Construction Futures Wales - Collaborative Bidding 5 - BSI
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BSI is a global standards organization that has been shaping standards since 1901. BS 11000 provides a framework for collaborative business relationships. The standard recognizes that collaborative relationships which are built on mutual trust and respect can help organizations work together more effectively and create more value. Certification against BS 11000 involves a structured process to establish collaborative partnerships and ensure they are managed strategically to maximize benefits for all involved organizations.
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Construction Futures Wales - Collaborative Bidding 5 - BSI
- 1. Copyright © 2014 BSI. All rights reserved. BS 11000 – the framework for Collaborative Relationships Carla Whyte, Client Propositions Manager
- 2. Copyright © 2014 BSI. All rights reserved. 2 Who is BSI? 4/20/2015 • Leading Global Standards Creation Body: British, European, ISO, Public, Private • The UK National Standards Body: The source of British Standards • Experienced: The world’s first National Standards Body established in 1901 and a founding member of ISO • Thought Leaders: Shaped the world’s most adopted standards, incl. ISO 9001, ISO 14001, OHSAS 18001 • ICW • Owners of the BSI Kitemark: The trusted mark of product quality • Global Network: 70,000 clients in 150 countries worldwide including governments, global brands and SME’s • Trusted: We’re a Royal Charter Company, reinvesting profits back into our business to improve our clients’ experience
- 3. Copyright © 2014 BSI. All rights reserved. 3 BSI people make the difference for our clients Global network of over 4,000 people supported by 10,000 industry experts • Over 100 years experience across almost every sector • Global specialization focused on standards, training, certification and GRC • Industry specialized assessors constantly trained on new standards and processes • Tutors skilled in transferring knowledge to your employees • Our Credo “Making Excellence a Habit” keeps BSI client focused • Valued and appreciated by our clients - our BSI assessors score 9.25/10 in our Global Client Satisfaction Index 4/20/2015 Core Competency in StandardsIndustry Sector Expertise Rigorous Training Trusted Worldwide
- 4. Copyright © 2014 BSI. All rights reserved. 4 Product Specification Standards Over 100 years facilitating trade and improving business • Beginning in 1901, initial Standards focused on product specifications to harmonize and facilitate commerce and reduce duplication • Railroad gauges • Steel specifications • Construction standards • Agricultural commodities • Consumer and electrical products • Personal safety equipment • Medical devices • Product Specification Standards remain relevant today driving interoperability and innovation in areas such as smart cities and regenerative medicine (e.g. stem cells) • The next generation of standards focused on business processes to ensure consistent quality output • BSI shaped the original standards for: • Quality Management (ISO 9001) • Information Security (ISO/IEC 27001) • Environment Management (ISO 14001) • Health & Safety (OHSAS 18000) • IT Services Management (ISO/IEC 20000-1) • Business Continuity (ISO 22301) • Sustainable Events (ISO 20121) • BSI’s new generation of Standards are centred around people behaviour and values to help organizations reach their full potential and protect their corporate reputation • Key standards include: • Anti-Bribery • Corporate Social Responsibility • Collaborative Business Relationships Founded 1901 1950 2000 4 Product Specification Standards Business Process Standards Business Potential Standards
- 5. 5Copyright © 2014 BSI. All rights reserved. BS 11000: Raising the standard of collaboration 1998 - MOD Partnering Handbook was developed back in 1998 2006 – PAS 11000 Published 2009 – Standards committee formed 2010 – BS 11000 Part 1 published 2011 – BS 11000 Part 2 published 2014 – Committee formed to take Collaborative working to ISO
- 6. 6Copyright © 2014 BSI. All rights reserved. Conflict vs. Partnering 20/04/2015 Value Creation Confrontational Collaborative Mutual Trust Compliant Co-operative Co-creating Partnering Winning rather than dominance
- 7. 7Copyright © 2014 BSI. All rights reserved. Turning suppliers into strategic partners 20/04/2015 BS 11000 is built on the principle that if the foundations for ‘Mutual respect, honesty and integrity’, are established at the beginning of the relationship, then the value should be recognised sooner and incrementally through the lifetime of the relationship. External drivers: Intense competition A need to bring quality products to market faster and cheaper The drive for design innovation in demanding markets Global outsourcing to low-cost regions of the world. Leading edge companies are looking to their suppliers and partners to help maximize competitive advantage through faster time-to-market and cost reductions. These companies are transforming suppliers into strategic partners and focusing on developing longer term relationships that deliver the optimum value for all parties.
