Internal self assessment

Transcription

1 Internal self assessment Understanding your internal capability for collaboration is a crucial part of developing the right platform for building effective relationships.

2 About PSL PSL (Partnership Sourcing Ltd) was established by the Confederation of British Industry (CBI ) and the Department of Trade and Industry (DTI) in 1990 to generate an industry wide initiative promoting partnering, collaboration and alliances to improve competitive edge. Partnering encourages the building of relationships between organisations of any size, exploiting the potential of integrated business processes to add value, deliver additional benefits and thereby improve overall competitiveness. PSL, through its expertise and experience together with its government, industry and academic network has developed practical guides, tools, workshops and research studies. These provide invaluable support to organisations evaluating the potential of partnering or seeking support in the improving of existing business relationships. The CRAFT methodology is the foundation of the British Standards Institution (BSi) PAS Collaborative Business Relationship Specification, the worlds first relationship framework, developed in association with PSL and published in 2006 Self Help Guides Tools CRAFT Partnering Toolbox Workshops Page 1

3 Self Assessment Awareness Knowledge Internal Assessment Partner Selection Working together Value Creation As the business landscape becomes more complex and diverse so the need to be able to operate in a collaborative network increases. For many organisations the trend is often to establish what is expected from others without understanding the capabilities and internal pressures that these relationships require and generate. As organisations look to build more efficient business networks and exploit the benefits of working across organisational and often national boundaries the need to select partners with the right approach and culture becomes crucial. This self assessment programme has been developed to provide a baseline on which to develop. Based on the CRAFT methodology th e assessment leads the reader through the key areas of the approach and identifies the esscential building blocks that should be in place. This will create an understanding that will not only provide an internal maturity assessment but establish the background for an external assessment audit and rating. MAP (Maturity Assessment programme) is a unique CRAFT programme developed to provide an independent assessment that can be shared with prospective partners to establish a robust platform for relationship management. Staying together Exit strategy The real value of this self assessment approach comes from taking an honest perspective of your capability and experience.

4 Initial overview This initial overview is intended to provide a starting point for organisations wanting to assess their current capability. The aim is to identify the strengths and weaknesses within the current operating approach and provide a route map for development and improvement where appropriate. The aim is to focus on establishing baseline evidence to support existing approaches. Yes No Is there a corporate vision and mission statement which includes collaboration Does the current business plan identify partnering as a strategic imperative Our business processes are well defined and followed We have collaborative projects and opportunities identified for development Is collaboration part of current supplier evaluation programmes Is there a champion at board level supporting collaborative approaches Are there specific managers identified for collaborative programmes Are there customer driven collaboration programmes in operation Are there any relationship management training programmes in place Have there been any collaborative workshops with customers or suppliers Is there a defined partner profile and assessment process Are there specific contract terms/ arrangements for collaborative partners Is there a model contract established Are external partners involved in product /service development programmes Is there a specific management organisation in place to deal with collaborations Is there evidence of partnering successes within current business programmes Is there a CSR/sustainable development strategy What level of current activity is handled as a collaborative arrangement

5 Maturity Matrix The maturity matrix provides a platform against which organisations can review their internal development needs and present their overall approach to prospective partners. The matrix provides a development and progress profile that outlines an organisation investment and commitment to continuous improvement. The triple A rating provides a clear indication of an organisation that has fully integrated collaborative relationship approaches in to it s operating model. Attributes Ability Attitude A Operational processes are well defined and integrate collaborative approaches There is a high level of experience at all levels focused on effective collaboration There is clear corporate commitment and leadership that cascades throughout the operations B There is limited application of shared processes and performance indicators There are individuals at various levels that have demonstrable skills in collaboration There is evidence of successful individual collaborative programmes in effect C There are robust internal processes and performance indicators There is appreciation of collaborative approaches but a lack of skills There is appreciation at the operating level of the value of effective relationships D Operates with a traditional contract and procedural based approach No appreciation of a practical approach to the value of relationships Only operates a robust and effective arms length contracting approach The following self assessment has been developed to capture the key elements of an organisations characteristics that would reflect that it has the concepts of collaboration embedded in the culture of the operations. Assessing organisations utilising the A-D mapping will establish a profile in respect to collaborative culture, capability and business approach.

