Download Slide 1

Helping Companies
Collaborate
Denis Kearney
13th October 2005
Istanbul
Topics Covered
• Overview of SMEexcel project
• Survey of user needs
• Assessing Organisational Readiness – the
Synergy / Maturity model
• Collaborative Process
• Next Steps
• Summary
What is SMEexcel?
Problem
How to encourage SMEs
to embrace collaboration
as a key tool for
competitiveness
SMEexcel Concept
Learn ‘How to Collaborate’
Develop Group Competencies
Manage Collaboration
Implement Business Processes
Sustain the Partnership
Within
the
Network
Within
Each
Company
Review Organisation Goals
New Business
Through
Collaboration
Identify Strategic Assets
Develop Individual
Competencies
In the
Marketplace
Identify Opportunities
Seek out RFQs
Deliver Order-winning Proposals
Manage Customer Expectations
Example
Organisation Relationships
Goes to
Customer
Customer
Interacts with
Enterprise
Enterprise
(legal
(legal entity)
entity)
Initiates
Leads
Participates in
Implements, complies
with & uses
Product
Product
or
or service
service
Support delivery of
Coordinates
co-delivery of
...
...
Standards
Standards
ICT
ICT platform
platform
Procedures
Procedures
Collaboration
VE
Network
Network
Shares,
collaborates using
Prepares
/ agrees
Partnership
Survey of User Needs
SMEexcel Survey
• Carried out over 5 countries – Ireland,
Scotland, Poland, Turkey and the Czech
Republic
• Follow up Focus Expert Group assessment
in Ireland
How Important are Networks to
you?
Importance of Networks
60%
50%
50%
40%
30%
23%
20%
14%
10%
10%
3%
0%
Peer Collaboration
25%
Formal Cluster
Supply Chain
Network
Industry Network
65%
Chamber of
Commerce
Survey Findings –
What makes you more Competitive
Importance to Competitiveness
5%
7%
21%
Delivery Reliability & Customer Service
9%
Cost reduction
Increasing Product Quality
Operational Performance
Reducing Time To Market (TTM)
11%
More Product Innovation
19%
Improving Serviceability & Field Support
Styling, Design, Image & Branding
14%
13%
Barriers to Success
Barriers to Success
5%
5%
17%
Not enough customers
5%
Margins too tight
Not enough new products coming on stream
7%
Shortage of Capital
Shrinking or Stagnating Markets
14%
8%
Lack of suitable partners for collaboration
Lack of formal strategic plan
Cannot support a broader customer base
Shortage of Skills
8%
11%
10%
10%
Shortage of Technology
Lack of Infrastructure[1]
Why would you collaborate?
Access New Markets
Why Collaborate?
Improve overall capability by
combining competencies
8%
8%
Critical Mass to qualify for large
customers
22%
Benchmark / learn from partners
11%
Access Technology
15%
Network with Peers
12%
12%
13%
Avoid Internal investment
Share development costs
What do you want from others?
Desirable Complimentary Competencies
Market Knowledge / Sales Force
Management of Collaboration
6%
9%
Access to Finance
17%
Systems – IT skills
9%
12%
Critical Technologies
9%
10%
9%
10%
10%
Research, Design and Development
(products or processes)
Logistics Management / Field
Support
Efficient Production Capacity
Critical Skills
Summary of Survey Findings
• Marketing and particularly Sales, are the priority of most SMEs
• “What’s in it for me?” – must see early return
• “Show me where it was done”
• Collaboration is important for companies that want to grow
• Prefer Market Pull rather than Network Push
• Trust and IP are important issues
• SMEs tend not to strategise, particularly in the marketing arena
• Individual skills training not a priority. Business Capability skills for
the organisation are
• The jargon is a turn-off – keep it simple
Are you Ready to Collaborate?