- 8. 8Copyright © 2014 BSI. All rights reserved. BS 11000 - Creating effective and profitable relationships 20/04/2015 Awareness Knowledge Internal Assessment Partner Selection Working Together Value Creation Exit Strategy Staying Together strategic engagement management The shift - Project led to culture led at strategic level
- 9. 9Copyright © 2014 BSI. All rights reserved. The six main aspects to a successful collaborative approach Our observations 20/04/2015 1. Senior Management Commitment in line with Corporate Strategy – as with all management systems 2. Establishing the Organisation’s Collaborative Profile – Are you ready? 3. Establishing a framework for evaluating prospective collaborative partners – Your criteria 4. Agreeing Joint Strategies, Governance and Processes – that work for all 5. Monitoring and Measuring effectiveness of the Relationship 6. Exiting from a Relationship - this starts before partner selection
- 10. 10Copyright © 2014 BSI. All rights reserved. Sometimes things go wrong…. 1. Complex Relationship Management Plans 2. Systems are focussed at Project rather than Strategic Level 3. Systems are ‘created’ to meet BS11000, rather than reflect the organisation 4. Recording Value Creation 5. Failing to identify all risks to the collaboration 6. Exit Strategy 20/04/2015
- 11. 11Copyright © 2014 BSI. All rights reserved. Why certify? 1. Structured approach to managing a relationship 2. Recognition of value other than financial 3. Building internal as well as external collaborative relationships 4. Moving from Customer Provider to Customer Partner 5. Recognised differentiator in the bidding and tendering process 6. Moving from relationship by relationship to collaborative culture 20/04/2015
- 12. Copyright © 2013 BSI. All rights reserved. Alliance Model Certification Process OPTIONAL Pre- assessment (Gap Analysis) Stage 1 (focus on formal system requirements Clauses 3-10) Stage 2 (focus on operations and effectiveness) CAV (surveillance) 3 year Strategic Review RECERTIFICATION 2-6 months 2-4 months 10 (4 by exception) months 12 (6 by exception) months Clauses 3-6 individually Clauses 7-10 in collaboration CERTIFICATION Certification independently demonstrates conformance - To the organization - To interested parties - To realize value
- 13. 13Copyright © 2014 BSI. All rights reserved. BS 11000 certified organizations
- 14. BS 11000 Collaborative Business Relationships 14 ‘The particular thing with Area 3, which will stay in my mind for ever, is that we tackle some really demanding challenges in a thoroughly enjoyable way. If anyone needs a model of "easy to do business with", then I think we know which way to point.’ Guy Berresford – HA Contract & Performance Team Leader ‘Collaboration has helped develop our employees, through increased scheme ownership gained from early involvement.’ Matt Morphet – Chevron TM Commercial Manager ‘Collaborative working can realise the benefits of improved efficiency, co-ordination and use of resources, with opportunities to deliver enhanced value, new ideas & solutions and improved working relationships.’ Darren Nelson – Carnell Chief Executive ‘Structured collaborative working will lead to enhanced operational performance, which will ultimately deliver efficiencies for us, EM, the wider supply chain community and the Highways Agency Toby Pyper – Aggregate Industries Area Director
- 15. BS 11000 Collaborative Business Relationships 15 Area 3 benefits of collaboration so far Cashable efficiency savings £12.5m (2011/12) & £12.6m (2012/13) Hours worked without a RIDDOR reported injury 3.5 million hours Reduction in road worker motorway carriageway crossing 35,000 p.a (65%) Carbon reduction – delivery of 30% of the HA national target (2011/12)
- 16. 16Copyright © 2014 BSI. All rights reserved. Thank you for listening Call 0845 080 9000 to find out more 20/04/2015
Editor's Notes
- Hi, my name is Carla Whyte and I’m a Product Marketing Manager at BSI. I’m going to talk to you today about BS 11000 as the framework for collaboration. Did you know……..followed by fascinating fact…. I want to tell you how it came about, how it’s evolving as a business improvement tool and the benefits that’s it’s delivering for those that have embraced it. First I’m going to tell you a little bit about BSI.
- KEY MESSAGE – We are industry leaders. Need to mention ICW here….(Charlotte – is ‘owners’ the right terminology for Kitemark?) So, we’ve been around for a long time and created the world’s most popular standards – and as the UK National Standards body we are still at the heart of standards creation today. Incidentally, we developed BS 11000, working alongside the Institute of Collaborative working and have been offering certification ever since. We are well known for the BSI Kitemark – now 110 years old, this mark of quality has recently moved into the financial services sector……. We are a global business working with over 70,000 clients and supporting a diverse range of organizations across many different sectors, from start-up businesses to super brands.