6 Four step self Assessment approach Step One The initial assessment starts with a process of identifying the key elements associated with the CRAFT eight step methodology. By reviewing each question an outline of the organisations understanding of collaborative relationships and the issues involved in developing an effective approach.it is recommend that this done by a cross section of individuals. Step Two Having completed step one the next stage is to summarise these first perspective and rationalise them to establish an overall profile. This provides a foundation on which to take an objective assessment of the organisation.to get a balanced view this stage should be done through a team approach to establish a collective view. Step Three The third phase of the assessment process is to build on the teams collective view and understanding and to translate this into a profile against the MAP triple A criteria of Attributes, Ability and Attitude. It is recommended that a single individual collects the evidence and completes the assessment then offers this to the team for validation. Step Four The final stage is to draw the internal findings and assessments together and to identify the overall MAP grading, which provides an outline of collaborative capability. This will also provides profile of strengths and weaknesses in order to create a development plan where necessary. Note: It is important to recognise that throughout this self assessment process organisations seek to ensure that inputs can be supported by evidence of current status and are not reflective of future aspirations.

7 Self Assessment Step One The aim of this first step is to gather inputs to the overall assessment based on actual process and activities. The structure has been developed around the CRAFT framework, which has eight elements capturing the key stages of relationship building from concept to exit. In working through this first phase of the process organisations will gain an understanding of the unique methodology developed from a broad range of experience. Awareness Knowledge Internal assessment Partner selection Working together Value creation Staying together Exit strategy Understanding your objectives Learning from those are ahead of you Knowing your own strengths and weaknesses Finding the right partner with appropriate strengths Building the right approach Exploiting innovative thinking Maximising joint potential for the future Recognising the changing market place For more in depth information related to these development approaches the CRAFT overview can be accessed from PSL website ( Process for completion Question A B C D The assessment should be based on actual activities and organisations should be able to evidence their responses selecting the current status based upon one of the following grades; A B C D Identified as a robust and embedded process A proven activity with a developing process Limited activity or evidence of performance No activity or evidence

8 Awareness A B C D Our executive management have communicated their support to a collaborative approach where appropriate. Our organisations business plan specifically incorporates provision for the adoption of collaborative approaches. Our organisations business objectives are clearly defined and communicated to all personnel Our organisation has robust business processes which are fully operational and regularly audited for compliance Our organisation has a fully integrated planning programme which covers all aspects of the business process Our organisation operates an established quality management programme. Our organisation has a robust approach top performance measurement which is communicated on a regular basis. Our organisation has an established training programme which is directly linked to its strategic business plan Our organisation considers collaboration is a differentiator in its customer relationship management programme. All roles and responsibilities in the organisation are fully documented which are assigned to all members of staff Our organisation has a defined risk management process which includes the impacts of collaborative relationships. Our organisation has a well defined market strategy which incoproates collaborative relationships

9 Knowledge A B C D Our organisations has an established strategy for the development of collaborative relationships Our organisation has established processes for managing collaborative relationships Our organisation is fully aware of the impacts that collaborative relationship may have on its operations Our organisation has regularly benchmarks its existing collaborative relationships Our organisation has established processes for assessing collaborative relationships within our business environment. Our organisation has a pool of experienced personnel with a background in managing collaborative relationships Our organisations risk management processes are regularly reviewed to ensure effectiveness within collaboration. The behavioural culture of our organisation is appropriate to work within a collaborative ventures Our organisation has assessed customer concerns and support for value adding collaboration. Our organisation has an established process for assessing the impacts of collaboration on Knowledge transfer In our organisation collaboration is only considered against clearly defined objectives. Our organisation has an established process for creating and validating exit strategies

