embedding collaboration at the core of public procurement

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Embedding collaborationat the core of

public procurement

EFCA Conference - Oslo 2015Annick De Swaef, ir. managing partner ConsensaConsulting

Consensa Consulting © 2015 All Rights Reserved

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“315 billion”


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Our capability to collaborate


ArchitectureEngineeringConstruction

Banking & insurance

Urban planners

Legal, financial & tax advisory

Technical installations

Technology & telecom

…

PoliticiansGovernmentAdministrations

Public private partnerships

Project consortiaMultinationals

CompaniesSMEs

Strategic alliances

Integrated building

team

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Do we need to do more ?


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Be competitive, be collaborative


Public 315 billion Private

competition

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conversation

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competition collaboration

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The winner is the one who can …


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

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Do ‘they’ need to do more ?


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The winner is the one who can …


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

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They versus Us


Public ‘315 billion’ Private

?? Public procurement

Project delivery ?

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Private

Public

Strategic partnerships


Business case

(VfM)

PolicyStrategy

Public procure

ment

Projectdelivery Operations

‘315 billion’

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Strategic partnerships


ENGAGE IN

CONVERSATION

MANAGE

COMPETITION

COMMIT TO

COLLABORATE

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Engage in conversation


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 RISKOWNERSHIP

Control & compliance

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Vendors

RISK TRANSFER

OEM Alliance Internal teams

Risk spectrum - Business alliances, Robert L. Porter,

Joint ventures

Acqui-sitionsMergersLicensing

agreement

FULL RISKOWNERSHIP

100% equity0%

RISK SHARING

Control & compliance

Alignment& command

Collaborate & create

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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

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Manage competition


SCOPE

BUDGET

PLANNING

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Manage competition


?VALUE

CREATION

RELATIONSHIP

KNOWLEDGE

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Complexity

Manage competition


Execution

Innovation

Investment

RequirementsUrgency 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

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Manage competition


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

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Commit to collaborate


Senior executives

Operational managers

Project teams

Project board

team teamteam

team

B2B Collaboration

Intern

G2G Collaboration

Intern Alliance managers

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Commit to collaborate


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

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“315 billion”


ENGAGE IN

CONVERSATION

MANAGE

COMPETITION

COMMIT TO

COLLABORATE

Business case

(VfM)

PolicyStrategy

Public procure

ment

Projectdelivery Operations