Thought Leaders & Founders of BS / ISO The essential requirements for managing collaborative business relationships Can CIPS help?
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1 Thought Leaders & Founders of BS / ISO The essential requirements for managing collaborative business relationships Can CIPS help? Breakfast Meeting Date: 23 rd March 2017 Location: Cardiff Jury s Hotel Name: Bill Taylor CEng, MSc, MIET, FMCI, MICW Associate Director ICW Bill.taylor@icw.uk.com Collaborative Working recognised as a fundamental business discipline ICW Vision Building business relationships Talk Areas Collaborative Working and Collaborative Business Relationships the key distinction and perspective - Adopting a Systemic approach to business collaboration that addresses the complete life cycle and is integrated into the Quality Management System Getting it right from the start - Defining the Procurement and Commercial Strategy within the Business Case. The Why, Who and Type The 11 fundamental Principles of collaborative business relationships Collaborative Leadership Skills - Does CIPS address the Personal and Business skills required to implement and manage successful collaborative business relationships? Transition from BS to ISO Information about the launch of the new standard and notification of forthcoming events 1
2 Definition of Business Collaboration A Joint Enterprise Mind-Set Business relationships formed by committed organisations to maximise joint performance for achievement of mutual objectives and creation of additional value ICW Definition of Business Collaborative Working A Joint Enterprise Mind-Set Shared values Win / Win = Win! X Drivers? Y Drivers True Synergy Walking the Talk Win/Win Solutions People 2 People (Supplier/Partner Bid & Project Team) Cycle of Collaboration Activity Starts with You! (Skills, Competency & Behaviour) People 2 People (Procurement Client Project Team) B2B Business Collaboration Supplier/Partner Client Organisation Joint Enterprise High Performing Teams (Operational Delivery for Projects/Contracts) Joint Enterprise Business Relationship Model 2
3 Sustainment through a Systemic and Total Quality Approach - A disciplined approach to collaboration Systemic Perspective: The disciplined alignment of all the available resources in the Joint Enterprise embracing: People Processes Place & Systems Discipline! Audit & Certification A Framework BS / ISO Common Language for Collaborative Business Relationships Stage 1 - Operational Planning and Control & Awareness get house in order! Commercial & Procurement functions are involved in all elements of the Framework! Stage 8 - Recognising the changing market Stage 7 - Maximising joint potential doing it! Stage 2 - Developing the way forward and the initial exit considerations RFI/EOI, Business Cases Stage 3 - Knowing your Strengths & Weaknesses. Initial Risks for the Business and Project Define partner criteria Stage 6 - Creating additional value & seeking the benefits Stage 5 - Establishing the governance for joint working the how The JRMP Stage 4 - Finding the right partner adopting the right procurement approach (PQQ, ITN/ITPD, CA) with appropriate strengths and understood weaknesses, and fit risk Collaborative Business Relationship - A Framework Specification BS / ISO Institute of Collaborative Working 3
4 Collaborative Business Relationship Principles 1. Vision & Values Establish that the visions and values of the organisation are defined and communicated both throughout the organisation and their customers who may be impacted through any collaborative approach 2. Business Objectives Establish the drivers for collaboration in direct relation to the objectives of the organisation and compatibility with those of partner organisations define the collaborative premium 3. Governance Establish an internal governance structure to support collaborative decision making and appropriate structures for collaborative ventures at corporate and project level 4. Leadership Establish senior leadership responsibility and operational leadership accountability through into specific collaborative relationships 5. Value Creation Establish a value creation process and focus on continual improvement both internally and through joint collaborative ventures 6. Risk Establish risk management processes that include relationship risk in addition to facilitating joint management of risk whether individual partner or joint by ensuring risk and opportunities are managed by those best placed to do so 7. Management Establish management processes and accountabilities that recognise the potential and need to ensure collaborative working where adopted is effective both internally and across joint activities 8. Competence & Behaviour Establish processes, procedures and accountabilities that support effective collaborative working 9. Knowledge Management Establish a knowledge management process the provide clarity on what needs to be shared with partners and what should not be shared 10. Exit Strategy Establish a process for evaluating and evolving an exit strategy to a joint agreement with partners 11. Relationship Management Plan Establish process that documents the way in which any given relationship will be managed and sustained 4
5 Segmentation and the Business Case Understanding Why and then Selecting Who and the Relationship type we need to achieve our Business Objectives The Why & The Who Partner Selection and Fit Risk 5
6 What Type of Business Relationship.? Value Creation, Cost & Risk Co-creating/ Coalescence Pure Alliancing/IJVs Strategic Partnering Collaborative Full Partnering Partial Alliances Co-operative Basic Partnering Charter Operating Environment degree of complexity? - Cynefin Analysis Confrontational Co-operative - Compliant Product or Service Criticality/Importance? Kraljic Analysis Mutual Trust, Information Exchange, Complexity & Interdependence Collaborative Working Skills and Competency Major part of ISO Applies to all organisations in the collaboration not just your own! Applies to all key individuals involved in or could have an impact on the collaborative relationships Competency Model & Framework embraces: CW Behaviour and Soft Skills AND Functional Collaboration Skills: (commercial, procurement, risk management, cultural awareness, Business Systems, Internal Auditing) Organisation needs to be assured of the other Partners CW competence 6
7 26/03/2017 Journey to ISO Much of what is the Standard is what we should be doing anyway! APM, Prince 2, MSP, CIPS and IAACM training, IIP, ISO 9001, Benefit realisation, Risk Management, CPD etc!! It just brings a lot of it together under one specfication CIPS Participated at this stage only Oct Mar 2017 ISO Transition and Launch Briefing Events: Warwick Business School 10th April Cardiff 20th April Provides an internationally recognised framework specification for collaborative business relationships it works! Summary Successful business to business collaboration requires a disciplined approach, and embraces the alignment of people, process, infrastructure and systems to the joint business objectives The BS / ISO Standard provides a common Framework but the discipline to deliver comes from integrating it and the joint working approach into the Quality Management System The biggest challenges to success are: Leadership and commitment Defining the business case, the risks and benefits, and aligning the underpinning procurement and commercial approach Getting the competency and skills, and the right behaviour in place Developing jointly the methodology of working together the joint relationship management plan Doing it! 7
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