10 Internal Assessment A B C D There is clear acceptance across the organisation of the benefits of collaboration with customers or suppliers Our organisations has well defined measurement and reporting approaches to validate effective collaboration Our organisation has fully considered the implications of operating within collaborative relationships Our organisation has identified those staff with experience and skills in managing collaborative ventures The traditional culture and behaviours of our organisation would not constrain collaborative approaches Our organisation has developed effective contracting models to operate within a collaborative culture The objectives for collaboration have been fully defined and are in line with its corporate business plan Our organisation has suitable training programmes in place to help facilitate effective collaborations Our organisation has identified the internal processes that may require change to facilitate a collaborative approach The roles and responsibilities involved in collaborative relationships have been well defined Our organisation has an effective change management culture which would support a collaborative approach Our organisation has evaluated its strengths and weaknesses in terms of developing effective collaborations

11 Partner selection A B C D Our organisation has a clearly defined profile for assessing potential partners in line with our visions and values Our customer based collaborations as focused on delivering additional value to their operations Our organisation has an established criteria for evaluation of potential partners Our existing capability assessment covers all aspects of potential partner performance Our organisation has an established supplier management programme in place Our risk management processes encompass the issues associated with collaborative relationships Our contracting model has clearly established risk and reward approaches for both customers and suppliers Our performance measurement process fully incorporates the roles of external collaborative partners Our existing collaborations provide an effective model for assessing potential partners Our processes are developed to incorporate the objectives of our collaborative partners. Our organisations approach to all negotiations is based on delivering mutually beneficial outcomes Our organisation has defined processes for measuring the ongoing strength of our collaborative relationships

12 Working together A B C D Our organisation has an established model agreement for working within collaborative relationships Based on our organisations established collaborations we have an effective management framework Our organisation is focused on establishing joint objectives which meet the aspirations of our collaborative partners Our organisation works with potential partners to establish a mutually acceptable exit strategy Our organisation operates on the basis of establishing a joint risk management strategy and process Our organisation recognises that effective operations may involve the transfer of tasks between partners Our organisation has established approaches for joint training and development Our organisation promotes the use of joint business planning within the scope of collaborative relationships Our organisation is focused on sharing of resources for maximum mutual advantage Our organisation traditionally works with mutually agreed performance measurements based on joint objectives Our organisation has an established dispute resolution process Our organisation has a culture of working with collaborative partners to mutually resolve performance short falls

13 Value creation A B C D Our organisation has a clear strategy to define value for each collaborative relationship Our organisation has a traditional focus for evaluating return on investment within collaborations Our organisation is focused on delivering customer satisfaction rather than profits Our organisation has a culture of evaluating total cost and outcome targets Our organisation works with collaborative partners to establish resource based objectives Our organisation has a culture of continuous improvement programmes Our organisation regularly reviews business processes with collaborative partners Our organisation looks to identify additional value through working with collaborative partners Our organisation limits change initiatives to those that have clear cost benefits Our organisation has a flexible approach to monitoring performance through other than financial results Our organisation has a strategy of setting short, medium and long term performance targets Our organisation traditionally reviews product development and R&D programmes with collaborative partners

14 Staying together A B C D Our organisation has established processes for regular executive reviews of collaborative relationships Our organisations processes involve clearly defined management review programmes and reporting Our collaborative programmes include joint financial reporting inline with joint objectives Our organisation has clearly defined processes for evaluating incentive programmes consistent with joint objectives Our performance monitoring processes are established to recognise joint ownership of outcomes Our organisation has an established approach for measuring the strength of our collaborative relationships Our organisation promotes the implementation of team building programmes Our organisation has robust induction processes for staff assigned to collaborative programmes Our organisation promotes joint assessment, training and development programmes Our organisation regularly implements joint reviews of objectives and exit strategy Our organisation has an established approach to monitoring market changes that may influence collaborations Our organisation has process to continuously validate the effectiveness of the collaboration

