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Copyright Midas projects Limited 2010
Introducing: BS 11000
Meeting the Challenges of the 21st Century
by building more effective
Collaborative Business Relationships
Copyright Midas projects Limited 2010
BS 11000 framework overview
Copyright for this model is owned by BSI and may only be reproduced with their prior agreement
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Preface
The world is changing and at a faster rate than perhaps ever could have been envisaged. Globalisation is no longer an aspiration but a fact of life. Emerging nations are changing the face of economics. Communications technology has condensed the market place but it has still to conquer the cultural divide.
The networked economy is re-writing traditional business thinking of ownership and creating alternate business models based on interdependent and complementary alliances. The traditional hierarchical trading models are giving way to the concept of a more holistic value chain. In this turmoil one factor remains constant, good business relationships are a core ingredient for success.
The current economic pressures are coupled with a
greater need for innovation in the supply chain
together with the emergence of alternative business
models. With these economic challenges ahead
there is a need to harness greater collaboration
across both the public and private sectors. There
much talk of collaboration but for many the concept
appears to conflict with traditional management
thinking, whereas in fact collaboration should be
seen as an alternative approach used when
appropriately.
Thus the time is right for the publication of the British Standard (BS) 11000. It represents a landmark for business, as the first National Standard in the world to address collaborative business relationships. It does not represent a one-size solution, but rather provides a consistent framework, which can be scaled and adapted to meet particular business needs.
The subject of relationship management and
collaborative working has been with us for many
years under various guises such as partnering,
alliances, consortiums and others. Yet today it is
perhaps more pertinent than ever before, to look at
how these approaches can be more effectively
integrated to create value and build sustainable
relationships.
The publication of BS 11000 as the world’s first
national standard for collaborative business
relationship management provides the opportunity to
consider the key influences and how to consistently
manage the processes and impacts of collaboration
to meet the challenges of the next decade and
beyond.
Contents
Introduction
The benefits of work with BS 11000
Awareness:
Integrating collaboration with the business
Knowledge:
Developing a collaborative strategies
Internal assessment:
Understanding your collaborative capability
Partner selection:
Evaluating collaborative potential
Working together:
Setting the governance and management
Value creation:
Joint continual improvement
Staying together :
Managing relationships over time
Exit strategy :
Effective disengagement
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Introduction to BS 11000
BS 11000 was developed through pan-industry consultation to provide a structured approach to
building more sustainable relationships throughout the value chain. The aim of the standard aim
is to provide a framework to ensure collaborative relationships are effective and optimized.
Collaborative approaches have been shown to deliver a wide range of benefits, which enhance
competitiveness and performance (for example, better cost management, improved time,
resource utilisation, risk management and delivering incremental business value and innovation).
Working with BS11000 will help enable partners to effectively share knowledge, skills and
resources to meet mutually defined objectives and to provide new levels of value creation.
Collaborative relationships in the context of BS 11000 can be multidimensional, which can be
individual one-to-one relationships but more frequently might involve multiple parties, including
external alliance partners, suppliers, various internal divisions and often customers, working
together.
BS 11000 maps the key areas which all organisations should address. It is recognised that, the
degree of application will by necessity vary within the overall framework. Every relationship is
different whether vertical or horizontal; however the key issues will be common to most. It was
these key factors that BS 11000 captures and thus provides a common and consistent
foundation for collaboration.
The standard follows the three-phase approach covering eight stages. The first phase has three
stages, Awareness, Knowledge and Internal Assessment, and provides the foundation to
link collaborative approaches with the overall business operation, whilst also focusing on the
organizations capability to collaborate.
With the strategic elements of collaboration addressed, the organization will be ready for the
second phase to engage with others. Partner Selection addresses evaluation of potential new
partners or existing relationships, while the Working Together sets out how the collaboration
will function in practice, including value creation and innovation.
The third phase is about management of the relationship is covered Staying Together (through
delivering the agreed and expected services/benefits) and Exit Strategy, which focuses
effective disengagement of an individual relationship.
Collaborative relationship management is a complex. BS 11000 highlights the key elements for
success, provides a common life –cycle route map for ease of integration and a measurable
platform to monitor progress. The publication of BS 11000 this year will provide a foundation for
developing sustainable relationships and this summary will hopefully provide business leaders
to harness collaboration through the adoption of the standards principles.
