Bsi bip 2225 2013

T eemerg nceof h natio al san ard BS1 0 0-1: 2010, drive by b th UKan multinatio al organiz tio s, provid sa fo n atio to tak adv ntag ofth b n fit ofworkin withexternal organiz tio stob

Harnes ing the benef its of BS 1 000:

Col aborativ Busine s Relationships

Dev loping ef fectiv col aborativ relationships

through the implementation of BS 11000 to enhance

busines performance

BSI Sta d rdsLimite

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Britis hLibraryCatalo uin inP blcatio Data

Acatalog erecordfor hisb okisa aiablefomth British Library

ISBN9 8-0-5 0-7 7 7-9

Chapter8–Back ro n an into uc io to BS1 0 0 81

In ex 287

Da id E HawkinsFCIPS

Da id hasanexte sivecare rin projec san procureme twithinth

co sruc io in usry Forover4 year h hasb e asociate with th

d velo me tan impleme tatio ofmajorprojec sinmanyparsofth

world,which hasprovid d aninsig tintoth manyorganiz tio al an

cultural chal e g sthatprojec scan g n rate.Over h pas d cad h

hasb e an ac ivepromoterof olab ratio an parn rin co ce t ,

to eth rwith th d velo me tofexte d d e terprisesthro g th

b ildin ofaliances

Asa srate icthin erh hasd ploye th seap roach stosu p r f om

man fac urin too to r in pro rammes,capitalizin o th

o p r u itieswithin projec o eratio s oexploitglo al so r in

B ildin o th seexp rie cesh hash lp d a n mb rofmajor

organiz tio sto impleme t han emanag me tpro rammesin

differe tin us rial are asinclu in ch mical proces in ,oil an gas,

p werg n ratio an minin an min ralsprocesin

Hewas h ar hitec an auth rofth C AFTcol ab rativemeth d lo y

an tech ical auth rof h British Stan ardsInsitutio (BSI)P AS1 0 0

f amework,th world’ sfirtcol ab rativeb sin s relatio ship san ard

Hewas h drivin for eb hin th c eatio ofBS1 0 0-1:2010

Colabor tiv b s in s srela io s hips–Pa t1:Afameworks pecificatio ,

an chairman ofth BSI commit e wh d velo e th s an ard In 20 9

h wasack owle g daso eofth world’ sto 10 th u htlead r o

corp ratesocial resp nsibility (CSR).Asan es ablish d auth rh has

several p blicatio sto hisc e itinclu in :

• S un Tzu andth ProjectBa tleground:Crea ingProjectS tr tegy

us ingth Ar ofWa ,Palgra eMacmilan,20 4;

• Th Be dingM ome t: Energis ingCorp r teS tr tegy,Palgra e

Macmilan,20 5;

• Corp r teS ocialRes po s ibi ty:Balanc ingTomorow’sS us tainabi ty

with Today’sProfit bi ty,Palgra eMacmil an,20 6

T eauth rwo ldlik to ack owle g an exte d ap reciatio to th se

col eag es,employer ,cus omer an su plier wh thro g o this

care rha eprovid d in utto th learnin exp rie cean provid d

manychale g s,which ha eco t ib te to th thin in b hin this

b o Asp cial than sto th Ins ituteforColab rativeWorkin (ICW)

(formerlyPS )E ecutiveNetworkforprovidin a broad ran eofin ut

to th d velo me tofC AFT, which wasth fo n atio for

BS1 0 0-1:2010 T an salsotofel owcommit e memb r wh

bro g t h irexp risean work d hard to d velo th san ard

alo gsid th BSI s an ardsteam An a sp cial than sto th se

organiz tio swh provid d cases u ieswhich ad greatprac ical insig t

to th v lu ofth s an ard

T ebe efit ofacolab rativ s a d rd

T erecan b fewexecutivesorse iormanag r in th glo al b sin s

commu itywh wo ld n t eco nizeth imp ranceofrelatio shipsas

a k yin re ie tforsuc es,wh th rth serelatio shipsare with

co sumer ,b sin s cus omer,k y su plier ,b sin s par n r or

internalyac os larg organiz tio s.T eserelatio shipsarea c itical

suc es fac orb talso a major o r eofrisk,wh reth b n fit an

chale g sofinterd p n e cyn e to b reco nize tou d rpin

sus ainableb sin s T eco ce tofworkin in colab ratio is

reco nize forit co t ib tio to b thth ef fec ive es an efficie cy of

th serelatio ships

Ifyo askanygro pofb sin s p o leh wefficie t h yb lieveth ir

own organiz tio is,th resp nseisfe u ntly: Lowerthan70p r e t’

