A presentation given to the Efficiency & Reform Group on 25th November 2010 focusing on the benefits of collaboration.

1. The Efficiency Mindset
‘The Future of Collaboration’
25th November 2010

2. Introduction
• Kim Newman – Managing Director
- Partnering Advice
- Special purpose vehicle management
- Client side and Contractor Roles
- Cross sector collaborative working expertise
• Tyron Stalberg – Senior Consultant
- Client side and Contractor Roles
- Partnering best practice studies and case studies
- PPC/TPC Steering Group Member
- Procurement and bid support

3. Market Challenges
• Recession/Austerity
Measures/CSR
• Reducing budgets
• ‘Protecting’ the Front Line
• Back Office ‘value’
• Political ‘will’ & traditional
demarcation
“Changing the rules of the game requires alternative
thinking that would usually be suppressed within the
confines of current practice”

4. Market Challenges
• What does that mean?
• Alternative business models
• Supply chain is giving way to a more holistic
value chain
• Its no longer about adding organisations
together.....
• Its about multiplying combined capability for
maximum value
• Constant factor = good relationships

5. Market Challenges
Two ‘Camps’
Collaboration Traditional
Developing Relationships Short Term
Problem Solving Blame Culture
Ongoing Improvement Pre-set standards
Trust Mistrust
Efficiency and Added Value Lowest Price
Shared Risks Punitive
Transfer of responsibility Fixed responsibility
Which side are you on?

6. Partnership
Who would
have
thought?

7. What do we mean by ‘Efficiency’?
• Cuts?
• Cost?
• Value?
• ‘More’ for Less?
• ‘Best’ for Less?
• Productivity?

8. Starting the Journey
• Be aware of your organisations strategic plans
• Align with your objectives
• Executive level sponsorship
• Planning is critical
• Early involvement
– Teams
– Member/Board Members
– Advisors
– Customers and Market
• Consistent baseline data
• Be aware of your organisations strategic plans
• Align with your objectives
• Executive level sponsorship
• Planning is critical
• Early involvement
– Teams
– Member/Board Members
– Advisors
– Customers and Market
• Consistent baseline data

9. Types of Relationship
• Informal
• SLA’s
• Traditional
• Partnering
• Shared Services
• JVCO’s/LLP’s
• How do you decide?
• What is ‘right’ for you?
• Is it ‘equal’?
• How long?
• What are the ‘rules’
• What are the ‘success’
criteria
BUT

10. Options Appraisal
• Critical for complex decision making
• Transparent, analytical, objective
• Multiple stakeholders
• Benefits and business case
• Identify possible options and benefits
• Risk assessment and appetite
• Characteristics and criteria
• Preferred option
• Basis for communication

11. Creating the Relationship
Specific strategies to
deliver outcomes
Consider your
collaborative profile
Resources
Working groups
Identify and remove
constraints

12. Creating the Relationship
Align behaviours to
objectives
Decide on a partner profile
Assess knowledge and skills
Apply partner selection
processes
Public tender?
Establish common
objectives and compatibility

13. Implementing the Relationship
 Joint sponsorship and
management team
 Champion?
 Communications plan
 Business plan and
efficiency targets/metrics
 Incentives must support
behaviours

14. Managing the Relationship
• Communicate (and at the
right levels)
How?
Who?
When?

15. Managing the Relationship
• Facilitation is often helpful
 Impartial advice and ideas
 Help you resolve the difficult
issues
 Keep the momentum going
 Shared payment

16. Managing the Relationship
• Use the contract or agreement
properly
Do what you say you will do
When you will say you will
Measure the KPI’s & Outputs

17. Managing the Relationship
• Early warning protocols
 Flag issues up early
 Agree how you will resolve together
 Agree the timescales
 Monitor progress
 Before it is too late.........................!

18. Managing the Relationship
• Success and Failure
 Don’t forget to ‘celebrate’
 Deal with the things that go
wrong (‘root causes’ not
‘symptoms’)
 Get the balance right

19. Realisation of Efficiencies
• What will be achieved?
• When?
• How will it be measured?
• Is there multi-party agreement?

20. Identifying & Capturing Efficiencies
• Beware of double counting!
• ‘Cashable’ or ‘non cashable’?
• Are there ‘hidden’ benefits?
• Does your efficiency add cost
to your partner?

21. Identifying & Capturing Efficiencies
• Create an efficiency or VFM log
• Standardise your data capture
• Seek independent verification
• Share your successes!

22. Keeping the Momentum
• Relationships generally
start off well
• ‘Tire’ over time!
• Loss of focus

23. Keeping the Momentum
• External facilitation
• Structured meeting schedule
• Agenda planning
• Annual Review
• Celebrate success
• Minutes!

24. End of the Relationship
• All relationships will come to
an end!
• It is not a ‘taboo’ subject
• What will be next?
• What do you need to do to
manage the transition?

25. Common Failings
• Do what we always do (only harder)!
• ‘Man marking’
• Do not include the ‘sum of all the parts’
• Don’t ‘do’ what you say you will do

26. Common Failings
• Buy the ‘wrong’ product (poor procurement)
• Don’t learn from the past
• Do not understand what your customers
want
• Don’t listen to your partner(s)

27. Common Failings
• Preparing & training your team(s)
• Focus on the things that don’t count
• Make the same mistakes

28. Summary
• Move from ‘delivery’ to
‘commissioning’ services
• Strategic role
• Remove the ‘constraints’
• Time to be ‘brave’

29. Questions?