David Hawkins, Operations director at PSL
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Benefits of working with BS11000
Collaborative business relationships have been shown to deliver a wide range of
benefits, which enhance competitiveness and performance whilst adding value to organisations
of all sizes. The publication of the BS 11000 is a landmark for business. It is the first National
Standard in the world to address collaborative business relationships. It does not represent a
one-size solution, but rather provides a consistent framework, which can be scaled and adapted
to meet particular business needs.
Collaboration between organisations may take many forms from loose tactical
approaches through to longer term alliances or joint ventures. The structure of the framework is
drawn from the CRAFT framework and methodologies supported by a wide range of tools and
guides, which have been established over some 20 years of involvement in relationship
management.
BS 11000 does not enforce a single rigid approach but has been focused on providing a
framework that can complement existing approaches where these are already in place. It also
recognises that every relationship has its own unique considerations. For those organisations
with well established processes the framework provides a common language that can aid
implementation and engagement. For those starting out on the journey the framework creates a
road map for development.
The adoption of any standard has to be balanced against the value that it can deliver to
the organisations that chose to utilise it, whether this is for improving internal performance or to
enhance confidence in the market. In this respect BS 11000 is no different to other
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internationally recognised standards such as ISO 9000. The BSI certification programme,
launched in April 2009, establishes a measurable independent assessment for internal
benchmarking of continuous improvement and people development together with independent
validated pan industry recognition of an organisations collaborative capability in the market
place. At a more detailed level some of the benefits already recognised by multinational
organisations include;
The standard creates a robust framework for both the public and private sector to
provide a neutral platform for establishing effective collaborative programmes for mutual benefit.
Its core value is commonality of language and application between delivery partners leading to
improved / better integration. Acting as a bridge between cultures to form a more robust
partnership or alliance it reduces confusion, provides confidence to participants and lays a
foundation for innovation.
As it was developed through Pan-industry input and thus is not sector specific providing
a basis for broader adoption and engagement, providing a common foundation and language for
relationships between the private and public sector, international cultures to provide uniformity
of understanding. It provides a platform for developing repeatable models to enhance
communication and engagement and thus build confidence.
The standard provides a basis for benchmarking the collaborative capability of
organisations both internally and externally through BSI independent assessment which will
enhance partner evaluation and selection together with establishing market differentiation. It
establishes a consistent yet flexible approach that provides a foundation for efficiency and
repeatability across programmes and increased opportunity to focus on developing value. It will
aid the development of capability at the working level.
It creates a measure to promote customer confidence and a focus for more effective joint
risk management both related to the challenges of specific programmes and those linked to
relationship aspects of collaborative working. It reduces the likelihood of misunderstandings, a
mismatch of objectives, constrains hidden agendas and reduces the probability of conflict.
It establishes a consistent and structured approach to facilitate a focus on integration of
collaborative working within operational procedures, processes and systems. Thus creating a
platform for more effective governance, speed the development. Establishes a baseline to
support resource development and training to increase collaborative capability to enhance skills
and interchange ability of personnel
In short a standard framework that will promote better engagement and effectiveness
through strengthened business processes, whilst improving risk management, enhancing
dispute resolution and providing a basis for skills development. Most importantly of all improve
the potential for sustainable relationships that deliver value.
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Awareness Integrating collaboration with the business
Relationships of any kind have a
life cycle and to maximise the
benefits of a collaborative
approach it is important to
consider the longer term
implications of our actions on
value creating relationships.
Collaborative approaches will cut
across every function in an
organisation. The initial key is to
ensure that an organisation has
a clear mandate and strategy to
undertaken a collaborative
engagement. This has to be
clearly aligned with the visions,
values and objectives of the
business. Collaborative working
in any form is not an easy option;
it requires investment, resource
and frequently changes within an
organisation as such it needs
backing.
1. Executive sponsorship &
policy
For many organisations the
traditional business approach
tends to focus on exploiting
adversarial relationships.
Changing the rules of
engagement needs strong
support from the top.
2. Business objectives
It is crucial that the adoption of
a collaborative approach is
clearly aligned with the
business goals and objectives.
In this way those across the
organisation can appreciate the
potential for a value chain
approach.
3. Benefits & Business case
Promoting collaboration may be
at odds with current thinking. As
such its benefits often need to be
sold across the organisation.
