1 measuring collaborative performance 12 feb 13 dr andrew s humphries [email protected]...
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MEASURING COLLABORATIVE PERFORMANCE
12 Feb 13
Dr Andrew S [email protected]
+44(0)1908-664119+44(0)7963-241872
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Collaboration Confusion
Traitorous cooperation with an
‘enemy’
The action of working with someone to produce or create something that
neither of you could do alone (1+1=3, 4, 10..)
Or?
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Obtaining Value from Collaboration?
Advantages• Lower Costs• Competitive Advantage• Globalisation• Industry Structure• IT-Enabled• Access to Technology• Access to Resources• Marketing Advantages• Customisation/New Product
Development• Total Quality Management• Non Western Business Philosophies• Defensive Response• Ideas & Innovation• People and Trust• Co-opetition
Disadvantages• Loss of Freedom• Reduced Flexibility• Costs – Management Time,
Complexity, Size• Strategic Resources Exposure - IPR,
Competitive Capability, Cost Structure, Staff
• Opportunism• Anxiety, Paranoia • Dependence• Dominance• Takeover, Oblivion
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Relationship Pressures & Friction
Imprisoned?1 + 1=3, 4……?
15%
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Thriving Under Pressure
Value
Reliability
Creativity
Stability
Communication
Create a win-win relationship in
which each side is delighted to be a
part
Focus on service and product delivery,
lower joint costs and risks, build trust
Promote quality, innovation & long-term
view by encouraging high performance
Synchronise objectives and
build confidence thru investment
Frequent, open dialogue and information-
sharing
RelationshipSuccess Spiral
VfM
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Failing to CopeConfinement
Pressure
Self Interest
LeastEffort
LowCommitment
InformationEconomy
Partners are trapped by limited
choices
Only focus on your own objectives
Do the minimum you can get away
with
Take a short term view and
avoid riskDeliberately
confuse to gain advantage
Relationship FailureSpiral
VfM
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The Science of Measuring Relationship Performance
Relationship TheoryTransaction Cost Economics
Sector Organisation ID Date Positive Comment Negative Comment
Confidence
Failure/S
uccess
Category
Adapting - A
Com
mercial P
racs - C
Com
mitm
ent - M
Com
munication - N
Co-operation - B
Culture - U
Custom
er Focus - O
Equity - G
Fram
ework C
ontracting - F
Interdependence - I
Joint Problem
Solving - E
Logistics - J
Long Term
Orientation - L
Managem
ent - V
Opportunistic B
ehaviour - D
Perform
ance Managem
ent - X
Personal R
elationships - R
Planning - P
Pow
er - W
Quality S
ystems &
Ethos - Q
Relationship B
uilding - S
Research R
eport - Z
Team
work - K
Trust - T
DLO Land Supplier 5 19/3/01 They hide behind the excuse that their data is not good enough to give us as a means of keeping information from us. They are not open with us.
42 F Communication x x
DLO Land Supplier 5 19/3/01 They are still into buying the cheapest. 12 F Creativity x x xDLO Land Customer 5 5/3/01 Their product support manager is 'Mr
Smooth'.33 F Reliability x x
DLO Land Customer 5 5/3/01 They think that we are constantly stifling their creative ideas.
55 F Stability x x
DLO Air Supplier 6 The basis of some distrust and traditional methods of operation will require significant effort to breach. Us and them is still very apparent at a number of personal levels.
46 F Reliability x x x
DLO Air Supplier 6 Although the business arrangements and operational outputs of the 2 organisations are far from ideal, honesty and openness are not only promoted but are lived every day.
46 F Reliability x x
Interview Data Analysis
1a The relationship encourages the achievement of high performance by both parties 83 100
e.g. consistent product quality, on-time delivery, reasonable forecasts.
