1 MEASURING COLLABORATIVE PERFORMANCE 12 Feb 13 Dr Andrew S Humphries +44(0) (0)

2 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?

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 3

4 Relationship Pressures & Friction Imprisoned? 1 + 1=3, 4……? 15%

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 Relationship Success Spiral VfM 5

Failing to Cope Confinement Pressure Self Interest Least Effort Low Commitment Information Economy 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 risk Deliberately confuse to gain advantage Relationship Failure Spiral VfM 6

The Science of Measuring Relationship Performance Relationship Theory Transaction Cost Economics Interview Data Analysis Performance Metrics 1.Build relationship with carriers 2.Review Supply Chain roles 3. Upgrade forecasting system 4. Hold regular performance reviews Detailed report & Recommendations Survey Data Analysis 7

8 Taking Relationships to Another Level l The Tool can be used to gauge relationship effectiveness: l Internally within an organisation l Between a pair of partners or customer and supplier l Between an organisation and a portfolio of partners or customers or suppliers l Between the members of an alliance/consortium l The Tool may be used: l To help an ailing relationship recover l To increase loyalty between customer and supplier or team members l To initiate or sustain a change programme l As a key part of corporate governance

9 A Vision for FM l The catalyst for defining joint opportunities to increase revenue and shareholder value l Increases customer satisfaction from better product/service quality and delivery l Strengthens the bond between partners and enhances their ability to innovate l Reduces administration and production costs l Bridges the hidden gaps in teamwork, thru more cohesion, integration and fulfilment, and increased transparency l 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)

Facilities Management Relationship Appraisal Tool 10

Dr Andrew S Humphries +44(0) (0) BP Boeing 11