One of the primary questions that came up as a result of the recent Relational Outsourcing Management seminar, especially from those in a leadership position, was centered on the “net-net” result of using the Relational Model for major Government projects.
As we discussed, the Relational Model is founded on two critical elements. The first is the model’s effectiveness as an enabler of key success factors. The second is its provision of an Integrated Intelligence-based Risk Mitigation (IIRM™) framework.
In short, the Relational Model identifies critical success factors, avoids and manages project risks, and delivers essential business process intelligence that addresses deficiencies and enables improvements on a continuous basis.
Net-net, it delivers higher relationship performance as measured by the following criteria:
Lowest Cost: William Deming once said that “The most important things are unknown or unknowable.” Therefore the only way to achieve the optimum cost savings for a project on an ongoing basis is through increased visibility of the entire value chain from raw material – to finished product. To gain this visibility, the Relational Model’s Joint Governance and Business Process Intelligence Joint Integrated Teams “JIT” consisting of Client, Vendor and 3rd party BP specialists will continuously examine the processes that influence or impact a project’s desired outcome.
By leveraging the Relational Model’s “Open Book” financial management mechanism, the JIT will also be able to establish meaningful incentives for achieving ongoing business process efficiency including skill/capacity enrichment. This will serve as a catalyst to drive further process enhancements.
Of course strategic fit between project stakeholders is paramount for realizable success, and therefore the Relational Model’s initial procurement and selection process is focused on bringing the right players to the table from day one onward. Utilizing our Industry Analysis methodology, the evaluation of a firm’s strategy, competitive advantage and core capabilities means that we will be working with partners who are already positioned to deliver the solution at an effective cost. In essence, the foundation for success will have already been properly laid.
Besides paying less for the product or solution – or conversely have the opportunity to produce more from our current budgets, the Business Process for our partners will also improve. This means that they will likely become more competitive on a national and perhaps even global basis.
It is reasonable to conclude that the Relational Model’s win-win approach and outcome ultimately serves the best interests of all stakeholders both individually and collectively.
Better Quality: The benefits associated with the Relational Model’s Joint Governance and Business Process Intelligence JIT will inevitably drive optimum quality improvement at each point of the value chain.
Working together and keeping quality assurance as the primary focus, the JIT teams gather and manage intelligence on an ongoing basis. The open collaborative efforts fostered by the Relational Model in terms of identifying and eliminating risk is critical as no amount of audits, and oversight can achieve similar certainty. This is due to the fact that there is a vast difference between information and knowledge.
Citing Deming once again, he emphatically stated that “The world is drowning in information but is slow in acquisition of knowledge.” The only way to gain true knowledge is through JIT transparency leading to collective stakeholder input and understanding.
No Surprises: Joint Governance and Business Process Intelligence provides the means for gaining both the insight and understanding of the critical operational and administrative concerns of stakeholders in terms of project objectives. Within the framework of a Relationship Charter Agreement considerations such as financial, policy and other similar type relational elements are carefully recorded and weighed within the context of achieving a maximum degree of stability and outcome certainty.
In short, and through the Relationship Charter, Joint Governance and BPI provides proactive insight into influencing factors so that no one is hit with surprises in terms of schedule, cost or the quality of end product /service.
Optimum Outcomes: In the end, the Relationship Charter Agreement is the most effective vehicle through which individual stakeholders can collaboratively manage large and complex relationships.
While there is no doubt that political, environmental, social and legal systems both individually and collectively play a determinate role in the success of any relationship and related project, the non-adversarial behavior that is fostered by the Relationship Charter Agreement brings all key stakeholders to a common or shared starting point.
The Relationship Charter Agreement in reality becomes a harmonizing guide that continuously aligns complimentary skill sets and capabilities so that they can be best leveraged to the mutual benefit of all stakeholders.
This harmonization as I call it will manifest itself in lower costs, better quality and improved scheduling. It also the means that we will be better able to stimulate and support Canadian innovation in small and medium business, and in the process improve the capital endowment of our country.
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Relational Contracting Intelligence Blog 