1b The relationship encourages us to be innovative and flexible in the way we do business 67 100
1c Performance measurement is used to raise standards 60 100
1d Disputes and problems are resolved quickly 100 67
1e Disputes and problems are resolved fairly 100 83
1f The other party is reliable and consistent in dealing with us 100 71
1g The other party is dedicated to making our business a success 83 60
1h When an unexpected problem arises, both parties would rather work out a solution 100 100
than hold each other to the original contract terms
2a The other party displays a sound, strategic understanding of our business 100 83
2b The objectives of both parties are clearly stated 100 86
2c The objectives of both parties are fully compatible 83 86
2d Both parties co-operate wholeheartedly 83 86
2e The relationship provides a dynamic business environment within which both 83 100parties can seek increasing rewards
2f I have complete confidence in the intentions of the other party 100 100
3a Where the other party has proprietary information that could improve the performance 100 100of the joint business, it is freely available
3b We have a shared data ‘environment’ where market, planning, technical and pricing 100 67information are made freely available
3c We understand the information requirements of all participants in the supply chain 100 67from suppliers to customers
3d Exchange of information in this relationship takes place frequently and informally 83 100– not just according to specified agreement
3e Objective performance measurement is an important part of this relationship 100 86
3f We are aware of the performance requirements for all participants in our supply chain 83 100from suppliers to customers
3g We provide the other party with regular information including long-range up to date 80 60
forecasts and market developments to enable him to do his business better
4a The quality of the contract outputs e.g. consistent product quality, fulfilled on-time 83 100orders, is entirely satisfactory
4b The quality of service e.g. billing, prompt payment, administration, delivery is entirely satisfactory 67 80
4c The relationship is characterised by a continually improving product quality philosophy 83 100
4d Problems are solved in a joint, open, constructive manner 100 83
4e Such is the goodwill in the relationship, the other party would willingly put him/herself out 60 50to adapt to our changing requirements
4f We trust the other party to act in our best interests 83 80
4g The responsibility for making sure the relationship works is shared jointly 100 71
4h The other party provides us with useful cost reduction and quality improvement ideas 50 0
4i The other party is always totally open and honest with us 67 83
4j The other party always does what he says he will do 100 83
5a The gains from this relationship are equitably shared between both parties 60 100
5b We do not feel ‘imprisoned’ or restricted within the current relationship 80 100
5c We are willing to invest more i.e. money, time, information, effort, in the current relationship 100 100
5d We are happy that our future is bound to the success of our relationship partner 80 100
5e We feel totally committed to this relationship 100 100
5f The other party is genuinely concerned that our business succeeds 83 100
5g Both sides are working to improve this relationship 83 100
Performance Metrics
1.Build relationship with carriers2.Review Supply Chain roles3. Upgrade forecasting system4. Hold regular performance reviews
Detailed report & Recommendations
Customer (Counts)
Copy block valuesto Success (3&4) 5 4 3 6 6 6 5 5 6 6 5 5 5 6 5 5 5 5 5 5 4 5 2 5 5 3 5 6 2 4 5 3 4 5 4 6 5 5
All relationships Failure (1&2) 1 2 2 0 0 0 1 0 0 0 1 1 1 0 0 0 0 1 0 1 1 1 1 1 0 2 1 0 2 2 0 2 1 0 1 0 1 1
Summary or No Answer (0) 0 0 1 0 0 0 0 1 0 0 0 0 0 0 1 1 1 0 1 0 1 0 3 0 1 1 0 0 2 0 1 1 1 1 1 0 0 0
Sector Summary Total responses 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6
Customer - Creativity Q1a Q1b Q1c Q1d Q1e Q1f Q1g Q1h OV Customer - StabilityQ2a Q2b Q2c Q2d Q2e Q2f OV Customer - Communication Q3a Q3b Q3c Q3d Q3e Q3f Q3g OV Customer - ReliabilityQ4a Q4b Q4c Q4d Q4e Q4f Q4g Q4h Q4i Q4j OV Customer - ValueQ5a Q5b Q5c Q5d Q5e Q5f Q5g OV