Ifyo th n co sid rtwo ormoreorganiz tio sworkin to eth r,th

p te tial to e hancep r ormanceiseasyto se Colab rativeworkin

so n swor hwhile, b tth chal e g isto harn s an d ploythis

ap roach wh reit anad v lu to th b sin s.T ep te tial impac s

(b th p sitivean n gative)ofrelatio shipmanag me taresig ificant,

b tof e th to ic isn tre ard dasa mainsreamisu formark t

d velo me torskilse hanceme t

Col ab rativeworkin isn tn w,b t oa larg exte tithasb e

organicalyimpleme te asan adju c to taditio al b sin s mo els

E id ncefomac os al sec or ofin usryid ntifiesth p te tial

commer ial b n fit an efficie ciesofcol ab rativeworkin for

companieslarg an smal, ran in fom £bilio cos sa in s o£10 K

o eratio al improveme t by workin in a moreinte rate wa

Whileth fu dame talsofcol ab ratio ma b u d r to d,th timeis

n wrig t omoreeffec ivelyharn s th b n fit an moveth se

co ce t f omadh cap roach sto mains reamb sin s o eratio s.T e

presuresofeco omics res, nc ease comp titio an d man for

greaterefficie cyprese ta sig ificant hale g toorganiz tio sinb th

th p blican priv tesec or T ac eleratee gag me t, a commo

lan uag an s ruc urethro g a reco niz bles an ard provid sth

plat orm o which to b ildmutualyb n ficial relatio shipsin a rapidly

expan in an chan in b sin s e viro me t; thiscan b into uce at

everylevel ofth t adin sp c rumf omsmal to me iume terprises

(SMEs)to multinatio al corp ratio san g vernme t.We arese in th

c eatio ofn wtadin mo elswh sesuc es islarg ly d p n e to

th abilityofdiver eorganiz tio s oworkto eth r.T isn weco omic

ag , usin th co n c ivityof ech olo y,also n e s oembraceth

c itical impac ofrelatio shipsto achieveit g als

T en xtd cad –an b yo d –of fer a complexan chan in visa of

relatio ship chal e g sasglo aliz tio an tech olo ydrawth b sin s

worldcloser,whileinc easin th riskofco flic o manylevels.T ereis

clearlya sig ificantroleforrelatio shipmanag me t: tmus focuso

q alityin maintainin p r ormanceofp o lean pro uc s,to eth r

with su p r in th organiz tio al chan ethatwil b n cesaryto

d liver h n wb sin s mo els

BS1 0 0-1:2010provid sa platormtob ild capabilityin achan in

world.In thisdynamice viro me t,agility, flexibility an col ab ratio

arek yin re ie t to maintaincomp titiveadv ntag Ad ptin a

s ruc ure ap roach wil ac eleratee gag me tan effec ive es

Da id E Hawkins

NOT Al tables,char san mo elsco tain din thisb o ,u les

oth rwisesate ,areinclu e co resyofMidasProjec sLimite an

shal n tb re ro uce with utpriorwrite agre me t

Aim of thisbook

T eaimof hisb o is oint o uceread r toa broad rp rp c iveof

relatio shipmanag me t(col ab rativeworkin )an to e co rag

se iorexecutivestoco sid rh wth irorganiz tio scan b t erexploit

it p te tial T eemerg nceof h natio al san ard BS1 0 0-1: 2010,

drive by b th UKan multinatio al organiz tio s, provid sa

fo n atio to tak adv ntag ofth b n fit ofworkin withexternal

organiz tio stob ild alternativeb sin s mo els.Companies hat

combin reso r esan capabilitiescan d velo n wcomp titivean

cos -effec ivev lu pro ositio s,re ucin o eratin cossan riskwhile

e hancin mark tcomp titive es

T eap roachin thisb o isto invesigatecol ab ratio fom thre

p rp c ives:

• Wh ?Lo kin atth b n fit ofa colab rativesan ard,

o p ru itiesan risksin th co textofcol ab rativeworkin an

h wthiscan su p r a b sin s d velo me ts rate ythatp sitio s

relatio shipstoma imumeffec ;

• How?E plorin th b n fit ,s ruc urean impleme tatio of

BS1 0 0toprovid a ro us fameworkforcol ab rativeworkin to

e surea susainableb sin s ;

• Wh r e?T exploreth p te tial ap licatio sof h ap roachin

e surin th c eatio ofb sin s v lu

BS1 0 0provid sa plat orm to b ildcapability in a chan in world.T is

b o hasb e c eate to h lp th sese kin to e hanceth ir

col ab rativecapabilityan es ablish th fo n atio sto me tth

chale g sof h 21

s

ce tury.T einte tio ofth b o isto h lp

read r to u d r tan whatmak ssome colab ratio sworkan n t

oth r –u to8 p r e tofal col ab ratio sfail b causeofu clear

exp c atio san u d fin d b sin s proces esthatdidn t reatean

effec ivee viro me tfor olab ratio

Who isthis book aimed at?

T isb o sh uldb ofv lu in paricularto th sewh seremitisto

d velo an manag s ak h ld rrelatio shipseith rwithin larg

multinatio al organiz tio sorexternal toth seorganiz tio s T ejo

fu c io sofmark tin an procureme tinpar icular h uld b n fit

f omth su jec materb tit h uld also b ofinteres toal th seat

direc orlevel inlarg organiz tio sthatre uirea moresruc ure

ap roach to relatio ship manag me t

About BS 1 0 0: the benefitsofa col aborative standar d

Colab rativeb sin s relatio shipsha eb e sh wntod livera wid

ran eofb n fit, whiche hancecomp titive es an p r ormancewhile

ad in v lu to organiz tio sofal sizes T ep blicatio ofBS1 0 0is

a lan markforb sin s Itisth fir tnatio al s an ard inth world to

ad res col ab rativeb sin s relatio ships.T es ruc ureofth

f ameworkisdrawn fom prac ical exp rie ce,which hasb e

esablish d over21 year ofinvolveme tin relatio ship manag me t It

d esn tre rese tao e-sizesolutio , b trath rprovid sa co sis e t

f ameworkthatcanb s ale an adapte tome tparicularb sin s

n e s.Colab ratio b twe n organiz tio sma tak manyforms rom

lo setac ical ap roach s hro g to lo g r -termaliancesorjoint

ve tures

BS1 0 0d esn te for ea sin lerigid ap roachb tfocuseso

providin a f ameworkthatcancompleme texis in ap roach s, wh re

th searealreadyin place Itreco nizesthateveryrelatio shiphasit

ownu iq eco sid ratio swhileachievin a ran eofb n fit assh wn

Fig r e0.1 –Impact ofBS1 0

in Fig re0.1 For h seorganiz tio swith wel -esablish d proces esth

f ameworkprovid sa commo lan uag thatcanaidimpleme tatio

an e gag me t For h ses ar in o to th jo rn y,th famework

c eatesa roadmap ford velo me t

T ead ptio ofany san ard hasto b balance agains th v lu that

itcan d liverto th organiz tio sthatch osetoad ptit,wh th rthisis

forimprovin internal p rormanceorto e hanceco fid ncein th

mark t.In thisresp c BS1 0 0isn dif fere tf omoth rinternatio aly

reco nize s an ardssuchasISO9 0 T eBSI cerificatio pro ramme,

lau ch d in April 20 9,es ablish sa measurablein e e d ntasesme t

forinternal b nchmarkin ofco tin o simproveme tan p o le

d velo me t,to eth rwith in e e d ntlyv lidate pan-in usry

reco nitio ofanorganiz tio ’ scolab rativecapabilityinth

mark tplace.Ata mored taile level someofth b n fit already

reco nize by multinatio al organiz tio sinclu e:

• 20p rce t e uc io in o eratin coss;

• improve riskmanag me t;

• 15p rce t a in sthro g su plychain ag re atio ;

• improve d liveryp rormance;

