIPS Level 6 Strategic Programme Leadership (L6M5) is based on evaluating learners` ability to:

1.0  Understand contracting for programmes

1.1  Compare contracting options for programmes

• Client coordinated approaches to major projects
• Engineering, procurement and construction (EPC)/design and build forms of contract
• Management contracting and construction management
• Design, build, operate and ownership forms of contract
• Public and private sector partnerships

1.2  Evaluate contract forms for programmes

• The role of institutes and professional bodies in developing contract forms:
• The New Engineering Contract (NEC) core and optional clauses
• International Federation of Consulting Engineers (FIDIC) contract forms
• Institution of Mechanical Engineers (IMechE) contract forms
• Joint Contracts Tribunal (JCT) contract forms
• CIPS model forms of contract
• Comparisons of main contractual terms andschedules

1.3  Assess the use of pricing mechanisms for programmes

• Fixed lump sum pricing
• Activity schedule pricing
• Bills of quantity
• Target costing methods and risk and reward pricing mechanisms
• Cost reimbursable contracts

1.4  Contrast methods of investment appraisal for programmes

• Purpose of investment appraisal
• Payback analysis
• Average rate of return
• Discounted cash flow
• The choice of discount factor
• Calculating net present values
• Calculating the internal rates of return
• The strengths and weaknesses of different methods of investment appraisal

2.0  Understand programme leadership approaches

2.1  Assess approaches to strategic cost management for programmes

• Fixed and variable pricing methods
• Budgetary control and variance analysis
• Value engineering
• Consortium based procurement
• The use of open book costing and cost transparency

2.2  Analyse the use of financial and management information on the performance of programmes

• Estimating budgets for projects
• Measurement, monitoring control and improvement
• Project tracking and control mechanisms
• Controlling variations, claims/compensation events
• Implementing remedial actions

2.3  Analyse the impact of programme performance on the supply chain

• Consequential losses resulting from default
• Assessment of damages
• Contractual warranties and conditions
• Specific performance
• Termination clauses

2.4  Assess the implications of programme closure on the supply chain

• Obtaining client acceptance
• Installing deliverables
• Conducting project audits
• Knowledge management
• Communicating the review, evaluation and learning

3.0  Understand the role of culture on achieving programme success

3.1  Critically assess the concept of organisational culture

• The meaning of organisational culture
• The ingredients of culture
• Identifying culture
• Levels of culture
• Cultural web
• The four types of culture
• Power culture
• Task culture
• Role culture
• Person culture

3.2  Analyse the influence of national culture onprogramme success

• Cultural similarities and differences
• Language, religion, social, laws, politics, education systems, values and attitudes

3.3  Analyse tools and techniques which support cultural change

• Ignoring the culture
• Managing around the culture
• Changing behaviours
• Education vs. persuasion
• Coercion to change attitudes
• Recruitment policy, selection, promotion and reward
• Redundancy policy and alter workforce composition

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