Beruflich Dokumente
Kultur Dokumente
John Carlisle and his company in Sheffield have been pioneers in the field of
organisational cooperation for nearly twenty years, beginning with win-win
negotiations in the Petrochemical and Electronics industries in the early
eighties, and currently working with strategic alliances and partnering world-
wide. The company advises on relationship development in major projects in
four continents. The railway experience includes the launching of the
Channel Tunnel Rail Link, a number of current Railtrack projects, consulting
with the Department of Infrastructure of Victoria, Australia, and the Mass
Transit Railway Corporation of Hong Kong.
PREFACE
The client is very often the villain of the piece when trying to establish greater levels
of cooperation with suppliers and contractors. This is normally because, at board
level, there is a very simplistic image of what it will involve.
In my introduction to the seminal article on partnering: “Cooperation Works – but it is
Hard Work”, in 1996, I quoted from the Royal Society for Arts report in 1995,
“Tomorrows Company”, in which they quoted the statistics that 75% of directors
questioned thought their company was world class, when actually only 3.2% were!
This is not just arrogance; it is also ignorance, borne of complacency. How many of
these companies have tumbled since then?
The paper will present the case for the client executive to become a good deal more
conscious at what they are asking their organisation to do, and a good deal more
skilled at walking the talk themselves.
The paper will cover:
• Strategy: The right and wrong reasons for partnering.
And how to express the right kind of influence to create the new culture.
INTRODUCTION
After about ten years of “officially” partnering, the task of establishing a culture of
cooperation still offers the biggest leadership challenge to the construction industry.
It offers that challenge in particular to the Clients and the largest operators. This is
ironic in that the Egan Report seemed to suggest that it is only be the largest
operators who will be the winners in this drive to greater efficiency, while our
experience clearly suggests that the big contractors, by and large, are still struggling
with the fundamental culture change that is vital to their success in partnering. What
has happened, for example, to Laings?
The truth is, the Client sector has a long way to go: in some cases, a very long way!
The UK contractors knew this instinctively as soon as the Egan Report came out,
recommending a reversal of the adversarial behaviour in the industry. The cry from
the contractor’s hearts that appeared in every English construction publication was:
“Tell that to the clients!”. And quite right they were too.
Some clients are still doing what Dr Stuart Green suggested in his 1998
controversial paper, “Partnering: The propaganda of corporatism?”. They are
undertaking a crude exercise in buying power; but fail to realise that lower costs
under this regime do not deliver long term - or even short term - quality in most
cases. Bandying words around like win-win, openness and trust, while exercising
win-lose policies does not make for good partners who will pull out all the stops in a
crisis, or engage in continual improvement.
In a nutshell, the clients get the relationship they deserve, and that includes the very
large contractors who get the suppliers they deserve. They are the independent
variable. These large companies could, I feel, could learn from the smaller and
medium sized contractors like Kier, Llewellyn, Willmott Dixon, Mansell and the like,
who have made the greatest investment in internal cultural changes and are now
able to form effective and profitable partnerships.
Strategy:
Every major initiative needs to be part of the overall business strategy, and therefore
must be aligned to it with clarity as to purpose and vision. In other words know WHY
you are doing partnering.
In other words do not do what you do not know, so get to know it! Both MTRC and
BNFL did some excellent research on the subject of partnering before they entered
into the practice. MTRC had two of its best younger managers research the area
thoroughly both through the literature and through direct contacts before embarking
on the journey. BNFL set up study group reporting directly to the MD of the
engineering company, which covered both UK and USA best practices.
At the very least you ought to know that you don’t know, then you can get the
appropriate help – which they did. They set off, therefore, reasonably well prepared
for the change process.
Implementation
1. Know Thyself
Good implementation begins with starting the journey from the right place, by
knowing how well equipped you are for it. One of the most effective indicators is one
which illustrates just how secure you are in a cooperative arrangement, i.e. how
prepared you are to let go (take a risk) and to trust.
Again, MTRC, parts of Railtrack and BNFL did this to good effect. CTRL also
launched their partnering in this way with us; but unfortunately some of the feedback
was not appreciated, and, as they say: “The operation was a success; but the
surgeon died”! However, I am pleased that some of the projects we did launch for
CTRL can be considered world class.
6. Top Level Client/Contractor Workshop
DO NOT EXPECT THE CONTRACT TO RUN THE RELATIONSHIP, no matter
whether it is NEC, ECC or PPC 2000!! In fact some of the latest findings are that it
makes it more difficult.
The client will be competent enough by now to not be exposed negatively
(incompetent) at this workshop, and so good work can be done quickly on the
charter, key issues etc. However, one of the most important things the clients and
their stakeholders really want, which emerged from the February Master Class, is
the need for measures. Thus one of the key outcomes of the workshop is a set of
significant measures of improvement in the relationship and a set of measures of
performance improvement, mainly for continuous improvement. There is a positive
correlation between the two; and each can be the independent variable.