• e hance invesme t

T esan ard c eatesa ro us f ameworkforb th th p blic an priv te

sec or,providin an ut al plat ormforeffec ivemutualy b n ficial

col ab rativepro rammes It corev lu is ommo alityoflan uag an

ap licatio b twe n d livery par n r.T isleadsto improve inte ratio

an ac sasa brid eb twe n cultures oform par n r hipsbyre ucin

co fusio , providin co fid nceto paricipant an providin a

fo n atio forin ov tio Asitwasd velo e thro g pan-in usry

in utitisn t ec or -sp cific; tprovid sa basis orbroad rad ptio an

e gag me t,a commo fo n atio ford velo in re eatablemo elsto

e hancecommu icatio an e gag me t

T esan ard isa basis orb nchmarkin th col ab rativecapabilityof

organiz tio s(b thinternal yan external y)thro g BSI in e e d nt

ases me t,e hancin par n rev luatio an selec io to eth rwith

esablishin mark tdiffere tiatio Itc eatesa focusto promote

cus omerco fid ncean moreef fec ivejointriskmanag me t,wh th r

relate toth chale g sofsp cificpro rammesorto th relatio ship

asp c sof olab rativeworkin Itre ucesth lik lih o of

misu d r tan in sora mismat h ofo jec ives,co srainshid e

ag n asan re ucesth pro ability of o flic

T esan ard’ ssruc ure ap roachfacilitatesinte ratio ofcol ab rative

workin within o eratio al proce ures,procesesan sysems.T usit

esablish smoreef fec iveg vernance; talsosp e sth d velo me tof

a baselin tosu p r reso r ed velo me tan t ainin , whichinc eases

anorganiz tio ’ scol ab rativecapabilityto e hanceth skilsan ability

ofp ro n l

In sh r ,BS 1 0 0isa fameworkthatwil promoteb tere gag me t

an effec ive es thro g sre gth n d b sin s proces es, while

improvin riskmanag me t,e hancin disp teresolutio an providin

a basisforskil sd velo me t.Mos imp rantlyofal, timproves h

p te tial forsus ainablerelatio shipsthatd liverv lu

BS 1 0 0isth world’ sfirtcol ab rativeb sin s relatio ships

s an ard,which hasb e d velo e f om pan-in usryb s

prac ice,reco nizin th growin useofalternativeb sin s

mo elssuch aso t o r in ,aliances,par n r hipsan co sor ia.It

canb d ploye in anyb sin s co textwh resuc esful

p rormance d p n so s ro g relatio shipsan exploit th

capabilitiesoftwo ormoreorganiz tio sworkin in an inte rate

man er

T esan ard isu iq einthatithasaneig t-sag lifecycle

ap roach fors rate icd velo me t, e gag me tan manag me t

ofb sin s relatio shipsfomco ce tthro g to dise gag me t

It sec or -n utal p sitio in provid sa prac ical mo el.Itid ntifies

th k yprinciples hatorganiz tio s h uld ad ptto effec ively

b ild moresusainablerelatio shipsthatd liverp r ormance,

in ov tio an c eatev lu forth par iesinvolve It core

b n fit inclu e:

• efficie cyimpr ov me t:wh re organiz tio s’b sin s

o jec ivesrelyo interd p n e tpar n r workin to eth r o

achieveresult, whichin turnresso th irabilityto jointly

c eatea seamles d liveryproces;

• gr eatereffectiv n s :byworkin to eth r, organiz tio sare

ableto sharek owle g an exp rie ceto focusth ir

reso r eso re ucin wasean d plicatio ofeffor;

• impr ov d e g g me t:wh recusomerre uireme t or

mark tv lu pro ositio sre uireth combin d capabilitiesof

o eormoreparn r, th irjointsuc es relieso commitme t

to commo o jec ivesan th ssp e ofimpleme tatio ;

• cos r ed ction: wh reorganiz tio sarejointlye gag d in

d velo in an d liverin o jec ives,th san ardprovid sa

prac ical ap roachtoc eatin a share e viro me tthat

alows os sto b o timize oreliminate thro g

ratio aliz tio ;

• impr ov d riskma a eme t:wh reinterd p n e t

relatio shipsarec ucial in me tin b sin s o jec ives h reare

sig ificantrisks.T esruc ure ap roach to id ntifyin an

managin th serelatio shipsre ucesth riskoffailurewhile

c eatin a focus orjointmanag me tofrisks;

• e h nce perorma ce:byesablishin an o e an

tus-base jointworkin e viro me tbase o a commo

famework, organiz tio sareabletosharecapability,

k owle g an exp rie ceto ad ptin ov tiveap roach s hat

removeco sraint o p rormance;

• fou d tionforski s d v lo me t:asorganiz tio sse kto

b ild alternativeb sin s mo elssuch aso to r in ,aliances,

parn rhipsan co soria th reisa greatern e tod velo

skil san comp te cies T es an ard c eatesa sableplat orm

to focus taffd velo me tpro rammes

• impr ov d sys emsa d pr oces es:toexploit h b n fit of

col ab rativeworkin , th s an ard provid sa sruc ure basis

forinte ratin th k yeleme t ofb s prac iceinto

o eratio al procesesan sys ems.T isprovid s h tig er

an g vernanceformoreeffec ivecolab ratio ;

• consis e cyofap r oach:d ployme te suresthatb s prac ice

isemb d e in th organiz tio T useffec iveo eratio is

n tsolelyd p n e to in ivid alswh ma overtimeb

re lace b causeofth ir are rd velo me t;

• sus ain bles rate icr elationships:ad ptio ofth s an ard

provid sa platormforth b n fit of olab rativeworkin

relatio ships ob d velo e an susain d over ime,which

ma imizesth irv lu

How to use this book

T isb o provid s h read rwith aro temap to suc es ful

col ab ratio Aso tlin d at h sar ofthischapter, tisorganize in

thre pars,each witha differe tp rp c ive:why, h wan wh re

P r 1: Wh ?T ispar explainswhyrelatio shipsareimp rant;o tlin s

th growthof ol ab ratio an it main charac erisic ;ex min s isk

an relatio ships; dis us esth impac oforganiz tio al culture;explains

h wt us incolab rativerelatio shipsisd velo e ; d s rib sth

chale g soflead rhip ina colab rativeset in ;an dis usesh w

relatio shipssh uld b p sitio e forma imumb n fit.Ch cklissat h

e dofeach chapterin thispar h lp yo toid ntify yo rorganiz tio ’ s

readin s to moveforward;th yaredrawn fom BS1 0 0ch ckliss

P r 2: H w?T ispar provid sa prac ical se -by-s e ro temap to

impleme tatio of h san ard Itinto ucesBS1 0 0, explainsh wto

raiseaware es of h b sin s casean b n fit ofBS1 0 0;d s rib s

h wto o tain th re uire organiz tio al k owle g ; dis us esinternal

asesme t ofreadin s to ad ptth s an ard; adviseso parn r

selec io ;dis us esth prac icalitiesofworkin to eth r;an hig lig t

th imp ranceofan exitsrate y.Keymes ag san ch cklissare

provid d atth e d ofeach chapterin thispar

P r 3:Wh r e?T ispar exploresth v rio swa sin which col ab rative

aran eme t can ad v lu ,b thn wan inth future Itdis uses

cus omere gag me t, su ply chains, o t o r in ,col ab rative

co tac in ,aliancemo elin an col ab rativematurity Su se u nt

chapter inthispar exploren ws e arios orcolab ratio : merg r an

acq isitio s;SME col ab rativeclus er ;col ab ratin for usainability;

an th thirdsec or.T ispar co clu eswitha forward lo kto th

futureof olab ratio

Chapter 1 – The impor ance of r elationships

T is hapterexplainsth imp ranceofrelatio shipsin

b sin s asac ucial asp c of usainablesuc es Mos p o le

in th b sin s commu ity(b th p blic an priv tesec or)wil

ap reciatethatrelatio shipsarece tal to d velo in ,

p rormin an maintainin ef fec iveo eratio s.Itisth

interac io of elatio shipsb twe n organiz tio sthatc eates

th dynamic ofb sin s

B sin s relatio shipsareofe give lowerprioritythanprocesesan

sys ems, o th asumptio thatin ivid alsalreadyha eth rig t

charac eris ic ford velo in an sus ainin g o relatio ships In many

casesk yrelatio shipsarelin e to p o lean d n ttak ac o ntof

th overar hin cultureofth company.B t an organiz tio safford to

ha esuch a c itical asp c ofsuc es lef solelytoin ivid alsorsh uld

relatio ship manag me tb emb d e inth iro eratio s?