These benefits must be
articulated and understood
including the long term
advantages, which should be
focused on a robust analysis of a
cost effective solution.
4. Segregate relationships
Historically terms such as
partnering or collaboration have
been used too liberally and
frequently when not necessary or
appropriate. This has led to
confusion, misalignment of
goals, failure based on
expectations and lack of robust
management. A clear
differentiation of relationship
types enables organisations to
focus resources more effectively.
Generally this will be driven by
analysing;
Complexity
Interdependence
Risk
Total cost of ownership
5. Evaluate Key individuals
Working in a collaborative way
may not suit everyone and whilst
they may be excellent in one
domain the concept and skills for
operating in a mutually beneficial
environment may challenge
some competencies and
behaviours picking the right
people is crucial.
6. Initial risk assessment
Every business venture carries
some risk and managing these is
a key aspect. Collaborative
approaches can introduce
alternative ways of managing
risk, including a joint approach
with partner(s), but can also
introduce new risk elements.
These need to be identified and
carried forward through the
development of a collaborative
model.
7. Relationship Management
Plan
Creating an RMP will help to
capture the concepts and
provide a platform for
development, with the partner(s).
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Knowledge Developing a collaborative strategies
Having identified the potential
for collaboration the next stage
is to develop specific strategies
and risk management that will
deliver the required outcomes.
What do you want to achieve
and do you have the skills, to
support the complexities of
these integrated approaches?
How to manage knowledge and
information flows? What will
your customers and markets
make of a collaborative
approach? Who could you
partner with? What would be
the impact of withdrawing from
collaboration? The exit strategy
is often seen as negative but in
fact understanding the rules for
disengagement focuses the
attention on the key issues to
make a relationship work. Most
importantly what do the specific
risks look like?
1. Identify objectives & drivers
Whilst there may be many
common factors each
relationship will likely have
varying drivers which will shape
the relationship. It is crucial to
understand these and ensure
they are transparent to the
organisation. As the relationship
progresses these must remain at
the fore as they will influence
every aspect of the development.
These can vary from:
2. Skills & competencies
It is important to consider the
available resources to support a
collaborative programme. As we
have said it may not suit all.
3. Knowledge management
One of the significant benefits of
collaboration is the ability to
share knowledge with partners.
This also creates a challenge for
many organisations to identify
what can and can’t be shared.
Having a clear focus on this up
front will avoid clashes later.
4. Strategy development
From this point you now start to
develop the strategy that will
drive the process forward.
5. Market analysis
Understanding the dynamics of
the market is important both the
aspect as to how customers and
suppliers may view collaboration.
6. Collaborative partners
Having the concept is one thing
but then you have to consider if
and who might be collaborative
partners. The starting point is
often the existing relationships
but recognise both their
traditional stance and their
potential to change the rules of
engagement.
7. Initial Exit strategy
Part of the strategy should
include the implications of exiting
the relationship at some point.
This is not simply having a
method for termination but
should incorporate transition and
acquiring key assets or
knowledge. This may highlight
key aspects that must be part of
the overall plan for
implementation.
8. Risk management
As the strategy is refined there
should be a more detailed
analysis of the specific risk
profile.
9. Business continuity & CSR
Finally two aspects which can
frequently be overlooked are that
with greater integration
organisations have to evaluate
the impacts of a breakdown of
the relationship and maintaining
business. Secondly as partners
may now be synonymous with
your organisation what impact
may that have on sustainability
policies and values?
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Internal Assessment Understanding your collaborative capability
Most organisations are very
good at defining what they want
from others but perhaps less
willing to assess their own
capability to meet the demands
of collaboration. A collaborative
relationship is a two way street
and to achieve the desired goals
it requires commitment on all
sides.
This is not just about processes,
procedures, systems and
contracts (the HARD process
issues). It is also a question of
the people drivers (the so called
SOFT issues) such as
leadership, skills and motivation,
which will govern the behaviours
and approaches at the working
level. Understanding the internal
enablers that build trust between
the parties based on mutual
benefit and equitable reward is
important.
1. Policies & processes
Organisation that want to build
robust collaborative programmes
need to ensure there are the
appropriate rules of engagement
clearly embedded in their
operation approaches. This
ensures that over time
behaviours remain aligned to the
agreed objectives and goals.
