The document discusses embedding collaboration in public procurement. It notes that public procurement accounts for €315 billion annually and argues that winners will be those who can best address uncertainty, complexity and innovation through collaborative partnerships. It advocates engaging stakeholders in conversation to understand needs and manage risks, managing competition based on capabilities rather than just price, and fully committing to collaborative behaviors, structures and decision-making. The goal is establishing strategic partnerships across the public and private sectors to improve value for money in procurement and the delivery of public projects.

1. Embedding collaboration
at the core of
public procurement
EFCA Conference - Oslo 2015
Annick De Swaef, ir. managing partner ConsensaConsulting
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2. “315 billion”
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3. Our capability to collaborate
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Architecture
Engineering
Construction
Banking &
insurance
Urban
planners
Legal, financial
& tax advisory
Technical
installations
Technology &
telecom
…
Politicians
Government
Administrations
Public private
partnerships
Project
consortiaMultinationals
Companies
SMEs
Strategic
alliances
Integrated
building
team

4. Do we need to do more ?
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5. Be competitive, be collaborative
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Public 315 billion Private

6. Be competitive, be collaborative
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Public 315 billion Private

7. Be competitive, be collaborative
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Public 315 billion Private

8. Be competitive, be collaborative
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Public 315 billion Private

9. Be competitive, be collaborative
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Public 315 billion Private

10. The winner is the one who can …
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Urgency & agility
- Obtain quick & argumented ‘go/no go’ decision of partners
- Deploy fast the required capabilities within his ecosystem
Uncertainty & risk
- Tap into market insights and leads through partners
- Share and manage risks with trusted partners
Complexity & innovation
- Co-create and monetize new knowhow with partners
- Create a joint culture of continuous learning and improving

11. Do ‘they’ need to do more ?
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12. The winner is the one who can …
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Reliability & consistency
- Provide a clear & realistic view on available budgets
- Assign competent staff and well-trained personel to projects
Business acumen & governance
- Understand & leverage dynamics of business environment
- Share and manage risks with selected contractors
Flexibility & focus
- Welcome new solutions/innovations from business partners
- Create an organizational culture of learning and improving

13. They versus Us
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Public ‘315 billion’ Private
??
Public
procurement
Project delivery ?

14. Private
Public
Strategic partnerships
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Business
case
(VfM)
Policy
Strategy
Public
procure
ment
Project
delivery
Operations
‘315 billion’

15. Strategic partnerships
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ENGAGE IN
CONVERSATION
MANAGE
COMPETITION
COMMIT TO
COLLABORATE

16. Engage in conversation
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PPP
D&C or
turnkey
Lump sum
fixed cost/time Alliance
Self
managed
Construction risk
carried by Owner
National Alliance Contracting Guidelines, Australian Government, July 2011, p17
RISK
ALLOCATION
RISK
TRANSFER
FULL RISK
OWNERSHIP
Control
& compliance

17. Engage in conversation
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Vendors
RISK
TRANSFER
OEM Alliance
Internal
teams
Risk spectrum - Business alliances, Robert L. Porter,
Joint
ventures
Acqui-
sitions
Mergers
Licensing
agreement
FULL RISK
OWNERSHIP
100% equity0%
RISK
SHARING
Control
& compliance
Alignment
& command
Collaborate
& create

18. Engage in conversation
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Managing expectations
- Talk open about investment opportunities and risks
- Source state-of-the-art process & program mngt expertise
Example : roadshows & stakeholder platforms
- Gather direct feedback from all involved stakeholders
- Reality check on willingness to invest and commit
- Detailed mapping of potential conflicts
- Reward new solutions and alternative scenarios
- Create viable timeframe for formation of consortia
- Include promising ideas and harsh feedback into next steps

19. Manage competition
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SCOPE
BUDGET
PLANNING

20. Manage competition
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?
VALUE
CREATION
RELATIONSHIP
KNOWLEDGE

21. Complexity
Manage competition
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Execution
Innovation
Investment
Requirements
Urgency Uncertainty
Referals
Selecting partners based on ‘best for project’ capabilities, foundation course Consensa
Shared risksAllocated risks
PROJECT
management
capabilities
ALLIANCE
management
capabilities
“Fail fast”“Don’t fail”
……
if if

22. Manage competition
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Selection based on excellence
- Necessity of mature project management capabilities
- Cross-organizational collaboration requires alliance capabilities
Example : Strategic alliances
- Value creation on a win-win-win basis
- Collaboration (incl. operational planning) before deal closing
- Evolutive contracting and flexibel exit clauses
- Clearly defined alliance roles and responsabilities
- Regular healthchecks on alliance operations
- Regular joint brainstorm sessions on new opportunities

23. Commit to collaborate
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Senior
executives
Operational
managers
Project
teams
Project
board
team team
team
team
B2B Collaboration
Intern
G2G Collaboration
Intern Alliance
managers

24. Commit to collaborate
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Collaborative behavior
- Joint management structure & governance framework
- Joint (change) programs that focus on learning organization
Example : Alliance contracting
- Risk and opportunity sharing
- Commitment to ‘no disputes’
- Best-for-project unanimous decision-making processes
- No fault, no blame culture
- Good faith
- Transparency

25. “315 billion”
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ENGAGE IN
CONVERSATION
MANAGE
COMPETITION
COMMIT TO
COLLABORATE
Business
case
(VfM)
Policy
Strategy
Public
procure
ment
Project
delivery
Operations

26. THANK YOU !
www.consensaconsulting.com
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