Effectiveness of Cooperation and Implementation of the British Standard BS11000

Collaborative business relationships (BS11000) to provide an insight on how collaboration can the impact on the supply chain. CP has been selected as an appropriate organisation for a case study due to the complex nature of the business and the expectation that through innovation and collaboration CP will achieve measurable benefits. The interaction and the relationships developed between CP and its Supply Chain are critical to CP and its ability to deliver this strategy to the HE. CP has adopted a collaborative culture of working and has formalised this against the BS11000 Collaborative Business Relationship for strategic workstreams.

CP have developed processes that identify the processes and controls necessary to govern the activities that are undertaken by all stakeholders to act in a collaborative and responsible manner.

The potential benefits identified and realised by the development and stability of relationships with the supply chain create value. Value is created through:

• Having fewer suppliers with a settled supply chain with fair terms and conditions and sustainable rates of pay,
• Continuity of work,
• Promotion of innovation to deliver efficiency and cost effectiveness,
•   Integration through the entire team to ensure best design, build ability, and environmental performance,
• Elimination of waste and effective data sharing,
• The early evolvement of the supply chain in an integrated project team.

• No adversarial working.

Measurement of the performance within the framework can be monitored from a comprehensive, accurate and fair balanced scorecard. The scorecard approach is used to form a proactive collaborative high performance environment. Scores are collated for each organisation to access annual performance, identify best practices to share across the framework, and identify collaborative support for team improvements and receive constructive feedback.

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Measures are the same for all projects regardless of the project aim and objectives. A disadvantage of balanced score card approach is the process is entirely retrospective as performance is reviewed on completion. By this time it is too late to take any action on the live project (Cox, A., & Townsend.M,1998). The Balanced Scorecard The CP strategy for the introduction of collaborative working is split into two areas, firstly to ensure the culture is adopted and secondly to ensure it is maintained.

The CP value creation programme will focus around the use of a Balance Scorecard process to drive continual improvement in the community. CP will use a balanced scorecard approach, whereby key members of the client and contractor teams will be required to score schemes, based on a range of criteria from the innovative community culture model, see figure xxxx. This scoring process will precede Facilitated Scheme Dialogue Sessions and the development of improvement plans which in turn will influence the rest of the framework community driving continual improvement. Figure xxx Innovative Community Culture Model Results from the balanced scorecard can be used for clear measurable targets to improving value for money, construction quality, delivery times, and whole life costs. Continuous improvement is the vehicle for achieving long term performance improvements both in terms of what is delivered to the client and profitability of the whole supply chain.

This objective will continuously drive down costs while also driving up quality (Holti, R., Nicolini, D. & Smalley, M. (1999). The scorecard also demonstrates key areas of success and highlights areas of improvements to relationships to create a better community. Underperforming contractors can be continuously monitored and set improvement plans, or ultimately be removed. The Senior Leadership Team and Framework Managers form the Collaborative Transformation Steering Group( CTSG) will ensure that the value creation process is consistent across all schemes delivered by Connect Plus. The open and honest philosophy of the framework encourages the community to openly address any problems, and everyone understands that no one benefits from exploitation of others (Cooke, B., & P, Williams 2009). Gary Kitt, Head of Contract Solutions in the UK at EC Harris: “The push for collaborative working within frameworks could potentially mitigate expensive and lengthy disputes.” In addition Kitt further states “UK disputes are becoming increasingly expensive and complicated.

An average construction dispute hit £6.5 million pounds in 2011 and the average time taken to resolve disputes is 8.7 months.” Over the duration of the framework there is an initial outlay of costs to establish and maintain the framework. Connect Plus costs over a five year period of the framework were £250,000. It’s stated by Beverley Waugh, Connect Plus Programme Manager “if one claim is mitigated using the framework it will result in good utilisation of money.” To ensure that the value creation process is embedded in this system, the stages of the balanced scorecard process have been linked to the gateways process. The table below represents a typical delivery profile for a renewals scheme,see figure xxx Figure xxx Gateway process These plans will in turn filter back throughout the supplier community to promote continuous improvement in delivery across the gateway process through the use of value registers, populated by the Framework Contractors.

The 10 step process shown in Figure xxx shows the stages mapped out to ensure full cross organisational involvement and continuous improvement. The process links operational efficiencies to strategic performance management. All stakeholders are expected to understand, self- regulate and govern internal and external business relationships in order to create value, ie.:

• Behaving as one aligned unit towards the overall stakeholder map.
•  Ensure that effective relationship management is managed as part of project management and risk management profile
•  Having an integrated relationship strategy to manage a complex relationship map.
• High-quality performance, maintenance of relationships and the collaborative environment.
• Accountability and sustainability of culture to be managed through division of work, which will follow rules of fairness, value and efficiency.

On-going auditing from BS11000 will ensure continuity and a driver to use collaboration as the optimum vehicle for best value integrated service delivery Figure xxx Continuous Improvement Process Leadership The CP Chief Executive Officer (CEO) is responsible for ensuring that collaborative working is established, implemented and maintained. The CEO ensures that resources are available to maintain systems and that the roles, responsibilities, accountability and authorities are defined, documented and communicated through the Relationship Management Plan and reflected in the DBFO Co Company Management Manual. Business planning involves the whole team to ensure that there is joint ownership and that the business objectives are met. The goals and objectives are reported on an annual basis as part of the CEO Performance report. The management review also includes a review of the achievements of the management system and this is always lead by the CEO who challenges and ensures delivery of the objectives by reporting to the CP board. The CTSG provides a steering group across the whole delivery of the contract and sets out the cross functional approach and collaboration on business issues.