2. Internal Constraints
It is useful to take a step back
and consider what in terms of
current operating practice may
constrain effective collaboration
and get these issues addressed.
These can vary widely but may
come from programme
ownership, cross functional
barriers, incentive and
performance measure policies,
together with systems and
procedures.
3. Collaborative profile
Undertaking a review of the
organisation’s collaborative
profile,- and there are a variety of
models one can use- will provide
a platform on which to consider if
your organisation would make a
suitable collaborative partner
when viewed externally. For
collaboration to work effectively
potential partners must see you
as an intelligent partner they can
work openly with.
4. Collaborative leadership
They key to successful
collaboration comes from having
the right leadership. This is
difficult role since on occasions
they may be required to fight the
partner’s corner internally. In
addition they need to be able to
engender and maintain the ethos
of collaboration by both
supporting and mentoring those
involved.
5. Partner profile
As part of the internal
assessment it is also useful to
establish in each case what your
partner should look like. This
enables the organisation to set
its agenda and provides a basis
for evaluation later in the
process.
6. Knowledge & Skills
It is unlikely that every
organisation will have an
abundance of skilled
professionals ready to take on a
collaborative role. Recognizing
the gaps and building in process
capability development is
important
7. Implement & review
With the building blocks in place
organisations can move forward
with a degree of confidence to
address the market.
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Partner selection Evaluating collaborative potential
Collaborative relationships can
be utilised in many different
circumstances and finding the
right partner should not be left to
chance. Too often the selection
process is by default or based on
long term experience in a
traditional relationship. This may
not always be the best criteria.
The majority of collaborative
programmes result from and
evolution of more traditional
trading interfaces. It is important
to understand the differing
dynamics of a collaborative
approach and assess the
strengths and weaknesses
whatever the route to selection.
It is clearly important to ensure
that selection maintains the
competitive edge that many see
only coming from competition. To
build confidence in the selection
process a competitive starting
approach is always favourable or
a way of conducting a form of
robust benchmarking. It should
however clearly define the end
game up front to avoid confusion
later.
1. Identify collaborative
partners
Whatever the drivers for
collaboration it is important to
have a clear perspective on
which the potential partner(s)
may be. Experience suggests
that in many organisations their
will preferred contenders for a
variety of reasons.
Understanding who could be in
the game allows a transparent
process to be developed.
2. Partner selection process
Many organisations will have
established processes for partner
selection and these should be
followed as the starting point to
seek out the ideal collaborative
partner. The aims of the
collaboration need to be defined
together with the relative value
that will be placed on their
collaborative capability. Using the
reference point of BS 11000 can
provide a valuable benchmark for
assessing a collaborative
approach.
3. Establish common
objectives
Throughout the selection process
it is advisable to work with the
potential partners to understand
their objectives as well as
building a dialogue around
common objectives and
outcomes. These may not always
be the same but should be
evaluated for alignment and
compatibility.
4. Negotiation strategy
Perhaps the most difficult aspect
of creating a collaborative
approach comes through the
process of negotiation. The
implications of the style of
negotiation can be far reaching.
The nature negotiations will set
the tone for the future
relationship. Whilst we have all
experienced the WIN/WIN
approach the reality is that most
exchanges if not managed
effectively will revert to traditional
arm wrestling and poker playing.
This is not to suggest that
negotiations should not be robust
and commercially focused but be
sure that the end game is always
kept in mind.
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Working together Setting the governance and management
Once the partner(s) are selected
the focus shifts to ensuring that
relationship is placed on a sound
foundation. Establishing the right
platform on which to create a
collaborative relationship is
crucial. Clearly there will need to
be an agreed contract however it
is important to work jointly on
setting out the appropriate
governance model that will
support collaborative working.
1. Joint sponsorship
As operations are likely to reach
beyond those initially involved in
establishing the relationship it is
important that there is joint
executive sponsorship to provide
overall support.
2. Objectives & principles
There needs to be clear and
transparent agreement on the
desired outcomes and objectives
of the relationship which must
also reflect joint ownership of the
principles that will govern the
behaviours of those involved.
3. Competency review
It is advisable to undertake a
joint assessment of the
competencies and skills of those
to be engaged in delivery and
where appropriate agree a joint
development plan.