Op ratio al p r ormanceisof e se arate fom eith rcusomeror

su plye gag me t, d eto p liciesan proces es.Fro t-lin su p r wil

ofe b esablish dan measure agains servicelevel p rormance

rath rthano t omes.T is ocuso co t ac ual compliancein

inter ompany relatio shipsc eatesa culturethatisbase o ‘co tac in

forfailure’wh reth fo n atio isto esablish th b u dariesfor

p te tial failurean litigatio An a focuso proceseswil

inadver e tly c eaten gativecompliance,wh read ere ceto

proce uresoverid so t omes

Effec iveriskmanag me thasalwa sb e a majorco sid ratio for

b sin s ,wh reth d velo me tofv lu pro ositio sisac ompanie by

ap ro riateriskmitigatio B titisrareforb sin s esto realizethat

relatio shipsarep rhapso eofth principal risksthat h ymus

manag In th las d cad ortwo th rehasb e a sig ificantshif

towardsalternativeb sin s mo elssuch aso to r in ,aliances,

co sor ia,parn r hipsan jointve turesfocuse o d velo in

inte rate solutio s.T esecomplexb sin s mo else compas a hig

d gre ofinterd p n e cywh resuc es ful o t omesd p n o th

abilityoforganiz tio sto workin aninte rate wa T evuln rabilityof

th seve turesisfe u ntlyd eto th irfailureto b ild effec ive

relatio ships

Cusomer to a arese kin to dives th mselvesofn n-coreac ivities,

oro tain morecomplexsolutio s,thro g o to r in pro rammesthat

f e u ntlyha ea direc interacewith e d-user orco sumer Su ply

chainp rormancean d p n abilityha eb comean inte ral asp c of

p rormance;third pariesaren wa c itical asp c ofb ildin v lu

pro ositio s.Manyorganiz tio s laim to b total yfocuse o cus omer

satisac io with su plychain manag me tthatisd velo e aro n

b ildin ro us relatio ships.However,th chal e g forth se

organiz tio sisto ev luateh wth irap roach to p r ormanceworksin

prac icean th ince tiviz tio s h mesth yd ploy to motiv teth ir

p ro n l,whichma b les ab utb ildin relatio shipsan more

ab utsh r-term gains.T epro lem iscomp u d d wh n organiz tio s

workto eth r:manyorganiz tio so erateatles than 70p rce t

efficie cyan wh n workin to eth rwith oth r th ireffec ive es is

re uce furh r.Despiteth adv ncesoftech olo y, tis til p o lethat

mak an organiz tio fu c io ; tisreaso ableto asumethatth

relatio shipsth yform area c itical suc es fac orthatisimp r ant oal

s ak h ld r

Key corporate is ues f or r elationship management

T efol owin sec io hig lig t someofth seasp c sinmored tail,

with a viewto chal e gin th read r oco sid rwh th rth ir

organiz tio hasth ap ro riatecorp ratefocuso it relatio ship

manag me t apability

St ate ya d le d r hip

Col ab ratio wil mak a b sin s srate yvuln rableifth sre gth of

relatio shipsan organiz tio al orcultural compatibility aren t

co sid re ad q ately,th sp t in b sin s pro ositio sin dan erof

failure

Riskma a eme t

Riskismos of e cate orize byfinancial,p rormance,safetyan

external eve t ,wh th rnatural orsocial/p litical.Yet h mos lik lyrisk

foranyb sin s isth break own of elatio shipswith cus omer ,

parn r orsu plier

Valu cr eation

Effec iverelatio shipsarec ucial tou lockin th p te tial withinth

v lu chain.B torganiz tio sf e u ntlyig oreth hid e b n fit of

sharin proces improveme t,skilsd velo me t,pro uc e hanceme t

an p r ormancetowardsoveral comp titive es

Knowle g ma a eme t

Atth h ar ofmos relatio ship isu sisth co ce tof‘k owle g is

p wer’ T isis h main bar ierto b n fitin f omth v lu of

interac io b twe norganiz tio s; tisa failuretob ild u a level of

t us to e surethatk owle g isexploite formutual b n fit

P o le,be a iour a dt us

T echale g in al b sin s relatio shipsisp o lean h wth yare

manag d, measure , nce tivize an reward d Despiteorganiz tio s

inves in in skilsd velo me tpro rammesan cultural initiatives,th

co flic ofp liciesan proces wil drivein ivid als oadapt h irlevel

of ommitme t, e th siasman e gag me t

Intern lr elationships

Internal b u dariesan divisio sma n to lyimp d external

relatio ships; th yalso ha eth capacityto u d rmin colec ive

p rormancethro g incompatibleag n asan p rormancec iteria

T ewa inwhichin ivid al eleme t ofa b sin s aremeasure wil

ha ea sig ificantimpac o h wth seeleme t workto eth rasa

wh le.An asb sin s ve turesb comemorecomplex,so th irinternal

capacity to harmo izec os-fu c io al ac ivitiesfacesinc ease pres ure

an sres o overal p rormance

Relationship management engagement ar eas

In h lpin organiz tio sto inte rate,th sek y principlesarecommo

ac os mos typ sofb sin s relatio ships.Itise ualyimp r ant o

co sid rth seimpac sin a v rietyof radin ,o eratio al an b sin s

e viro me t In d in so itish p d thatth read rwil sar to

co sid rwh rea moreinte rate colab rativeap roach(an p rhaps

th ap licatio ofBS1 0 0)co ldbrin ad itio al v lu or ecurityto

th irprojec e o t omes.T eseprinciplesaread res e ingreaterd tail

in Par 3

Cus omere g g me t

T echale g isto b reco nize asa prefere provid rinth relev nt

sec ororservice.As usomer’ n e sb comemorecomplex, so th n e

forb th h rizo tal an verical relatio shipsb comesac ucial eleme t

ofsuc es

S p lych in o timization

Itiscommo to fin 5 p rce t o8 p rce tofo eratio al cos b in

chan ele thro g th su plychain; with such a hig cos, su plier

d velo me tan inte rityisa c itical dime sio in termsof

comp titive es an p rormance

Out our cin

Outo r in ap roach sha eb comeanac e te asp c ofb sin s ,

which meansthatexternal organiz tio saremovin insid o eratio al

b u dariesorfirewal s ob comepar ofth overal d liveryproces

T eseprovid r ’remotelocatio smean th y aren tp ysical yabsorbin

th cusomer’ seth sorculturean ma b o eratin with differe tan

co flic in v lu s

Intern tion lr elationships

Op ratin ac os natio al b u dariesinc easescomplexity;th sewh

o erateina glo al mark twil b acutelyawareofth chale g s

thrown u bycultural dif fere ces,wh th rnatio al, re io al or

corp rate Differe cesinnatio al t ait arehig lig te an it ak stime

to b ild ef fec ive relatio shipsthatrealy d liver

SMEcolab rativ clus er

Forsmal tome iume terprises(SMEs),comp titio an an inc easin

focuso eco omiesof calehaswid n dth g lfb twe n th

multinatio alsan th smalerlocal companies.Col ab rativeclus er of

SMEsareformin , toe ableth mto comp tewith th larg r ompanies