15 Exit strategy A B C D Our organisation maintains an exit strategy as a dynamic joint report Our organisation has a clearly defined profile for all intellectual property utilised within collaborations Our organisation always identifies the risk of knowledge transfer and ownership of jointly created IPR Our organisation has a clear focus on the potential for skills transfer or loss through collaboration Our organisation maintains a focus on the impact of its exit strategy on customers and suppliers Our organisation recognises the potential impact of the exit strategy on its collaborative partners business Our organisation maintains a focus on the collaborative relationships life cycle Our organisation has a robust approach to defining the triggers for potential disengagement Our organisation maintains a joint assessment of liabilities beyond a collaborative relationship Our organisation ensures that all stakeholders are considered within the exit strategy Risk management is consider by our organisation as a key element in the exit strategy Our organisation maintains an open dialogue with partners regarding any projected disengagement

16 Self Assessment Step Two This second step in the assessment process is in two parts, the first involves the assessment team in rationalising the inputs from step one. It is recommended that initially the team reach a consensus for each section,which should then be translated into the relevant number of As, Bs, Cs & Ds. From this profile the team should aim to select a category for each of the eight stages. It is important to recognise the the higher the final grade the more robust should be the evidence to support the selection. A B C D final Awareness Knowledge Internal assessment Partner selection Working together Value creation Staying together Exit strategy Overall standing The summary against the eight CRAFT stages will provide an initial profile of the organisations readiness to engage in a collaborative relationship. This outline will establish a background perspective for the second part of step two overleaf.

17 The focus for the second part is to consider the organisation from an external perspective and how customer and suppliers may view the culture, capability and approach. For any potential partner the culture of collaboration should be seen as inherent in the organisations. The way that others view the organisation is often a more reflective outline. It is therefore important that this appraisal is done objectively and fully recognises the strengths and weaknesses. Customer External perspective Level of commitment Level of capability Dynamic culture Appropriate organisation Level of communication Total cost approach Quality programme Commitment to visions and values Customer focus Attitude to collaboration Supplier Utilising the A-D grading approach the assessment team should agree inputs and then translate these into and overall grade from each perspective. It is not uncommon for these to differ between customers views and those of suppliers Customer Overall perspective Supplier

18 Self Assessment Step Three Having completed steps one and two the organisation should now have a broad overview of its status and readiness for collaborative capability. This provides the background to proceed with the Self assessment based on the Maturity Assessment Programme (MAP). The MAP scheme is based around the experience of CRAFT and the knowledge network. It has been developed to ensure a simple process that is neither time consuming or costly for organisations. The full programme independently assessed and validated addresses five key areas: Utilising the CRAFT Organisational Strength Analysis as the foundation the programme addresses a range of issues to evaluate the culture and business processes. This is complemented with the Partnering Manager Assessment to gauge the Competencies down through the organisation. Using the foundation of the CRAFT Relationship Enhancement approach the customer relationships will be tested to validate the value and effectiveness of current partnering approaches. The same criteria will be used to assess the strength of relationships with suppliers and providers. The final element will be based on the CRAFT strategy development tools to identify the current and future perspective on the range of value creation and sustainability programmes. The key value of this scheme is that it is based on a consistent approach for all auditors and assessments. The process has therefore been developed to ensure that all individual auditors, not organisations, are operating the scheme from a common reference point and with a validate understanding of the CRAFT methodology. The process for this internal self assessment follows the same grading process using the A-D criteria. It is recommended that the assessment team select one person to complete the initial inputs based on steps one and two and then works with the team to validate and rationalise the assessment.

19 Effective partnering programmes rely on the organisations having the foundation of established and identifiable processes. These provide the benchmark when looking to improve or integrate. Attributes A B C D Established operational business processes Business plan includes collaborative approaches Established customer management programme Established supplier management programme Integrated planning process in place ISO or equal quality programme in place Key performance indicators being utilised Human capital and staff training programme Partnering programme in place Clearly defined roles and responsibilities Risk management programme in place Sound market knowledge and expertise

20 Partnering and collaborative relationships may challenge traditional thinking and necessitate organisational change. Potential effective partners would have robust processes and initiatives in place that demonstrate a recognition and aptitude for change. Ability A B C D Effective and open leadership Robust and effective internal communication Effective customer relationship approach Robust focus on internal training needs Effective supplier relationships On going operational partnering programmes Continuous improvement programmes in effect On going regular external interface activities Change management programmes in operation Relationship management training in effect Internal/external review programmes operating Clear focus on R&D and future product delivery