4. Joint management team
Establishing a management
team together with a clearly
defined profile of roles and
responsibilities ensures that all
participants fully understand their
contribution
5. Information management
Effective management of
knowledge and information is
crucial to ensure that the
partners are clear on what and
how to share information.
6. Communications plan
As the relationship becomes
established it is advisable to
establish a plan for effective
communications across the
stakeholders.
7. Joint risk management
A Key to maintaining a
successful relationship is to
ensure there is an effective joint
management of risk, including
those of the partners which may
impact the relationship.
8. Process review
When first establishing the
relationship it is valuable to
undertake a joint review of the
delivery processes. This will
establish the platform for
effective performance and
provide a basis to ensure prior to
formally contracting that all key
issues have been jointly
addressed.
9. Monitor & measure
In any relationship it is important
to understand how the
relationship and delivery
performance will be measured.
Ensure that performance
incentives also support required
behaviours.
10. Relationship management
plan
It will be helpful to agree a joint
relationship plan which may be
established as an annex to any
contract but will become a
working document for the parties
to manage the relationship.
11. Contracting arrangement
Finally whatever contracting
model is used it should be jointly
agree and evaluated against the
relationship approach and be
compatible with the joint
principles, aims and objectives.
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Value creation Joint continual improvement
Experience suggests that
relationships will tend to plateau
over time if not driven to maintain
continual improvement. The
relationships which are
particularly focused on long term
benefit must maintain a
relevance to markets and
customer needs. A major value
from collaborative approaches
comes from the ability to share
ideas and harness alternative
perspectives. Those that look for
additional benefit often exceed
their original objectives and
perform much better overall.
The parallel benefit that can
come from adopting a structured
approach to joint continual
improvement is that in working to
co-create business and product
value creation improvement
beyond the initial aims is that it
helps to engender improved
engagement across partnering
teams.
1. Value creation process
Whilst they is great value in a
spontaneous approach to
innovation establishing a joint
process that ensures both
targeted support and encourages
new ideas is very powerful. A
structured approach will underpin
the sustainable engagement and
provide a measure of integration
and continual focus on driving
greater value form the
relationship.
2. Joint innovation Groups
How organisations chose to
encourage innovation depends
on a wide variety of factors but is
often managed well by
establishing joint cross function
teams which can be convened to
address specific challenges or
ideas.
3. Areas for improvement
The key to optimising this co-
creation is to ensure that
identified issues are regularly
reviewed and where necessary
culled if not delivering. This
ensures resources are not
wasted or distract from the
primary objectives.
4. Define value
One of the major challenges in
any relationship is to define what
value means for those involved.
This is the responsibility of the
joint management team and
executive sponsors. These
longer term values may be
common or complementary.
5. Learning from experience
As organisations begin to work
together more closely it is equally
important to capture the lessons
learned. This is a key aspect of
creating value and setting the
agenda for innovation.
6. Generating innovation
Few business activities will stay
constant for very long and
particularly in a technology-
focused environment, innovation
is crucial to maintain competitive
edge for the relationship and the
partners. Whilst there may be
many common opportunities it is
also important that some aspects
may on occasions only benefit
one party support for these is
equally important
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Staying together Managing relationships over time
Business relationships will likely
change over time. This may be
as a result of either internal and
external factors or pressures.
Even where partners have
invested in creating a firm
foundation and governance the
people involved will develop or
move on, which will change the
dynamics of the relationship
which is a strong reason for
embedding the collaborative
practice in the operating model.
In order continuously to achieve
performance goals it is crucial to
establish a programme that
works to maintain a sustainable
relationship through ongoing joint
management.
1. Monitor performance
In the majority of organisations
there will be established
processes for monitoring
performance. Frequently
however these are focused on
outcomes, deliverables or mainly
profitability. These are clearly
very important but where
collaboration is an integral part of
the business performance this
should also include monitoring
the strength of the relationship.
2. Measurement
It is common practice to utilise
both Service level agreements
(SLAs) and Key performance
Indicators (KPIs). It is important
to understand and agree how the
performance of the contract and
the relationship will be jointly
measured and ensure
appropriate reviews are
undertaken.
3. Joint Team management
The principle key to sustaining
any relationship is to ensure
there is effective joint
management of the approach.
This should be focused on
managing the day to day
activities of the relationship.