T eyaretakin adv ntag ofth o p ru itiesan b n fit thatma b

exploite thro g colab rativeap roach sto c eatecomp titivee g

C rp ratesocialr esp nsibi ty

T erecan b fewb ard me tin s o a thatd n tad res th ircure t

corp ratesocial resp nsibility(CSR)profile.T ereisa difficultbalance

b twe n th corp ratedriver ofcomp titive es ,share old rv lu an

susainability T eprac ical implicatio sofig orin susainabilityisu s,

eith rdirec lyorin irec ly,to eth rwith th presuresofbalancin th

d man sof e ulator ,cus omer ,co sumer an presuregro ps,has

b comevery complex.T da CSRembracescorp rateg vernance, ethical

t adin , h manrig t,e viro me tal impac ,an re ulatio et

P rn r hips,al a ces,consoriaa djointv ntur es

T eble din ofdiffere tb sin s proceses,cultures, nce tives h mes

an p r ormancemeasureme tac os a chainofpar n r (oroth r

aliances)canc eatep te tial co flic an los ef ficie cy.Relatio ships

b comea c itical asp c ofth irp te tial for uc es

Merg r a d acq isitions

Merg r an acq isitio sd p n o o eratio al fitan alsoo th

ability oforganiz tio sto harn s an o timizeth ircombin d

capability.Whilemerg r an acq isitio sarearg ably th q ick s wa

to growa companyth ycanb risky,wh n co sid rin th invesme t

an ratio aliz tio cos An cd tal evid ncesu g s s hat8 p rce tof

merg r an acq isitio sarefailures;an imp rantasp c thatismisin

isanalysisofth organiz tio s’cultural compatibilityin th irap roach to

relatio shipsto drivesuc es

T irdsector

Formanyyear th volu tary(third)sec orhasb e providin services,

wh th rforsocial o t omesoremerg ncyrelief Morerece tly

g vernme t ha etak n a moreproac iveap roach inse kin to harn s

th skil san reso r esofvolu taryorganiz tio s.Relatio shipsb twe n

local g vernme t, n usry par n r an th volu taryorganiz tio swil

n e to b d velo e to a oid p te tial cultureclash,b causeth

motiv tio san principlesofeachcanb verydiffere t

Developing r elationships

Relatio shipsofany kin ha ea lifecycle;to ma imizeth b n fit itis

imp r ant oco sid rth lo g r -termimplicatio sofo rac io so th

v lu -c eatin p te tial to d liverimprove p rormance.T is an b

co sid re atthre levels:th s rate ic inte t,th e gag me tproces

an th o g in manag me t.E eryrelatio shipisdif fere t,wh th r

ver ical orh rizo tal; h wever,th k yisu swil b commo to mos It

isth sek yfac or thatBS1 0 0capturesan th sprovid sacommo

an co sis e tfo n atio forcol ab ratio Es ablishin th rig t

platormo which to c eatea relatio ship isc ucial;whileth reis learly

a n e fora co tac itise ualy imp rantto jointlyseto tan

ap ro riateg vernancemo el thatwil su p r colab rativeworkin

Table1.1 hig lig t someofth p sitivean n gativeimpac so

relatio ships

T ble1.1 –Positiv a d n g tiv impact on r elationships

Positiv cont ibutor tocolab ration Ne ativ cont ibutor to

Jointg vernme tsruc ure

Op n b o (ifap ro riate)

Clarityofo jec ives

Relatio ship manag me tplan

Go d commu icatio atal levels

Jointown r hip ofsuc es

B ha io ral charer

Jointriskmanag me t

Effec iveinformatio sharin

E rlyinte ratio ofproceses

Jointskil sd velo me t

Jointchan emanag me t

Ap ro riatep rormance

measureme t

Inte rate co tin o simproveme t

Effec ivedisp temanag me t

P orlyd fin d measureme t

L ckofb n fitanalysis

Hig focuso riskt ans er

Hid e ag n as

P orcommu icatio

In ffec ivedisp teresolutio

L ckofexits rate y

Ne ativeap roach to co tac

L ckofin ov tio

Mos relatio shipsaremultidime sio al T eyn e to b reco nize for

th v lu th ybrin an th p te tial riskthatemerg sfom failin

relatio ships.More imp rantly,asalternativeb sin s mo elsare

d velo e itisese tial that h y areb ilto a sruc urethatplacesth

relatio shipsab veth in ivid al an emb dsrelatio shipmanag me t

in th organiz tio al p licies,proce uresan sysems.Itisth refore

imp r antto co sid rwhatwil drive th suc es ofrelatio shipsan

whatma u d rmin th m

Evaluating r elationship management initiatives

Give thisback ro n , tisp rhapssurprisin that h c itical is u of

relatio shipsisof e lef to th capabilitiesofin ivid als,rath r han

ad pte asa corp rateeth sthatemb ds h ap ro riatecharac eris ic

T eseo serv tio sprompta k yq esio : f elatio shipsareimp rant,

sh uldorganiz tio sb makin greatersrid sto d velo th irprofile,

sruc ureth irp liciesan proceses,an d velo th skil softh ir

p o leto drivemoresusainableb sin s mo els?Effec iverelatio ships

wil n tsimplyhap e b causewewantth m to;th y n e tob

manag d ap ro riatelytoe sureth yarea fac orforsuc es an n ta

causeoffailure

Conclusion

Relatio shipsareimp r ant,so itisu realis ic to as umethatsuch a

c itical asp c can b lef tochance.Itisalso imp r antto u d r tan

thatwhileorganiz tio scant yto projec a par iculareth s,th y are

mad u ofp o le an th spar ialy d p n e to th irp o le.So

relatio shipscan otb lef to luck, n rcan organiz tio s elyo in irec

ac ivitytod velo th ap ro riateb ha io r to su p r thateth s F r

f omb in a sid isu ,relatio shipsarea fu dame tal asp c of

b sin s procesesan a k yfac orindrivin b sin s suc es

Organiz tio ssh uldu d rtan th imp r anceofrelatio shipsan

s rivetoemb db th sruc urean lead r hiptoexploit h p te tial

b n fit

Ch cklis t

T efol owin ch cklis ma h lptoraiseaware es ofrelatio ship isu s

Id ntifyth k yisu s hatareap ro riateto yo rb sin s o eratio sto

c eatea focusfomyo rp rp c ive asyo moveforward to th n xt

chapter.Yo rresp nsewil h lpyo to co sid rth n xt te s or

d velo in a sruc ure ap roachforyo rorganiz tio

T ble1.2–Initialr elationshipch ckls

Initialr elationshipch ckls Priority

CSRan sus ainability

Parn rhips,aliancesan joint

ve tures

Merg r an acq isitio s

T ird sec or

Colab ratio isn tn w.However,b ildin o th principle

thatrelatio shipsin b sin s area c ucial asp c of

p rormancean suc es, organiz tio sn e to co sid rth

catalyssre uire tod velo ,promote, mpleme tan

maintain effec ivecolab rativeprac ice.Atth sametime, th y

wil n e to explorean ev luate th interd p n e ce

b twe n o eratio al prac icesan th b ha io r that

u d rpinp r ormancean o t omes.Inthis hapterth aim is

to provid someback ro n thin in o th broad rsu jec of

col ab ratio

Manyp o lethin of ol ab ratio an parn rin as‘sof an fluffy’

