This document discusses the efficiency mindset and collaboration in the future. It notes the market challenges of reduced budgets and the need for alternative thinking beyond current practices. There are two camps - collaboration which focuses on relationships, problem solving, and value, and traditional which focuses on short term goals, blame, and lowest price. The document provides guidance on starting a collaborative journey by aligning with objectives, using options appraisals to evaluate options, and creating and managing the relationship by communicating, using agreements properly, and jointly resolving issues. It stresses the importance of identifying and capturing efficiencies through standardized data and sharing successes in order to maintain momentum over time.

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

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

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?