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L4 > L4M6- Chapter 3- Concept of partnering > Flashcards

L4M6- Chapter 3- Concept of partnering Flashcards

1
Q

What is a partnership relationship?

A

A commitment between buying organisation and supplier to a long term collaborative style relationship based on trust and mutually agreed objectives

Before entering a partnership both will do a period of due diligence to ensure the relationship will be effective for both companies

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2
Q

Why is a partnership relationship different in the public sector?

A

Under EU procurement regulations a public sector buyer is unable to enter formal partnership relationships with any supplier

This is due to the regulatory environment and the requirement for competitive tenders

However, a public sector buyer could develop a collaborative relationship over the course of a fixed contract

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3
Q

What are the 3 types of partnership recognised by CIPS?

A

Independent: shorter term, single projects, formed for a specific purpose, less resource, data sharing limited

Collaborative: longer term, more cross functional, closer management and transparency

Integrated: Could be creation of a separate legal entity, synergy across partners, time and resource intensive, complete transparency

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4
Q

What types of characteristics would be considered in a typical partnership relationship?

A

Time
Resources and skills- Transparency, information, ability to commit to the relationship
Cost- linked to resource
Functional departments- integrated relationships may have more involved
Activities- what is required
Location- physical distance and communication
Sustainability
Risk
Culture

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5
Q

What differences would you see in a partnership vs a conventional contract relationship (ie left hand side of CIPS spectrum where you just contract a supplier for a simple product/ service)?

A

ESI
No tendering or win lose negotiations
Shared cost
Transparency
Joint performance measurements
Evergreen contracts
Less stringent T&Cs

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6
Q

What are some examples of drivers for partnerships?

A

Cost reduction
Changing markets
Standards
Complexity
Security of supply
Sustainability
Improved product/ service
Reduced waste
Market competition

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7
Q

What are the advantages of partnership?

A

Cost saving
Competitive advantages
Access to new markets
reduced risk
Shared resources
Info sharing
Innovation
Shared investment

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8
Q

What are the considerations of partnership?

A

Time
Resources
Cost
Number of activities
Location
Risk
Culture
Sustainability
Skills

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9
Q

How would a buyer assess the external market place?

A

STEEPLED analysis

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10
Q

What are some disadvantages of partnering for the purchaser and supplier?

A

JOINT:
Over dependence
Incompatibility
IP risk
Benefits not materialised
Flexibility

JUST BUYER:
Complacency
Locked in

JUST SUPPLIER:
Over dependence
Unethical business risk

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11
Q

Which areas of the Kraljic matrix would carry high financial risk?

A

Leverage
Strategic

Both of these a high on the cost impact axis

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12
Q

When would you form a partnership?

A

High risk product (but not bottleneck)
High cost (but not leverage)
Technically complicated (could require skill or knowledge, be complex to produce or have a complex supply chain)
New goods/services (can be costly, high risk, and resource intensive- may want to leverage the suppliers experience)
Fast changing technology (access to supplier innovation)
Restricted markets (new suppliers unlikely to enter so want to work closely with an existing one)

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13
Q

What is a restricted marketplace?

A

A market where there are only a small number of capable and competent suppliers e.g. military, medical or oil

markets can be restricted due to:
- Investment required
- Low profitability
- high brand loyalty exists
- heavily regulated
- difficult to gain distribution channels
- Collusion amongst existing suppliers

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14
Q

What is the CIPS partnership spectrum?

A

This is where a partnership sits between independent, collaborative and integrated. Effectively CIPS recognise 3 types of partnership style

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15
Q

What is the CIPS partnership cycle?

A

Looks at how partnerships are implemented and managed over the time of the partnership to fully optimise the relationship

It is made up of 9 stages:
1) Establish need- why enter a partnership
2) Plan- identify activities and suitable suppliers
3) Select partner- single or limited number selected (cant maintain lots of partners), due diligence, mutual need of partnership
4) Communicate- sell the partnership to the supplier
5) Define standards- what are the requirements
6) Joint commitment and agreement
7) Relationship management- operational day-day and longer term
8) Performance management- KPIs, regularly review performance
9) Review- end of partnership lessons learnt

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16
Q

What should be considered when planning the resources required for a partnership?

A

Which departments will need to be included
What activities across each organisation are included
Costs to manage the partnership
Is recruitment required?
Will systems need to be integrated?

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17
Q

To manage the relationship in a partnership effectively what should be ensured?

A

Regular and clear comms
Both parties are open to info sharing
Mutual commitment and equality
Problems are addressed and dealt with quickly
Feedback mechanisms to aid and resolve issues

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18
Q

What 2 ways can performance management of partnerships be done?

A

Regular review meetings

Audits

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19
Q

Partnerships can be formed at the item, product or service level but according to CIPS only vital products or services should be considered that match what criteria?

A

Represent a companys USP
Greatest opportunity for profit
Most important customers to an organisation depend on the product/service
In the public sector it could be that the public rely on the product/service

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20
Q

How would you identify suppliers suitable for partnership from specific products alone?

A

1) Review each product/service in your portfolio in terms of financial and supply risk
2) Plot on a Kraljic matrix
3) Identify the products considered strategic
4) Review supply base who provide the strategic product. Those identified have potential for partnership relationships

20
Q

What are porters 5 forces?