21 Collaborative approaches touch every part of an organisation effective operations therefore need to have the concepts and thinking embedded in the leadership and management culture.. Attitude A B C D Published corporate visions and values Open and visible management approach Corporate strategy includes collaborative approaches Business excellence benchmarking programme Defined sustainability programme Operational strategic account management External communications with stakeholders Complaint and dispute management process Customer partnering programme in operation Supplier partnering programme in operation Innovation programmes in operation Value chain focus across the organisation

22 Self Assessment Step Step Four The final step in the self assessment process is to rationalise the inputs from step three And create a MAP profile. The suggested approach once again is to collate the As,Bs,Cs and Ds numerically and then internally with the assessment team reach a consensus for each of the three categories. It is crucial to recognise that if this assessment is to be of value internally or externally then evidence must be available to support any final grading decision reached. Creating an artificially inflated perspective provides no sound basis for moving forward towards effective collaborations A B C D final Attributes Ability Attitude The final grading in each case combine together to create the unique current status of the organisation against the MAP matrix. MAP self assessment The following profiles has been developed to help organisations understand both their current status and provides a benchmark across industry.. AAA BBB CCC DDD World class to market leader Recognition but limited application Early stages of development Doubtful partnering developer BBA BBC CCD DDD

23 Self Assessment analysis What ever the outcome of your first self assessment it is likely that you will not have reached the anticipated levels assumed before starting the process. This may be that as an organisation you have erred on the side of caution and not fully recognised existing strengths fully. It may be that an objective self assessment reflects an appreciation of the challenges ahead.the reality is that no two organisations are the same and that by undertaking this assessment you have highlighted areas for further development. A low rating may not be a reflection of a poor organisation but often simply highlights the need for cultural change and for adoption of alternative internal processes. The important thing is to understand where you are and implement a change process that meets the objectives and aspirations of the organisation. For many this requires limited investment of time and a change in focus if collaboration is seen as a business imperative.for those facing external partners then understanding where you need to adjust your approaches can lead to improved marketability. Having invested in this self assessment process many organisations may consider that external validation would provide improved focus for internal initiatives. Alternatively using the self assessment process to benchmark existing collaborative challenges may prompt organisations to target support to specific elements of their operations. Collaborative relationships can be extremely rewarding but they require a firm foundation on which to build effective models and capabilities. What should also be apparent is that what ever the starting point continuous improvement is a crucial part of the development both internally and with your partners. This self assessment is the starting point to exploiting the potential of effective and efficient relationships. The MAP assessment provides a robust foundation on which to monitor progress toward creating a more profitable future. The CRAFT programme has been developed to provide an end to end framework for business relationship development and maintenance from strategic diagnostics through to dispute resolution and exit strategy management. Creating the future is better than predicting it!

24 Product profile C R A F T CRAFT is the unique PSL methodology developed through 15 years of practical experience of the knowledge network to provide a foundation for evaluating, developing and capitalising upon the innovative potential of effective collaborative relationships. Experience has shown that no two relationships are the same and PSL has developed through its application of the CRAFT modular programme an approach that can be customised to meet the evolving requirements of diverse client needs from initial Strategic planning to dispute resolution, supporting the effective optimisation of collaborative relationships. Strategy CRAFT TRAINING Strategy PROGRAMMES SEMINARS & Strategy WORKSHOPS ASSESSMENTS Strategy The Partnering Knowledge Network GUIDES & Strategy TOOLS PARTNER Strategy DEVELOPMENT CUSTOMISED Strategy PROGRAMMES RESEARCH Strategy Underpinning CRAFT is a portfolio of guides, workshops, tools and techniques and which have been created to provide awareness through to the specific challenges of implementing and benefiting from improved integration. The CRAFT toolbox is a unique collection of approaches designed to support clients at every stage of the relationship journey. These tools can be adapted for incorporation by clients into their own internal processes to ensure collaboration is embedded in operations. The PSL vision is based on the premise that all business relies on relationships and supports the aims and objectives of its clients in this regard. The focus for PSL and its team is to support the client throughout this journey and help them to equip themselves for further development.