Synergy Model – Maturity Scale
Strategic
Synergy
Operational
Synergy
Optimising (5)
Fully competent and able to
demonstrate leadership
Standardised (4)
Well understood. Good
competency and application
Defined (3)
Some understanding. Basic
capability to apply
Embryonic (2)
Commercial
Synergy
Basic Understanding of
requirements Not able to apply
Initial (1)
Unpredictable or Does not
exist
Cultural
Synergy
Maturity Assessment
Maturity Level
Synergy
Strategic
Operational
Cultural
Commercial
Level 1
Initial
Level 2
Embryonic
Level 3
Defined
 No strategic awareness
 Informal strategy
generally internal to the
Owner / Manager
 Limited visibility within
organisation
 Documented strategy
 Communicated throughout
organisation
 Short term planning
 Heroic efforts to deliver
results
 No or ad-hoc
measurements
 Unpredictable delivery
performance
 Hero culture
 Employees seen as interchangeable production
units
 Top-down decision making
 No or poor-performing
teams
 Defensive regarding
quality of assets
 No appreciation of risk
management
 No knowledge of how to
protect intellectual
property
 Poor access to finance
 Basic operational
management systems
in place
 Rudimentary tracking
 Documented
procedures
 Strong process & project
management
 Integration and prioritisation
among projects / initiatives
 Clearly defined internal
business processes
 Some team activity
 Strong personnel
management systems
 Some level of trust
 Top-down
communications
 Functional teams responsible
for operational and
improvement targets
 Good communications
 Good level of trust
 Some understanding of
value of assets
 Understands risk
management
 Interested in IP
 Reasonable financial
position
 Understands clearly the
value of core assets and
competencies
 Structured risk management
approach
 Structured IP management
 Good financial position
Level 4
Standardised
 Strategy document derived
from rigorous and multi-level
debate within and external
to the organisation
 Strong ownership
throughout the organisation
for implementation
 Impacted by collaborative
partners
 Continuous operational
improvement in terms of
cost, quality and time
 Highly predictable
 Strong skills base
 Employees viewed as
assets
 Decision-making devolved
to the most appropriate level
 Cross-functional team work
 Self-driven employees
 Pervasive trust
 In addition, appreciates fully
the overall value of the
combined partner assets
Level 5
Optimised
 Demonstrated
leadership
 Systematic
continuous
improvement
 Driven by
breakthrough
goals and
identification /
development of
new business
opportunities
Crawl before you Walk!
Maturity Level
Level 1
Initial
Collaborator
Features
 Unreliable as a
collaborative partner
 May be unable to fulfil
commitments
 Use only as a subcontractor
Collaboration Failure
Features
Level 2
Embryonic
 Collaborative
follower
 Requires strong
direction and
management
 Control systems
must be rigid
 Characterised by
strengths in one or
two areas
Level 3
Defined
 Collaborative partner
 Responsible for own activities
and controls
 Contributes substantial
benefits to partnership
 Characterised by substantial
key competencies
Level 4
Standardised
 Collaborative leader
 Drives overall
development of
collaboration
 Develops key
competencies
Low-level collaboration – needs tight control
Experienced
collaborators working
on ‘bet the company’
One-off informal cooperation
projects with likeminded organisations
Optimised collaborative ventures focused on breakthrough results for the overall
partnership
Highly optimised collaborative ventures focused on
breakthrough results for both the partnership and each
partner
Level 5
Optimised
 Collaborative
leader and
ground-breaker
Building on prior
learning, these
organisations
continuously
develop new
methods for
collaborating
which deliver a
competitive
return.
The SMEexcel Collaborative
Process
The Collaboration Process
ATTRACTION
Gate 1
IDENTIFICATION
Gate 2
FORMATION
Gate 3
IMPLEMENTATION
Gate 4
Gate 5
EVALUATION
Company A
Company B
Company
C
Driver for Collaboration
(Market opportunity,
Product Opportunity,
etc.)
Determine
Individual
Competencies and
Needs
N
Interested in
Collaboration
Y
Sort out basic
Consortium
Building Issues
Determine Overall
Competencies and
Gap
Y
Other
Competencies
Needed?
Source additional
Companies
N
Integrate New
Members (if
necessary)
Set up Structure
and Responsibilities
Set up Business
Plan,
Targets/Metrics,
Information Systems
Manage the Collaborative
Project
Repeat
Set up Management
Systems
Audit the Process
Review Performance and
Adjust as necessary
Elements of Attraction
Awareness
Cost Benefit Analysis
Case Studies
Checklist for Attraction
•
•
•
•
•
•
•
Do you understand the potential benefits of collaboration
to your organisation
Do you understand the commitments that have to be
made and the costs involved in collaborating
Do you understand the time / duration of a venture
Do you understand any IP and other issues involved
Are you aware of how it may impact the ‘way things are
done around here’ – i.e. sovereignty, decision making etc.
Do intermediaries understand how to encourage client
companies to collaborate
Do intermediaries understand how to support
collaboration among client companies
Elements of Identification
Partners strengths and weaknesses
What new-value the collaboration is
going to create
Each partners needs / objectives /
motivation for collaborating
What value each partner will contribute
Are other partners needed
Core Competency
The collective know-how of an organization that
gives it a competitive advantage. This know-how is a
result of learning that is driven by business strategy
and built through a process of continuous
improvement and enhancement that may span a
decade or longer.
(Grady, Successful Software Process Improvement)
An area of specialised expertise that
is the result of harmonising
complex streams of technology and
work activity
(Prahalad &Hamel, Havard Business Review)
• Are you Good (very good) at it?
• Is it Difficult for others to
Replicate / Imitate / Copy?
• Is it Valued (highly) by the
Customer?
Example
Honda - engine design and manufacture
• lawn mowers
• cars
• trucks
• snow blowers
Competencies
Capabilities
Competencies
What we can do
What we are really
good at doing
Core Competencies
What is difficult to
replicate
E.g. CSM
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Supply chain management
ISO9000
EFQM
Six sigma
Kaizen
MRP/ERP
Strategy development
Performance measurement
Product development
Innovation
IT Strategy
BPR
Benchmarking
SPC
Collaborative enterprise dev.
