Thomas remembered the reaction he received when he questionned the wisdom of old procurement techniques: "I used to ask 'why are we working this way? It doesn't work!' I was told that it was the traditional process, tried and tested and everybody did it that way."
Thomas added that it took him fifteen years to rise to a place in the organisation where he could introduced more integrated methods of working.
He recalled the frustration of being faced with many in his organisation, and outside, who did not want to try new methods of procurement: "They would ask why they should change. Nobody seemed to think that there was anything wrong with the old way of doing things."
Speakers from Taylor Woodrow also spoke about their initial frustrations when trying to move to new procurement systems.
The building services sector is fragmented, and includes many small firms. Trying to identify potential partners was something of a challenge.
Charles Lever, head of building services at Taylor Woodrow, said that the selection process was about more than finding a striclty business match: "It was also about finding companies with the right culture, attitude and the ability to deliver. We were looking for partners with the desire to change the way they work."
The keys to success for Taylor Woodrow were open communications with the team; sharing best practice across all the businesses (ie not assuming that 'we do it best'); minimising resource duplication; and using KPI benchmarking to track progress.
Of these, communication is the key. "You must know and understand the barriers to partnering faced by everyone in your supply chain." In practical terms for TW, this has involved setting up a large annual conference for members of the supply chain; regular meetings at various management levels; newsletters and an intranet site.
The message of partnering is being driven down to site level, where problems can often arise if a 'corporate' message isn't clearly conveyed.
In the afternoon session, Anne King of BSRIA tackled the basics of managing change. Her emphasis was on dealing with construction's current state of flux, or 'white water life'. In managing change, organisations need to be aware that there is no single solution.
Delegates were asked to consider a number of indicators to locate where they are now, before attempting to move forward. These included the amount of time a business has to change the way it works – is the need pressing in the face of a potential project win; or is this a more long-term goal? Companies also need to consider their internal culture. Are their staff trained to deal with change? How much change have management and staff dealt with in the past? And, perhaps most importantly, is everyone aware of the need to make a change in the way the business works? For delegates, this was a day of hard thinking, and they went away armed with the tools for instigating new ideas in their organisation. The boxes below show a cross section of answers to questions set by Taylor Woodrow – with the aim of making everyone think about what they could get out of partnering.
What are the main barriers to partnering?
- Lack of trust through the supply chain
- Lack of commitment to seeing it through
- Lack of the correct people as key drivers (some senior people may not have an interest in seeing partnering work)
- Unclear benefits to clients and hence lack of client buy in
- The tendency to resort to ‘old ways’ in the face of problems leads to scepticism and inconsistent behaviour
- Competitive tendering continues, even with government clients
- There is a need for endurance; this is not a quick fix solution and therefore benefits are not immediate
- Partnering is still ‘new’ so there aren’t many people to link with yet
- The industry continues to see lowest cost as the key driver; QS seen as key to this issue
What are the key skills required in the partnering approach?
- Good communication
- Willingness to change; and the support from within to make it happen
- Ability to change and the application of business measures
- The ability to learn new skills
- A shared vision; common business objectives
- Managing attitudes within the organisation
- Trust (this is a leap of faith)
- An understanding of where you are today, and a realisation of how bad it is!
- Giving the right people empowerment to act
- Imagination and flexibility
- Respect for people along the supply chain, and their expert knowledge
- Core competencies – the ability to do your job and deliver on promises
- Patience – this is not a short term process
Who are the main beneficiaries of partnering?
- It should be everyone in the supply chain!
- The client should benefit from:
- reduced costs
on-time build programme
improved quality solution
better overall projects
fewer mistakes - The partnership team should benefit from:
- cost certainty
steady workloads
reduction of waste and duplication
other work outside the partnership
enhanced reputation job satisfaction
shared learning - Other beneficiaries are:
- the construction industry
the environment
How would you go about setting up a partnering arrangement?
- Gather knowledge
- Find like minded organisations and clients
- Involve associate companies in your wider organisation
- Identify the potential benefits to your organisation, and align with partners able to realise those benefits
- Carry out an internal analysis of your own business (eg SWOT; KPI analysis)
- Get commitment at all levels – educate where necessary
- Carry out a workshop for the supply chain
- Agree processes within your partnering group
- Set common goals and objectives
- Consider the implications of working with competitors – negative and positive
- Take the message forward
What is the difference between tender and cost?
- Too great!
- The difference between what clients expect to pay, and what they do pay
- A tender is price + risk (the risk that if it’s too high you will loose the job; and the risk that you will lose money if it’s too low).
- A cost is the actual cost of supplying the product or service plus profit (or loss).
- A tender is what happens in traditional methods of procurement: add client changes, variations and claims, higher project costs – all these things reflect on quality.
- A cost is what you get in a partnering arrangement: more client security over cost quality and time. And more supplier security that they won’t lose money or have to use lawyers to make up the losses later.
What current practices add no value to your work?
- Duplication of resources
- Multiple designs for the same thing
- Lack of standardisation
- Inefficiency and waste
- Design changes and reworking
- Claims and disputes – blame
- Multi-level tendering
- Fragmented accountability (eg for design)
- Fragmented communication
- Consecutive, not parallel, processes
- Not enough ‘early involvement’
- Fault finding
- Retentions
- Separate insurances – which also add to cost
BSj would like to thank the sponsors of this event for their invaluable support: Andrews Water Heaters; Denco Air Conditioning; Ferroli; and Monodraught.
Source
Building Sustainable Design
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