4. Support innovation
There should be continuous
support and monitoring of
innovation and continual
improvement to ensure the
partnering teams are exploiting
their joint knowledge and where
appropriate enhancing their
skills.
5. Behaviours & Trust
Developing trust in the
relationships and ensuring the
appropriate behaviours is a key
aspect of joint management. As
trust increases the performance
of the relationship should
increase the value it delivers.
The wrong behaviours will
quickly undermine the situation
with the obvious impacts on
output.
6. Maintain performance
Business relationships are
created to meet the challenges of
the market. It is crucial that whilst
it is important to develop the
relationship the prime objectives
and contractual requirements
must be met.
7. Dispute resolution
Inevitably issues will arise and
too often these are left to fester
until they can in some cases
irreparably damage the
relationship. A crucial factor for
any collaborative approach is to
ensure there is a robust
approach to identifying and
managing disputes. If handled
well these issues are can
significantly strengthen a
relationship.
8. Joint exit strategy
The final aspect of maintaining
the relationship is to ensure the
exit strategy is jointly developed
and regularly reviewed and up
dated if necessary by the joint
management team.
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Exit strategy Effective disengagement
The exit strategy whilst shown as
the last stage in the relationship
life cycle it is in fact a key aspect
that should be addressed as part
of the initial thinking and carried
through the whole life cycle. The
strategy should focus on how the
parties plan to disengage when
necessary and ensure effective
business continuity and customer
support.
A strong relationship will
recognise the value of looking to
monitor the changes and ensure
that the concerns and needs of
each partner are duly addressed.
It is important to ensure that
whilst one particular initiative
may come to its useful end due
to a variety of factors others may
and should be emerge from
successful collaboration.
The implication of terminating an
agreement and how this is
viewed internally and from the
market is crucial to the reputation
of the parties. Whilst it may be
appropriate to cease activity how
this is presented and interpreted
will influence the way each party
proactively approaches
disengagement.
1. Maintain joint exit strategy
Jointly developing and
maintaining a focus on
disengagement ensures that the
partners have a clear focus on
the value of the collaboration.
This may seem too many to be a
negative approach but
experience suggest that
organisations who maintain a
realistic perspective will enjoy
greater engagement and thus
increased value from
collaboration.
2. Establish boundaries
It is important to clearly define
the boundaries of the
relationship, though it is accepted
that these may change over time
by mutual agreement. This
should include the business
risks.
3. Monitor changes
There should be regular joint
reviews of both the market and
the relationship to ensure it is still
relevant and delivering value to
the parties.
4. Establish triggers
It is crucial to agree the triggers
that would indicate the
relationship has fulfilled its useful
life.
5. Business continuity
The foundation of a sound
relationship is that whilst it
continues to add value it must
also recognise the implications of
maintaining continuity for both
the partners and their customers.
6. Transition
The termination of any
collaborative initiative needs to
be effectively orchestrated by the
partners. This particularly
important where service
provision is being transferred to
another party.
7. Future opportunities
Finally if the relationship has
been well managed and
delivered its objectives then the
way should be open to consider
future possibilities for
collaboration.
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About BSI BSI is a global independent business services organisation that inspires confidence and delivers assurance to over 80,000 customers with standards-based solutions. Originating as the world’s first national standards body, BSI has over 2,400 staff operating in over 120 countries through more than 50 global offices. BSI’s key offerings are:
The development and sale of private, national and international standards and supporting information that promote and share best practice
Second and third-party management systems assessment and certification in all critical areas of management disciplines
Product testing and certification of services and products including Kitemark®, one of the one of the world’s most recognised quality symbols
Certification of high-risk, complex medical devices
Performance management software solutions
Training services in support of standards implementation and business best practice. For further information please visit www.bsigroup.co.uk.
or contact John Osborne email: [email protected]
About PSL PSL established in 1990 is a joint Department for Business Innovation and Skills (formerly DTI), and Confederation of British Industry (CBI) initiative. It was initially funded by the DTI it now operates as a not-for-profit organisation. PSL’s role is to help organisations, large and small, from the public or private sector, to build and develop more effective and competitive business relationships based upon a collaborative approach. PSL provides practical guidance based on its portfolio of experience and utilising its extensive knowledge network. For further information please visit www.pslcbi.com or contact: David Hawkins, Director of Operations, email: [email protected]
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