Change management
•
•
•
•
•
•
•
•
•
Supply chain management
MRP/ERP
Strategy development
Performance measurement
BPR
Benchmarking
Six sigma
Collaborative enterprise dev.
Change management
•
•
•
•
Strategy development
Performance measurement
Collaborative enterprise dev.
Change management
Opportunities!
What Opportunities?
Business
Opportunities
Ansoff
Growth
matrix
Assessment of Opportunities
H
RISK
• Assess the identified ‘Opportunities’ in relation to Risk and Gain.
• Use circles of different diameter to signify the projected investment to realise
each opportunity.
• Risk = Likelihood of occurrence X Impact X Ability to take advantage
L
L
Revenue /Year €,000 (steady state)
H
RISK/BENEFITS ANALYSIS
High
Don’t
do it
Collaborate
RISK
Do it
yourself
Is it
worth it?
Low
Low
High
GAIN
Checklist for Identification
• Has a company or group of companies identified a
•
•
•
potential business opportunity for collaboration?
Have individual members of the group assessed
their readiness for collaboration?
Has each member identified how the collaboration
will benefit him or her?
Is a facilitator needed to assist the group in the
next stages? If so has a facilitator been invited to
join the group?
Formation Stage
Elements of Formation
Confidentiality / NDA
Project Management Methodology
Stakeholder Analysis
Business Plan
Risk Analysis
IPR Agreement
Collaboration Agreement
Integration between partners
•
•
•
•
•
Info Systems
Health & Safety
Environmental Mgmt
Quality Mgmt
Financial Systems
2008
Collaborative Partnership
Business Ambitions
Objs for Customers
Objs for Capabilities
Objs for Technology
Objs for Employees
Owner:
Owner:
Owner:
Owner:
Owner:
Projects for Customers
Project
Cu1
Project
Cu2
Project
Cu3
Projects for Capabilities
Project
Ca1
Project
Ca2
Project
Ca3
Projects for Technology
Project
T1
Project
T2
Project
T3
Projects for Employees
Project
E1
Project
E2
Project
E3
2008
Portal House Partnership
Business Ambitions
• 1 m€ revenues within 3
years
• 60% of revenue to be
generated in new sectors
(medical devices?)
Innovative Culture
Market Focussed
Collaborative Management
Controls and Procedures
Continuous Improvement Env
Objs for Customers
Objs for Capabilities
Objs for Technology
Objs for Employees
• To provide full turnkey
solutions within 6
months
• Clean room assembly
• To develop an
integrated IT
management system
by end of 2006
• To double the return
per employee by
2006
To be the world’s best at providing
niche customer focused design and
prototyping support services to
industry in the Electronics and
Medical sectors. We will provide
Innovative solutions utilising our
technical and business competencies
in a collaborative environment.
Projects for Customers
Project
Cu1
Project
Cu2
Project
Cu3
Projects for Capabilities
Project
Ca1
Project
Ca2
Project
Ca3
Projects for Technology
Project
T1
Project
T2
Project
T3
Implement Innovation Culture
Owner: F. Keohane
Client Management Process
Owner: ???
Web-based Project Management process
Owner: ???
ISO9000 procedures generation / management
Owner: ???
Implement Lean / 6 Sigma culture
Owner: F. Keohane
Projects for Employees
Project
E1
Project
E2
Project
E3
Checklist for Formation
•
•
•
•
•
•
•
•
•
Business plan including metrics and targets signed off
Benefits to each partner estimated
Reward and recognition arrangements for people agreed
Management structure, accountabilities, review
mechanisms and conditions for termination in place
Systems for sharing information / allocating resources
Overall control policy agreed
IPR implications (if any) known
Auditing process agreed for the initial stages
Financial arrangements between partners – investment,
bank accounts, invoicing, spending authorisation etc.
Elements of Implementation
Monitoring & Control Processes
Performance Metrics
Resource Coordination
Business Process Management
Checklist for Implementation
•
•
•
•
•
•
•
•
Performance metrics agreed and implemented
Resources from partners integrated
Information systems from partners integrated
Collaboration review mechanism in place and functioning
A decision-making process established and functioning
Targets being achieved and any shortfalls being
addressed
Effective leadership
Is each partner achieving benefits from the
collaboration?
Next Steps
Next Steps
• Test the SMEexcel methods
• Develop On-line support tools
• Localise for Turkey, Poland and the Czech
•
•
Republic
Launch the final methodology
License the methodology throughout Europe
Summary
• Overviewed SMEexcel project
• Describer the results of our Survey
• Described the Synergy / Maturity model
• Outlined the steps in the Collaborative
Process
Thank You
Denis Kearney
Supply Network Shannon
13th October 2005