Relationship measures include:
Behaviour Changes as illustrated in Figures Three and Four.
Expectations Monitoring (Figure Three)
Questionnaire interviews as carried out for MTRC
The EFQM adapted model
Learning
If there is one thing the board must learn it is that their behaviours are worth a
thousand slogans. Successful partnering requires new policies that reward those
who change, and new behaviours from the top. The trouble is that the bigger a
company is the harder it is to feel the need to learn, and the easier it is to commit
the folly of the illusion of knowledge. Remember the preface to this paper: “. . . .75%
of directors thought their companies were world class, while only 3.2% really were.”
The behaviours these people would exhibit would be classic Unconscious
Incompetence.
The simple remedy in the first place is to train the top managers in these more
cooperative skills. Then take them down the line. New policies of cooperation will
then have more credibility, i.e. the talk will be walked!
In the end it is what you do that matters; not what your public relations machine
says. Behaviour governs perceptions.
2. TRANSFORM values and attitudes into cooperative behaviours at all levels; most
especially at the top and at the key interfaces with customers and
suppliers/contractors. Create the acceptance throughout the organisation that
cooperative, not adversarial behaviour, will be rewarded by putting in place the
appropriate new policies. Take out those people who find this impossible.
Promote those who embrace the change successfully.
Train in Negotiation Skills. This a vital missing ingredient.
Communicate and celebrate successes.
MTRC are excellent at this, as the article in the Financial Times of September
14, 1999, showed, and as David Avery of MTRC illustrates.
Parts of CTRL have also been very effective, led by such knowledgeable senior
managers as Alastair Cathcart and Rab Brown.
3. PLAN the implementation as carefully as you would a major project, along the
lines of the John Carlisle’s Relationship Journey, for that is what it is. Put strong
people in charge, in a change management group, usually called a Steering
Group or Partnering Board.
Again this is quite simple. Their role is leadership, and the first responsibility of
leadership is to have a strategy and to communicate it. You cannot have a strategy
unless you understand the nature of the task and set a goal. In BNFL these are
quite clear. Partnering is a key plank in the organisation’s safety achievement and
cost reduction programme. It is clear.
What does this require from leaders? I will leave you with some key messages.
KEY MESSAGES
1. Humility
a. Leaders must learn to learn, and this means taking time off
to review.
b. Leaders of client organisations must accept that they are seldom as
cooperative as they think they are, mainly because they lack
understanding of what cooperative behaviour really is, and because
their competitiveness probably got them where they are today.
2. Interdependence
4. Courage
4. Care
Take a real human interest in your managers’ partnering initiatives.
Good relationships are, after all, the glue that holds organisations
together, and radically improves performance. Defend your troops
especially against ambushes from the disaffected.
5. Constancy of purpose
Figure 1
TRUSTS QUICKLY
Adventurous Team Player
X XXX
RISK WILLING
RISK AVERSE
X
X
X XX X XX
XX X
X X XX XXX XX X XXX X XX
XX
X X
XX XXX XXXXX X XX
XXX
X XX XX XXXX XX X XX
X
XXXXX XXXX X
X XX
XX X X
XX X XX
Individualistic Evaluating
TRUSTS SLOWLY
But compare this with another British industrial segment – Construction -below
Figure 2 (continued)
TRUSTS QUICKLY
Adventurous Team Player
x xx
RISK WILLING
RISK AVERSE
x xx xx
x x x x xx x
x x x x
x x x x xx x
x xxx x
x xx x xxx x x x x x
x xx xx x x x x
x x x
x x
x x x
x
x
Individualistic Evaluating
TRUSTS SLOWLY
It also lets itself down by the lack of negotiation skills in the initial phase of the
relationship.
CLIENTS CONTRACTORS
17% “INCLUSIVE”
31% - Asking Questions
- Building On Others’ Ideas
“TELL”
DISCUSSION
Construction meetings are a source of great frustration for most of the time.
The two columns above indicate, partially, why this is so, particularly when
a majority of engineers are involved.
The blue/green ratio indicates that at the project meetings the Clients give
information and their own ideas (blue) five times more often than they seek
information/ideas or develop ideas of others (green)
This contrasts with the Contractors, who, in these meetings, have a ratio of
slightly over 2:1.
However, at another level, which we shall come to later, the Contractor may
also not be partnering. Hence an additional degree of skill is needed by both
parties. The trouble is that, without a behavioural model of effective Partnering,
there is no way to know that, and, therefore, no way of knowing how to improve.
Figure 4
TOP TEAMS
GROUP BEHAVIOUR RATIOS
COMBINED MEETINGS
#
NON-PARTNERING MEETINGS PARTNERING MEETINGS
# Railtrack 48
Best
= Giving information
Practice 27 CLARIFYING
= Asking questions
16
3:1 = INITIATING
9 = REACTING
Copyright John Carlisle Partnerships, 1997
Discussion
The two key differences here, apart from the green area of
Clarifying behaviour are: