PAS 11000 the worlds first Collaborative relationship management standard© copyright Midas Projects Ltd June 2009
SCAF Workshop : ‘Defence indecision, Cost & Schedule impactsWednesday 21st April 2010
Building Relationships between
Organisations
David HawkinsDirector of Operations
PAS 11000 the worlds first Collaborative relationship management standard
•Back ground to PSL & CRAFT
•Development of PAS 11000
•Overview of Framework
Agenda
© copyright Midas Projects Ltd June 2009
Motivation
Power
Prestige
Ambition
Rules
Expectations
Needs Security
Culture
Systems
Tools
Management structure
PoliciesSkillsMeasures
Experience
Personality
Learning style
Formal relationship Process issues
Informal relationship People Issues
The Relationship Iceberg
The Importance of Relationships
PAS 11000 the worlds first Collaborative relationship management standard© copyright Midas Projects Ltd June 2009
Background
Formed in 1990 DTI now BIS and the CBI
Assist organisations to develop collaborative relationships for competitiveness
Develop, share, promote best practice Business Relationship Management
Self financing – Not for ProfitA Company Limited by Guarantee
20 years of practical experience
PAS 11000 the worlds first Collaborative relationship management standard© copyright Midas Projects Ltd June 2009
PSL Board
• Lord David Evans of Watford – Chairman
• Lord Tony Berkeley
• Barry Sheerman MP
• Andy Scott – CBI
• David Smith –BIS
• Marion Luckhurst – VT Group
• Chris Odam - NATS
• Les Pyle – CEO
• David Hawkins – Director of Operations
PAS 11000 the worlds first Collaborative relationship management standard© copyright Midas Projects Ltd June 2009
PAS 11000 the worlds first Collaborative relationship management standard
PSL Executive Partnering Knowledge Network
Office of Government CommerceDept. for Business, Innovation & SkillsCBIForeign & Commonwealth OfficePolicy ConnectDept. for Communities & Local GovernmentDept. for TransportHealth & Safety ExecutiveDEFRADept. of Works and PensionsUK Trade & InvestmentNuclear Decommissioning AgencyMoD-DE&SRoyal NavySport England
University of BathUniversity of CranfieldUniversity of StrathclydeUniversity of SouthamptonUniversity of ExeterManchester Business SchoolUniversity of SurreyC.I.P.S.ASAP
ACERAMECAscent Flight TrainingAWEBAe SystemsBECTABritish Retail ConsortiumBritish Standards InstituteBTCAPITACH2MHillCofely (Gaz De Suez)D-LinkEADSEMCORFrost and SullivanInterserveLife channelLockheed MartinLogistics InternationalMott MacDonaldNational Air traffic ServicesNIPOraclePERAPfizerProbrandRaytheon Systems
SCCSelex Systems IntegrationSenate publishingSERCOSiemens UKSiemens Enterprise communicationsSixtTNTToshibaTWIUKAEAVT Group
© copyright Midas Projects Ltd June 2009
Adversarial
PAS 11000 the worlds first Collaborative relationship management standard© copyright Midas Projects Ltd June 2009
Relationship journey
Confrontational
Collaborative
Mutual Trust
Compliant
Co-operative
Value Creation
Co-creating
Partnering
PAS 11000 the worlds first Collaborative relationship management standard© copyright Midas Projects Ltd June 2009
Partnering
PAS 11000 the worlds first Collaborative relationship management standard© copyright Midas Projects Ltd June 2009
• Lack of stakeholder commitment / management support• Lack of strategic direction• Poor up-front planning / partner evaluation• Cultural mismatch• Lack of shared goals / success criteria• Poorly defined measurement (often too many)• Lack of benefit / risk sharing• Hidden agendas• Poor communication• Ineffective blockage resolution mechanisms
The challenges of collaborative business relationships
PAS 11000 the worlds first Collaborative relationship management standard© copyright Midas Projects Ltd June 2009
The Importance of Relationships
Relationships PeopleMachine
Functional
•Transactions
•Information
•Specifications
•Inventory
•Accounting
•Payment
•Taxation
•Security
•Duties
•Pricing
Procedural
•Bidding
•Planning
•Demand/supply
•Evaluation
•Budgeting
•Contractual
•Performance
•Alarms
• Marketing
• Renewal cycle
Relational
•Language
•Law
•Legislation
•Visibility
•Reporting
•Customer
profiles
•Integration
•Currency
•Risk mgt.
