Masterclass: Managing and Leading Collaborative Business Relationships

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1 Masterclass: Managing and Leading Collaborative Business Relationships

2 Managing and Leading Collaborative Business Relationships John Doyle, Director, B2B PPM Ltd

3 Distinguishing Critical Business Relationships

4 Team Task: Distinguishing Critical Business Relationships What distinguishes a critical or strategic business relationship from other forms of business relationships?

5 Failure to Differentiate Types of Relationship Confuses expectations across organisations and their people Mis directs collaboration building energy and resource to those that can work without it Insufficient energy and resource into the critical few that do need it

6 Strategic Relationships: BS11000 Definition Critical to long term development and require a level of interdependence, where value and risk management would be enhanced through developing a close collaborative relationship.

7 Relationship Segmentation Complexity Risk Joint Value Creation Inter dependence Time

8 B2B PPM: What Do We Do? Building trusting and trusted collaborative business relationships

9 B2B Core Services Helping organisations to test and evaluate potential partners collaboration capabilities Helping companies bid for partnering style contacts Helping organisations build effective collaborative relationships.

10 Evaluating Collaboration Potential

11 Helping Companies Bid Partnering Style Contacts

12 Building Collaborative Relationships

13 The Business Driver for Getting 70% Collaboration Right of collaborative business relationships hit substantial difficulties due to culture clashes and ineffective collaborative working 2005 Research

14 What are the Reasons for Failure A system without the passion or The passion without the system

15 Masterclass Themes How to build the system How to get the passion Commitment Passion People Compliance Process Structures

16 Masterclass Objectives Explored the importance of trust and how it is generated Outlined BS11000 and what it has to offer Benchmarked our critical relationships through the lens of BS11000 Lessons learned in implementing BS11000 from a Highways Agency relationship

17 What is this paragraph about? There is one thing that is common to every individual, relationship, team, family, organisation, nation, economy and civilisation throughout the world one thing which, if removed, will destroy the most powerful government, the most successful business, the most thriving economy, the most influential leadership, the greatest friendship, the strongest character, the deepest love. On the other hand, if developed and leveraged, that one thing has the potential to create unparallel success and prosperity in every dimension of life. SR Covey 2008 Trust

18 Plenary Question: Why is Trust important in Collaborative Business Relationships? What are the business benefits of having trust in your business relationship with each other?

19 Trust Tax Trust Dividend THE TRUST TAX Trust = Speed Cost THE TRUST DIVIDEND Trust = Speed Cost S MR Covey

20 Short Pairs Discussion: What behaviours promote trust? What behaviours damage trust?

21 Trust: Reliance on Two Factors Trusting others Being trustworthy

22 Trust Dimensions Competence + Integrity & Benevolence High Integrity & benevolence: The extent to which I believe you have integrity and have my interests in mind (Affection) Distrust Trust (Respect) Low P Scholte Low Capability: The extent to which I believe you are competent and capable. High

23 Ten Trust Building Behaviours

24 The Trust Quotient High Integrity The extent to which I believe you have integrity and have my interests in mind Low Low Competence The extent to which I believe you are competent and capable. High

25 Trust: Reliance on Two Factors Trusting Others Being Trustworthy

26 You Need Both Trusting Others Being Trustworthy

27 Trust: Two Models to Help You Improve in Both Areas Your Trust Attitude Your Trust Equation

28 Trust Attitude Trust is your default position I never fully trust

29 Trust Equation T = C + R + I S Maister

30 T = Trust C = Credibility R = Reliability I = Intimacy S = Self Orientation Trust Equation T = C + R + I S Maister

31 BS11000 The Road to Collaboration Effectiveness?

32 Effective Collaboration Management: Getting the Balance Right in System & Passion Leadership Capabilities Collaborative Behaviours Trust Behaviours Culture Management and Governance Value Management Processes Monitoring and Evaluation Relationship Improvement Process

33 BS A Relationship Life Cycle Approach B2Bppm 2011

34 BS11000 The Road to Collaboration Structure and Management Strategy Monitoring & Evaluation Resource Management Delivery Assurance Communication and Knowledge Value Management and Improvement Exit Plan

35 B2Bppm 2012

36 Awareness 1.1 Do our senior managers have specific roles and accountabilities to lead and manage the collaborative relationship? 1.2Do we ensure we are clear with each other on the nature of our relationship ( segmentation ) together? 1.3 Do we ensure that objectives developed for this relationship align with our separate organisational objectives? 1.4 Do we jointly identify the required resources, competences and collaboration behaviours required for our work together? 1.5 Are the above agreements contained in jointly owned controlled documents?

37 Implementation of BS11000 Area 3 MAC BSi Certification Citation: The EnterpriseMouchel collaborative business relationship management system for the delivery of the Area 3 commission in collaboration with the Highways Agency and with the EnterpriseMouchel key suppliers Aggregate Industries, Carnell and Chevron

38 Certification Process & Timeline Initial assessment summer 2011 Gap analysis & compliance assessment of existing system Project team to drive delivery of improvement areas December 2011 BSI Certification May 2012

39 High Level Lessons Learned Existing systems and processes are the basis for compliance build upon what you have. Undertake a rigorous gap analysis and determine degree of existing compliance to clauses. 20% 90% range External consultancy brings experience and objectivity Drive the improvement and development process as a joint project

40 Sample of Lessons Learned Awareness Be objective in the segmentation of the supply chain Knowledge Existing EM & HA management competency systems map on to BSI requirements Existing risk registers are adequate but may need to develop further to match to BS11000 Internal Assessment Robust gap analysis with external consultants and identification of degree of compliance e.g. 20% 90% range to inform improvement process Working Together Modifications to existing joint management arrangements not wholesale change Some development needed in the scope of the management agenda Staying Together Existing relationship measurement system adequate Improvement in collaboration measures planned

41 Positive Impact Results & Next Steps Significant cashable savings 12.5 m Positive impact in health & safety 65% reduction carriageway crossings pa 3.5 m hours no RIDDOR Improvements in supply chain innovation Next steps Follow up improvement to start off position in Area 3 Extension of scope of Certification to remaining partners in Area 3 January 2013 Extension to MACs in Areas 1 & 13 Spring 2013 and full inclusion of HA

42 Masterclass: Managing and Leading Collaborative Business Relationships

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45 END OF PRESENTATION SLIDE Self Trust Relationship Trust

46 Partnering Hierarchy High Risk of Ineffective Collaboration Hierarchy of Collaboration Co operation Co ordination Federation Merger Communication Low Need for benefits of collaboration to be realised High