- You saw on the previous slide that we have 70,000 clients globally, 33,000 of which are based in the UK – we also have a global network of over 4,000 people and they are supported by 10,000 industry experts. Our brand is trusted worldwide. We don’t just author and produce standards, we invest heavily in developing the skills of our people to ensure we can share our knowledge and expertise through our tutors and assessors, who in turn bring their own specialist sector knowledge and expertise. Our customers have access to a team of 250 client managers just in the UK, many of whom are multi skilled and able to assess multiple standards. Each year our assessors spend over a quarter of a million hours supporting British businesses And we’re very proud of the fact that our assessors score so highly in our Global Client Satisfaction Index and our customers tell us that our Credo of ‘making excellence a habit’ keeps them focused on meeting their own expectations and company goals.
- Key message – Business potential standards are the standards of the future. So, that’s a bit about BSI – let me tell you briefly about standards themselves. Quite simply, they are the result of international, expert consensus, designed to support businesses in implementing effective, best practice systems and processes that meet the strategic aims and objectives of the business. You might have noticed on a previous slide - we’ve been around since 1901 and we’ve seen the role of standards evolve over the years, through 3 generations in fact. To begin with they were product focussed and all about delivering consistency in product specifications. We then saw progression into process focused standards, designed to help a businesses function more effectively. These are where we find our core management systems such as quality management, environmental management and health and safety. More recently, we’ve seen the development of a different kind of standard – designed to help businesses to fulfil their potential. These have a greater emphasis on people and changing corporate culture and behaviour to support businesses in continually improving. These standards are gaining momentum as strategic business tools and this is where the BS 11000 sits.
- KEY MESSAGE – Collaboration and BS 11000 is going from strength to strength in the business world – time to get on board Collaboration isn’t a new concept, with many well known partnerships achieving great things throughout history. But in recent years and particularly in tough economic times, collaboration has played an increasingly important role in business strategy. Partnering has long been the focus for parts of the MOD and they were the first to document and start sharing best practice back in 1998 when the MOD Partnering Handbook was produced. The challenge was how to implement any documented process - developing the handbook into PAS 11000 provided a common structure and neutral starting point. At the end of 2009 a decision was made to form a standards committee and upgrade the PAS to a British Standard which came to fruition in 2010. It’s testament to the success and global interest in this relatively young standard that it’s now been recognised by ISO who are taking it through to an international standard. ISO 11000 is due for publication towards the end of 2016.
- Industry has a long history of conflict based business and most of us are comfortable in this environment but as the world and markets become more complex and need greater flexibility the traditional approach can be counter productive and wasteful. So if we can think more about how to win rather than how to be dominant there is a great potential increase benefits all round. It is commonly understood that the value of a relationship increase with the trust that is built over a period of time. BS 11000 is built on the principle that if the foundations for ‘Mutual respect, honesty and integrity’ as mentioned by Robert just now, are established at the beginning of the relationship, then the value should be recognised sooner and incrementally through the lifetime of the relationship. There are many external drivers for collaboration in business including intense competition, a need to bring quality products to market faster and cheaper, the drive for design innovation in demanding markets and the push towards global outsourcing to low-cost regions of the world. Leading edge companies are looking to their suppliers and partners to help maximize competitive advantage through faster time-to-market and cost reductions. These companies are transforming suppliers into strategic partners and focusing on developing longer term relationships that deliver the optimum value for all parties. Likewise, businesses are finding the need to work more effectively and efficiently across divisions or departments to improve delivery and drive successful outcomes across the business. Hence the need for collaborative relationships.
- So, you’ve heard about the 3 phases of BS 11000 from Robert - and it’s important to remember that the ‘strategic’ phase is about a business understanding it’s own expectations and capacity for collaboration, even before partner selection begins. What is interesting, is the shift that we’ve seen over 4 years of certification. Often an organization has recognised the need for a collaboration around a specific project or venture. Sometimes relationships have been in existence for many years prior to certification. But more recently, as the benefits of collaboration have been realised, more and more organizations are looking to embed a culture of collaboration across their business and relationship management plans at a corporate, or strategic level are taking shape. In our experience as assessors, we’ve seen that there are six main aspects to a successful approach to collaborative relationship: Senior Management Commitment in line with Corporate Strategy Establishing the Organisation’s Collaborative Profile Establishing a framework for evaluating prospective collaborative partners Agreeing Joint Strategies, Governance and Processes Monitoring and Measuring effectiveness of the Relationship Exiting from a Relationship The structure then supports the process of identifying potential partners and the needs and considerations involved in making the relationship work – with a particular emphasis on recognising the value and ensuring this is incremental as the relationship continues. The exit strategy, whilst it appears here at the end of the process, actually begins it’s life much earlier on during ‘knowledge’. It may seem a little unusual to consider this before even beginning the relationship, but even the most successful partnerships should have a pre-defined exit strategy. This is done to ensure the best possible outcome for all parties and to leave doors open for potential future relationships where appropriate.