25 C R A F T CRAFT is a unique strategic approach that has been developed by PSL as the framework to support successful relationship building and the application of partnering approaches. CRAFT stands for Collaborative Relationship, Assessment, Fulfilment and Transformation comprising multiple practical guides, tools and workshop applications created by PSL. CRAFT brings together in a holistic manner the tried and tested approaches to building business relationships. It operates on the simple principle that the management of each business relationship is a process that can be applied to all types of partnerships to improve their effectiveness. The starting point in managing a Collaborative business Relationship is to analyse the current situation as to its quality, effectiveness and underlying strength.. This is the Assessment stage. Here PSL has a range of tools and methodologies, which are outlined later,to help participants review the relationship in a logical, constructive manner and address any potential obstacles to progress, including barriers arising from traditional contracting relationships. Once the relationship has been assessed, the next stage of the process is to focus on the individual and joint objectives of the participants to formulate a vision of what they expect to get out of the relationship. This stage we call Fulfilment where objectives / expectations are agreed and measurement processes put in place to help deliver the agreed objectives. The Transformation stage of the process is designed to take the relationship forward to provide a productive and constructive approach to improve the profitability and competitiveness of all parties. The experience of PSL since its inception has clearly shown that whilst each business relationship is unique, there are many common issues in the process. Developing a productive partnering relationship must address these issues and will benefit greatly from the knowledge of those who have trodden this path before both in the effective execution of the process and a structured exit strategy. Linking the practical guides and tools of CRAFT provides an effective approach to take the relationship from strategic intent to front line execution.

26 0-3 months 4-6 Months Awareness Knowledge Internal Assessment Partner Selection Partnering for Profit Partnering Booklet Case studies Strategy Development Virtual integration Directors guide Supply Chain guide Midas proposition CSR &Sustainability Case studies Strategy Development Supply Chain Strategic Alliance International Partnering SME guide Outsourcing guide Off shoring guide Partnering for service Supply chain guide SME guide Contracts guide Risk management Value Creation Strategy development Contracts guide Value creation Risk management Exit strategy Maturity Assessment Benchmarking Risk profiling Exit strategy Critical behaviours Relationship Assessment Benchmarking Internal Critical analysis Organisational strength analysis Critical action analysis Partner manager assessment Critical behaviours Maturity Assessment programme Organisational strength analysis Relationship enhancement Partner manager assessment Business relationship enhancement Strategy development Risk Management Exit strategy CRAFT workshops Business Relationships Effective Partnering Risk Management Exit strategy development CRAFT workshops Business Relationships Leadership Foundation training OSA workshop Business Relationships Effective partnering Creating contracts Guides Tools Workshops 13

27 7-12 months Months Working together Value Creation Staying Together Exit Strategy Strategy guide Contract guide Risk management Exit strategy guide Case studies Virtual Integration Midas Proposition Sustainability guide Value Creation guide Supply chain guide Outsourcing Off shoring E-Trading Knowledge creation Partnering for Sustainability Risk Management Strategy Development Exit strategy Strategy development Exit Strategy guide Developing strategy Relationship enhancement Critical Action analysis Managing Joint teams Achieving Joint objectives Risk Profiling Dispute Resolution Forming Exit strategy Critical behaviour Value Creation Risk Profiling Driving Innovation Achieving Joint Objectives Relationship Enhancement Critical action analysis Risk profiling Driving Innovation Dispute resolution Forming Exit Strategy Forming exit strategy Dispute resolution Strategy development Creating partnering Agreements Developing Value Propositions Risk management Developing value propositions Innovation processes Business Relationships Dispute Resolution Post partnering Post partnering

28 CONTACTING PSL Partnership Sourcing Ltd Sullivan House 4 Grosvenor Gardens London SW1W 0DH Tel: Fax: Enquiries@PSLCBI.com A joint CBI/BERR (formally DTI) initiative copyright Midas Projects Ltd April 2008 rev 2