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DELIVERING ON REFORM

Future Infrastructure
Perspectives
IPWEA NZ CONFERENCE 2019 WELLINGTON

Collaboration – We don’t know what we don’t know


Chris Olsen
Associate Director
Institute for Collaborative Working NZ (ICWNZ)
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Overview
• About ICWNZ
• What is Collaboration
• International Best Practice
• International Research & Examples
• NZ‘s Uptake of International Best Practice
• NZ Example
• Conclusions
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About ICWNZ
• Formed 3 years ago to promote
collaborative working
• Branch of ICW-UK
• Access to 30 years of
international best practice and
tools
• Working in Australia and NZ
www.icwnz.co.nz
ICW Evolving International Links

Building Business Relationships


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Collaboration Means Different Things to


Different People

Collaborative Business Certified Business


Working Collaboration Collaboration
Structured for Structured & audited for
Informal enduring results enduring results

Where do you sit on this Spectrum?


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Collaborative Working Business Collaboration Certified Business


Collaboration
Informal interpersonal A systemic approach to enable
interaction involving trust, committed organisations to work Certified to ISO 44001: 2017
skills & competency - people together to seek the alignment of - Collaborative Business
dependent resources (people, process, Relationship Management
Source ICW UK systems) and establish shared Systems –Requirements &
goals and mutual benefit. Framework
Source ICW UK Source ICW UK
Statistics - Collaboration can deliver ……but………..

• “Constructing Excellence” has collected data from over 500 projects from all sectors, regions and sizes. This
data shows that projects can be delivered 10 – 20% cheaper and produce better client outcomes using some
form of collaborative arrangement such as partnering, alliances or other mechanism, where the client and supply
chain team work as an integrated unit” Resolex Conference London 21st Mar 2018

But……………….

• “Companies continue to find collaboration difficult to achieve in practice. This year the number of
respondents saying more than half their collaboration efforts were successful has fallen to 36% from
43%.” “Just because a company values it, wants to be known for it, and tries to achieve it does not
mean that effective collaboration can be achieved.” Deloitte Study Oil & Gas Sector 2018

• “The research we’ve done across more than 300 organizations shows that the distribution of
collaboration work is lopsided. In most cases, 20-30% of value add from collaboration comes from
only 3-5% of employees”. Harvard Business Review Feb 16 – Collaboration Overload

Building Business Relationships


Page 7
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International Best Practice for Collaboration


The 12 Principles of Effective Collaboration.
30 years of international experience now captured in ISO/TR 44000:2019
Principles for Collaboration
These Principles flow through the enterprise to;
• Help to identify contracts or projects that would benefit from
collaboration
• Reduce barriers to collaboration - reduce collaborative inertia
• Maximise opportunities through collaboration
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The 12 Principles of Effective Collaboration

Great Outcomes
1. Relationship management 7. Trust & commitment
2. Vision and values 8. Value creation
3. Business objectives 9. Information and knowledge sharing
4. Collaborative leadership 10.Risk management
5. Governance and processes 11.Relationship measurement & optimisation
6. Collaborative competencies/behaviour 12.Exit strategy

Applied to each organisation and jointly


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International Best Practice


Benefits Realised from Collaborative Working
• Improved business and operational performance
• Enhanced risk management
• Innovation
• Multi-million pound efficiencies
• Increased client confidence and repeat business
• New product development
• Growing interdependency as a result of more
www.icwnz.co.nz/resources/
Case Studies Lockheed Martin, General Dynamics, ABC Electrification, Network Rail, EMCOR UK,
Costain/4Way Consulting, Bluelightworks, NATS/Business Continuity Institute, Ba/ Nuttall/Transport London
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International Best Practice


Understanding the Psychology of Collaboration: What Makes an Effective
Collaborator? The Top 6

 Strategically Minded
 Team Orientation
 Good Communicator
 Open to Sharing
 Creative/Innovative
 Empathetic
www.icwnz.co.nz/resources/
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International Best Practice


Current Case Studies ICW UK May Newsletter - The Partner

• A14 IDT - Ben Cross


• Altran - Mike Simms
• Capita - Tim Seabrook
• Indra - Jo Potter
• Guide Dogs - Kirsty Kelley
• RBS - Caroline Dobbs
• WYG - Andrew Fotherby

www.icwnz.co.nz/resources/
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NZ’s Uptake of International Best Practice


