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Building business relationships
The essential requirements for managing collaborative business relationships – Can CIPS help?
Breakfast MeetingDate: 23rd March 2017
Location: Cardiff – Jury’s HotelName: Bill Taylor CEng, MSc, MIET, FMCI, MICW – Associate Director ICW
[email protected]“Collaborative Working recognised as a fundamental business discipline” ICW Vision
Thought Leaders & Founders of BS 11000 / ISO 44001
www.instituteforcollaborativeworking.com
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 11000 to ISO 44001 – Information about the launch of the new standard and
notification of forthcoming events
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Definition of Business Collaboration – A Joint Enterprise Mind-Set
Business relationshipsformed
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
True Synergy
Walking the Talk
Win / Win = Win!
?X Drivers Y Drivers
Win/Win Solutions
Cycle of Collaboration ActivityPeople 2 People
(Supplier/Partner Bid & Project Team)
People 2 People(Procurement – Client
Project Team)
Starts with You!(Skills, Competency & Behaviour)
Joint Enterprise – High Performing Teams
(Operational Delivery for Projects/Contracts)
Joint Enterprise Business Relationship Model
B2B – Business Collaboration
Client Organisation
Supplier/Partner
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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:
A FrameworkBS 11000 / ISO 44001
People Processes Place & Systems
Discipline!Audit & Certification
Common Language for Collaborative Business Relationships
Stage 1 - Operational Planning and Control & Awareness – get house in order!
Stage 5 - Establishing the governance for joint working – the “how” – The JRMP
Stage 6 - Creating additional value & seeking the benefits
Stage 7 - Maximising joint potential – doing it!
Stage 8 - Recognising the changing market
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 4 - Finding the right partner – adopting the right procurement approach (PQQ,
ITN/ITPD, CA) with appropriate strengths and understood weaknesses, and fit risk
©Institute of Collaborative Working
Collaborative Business Relationship - A Framework Specification – BS 11000 / ISO 44001
Commercial & Procurement functions are involved in all elements of
the Framework!
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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 activities8. 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
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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
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Confrontational
Collaborative – Full Partnering – Partial Alliances
Mutual Trust, Information Exchange, Complexity & Interdependence
Co-operative - Compliant
Co-operative – Basic Partnering Charter
Value Creation, Cost & Risk
Co-creating/ Coalescence – Pure Alliancing/IJVs –Strategic Partnering
What Type of Business Relationship ………….?
Operating Environment – degree of complexity?
- Cynefin Analysis
Product or Service Criticality/Importance?
– Kraljic Analysis
Collaborative Working Skills and Competency
Major part of ISO 44001
Applies to all key individuals involved in
or could have an impact on the collaborative
relationships
Applies to all organisations in the
collaboration not just your own!
Organisation needs to Organisation needs to be assured of the
other Partners’ CW competence
Competency Model & Framework embraces:CW Behaviour and Soft Skills
ANDFunctional Collaboration Skills:
(commercial, procurement, risk management, cultural awareness, Business Systems, Internal Auditing)
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Journey to ISO 44001
2006 Oct 2010 20112004 1 Mar 20172005 ISO 44001 Transition andLaunch Briefing Events:• Warwick Business School
10th April• Cardiff 20th April
Provides an internationally recognised framework specification for collaborative business relationships – it works!
CIPS Participated at this stage only
“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
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 11000 / ISO 44001 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!
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