b tha ep rhapsn tu d rto d th p te tial b n fit orreal

chal e g s.Someb lieveitissimplya q esio ofchan in b ha io r ,

whileoth r promoteth viewthatdrivin o eratio al proces chan es

wil e for eth rig tb ha io r.T erealityisthat oexploitth ful

p te tial yo mus ha ean e viro me tthatfos er an su p rsit

effec ivead ptio an th sc eatesth rig tb ha io r

T rmslik ‘corp rateculture’ ‘eth s’an eve th ‘DNA’ofan

organiz tio areh ardf e u ntly Itmig tb reaso abletoasumethat

th o eratin s yleofanorganiz tio issomethin thatisa resultof

nature,n tn r ure Itsh uld b n te that eal-lifebiolo ical DNA

evolves lowlyovertimean isa relativelysaticf amework.T eculture

ofan organiz tio (‘th wa wed thin sro n h re’), o th oth r

han , smorelik lyto b a pro uc ofit manag me tsruc urean

natio al id ntity,whileth eth s(th company v lu s)isfarmorelik ly

tob drive byth seinauth ritythro g g vernance.Anorganiz tio

can v rybase o h witismanag d, al ofwhich influ ncesth p o le

thatitemploysto me tit o jec ives.So th d bateco tin es: sit

naturean absorptio orproces an g vernancethatformulateth

colab rativeprofilean capabilityofan organiz tio to influ nceth

b ha io r ofit p ro n l?

T erearemanyb o san pap r o th su jec ofparn rin an

colab ratio ,which ma b useful forth sewh se kto broad n th ir

u d r tan in E ch refere ceso r e h lpsto focuso o eormore

asp c san b n fit.T iswasa k yasp c ofth resear hpap rVis io

2 10p blish dbyPS

1

n 19 9,which focuse o futuresu plyorv lu

chainsan su p r e th viewthat uturecomp titivee g wo ldb

drive by harn s in th mos p wer ul v lu n twork

T e gr owth of col aborative working

T eco ce t ofcolab ratio ,parn rin an aliancesha eb e aro n

fora lo g time.However,d p n in o wh yo sp akto ac os v rio s

sec or ofin us ry,yo ma easily b co vince thatcolab rative

workin an par n rin iseith rwel esablish d an d liverin result

or,alternatively,a co ce tofexecutivemanag me tormark tin

d par me t’ simaginatio In realityn ith riswh l ytu ,th u h we

sh uldreco nizethatth reha eb e manyex mplesofg o prac ice

an futureprac ice,which d liver ig ificantv lu

Col ab rativeworkin isn tsimplyab utcut in cos,th u h clearly

thatisa b sin s imp rative.Itoffer e hance capabilityto b ild n w

v lu pro ositio sb yo d th capabilitiesofan in ivid al organiz tio

Itisap are tf ommanys u iesthatal iancesan parn rin can b

relate tocorp ratev lu an p rormance,b tth v s majority are

re ard d asha in faile –an cd tal evid ncesu g s smorethan

8 p rce t.Vario ssurveysalso su g s thatorganiz tio s hatha e

ef fec iveal iancesd mo sratehig erreturnso capital invesme tan

sharev lu T isma b t u inpar, b tp rhapsb t erreflec sth se

al ianceswith a u iq eselin p intthatdrivesreve u

Resear h workresultin in th p blicatio ofFutureCo n c tio slo kin

atb sin s in 2020

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id ntifie th te d towardsgreaterrelianceo