Emotional
•Confidence
•Trust
•Culture
•Leverage
•Negotiations
•Problem solving
•Dispute resolution
•Ownership
•Motivation
•Innovation
•Risk awareness
PAS 11000 the worlds first Collaborative relationship management standard© copyright Midas Projects Ltd June 2009
PAS 11000 the worlds first Collaborative relationship management standard
C R A F T
Collaborative Relationship Assessment Fulfilment Transformation
A structured framework for building effective and profitable relationships
Awareness
Knowledge
Internal assessment
Partnerselection
Stayingtogether
Exit strategy
Valuecreation
Workingtogether
© copyright Midas Projects Ltd June 2009
PAS 11000 the worlds first Collaborative relationship management standard
Published by the British Standards
Institution (BSI) in association with
Partnership Sourcing Limited (PSL)
PAS11000 is the world’s first
relationship management Standard
for creating and maintaining successful
business-to-business collaborations.
External collaborators
Suppliers
Internal departments
Customers
Collaborativerelationshipmanagement
© copyright Midas Projects Ltd June 2009
Background to PAS 11000 1990 PSL Formed by DTI now BIS and the CBI
Mandate to Develop, share, promote best practice Business Relationship Management
1994 Latham Report
1998 Egan Report
1999 PSL publishes Vision 2010
2004 CRAFT programme launched
2005 PSL research programme Future Connections (2020)
2005 BSI & PSL initiate development of standard
2006 BSI launch PAS 11000
2009 BSI initiates Corporate certification programme
2010 BSI certification pilots Qt1 successfully completed
2010 BSI launch full certification programme Q2
2010 BS 11000 Q4 to be published
PAS 11000 the worlds first Collaborative relationship management standard© copyright Midas Projects Ltd June 2009
Football?
Rules
Teams
Duration
Languages
Cultures
Playing fields
KitBall
PAS 11000 the worlds first Collaborative relationship management standard© copyright Midas Projects Ltd June 2009
Benefits of a framework standard
External
Collaborativebenchmark
Pan industry
Efficiency&
effectiveness
Resourcedevelopment
Public &PrivateSector
Consistentplatform
Riskmanagement
Process andsystems
Benefits of BSI Standard
Internal
PAS 11000 the worlds first Collaborative relationship management standard© copyright Midas Projects Ltd June 2009
BSI - PAS 11000 Certification Pilot
PAS 11000 the worlds first Collaborative relationship management standard© copyright Midas Projects Ltd June 2009
EMCOR- Lockheed Martin – NATS – Raytheon Systems – VT Group
PAS 11000 the worlds first Collaborative relationship management standard© copyright Midas Projects Ltd June 2009
Relationship Management Plan RMP
© copyright Midas Projects Ltd June 2009
RMPRev 0
Supporting the initial business case to develop a partnering / collaborative approach and platform for implementation
Establishing the basis for Partner selection and foundation for contract development
Establishing the joint governance as part of contract
Ongoing joint through life operational
management
conceptRMPRev 1
Strategy
RMPRev 2
Agreement
RMPRev 3 +
Life cyclemanagement
PAS 11000 the worlds first Collaborative relationship management standard
Overview of requirements
PAS 11000 the worlds first Collaborative relationship management standard© copyright Midas Projects Ltd June 2009
1. AwarenessUnderstanding your objectives
• Executive sponsor• Business objectives• Business case• Identify focus• Initial risk assessment • Key individuals
PAS 11000 the worlds first Collaborative relationship management standard
Operational efficiency
Accountability
Valuecreation
Joint Innovation
Joint ownership
Knowledgesharing
Profitability
Improved performance
What does Joint success
Look like
Industryobjectives
SharedRisk & reward
Operationalrequirements
Commercial objectives
© copyright Midas Projects Ltd June 2009
2. KnowledgeLearning from those that are ahead of you
• Identify drivers• Benchmark• Knowledge map• Strategy• Risk management• Exit strategy
People
Strategy& Risk
Processes
OrganisationBusiness
Environment
PAS 11000 the worlds first Collaborative relationship management standard© copyright Midas Projects Ltd June 2009