A

Threat of new entrants
Power of supplier
Power of buyers
Competition
Substitutability

21
Q

Who do you need to have buy in/ sell the partnership to in order to make it happen?

A

Senior Management
Wider Organisation
Supplier

22
Q

What is a business case?

A

Justification for a proposed project undertaking on the basis of investment, costs balanced against benefits

23
Q

What is used for stakeholder mapping?

A

Mendelow matrix

Interest vs power

Minimal effort
Keep informed
Keep satisfied
Manage closely

24
Q

What is Kotters model used for?

A

8 step change management model

Followed by buyers when selling a philosophy or change to the organisation

25
Q

What are the 8 steps in the change management model?

A

Followed by buyers when selling a philosophy or change to the organisation

1) Create a sense of urgency
2) Build a coalition
3) Form strategic vision and initiatives
4) Enlist a volunteer army
5) Remove any barriers
6) Generate small wins
7) Accelerate
8) Institute and embed change

26
Q

What is a project champion and guiding coalition?

A

Project champion: A person within an organisation that is responsible for the delivery of a project or business change

Guiding coalition: Staff members who support the champion

27
Q

What are the stages of Truckmans team development?

A

Forming
Storming
Norming
Performing
Adjourning

28
Q

What examples of performance standards may warrant a need for partnership?

A

Commitment to TQM
Move to JIT model
Provide local/global supplies (for a multinational company you may need to do both, so using 1 supplier who can do both means consolidated spend, otherwise it would be spend split across local and global suppliers)
Willingness to innovation
Flexibility management
Required behaviours e.g. trust

29
Q

What is TQM?

A

Total quality management

Organisation wide approach to improves processes, products and services

30
Q

What is working capital?

A

Capital of a business that is used on a day to day trading operation calculated as current assets minus current liabilities

31
Q

In order for a partnership to be successful there must be joint commitment between supplier and buyer. What factors may need to be jointly agreed on?

A

Capital investment
Relationship style and length
Common objectives
Scope of the partnership
Relationship links (number of contacts, how contact is made etc)
Performance criteria and KPIs
Relevant information sharing
Exit strategies

32
Q

Objectives should be SMART, what does it stand for?

A

In a partnership they need to be agreed by both parties

Specific
Measurable
Achievable
Realistic
Time bound

33
Q

How can joint commitment be established in a partnership?

A

Create a joint agreement (how it will work, split of capex, timelines etc)
Communicaiton plan
Contractual commitments and governance
Joint objective setting
Joint planning and decision making
Benefits and resource allocation
Identify quick wins

34
Q

Why is reviewing of the partnership relationship important?

A

Important to understand how the partnership is being undertaken as it progresses to business as usual because:
- what gets measured gets done
- Achievement of benefits vs agreed
- Documenting and celebrating success
- review what is not working well and changed
- is more support required
- builds trust
- help make decisions

35
Q

What is continuous improvement?

A

An ongoing effort to improve processes, products and services

36
Q

What is a project audit?

A

More formal than just a review session and can be done by an independent body

Will assess the extent to which the project has complied with the governance and has met is aims/objectives

37
Q

What are the benefits to doing project audits in addition to review sessions?

A
  • Review how the partnership has progressed vs implementation plan and milestones
  • Quality, time, cost and risk all assessed
  • Reviews potential consequences e.g. ESG
  • Provides lessons learned (experience gained as part of the process)
  • Auditors can uncover problems that can be addressed
  • Does it meet with the agreed governance
  • Gives a level of confidence to management that the partnership is meeting requirements
38
Q

What are some examples of why partnerships fail?

A

Think about STEEPLED

Communication
Senior management support/trust
Commitment from both parties
Planning
Value
Market changes
Cultural differences
Logistics or proximity of partners

39
Q

Why can communication cause a partnership to fail?

A

Both parties need to have good communications and be transparent in order to succeed
Communication is not just about sending a message but ensuring that it has been received and is understood
It can be something that deteriorates over the course of the relationship
Communication needs to be actively managed

40
Q

What is the CIPS communication cycle?

A

Demonstration that communication is an effective 2 way process

Poor communication from either party can result in a breakdown

41
Q

What is the peak end rule?

A

Always ending a communication message with the key message you want to leave as a lasting memory

42
Q

What is the PREP method with communication?

A

Advice to structure communication as:
Point
Reason
Evidence
Point

43
Q

What can cause communication breakdown in a partnership?

A

Distorting or omission of information
Misunderstanding
Communication overload
Ineffective communication
Poor buy in from stakeholders

44
Q

What external factors could create a change in market conditions resulting in the breakdown the the partnership?

A
  • STEEPLED
  • Levels of demand for the supplier- e.g. supplier becomes more powerful due to more customer demand
  • Supply base of the buyer- e.g. new supplier enters market meaning more competition
  • Partnership itself e.g. change in personnel
45
Q

What is offshoring?

A

Relocation of a business or process (e.g. customer service) to a country where costs are much lower

46
Q

Which products or services are most suitable for partnering?

A

USP
High profit
High impact if you dont have it
If public sector then the general public relies on it

(strategic quadrant of Kraljic)

47
Q

What are Handys 4 organisational cultures?

A

POWER- Autocratic- controlled by individuals

ROLE- Autocratic or paternalistic- Well defined structure

TASK- Paternalistic or democratic- Cross functional teams

PERSON- Democratic- Individual experts

L4 (18 decks)

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