aliances,par n r hip an col ab rativen tworks Su se u ntwork

focuse o th lackofskil sd velo me tto manag in thisare a an

th wid v rietyofap roach soffere toh lp organiz tio sb ild th se

col ab ratio s.T eo vio so t omewas h n e to c eatea d gre of

u iformitythro g th d velo me tofa s an ard f amework,which

co ld ad res th k yprinciples,ac eleratee gag me tan provid a

s ruc ureforskilsd velo me t

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NetworkRai –cases u y

T erail in us ryhasb e chal e g d to d livergreaterv lu for

mo ey.T eRail Valu forMo eyreview(Reals ingth Pote tialof

GBRai le bySirRoyMcNulty, p blish d in Ma 201 , d ntifie

greatercol ab ratio b twe norganiz tio swithin th in usry

(amo goth r hin s)asb in o eofth meansofachievin this In

ad itio to embarkin u o a pro rammetoworkmore

col ab ratively with o rcus omer ,o eofNetworkRail’soth r

s rate ic o jec ivesisto impleme ta parn rin ap roach with o r

su plychain toimprovelevelsofp rormance, nt o ucegreater

levelsofin ov tio an d liver os ef ficie cies.Workin more

col ab ratively with o rparn r wil e ableusto alig o jec ivesin

p ruitofth seg als

Deliverin sig ificantan growin capital workspro rammesina

safer,q ick ran moreef ficie tman erisa k ycorp rateo jec ive

an isanimp rative,give th chale g laid o t oth in us ryto

d liverb t erv lu formo eyfor h fare-pa in pase g ran th

ta pa er.T esuc es ful d livery ofth sepro rammesd p n so

th c itical in b twe n o t omesan th meansofd livery

Kn wle g an exp rie ceareese tial,b titisthro g

col ab rativeworkin thatso n ,cos -efficie tsolutio swil b

fo n Workin to eth rwith o r u plier ,fomth early sag s,

wil e ableus oover omeu ceraintiesan risks

Weid ntifie th ad ptio ofBS1 0 0asa meansofe ablin

greatercol ab ratio witho rsu plychain.In ad itio to

su p r in th g alsofgreaterefficie cyo tlin d ab ve,oth r

id ntifie o jec ivesinclu e e ablin th cultural an b ha io ral

chan easociate with morecolab rativeworkin an d liverin a

moreco sise tmeansofe gagin with o r u plybase

P rhapsth sin lebig es b n fitofworkin to BS1 0 0thatwe

ha efo n isth re uireme t orgreater tuc urean proces in

th manag me tofth relatio ship;thisissomethin thatcan b

d s rib d as‘ha in differe tco veratio s’ fom th sethatwo ld

n rmal yb th casefortaditio al co t ac manag me t.T e

re uireme t ofocuso co tin al improveme tan d mo sratin

v lu thro g th col ab ratio ,rath r han o ly me tin th

projec o tp t, hash lp d to c eatea focuso th ef fec ive es of

th relatio ship foro rprojec teamsan it overal co tib tio to

suc es

On ofth majorb n fit to datehasb e th sharin of

informatio an k owle g with k ypar n rorganiz tio swh

ha eresp n e p sitivelyto o rp licytoad ptBS1 0 0asth y

embarku o th irownjo rn ysto cer ificatio T is

k owle g -sharin proces hasalreadyfacilitate th sharin ofb s

prac icecol ab rativeworkin fomoth rin us rysec or Such

learnin re rese t a k y driverino rown co tin al improveme t

driveasweresp n to th o g in v lu formo eychale g in th

rail in us ry

Neil Caruth r

HeadofCo tac in State y, Invesme tProjec s

L adership and objectives

T eroleoflead r hipisc ucial inmanagin par n rin ,al ianceor

col ab rativepro rammeswh remark tin ,sales,o eratio al

p rormancean d livery procesesc os organiz tio al b u daries.T e

p te tial p werofc os -organiz tio al col ab ratio isparamo nt,b t

moreimp rantlyth reisth n e for learan co ciseo jec ives

Develo in an effec iveteamfocusisa chale g in mos b sin s

e viro me t;b twh reth t aditio al comman -an -co tol sruc ure

is e lace byc os-fu c io al o eratio s,th co rdinatio an direc io

ofac ivitiesiseve morecomplexan o ewh remotiv tio an

influ ncearevital to suc es Itisfe u ntly, h wever,th sin lemos

commo p intof ailure Wh recomplexrelatio shipsaredrive an

sus ain d byse iorin ivid also eith r id ofth serelatio ships h y

arepar icularlyvuln rablewh n face with a d par ureo eith rsid

Makin th shif f oma t aditio al ‘maseran serv nt’ relatio ship to

co-c eator ofe d man sb th organiz tio al an p ro al realig me t

ofthin in an fos erin internal colab ratio to maintain th focuso

o jec ivesan o t omes

T e confl ctsof behaviours and pol cy

T ehisorical ap roach to many ofth seinter acechale g shasb e to

focuspre ominantly o th b ha io r ofp o le,to b ild an maintain

th serelatio ships hatareb thc itical an fu dame tal tob sin s

suc es T echale g manywil ha eexp rie ce isthatinvesme tin

cultural,b ha io ral d velo me tan tainin initiativesisofe dilute

orwase wh n b sin s proces eseffec ivelyman ate‘b sin s as

usual’ If h p te tial b n fit of olab ratio ap roach sareto b

realize itisimprac ical to rely o in ivid alsan informal absorptio to

achievecolab rativeworkin b ha io r Organiz tio sn e th

p licies, procesesan sysemsto su p r ro us an sus ainable

relatio shipsthatareles reliantsolely o charismaticchampio s

T ep te tial co flic b twe n th d man softh organiz tio an th

pres ureso in ivid alsashig lig te in Fig re2.1 canfoseran

e viro me tthat reatesu ceraintyan th sdrivesp orb ha io r

an focus,leadin toinc ease riskan p orp rormance

Aliances’an par n r hips’relatio shipscan involveb th ver ical an

h rizo tal col ab ratio s.Me tin orc eatin mark td man isth

ese ceofb sin s suc es, an th rig tsolutio orv lu pro ositio at

th rig ttimed fin swin er an loser However,providin th rig t

solutio atth rig t imeisn te o g forb sin s suc es Acommo

pro lem emerg swh n th e p oria ofa b sin s ‘win’dis ipatesan

p o leha eto g td wntod liverin o t omesan me tin internal

p licies,proces esan p rormancemeasures

Picking the right par ners

Whatalsob comes learis hatorganiz tio s,wh th rd velo in an

mark tin a col ab rativeap roach or e kin to fin suitable

Fig r e2.1 –Org nization l v r usin ivid al nflu nces

col ab rativeparn r, wil n e to lo kb yo dt aditio al ev luatio

c iteria an ases th fol owin :

Atributes In termsofh wth irb sin s o eratesan it p licies

Abi ty In termsofth irexp rie cean /or apability to work

colab ratively

Atitu e In termsofan emb d e culturean eth sofcolab ratio

Colab ratio drawsit s re gth fomth abilityto workin an o e an

h n s wa to b ild tus b twe nb th th organiz tio san th

in ivid alsinvolve Trus isfe u ntlyse n asa prere uisitefor

col ab ratio ;h wever, tus can otb co tac e –itmus b

d velo e an n r ure overtime.T p tthisin p rp c ive,co sid r or

ex mplethatwhileyo ma b ildu t us with in ivid alsworkin for

anorganiz tio itismoredifficultto ad pt h sameempathywithth ir

organiz tio

Anex mplemig tb a g vernme td par me twith influ ncesthatare

dif ficultto pre ic orco tol.T epremiseis hatyo can rely o some

in ivid alsan can b ild u a hig d gre ofco fid ncean t us ;

h wever, yo reco nizethatth irinflu ncean auth rityha e

b u dariesb yo d whichth y can ot o tol asp c sofyo r

relatio ship.Onth oth rhan ,co sid rth seorganiz tio s hatha e

such a re utatio forcus omer ervicethatyo wo ld b wil in to tus

anyre rese tativeofthatorganiz tio Itiseasyto se which ofth se

o tio sprese t th mos atrac iveprosp c ivecol ab rativeparn ran

which id aly reflec sth profileofyo rown organiz tio Itisn t

dif ficultto as es which of fer th mos susainablerelatio ship,wh th r

yo aresel in yo rorganiz tio orlo kin to fin a suitablepar n r

Integration of cultur e

T etaskofc eatin an inte ratio culture(e.g.a culturethatac e t

inte ratio )isdrive byp liciesthatth organiz tio d ploys, b th in

termsofo eratio al effec ive es an thro g o tth selec io ,

d velo me tan manag me tof h p o lethat e rese tth p blic

faceofth organiz tio Ifcolab ratio is ob ad pte asa re eatable

b sin s mo el th n it an otb solelyd p n e to b ha io ral

tainin ,teamb ildin orin ivid al skilsfocusin o th ‘sof ’ su s

Col ab ratio mus b emb d e inth g vernancean proces esofth

organiz tio ,reinfor e in everyasp c of h b sin s thro g p licy,

proces an sysems.Inth hig lyu usual caseofth Jo n Lewischain

ofretail s ores,al th irp o leareparn r in th b sin s an it

principleswereemb d e in it ariclesofincorp ratio byit fo n er

Fewb sin s eswil ha ethisb n fit,b titiseasy to reco nizeth

p te tial b n fit ofre licatin th sedrivin principles

Howp o learemanag d,targ te ,measure , nce tivize an

reward dhasa majorinflu nceo h wth yinteracewith oth r,

wh th rinternalyorexternal y Ifth reisa co flic b twe nth

col ab rativeprinciplesb in promote an h win ivid al p r ormance

isev luate , tiseasytog es whichwil ha eth d minantimpac

Similarly, fth procesesbywhich th yha etoo eratearero usly

s ruc ure an e for e b t h b sin s o jec ivesd n tclearly reflec

a col ab rativeap roach, mos employe swil q ickly rever tomore

t aditio al ‘b sin s asusual’ ap roach san tak th lowrisko tio

So,d spiteorganiz tio sinves in in skil sd velo me tpro rammesan

cultural initiatives, th co flic wil for e p o letoadaptth irlevel of

commitme t, e th siasman e gag me tin lin withMaslow’s

Hierar hy

3

or‘what’ sin it orme’