3. Internal AssessmentKnowing your strengths & weaknesses• Self Assessment
• Constraints• Skills / Processes• Appoint leader• Partner profile• Action plan
Hard issuesSoft issues TRUST
Objectives
Processes
Procedures
Systems
Reporting
Resources
Management
Organisation
Leadership
Experience
Capability
Communication
Motivation
Culture
Concerns
Needs
Enablers
Openness
Honesty
Performance
Confidence
Risk & Reward
Consideration
Recognition
Understanding the impacts of organisational behaviour
PAS 11000 the worlds first Collaborative relationship management standard© copyright Midas Projects Ltd June 2009
4. Partner selectionFinding the right partner with appropriate strengths• Assess partners
• Strength analysis• MAP assessment• Evaluate• Select partner• Joint objectives
PAS 11000 the worlds first Collaborative relationship management standard
Existingsuppliers
Consortia
Newsuppliers
ExternalAlliances
Partneringpotential
© copyright Midas Projects Ltd June 2009
5. Working relationship
• Governance • Partnering Charter• Joint objectives• Processes /Plan• Joint risk mgt.• Measurement
PAS 11000 the worlds first Collaborative relationship management standard
Contract
• Objectives & scope• Performance • Terms• Risk & reward
Partnering charter• Joint Vision & Values• Critical success factors• Governance• Underpin behaviours
Operating practice• Manage relationship• Exploit knowledge• Create value• Drive innovation
Systems & process• Drive objectives• Monitor progress• Enhance communication• Measure performance
© copyright Midas Projects Ltd June 2009
• Define value• FIT teams• CI Process• Innovation groups• Staff development• Future options
CustomerSatisfaction
Resources Specification Performance
Total cost profile
Cycle timeBusinessprocesses
ValueCreation
Innovation
Creating additional value
PAS 11000 the worlds first Collaborative relationship management standard
6. Additional Value creation
© copyright Midas Projects Ltd June 2009
7. Staying togetherMaximising joint potential for the future
• KPIs• Performance• Joint exit plan• Health checks• Dispute mgmt.• Joint exit strategy
PAS 11000 the worlds first Collaborative relationship management standard
= Output Maintaining 1 + 1 = 3
Input =
© copyright Midas Projects Ltd June 2009
8. Exit strategy
• Set boundaries • Monitor change• Establish triggers• Assess liabilities• Mang. Knowledge• Review future
ReputationTime
KnowledgeCost
Sequence
Strategy
Customers
Business Objectives
SuppliersCompetition
Recognising the changing market place
PAS 11000 the worlds first Collaborative relationship management standard© copyright Midas Projects Ltd June 2009
BSI- BS 11000 DevelopmentCommittee
ADS (formerly SBAC)ASAPBAE SystemsCIPSCiscoDept. Business Innovation & SkillsEMCORFacilities Management AssociationHome OfficeLockheed MartinMODNational Air Traffic ServicesNational Audit OfficeNational Outsourcing OrganisationNHS Supply chainOGCProduction Engineering Research AssociationPSL (chair)Rail Industries AssociationRaytheon SystemsVT Group
PAS 11000 the worlds first Collaborative relationship management standard
Development Milestones
November 2009 Kick Off meeting
December – April 2010 Drafting
May 2010 – Pre-consultation Review
June- July 2010 Public consultation period
August 2010 Consultation review
September 2010 Final drafting
October 2010 Publication
© copyright Midas Projects Ltd June 2009
Benefits of a framework standard
Pan industry
Efficiency&
effectiveness
Resourcedevelopment
Public &PrivateSector
Consistentplatform
Riskmanagement
Process andsystems
Benefits of BSI Standard
Internal
Collaborativebenchmark
•Better engagement•Underpins effectiveness•Stronger processes•Improved risk management •Neutral starting point•Efficiency improvement•Skills enhancement•Sustainable relationships
PAS 11000 the worlds first Collaborative relationship management standard© copyright Midas Projects Ltd June 2009
Sustainable Relationships... ....that deliver value
and Recognised to a standard
Thank YouDave [email protected]
PAS 11000 the worlds first Collaborative relationship management standard© copyright Midas Projects Ltd June 2009