- If you ask most businesses if they are collaborative, they will say yes but in our experience as assessors (Charlotte, we need to differentiate ourselves from ICW), we’ve seen that there are six main aspects to building successful relationships: The first is to ensure that Senior Management Commitment in line with Corporate Strategy – this doesn’t just apply to BS 11000, with all management system standards it’s important to ensure that they are aligned with the strategic objectives of the business. The Collaborative Profile is about absolutely understanding the capacity of your own organization to be collaborative – are you ready? Do you have the right people and skills within your own business? Establishing the right framework for partner selection is key – agree your criteria and stick to them. Each party in the relationship will bring their own experience, skills and ideas to the collaboration. This isn’t about re-inventing the wheel, it’s about identifying existing good practice to build on and then filling in the gaps. This is where you will thinking about joint Strategies, Governance and Processes that work for all. Monitoring and Measuring the effectiveness of the relationship is crucial and key to ensuring that expectations are being met and the value is being realised. And finally, the Exit strategy. This is shown here at the end of the list but this actually begins much earlier on in the process, preferably before partner selection. All good things must come to an end but if this is managed well, it leaves the door open for future collaborations which is to everyone’s benefit. It’s not on the list here but where we see the best success from relationships is where all parties are represented around the same table, and we can’t identify who works for who.
- As you would expect, there are also commonalities in the failings across collaborative relationships – I won’t go through this in detail but just to highlight a couple, we often see over complicated relationship management plans which goes hand in hand with the fact that sometimes, systems are created to meet the requirements of the standard and don’t necessarily reflect the needs of the business. This isn’t just true to BS 11000, we see this across all standards and it’s important to remember management systems are designed to help organizations meet their own needs and objectives. An interesting one is ‘failing to identify risks to the collaboration’. This can be as simple as not appreciating that not all people have the necessary skills to be collaborative. As businesses begin to take a more strategic approach to collaboration, we are seeing a growing requirement for collaborative skills in the recruitment and personal development processes.
- As I mentioned earlier, BS 11000 is still very new in terms of certification but BSI now have over 120 partnerships certified and preparing for certification. Our clients are telling us that there is ever increasing importance placed on the collaborative capabilities of organizations in the tendering process, particularly within construction & infrastructure, defence and transport to name a few. Certification to BS 11000 is a recognised means to demonstrating a commitment to collaboration but it also supports businesses in understanding their own collaborative capabilities and taking a structured approach to managing relationships. Independent assessment helps businesses to focus on implementing a system that delivers results and supports the move from a relationship by relationship or project by project focus to a collaborative culture. A certified system provides a proven basis for building new relationships.
- What does the certification process look like?
- Charlotte – consider making more constructiony…..Network Rail has a number of infrastructure projects certified to BS 11000 and we are working with them to promote the benefits of collaboration into their supply chain – along with a number of other industry leaders.
- EXTRA SLIDE TO STEAL STUFF FROM – WE HAVE PERMISSION FROM PAUL MCCREERY - The proof of the pudding comes from our Supply Chain. Closer working ties leading to improved efficiency for all partners. The opportunity to identify and deliver value for all not just the Client, to create a win-win and not a win-lose situation where Client is king.
- EXTRA SLIDE WE CAN STEAL STUFF OFF IF YOU THINK VALUABLE? - We have achieved cashable savings of £12.5m in 2011/12 from this approach. Money invested directly back into the Area for other works. Benefits are just financial – Our safety record improved based on our close working ties with our Contractors. A joint 4 team collaborative project (HA, EM, Chevron and TRL) led to a dramatic reduction in the number of carriageway crossings undertaken each year by our operatives. This is being taken forward into the next amendment of Chapter 8 and will deliver national safety benefits. A review of working practices with our partners has allowed us to deliver significant carbon reduction benefits resulting from lighting switch offs to recycling to better works planning