ICWNZ compiled 16 Collaborative Agreements’ self assessments across NZ using Survey
Monkey to establish how well the 12 Principles of Effective Collaboration were being applied;
• Covered Roading Water and Rail – construction, maintenance & asset management
• Both horizontal collaboration across organisations and vertically down supply chain
• 31 responses across 16 collaborative agreements - ie 75% response
• Involved all partners
• Considered how well principles had been embedded
• In each organisation prior to partnering
• Jointly in the collaborative arrangement
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NZ’s Uptake of the 12 Principles


All Question Responses for Working together
Collaborative Working Survey
% of "FULLY EMBEDDED" response for all respondents for each Part A Question
100.00%

90.00%

80.00%

70.00%

60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%
Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 Q19
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NZ’s Uptake of the 12 Principles


Each Collaborative Arrangement for working together
Collaborative Working Survey 'Fully Embedded'
Average Scores - Part A by Collector
20.0%
19.0%
18.0%
17.0%
16.0%
15.0%
14.0%
13.0%
12.0%
11.0%
10.0%
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
7 9 12 16 14 5 13 3 2 18 8 15 6 19 11 10
Collector
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NZ’s Uptake of the 12 Principles


Question Responses for my Organization's Preparation
Collaborative Working Best Practice Survey - Part B expressed as an Average for Each
Question
80%

70%

60%

50%
Percentage

40%

30%

20%

10%

0%
Q21 Q22 Q23 Q24 Q25 Q26 Q27 Q28 Q29 Q30 Q31 Q32 Q33
Questions
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NZ’s Uptake of International Best Practice


My Organisations’ Preparation by Collaborative Arrangement
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NZ’s Uptake of International Best Practice


Findings Summary – Across all Questions & all Collaborations
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Highest Scoring NZ Collaborative


Arrangement
Northern Corridor Improvements Hybrid Competitive Alliance
What
• New Zealand Transport Agency - Benefits
Fulton Hogan - HEB Construction - • Accelerated delivery through accelerated
WSP Opus & Jacobs consenting and property acquisition despite
additional scope (150M+)
• An NZTA $700M project. Design & • Project currently tracking to programme and on
Construct within an Alliance framework budget.
to improve transport options on the • Significant customer focus of delivery team
North Shore for freight, cars, setting new standards in traffic management and
pedestrians and cyclists. public consultation
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International Guidance and Tools Available


Briefings, Workshops and Training On Diagnostic Tools and Guidance
 The benefits and value of collaborative working  An organisation’s Collaborative Profile & Maturity
 How organisations can establish and embed Assessment Tools
collaborative working  Management and staff collaborative competencies and
 Developing an understanding of collaboration and skills
support strategic planning  Collaboration Policies
 Collaborative Leadership Course – Post Graduate  Corporate Relationship Management Plans (CRMP)
Module -validated by Warwick University  Operational/Initial Relationship Management Plans
 ISO 44001 Certification Gap Analysis  Joint Relationship Management Plans (JRMP)
 Implementing ISO 44001  Trust & Behaviour Measurement Tools
 Executive Briefing  Route to Certification
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Conclusions
• There is a broad spectrum of collaborative opportunities available to suit circumstances

• Collaboration can deliver projects 10 – 20% cheaper and produce better client outcomes but it can
be difficult to achieve these in practice and needs a structured approach

• Case studies have shown that a structured approach to collaboration based on 12 Principles can
achieve these benefits by overcoming collaborative inertia and people churn issue, while
maximising opportunities

• All Collaborative Arrangements in NZ meet the principle of Vision and Values


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Conclusions
• No Collaborative Arrangement met the principle of Relationship Measurement Optimization

• The Collaborative Arrangement that most met international best practice for collaboration only
scored 19% embedment

• Overall there are substantial gaps across NZ in applying international best practice for
collaboration. This is both partner preparation at 55% and working jointly at 65%

• There are substantial resources and guidance available in NZ on international best practice for
collaboration
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Thank You
Any Questions?

Chris Olsen
Chris@coconsulting.co.nz

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