Conclusion

T echale g ish wan organiz tio canemb dan sus ain a

col ab rativeap roach, give th volatilityofth mark t,th t ansie t

natureofit p o le,v riability ofskil san exp rie cean th his orical

focusofexploitin tadin relatio ships.Itwasthisdilemma thatwas

ins rume tal inth c eatio ofth world’ sfirtnatio al san ard,

BS1 0 0,whichwo ldprovid a co sis e tmo el aro n which

organiz tio sco ld b ildmoresus ainablerelatio ships.T ereisple ty

ofevid ncethatcol ab ratio (in whateverform)can e hance

p rormance.T eriskisthatifcol ab ratio isad pte asab lt-o to

exis in b sin s procesesor h principlesofcol ab ratio areacq ire

thro g informal absorptio , tislik lytob d eme a failure–or

wore,b co nterpro uc ivein th lo g rterm.T eint o uc io of

BS575 /ISO9 0 hasd mo srate whatcanb achieve in termsof

q alityan o eratio al p r ormance,so itislo ical thatifweareto b

mored p n e to col ab ratio th n th ad ptio ofas an ardwil

e hanceo eratio al co sis e cy an p rormance.BS 1 0 0offer

organiz tio sth o p r u itytoad pta reco nize mo el forb ildin

th ircolab rativeap roach s.Italsoe ablesth mtob nchmark

th mselvesagains in us ryg o prac ice,providin th fo n atio for

d velo in susainablerelatio shipsto d liverv lu -base p rormance

3

Maslow’shierarh ofn e s:th oryinpsycholog,pro ose byAbra amMaslowinhis

19 3paperATheory fH umanMotivatio

Ch cklis t

Table2.1 ma b h lpful in chale gin yo rthin in bys orin yo rorganiz tio ’ sinclinatio to colab rate

T ble2.1 –Scorin yourorg nization’sincln tion tocolab rate

Org nization 1 = sro glydisagre , 6=s ro glyagre

T eorganiz tio hasverywel-d fin d co t ac in proce ures 1 2 3 4 5 6

T eprimary focusiso profitabilityn tp rormance 1 2 3 4 5 6

T ereareclearlyd fin d rolesan resp nsibilities 1 2 3 4 5 6

T erearevery taditio al relatio shipswithb th cusomer an su plier 1 2 3 4 5 6

T eorganiz tio ’ sg alsan o jec ivesareclearlyd fin dan mo itore 1 2 3 4 5 6

T ereisa firmfocuso th financial o t omesofal ac io s 1 2 3 4 5 6

P ro al p r ormanceis irmlys ruc ure into al ince tivesan KPIs 1 2 3 4 5 6

E erymemb rofsaffisemp were to mak d cisio swithinth irarea ofcomp te ce 1 2 3 4 5 6

T ereisa hig level of e or in within th organiz tio 1 2 3 4 5 6

Manag me tisveryg o atcommu icatio san shareswhatn e s ob share 1 2 3 4 5 6

T ereareclearlyd fin d o jec ivesan resp nsibilities 1 2 3 4 5 6

Manag me tisalwa sfocuse o why p o led n’tme tth iro jec ives 1 2 3 4 5 6

Relatio shipsarea fu dame tal asp c ofal b sin s ac ivities,

yetth yareseld mco sid re wh n as es in ormanagin

risks.T ein ere timpac in failin to manag relatio ships

ef fec ively islik lytob sig ificant.Inthis hapterth focus

shif sto b sin s riskan o p r u ityan th implicatio s hat

relatio shipsha eo b sin s o t omes

Riskp rv d severyasp c ofb sin s ,wh th rinves me t, pro uc

d velo me t, o eratio al p r ormance, re utatio or u plychain.Itis

g n ralyac e te that h moreriskthat anef fec ivelyb manag d,

th greaterth comp titiveadv ntag Simplyse kin to tanser isk

wil f e u ntly inc easeth p te tial ik lih o ofriskoc urin ,wh n

th isu sareo tid th capability orinflu nceof h seh ldin th

resp nsibility

Riskisg n ral ycate orize byfinancial,p rormance,safetyan

external eve t ,wh th rnatural orsocial/p litical.T eo easp c thatis

seld m me tio e inanyriskbriefisthatasociate with relatio ships

T issh uld raiseth co cern ofb sin s lead r ,sinceth mos lik ly

failureofanyb sin s ac ivitywil comef om th break ownof

relatio shipssuch aswith cus omer,parn r orsu plier T ef e u nt

asumptio isthatfocusin o co tac ual co ditio san liabilitiesplaces

this iskin a manag ablep sitio ,b tp rhapsig oresth reality that

o ceth co tac isinvo e failureislarg ly as ure

Relationship risk

In mos casesriskid ntificatio isdrive byth p r e tio sof h paries

involve T eis u ofrelatio ship riskispragmaticaly ig ore o th

basisthatweworkwith wh everwen e toworkwith an th y wil

manag th irrisksorth seasig e to th m.Effec ivelymanagin or

mitigatin th impac sof elatio ship riskwil h lp to b ild sability an

drivesuc es by closin th gapb twe n asumptio an ac uality–se

Fig re3.1.Riskinflu nceseveryasp c ofth interac io b twe n

organiz tio san in ivid als,af fec in b the gag me tan

p rormance

Riskisfe u ntlyad rese f om an internal p r p c ive,base o

cur e tk owle g an ofe witha hig d gre ofsu jec ive

p r e tio Un er tan in th oth rpar y’ sriskas umptio scanh lp to

smo th th wa Itisth irp r e tio ofriskthatcolo r th wa th y

se yo rorganiz tio , which taditio al yleadsustowardsevermore

complexco t ac in re uireme t.Itisp rhapswor h co sid rin that

o eof h majorUKco sruc io projec s,T rminal 5atLo d n’s

Heathrowairp r ,atrib te it suc es toth wa inwhich riskwas

ce talymanag d, which a oid din ivid al co t ac or co tin al y

b in focuse o th irown risks

Atan in ivid al evel weeach se riskina v rietyofwa san h wit

ma affec us;o re th siasmfor ol ab ratio wil b sro gly

influ nce by th wa wep r eiveit.Organiz tio sn e to co sid rth

ad itio al risks hatinte rate relatio shipsma int o uce, nclu in

asp c sofb sin s co tin ity thro g interd p n e cyan th

co se u nceofa failureinth relatio ship,to eth rwith th

implicatio sofre utatio al riskthatcomewith inc ease inte ratio

Riskisb th ano p r u ityan p te tial causeforfailure,soeffec ive

riskmanag me tisa c itical co sid ratio T isisan ac e te facetof

b sin s to a ,b tth implicatio sofrelatio shipsarea sig ificant

fac orinth overal as es me tof iskan th s h uld n tb lef to

p r e tio –orwor e,lef to pragmatism atanin ivid al evel to

provid asuranceofp r ormance Manyorganiz tio sha e

Fig r e3.1 –Riskma a eme t