Success -% 83 67 60 100 100 100 83 100 87 Success -% 100 100 83 83 83 100 92 Success -% 100 100 100 83 100 83 80 92 Success -% 83 67 83 100 60 83 100 50 67 100 79 Success -% 60 80 100 80 100 83 83 84
Failure - % 17 33 40 0 0 0 17 0 13 Failure - % 0 0 17 17 17 0 8 Failure - % 0 0 0 17 0 17 20 8 Failure - % 17 33 17 0 40 17 0 50 33 0 21 Failure - % 40 20 0 20 0 17 17 16
No Answer - % 0 0 17 0 0 0 0 17 4 No Answer - % 0 0 0 0 0 0 0 No Answer - % 17 17 17 0 17 0 17 12 No Answer - % 0 50 0 17 17 0 0 33 0 17 13 No Answer - % 17 17 17 17 0 0 0 10
Supplier (Counts)
Success (3&4) 7 7 6 4 5 5 3 7 5 6 6 6 7 7 4 4 4 7 6 5 3 7 4 6 5 2 4 5 0 5 5 2 5 4 4 5 3 4
Failure (1&2) 0 0 0 2 1 2 2 0 1 1 1 1 0 0 0 2 2 0 1 0 2 0 1 0 1 2 1 2 3 1 1 0 0 0 0 0 0 0
No Answer (0) 0 0 1 1 1 0 2 0 1 0 0 0 0 0 3 1 1 0 0 2 2 0 2 1 1 3 2 0 4 1 1 3 0 1 1 0 2 1
Total responses 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 5 5 5 5 5 5 5
Supplier - Creativity Q1a Q1b Q1c Q1d Q1e Q1f Q1g Q1h OV Supplier - StabilityQ2a Q2b Q2c Q2d Q2e Q2f OV Supplier - Communication Q3a Q3b Q3c Q3d Q3e Q3f Q3g OV Supplier - ReliabilityQ4a Q4b Q4c Q4d Q4e Q4f Q4g Q4h Q4i Q4j OV Supplier - Value Q5a Q5b Q5c Q5d Q5e Q5f Q5g OV
Success -% 100 100 100 67 83 71 60 100 85 Success -% 83 86 86 86 100 100 90 Success -% 100 67 67 100 86 100 60 83 Success -% 100 80 100 83 50 80 71 0 83 83 73 Success -% 100 100 100 100 100 100 100 100
Failure - % 0 0 0 33 17 29 40 0 15 Failure - % 17 14 14 14 0 0 10 Failure - % 0 33 33 0 14 0 40 17 Failure - % 0 20 0 17 50 20 29 100 17 17 27 Failure - % 0 0 0 0 0 0 0 0
No Answer - % 0 0 14 14 14 0 29 0 9 No Answer - % 14 0 0 0 0 0 2 No Answer - % 43 14 14 0 0 29 29 18 No Answer - % 0 29 14 14 43 29 0 57 14 14 21 No Answer - % 60 0 20 20 0 40 20 23
J Sainsbury Creativity Stability Communication Reliability Value Overall
Success -% 87 92 92 79 84 87
Failure - % 13 8 8 21 16 13
No Answer - % 4 0 12 13 10 8
Cranswick Creativity Stability Communication Reliability Value Overall
Success -% 85 90 83 73 100 86
Failure - % 15 10 17 27 0 14
No Answer - % 9 2 18 21 23 15
Joint Creativity Stability Communication Reliability Value Overall
Success -% 86 91 88 76 92 86
Failure - % 14 9 12 24 8 14
No Answer - % 7 1 15 17 16 11
Joint Q1a Q1b Q1c Q1d Q1e Q1f Q1g Q1h OV Supplier - StabilityQ2a Q2b Q2c Q2d Q2e Q2f OV Supplier - Communication Q3a Q3b Q3c Q3d Q3e Q3f Q3g OV Supplier - ReliabilityQ4a Q4b Q4c Q4d Q4e Q4f Q4g Q4h Q4i Q4j OV Supplier - Value Q5a Q5b Q5c Q5d Q5e Q5f Q5g OV
Success -% 92 83 80 83 92 86 72 100 86 92 93 85 85 92 100 91 100 83 83 92 93 92 70 88 92 73 92 92 55 82 86 25 75 92 76 80 90 100 90 100 92 92 92
Failure - % 8 17 20 17 8 14 28 0 14 8 7 15 15 8 0 9 0 17 17 8 7 8 30 12 8 27 8 8 45 18 14 75 25 8 24 20 10 0 10 0 8 8 8
No Answer - % 0 0 15 7 7 0 14 8 7 7 0 0 0 0 0 1 30 15 15 0 8 14 23 15 0 39 7 15 30 14 0 45 7 15 17 38 8 18 18 0 20 10 16
Survey Data Analysis
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Taking Relationships to Another Level
The Tool can be used to gauge relationship effectiveness: Internally within an organisation Between a pair of partners or customer and supplier Between an organisation and a portfolio of partners or customers
or suppliers Between the members of an alliance/consortium
The Tool may be used: To help an ailing relationship recover To increase loyalty between customer and supplier or team
members To initiate or sustain a change programme As a key part of corporate governance
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A Vision for FM
The catalyst for defining joint opportunities to increase revenue and shareholder value
Increases customer satisfaction from better product/service quality and delivery
Strengthens the bond between partners and enhances their ability to innovate
Reduces administration and production costs Bridges the hidden gaps in teamwork, thru more cohesion,
integration and fulfilment, and increased transparency Builds joint capability to seize future business opportunities
The big shift in focus will be away from price and compliance and toward how organisations address innovation and change through their agreements.
Bill Huber, Information Services Group (IACCM – The Future of Contracting)
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Facilities Management Relationship Appraisal Tool