Embedding Sustainability in IT procurement Ian Barham and Jonathan Wood (Consultant) 24 th May 2011.
Embedding collaboration at the core of public procurement
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Transcript of Embedding collaboration at the core of public procurement
15/04/2023 1
Embedding collaborationat the core of
public procurement
EFCA Conference - Oslo 2015Annick De Swaef, ir. managing partner ConsensaConsulting
Consensa Consulting © 2015 All Rights Reserved
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Our capability to collaborate
Consensa Consulting © 2015 All Rights Reserved
ArchitectureEngineeringConstruction
Banking & insurance
Urban planners
Legal, financial & tax advisory
Technical installations
Technology & telecom
…
PoliticiansGovernmentAdministrations
Public private partnerships
Project consortiaMultinationals
CompaniesSMEs
Strategic alliances
Integrated building
team
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Be competitive, be collaborative
Consensa Consulting © 2015 All Rights Reserved
Public 315 billion Private
competition
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Be competitive, be collaborative
Consensa Consulting © 2015 All Rights Reserved
Public 315 billion Private
15/04/2023 7
Be competitive, be collaborative
Consensa Consulting © 2015 All Rights Reserved
Public 315 billion Private
conversation
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Be competitive, be collaborative
Consensa Consulting © 2015 All Rights Reserved
Public 315 billion Private
competition collaboration
15/04/2023 9
Be competitive, be collaborative
Consensa Consulting © 2015 All Rights Reserved
Public 315 billion Private
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The winner is the one who can …
Consensa Consulting © 2015 All Rights Reserved
Urgency & agility- Obtain quick & argumented ‘go/no go’ decision of partners- Deploy fast the required capabilities within his ecosystem
Uncertainty & risk- Tap into market insights and leads through partners- Share and manage risks with trusted partners
Complexity & innovation- Co-create and monetize new knowhow with partners- Create a joint culture of continuous learning and improving
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The winner is the one who can …
Consensa Consulting © 2015 All Rights Reserved
Reliability & consistency- Provide a clear & realistic view on available budgets- Assign competent staff and well-trained personel to projects
Business acumen & governance- Understand & leverage dynamics of business environment- Share and manage risks with selected contractors
Flexibility & focus- Welcome new solutions/innovations from business partners- Create an organizational culture of learning and improving
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They versus Us
Consensa Consulting © 2015 All Rights Reserved
Public ‘315 billion’ Private
?? Public procurement
Project delivery ?
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Private
Public
Strategic partnerships
Consensa Consulting © 2015 All Rights Reserved
Business case
(VfM)
PolicyStrategy
Public procure
ment
Projectdelivery Operations
‘315 billion’
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Strategic partnerships
Consensa Consulting © 2015 All Rights Reserved
ENGAGE IN
CONVERSATION
MANAGE
COMPETITION
COMMIT TO
COLLABORATE
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Engage in conversation
Consensa Consulting © 2015 All Rights Reserved
PPP D&C or turnkey
Lump sum fixed cost/time Alliance Self
managed
Construction risk carried by Owner
National Alliance Contracting Guidelines, Australian Government, July 2011, p17
RISK ALLOCATION
RISK TRANSFER
FULL RISKOWNERSHIP
Control & compliance
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Engage in conversation
Consensa Consulting © 2015 All Rights Reserved
Vendors
RISK TRANSFER
OEM Alliance Internal teams
Risk spectrum - Business alliances, Robert L. Porter,
Joint ventures
Acqui-sitionsMergersLicensing
agreement
FULL RISKOWNERSHIP
100% equity0%
RISK SHARING
Control & compliance
Alignment& command
Collaborate & create
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Engage in conversation
Consensa Consulting © 2015 All Rights Reserved
Managing expectations- Talk open about investment opportunities and risks- Source state-of-the-art process & program mngt expertise
Example : roadshows & stakeholder platforms- Gather direct feedback from all involved stakeholders- Reality check on willingness to invest and commit- Detailed mapping of potential conflicts- Reward new solutions and alternative scenarios- Create viable timeframe for formation of consortia- Include promising ideas and harsh feedback into next steps
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Manage competition
Consensa Consulting © 2015 All Rights Reserved
SCOPE
BUDGET
PLANNING
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Manage competition
Consensa Consulting © 2015 All Rights Reserved
?VALUE
CREATION
RELATIONSHIP
KNOWLEDGE
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Complexity
Manage competition
Consensa Consulting © 2015 All Rights Reserved
Execution
Innovation
Investment
RequirementsUrgency Uncertainty
Referals
Selecting partners based on ‘best for project’ capabilities, foundation course Consensa
Shared risksAllocated risks
PROJECT management capabilities
ALLIANCE management capabilities
“Fail fast”“Don’t fail”……
if if
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Manage competition
Consensa Consulting © 2015 All Rights Reserved
Selection based on excellence- Necessity of mature project management capabilities- Cross-organizational collaboration requires alliance capabilities
Example : Strategic alliances- Value creation on a win-win-win basis- Collaboration (incl. operational planning) before deal closing- Evolutive contracting and flexibel exit clauses- Clearly defined alliance roles and responsabilities- Regular healthchecks on alliance operations- Regular joint brainstorm sessions on new opportunities
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Commit to collaborate
Consensa Consulting © 2015 All Rights Reserved
Senior executives
Operational managers
Project teams
Project board
team teamteam
team
B2B Collaboration
Intern
G2G Collaboration
Intern Alliance managers
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Commit to collaborate
Consensa Consulting © 2015 All Rights Reserved
Collaborative behavior- Joint management structure & governance framework- Joint (change) programs that focus on learning organization
Example : Alliance contracting- Risk and opportunity sharing- Commitment to ‘no disputes’- Best-for-project unanimous decision-making processes- No fault, no blame culture- Good faith- Transparency
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“315 billion”
Consensa Consulting © 2015 All Rights Reserved
ENGAGE IN
CONVERSATION
MANAGE
COMPETITION
COMMIT TO
COLLABORATE
Business case
(VfM)
PolicyStrategy
Public procure
ment
Projectdelivery Operations