Procurement the scourge of so many project and programme managers is often blamed as the root cause of poor value under-performing contractors, and arguments across the supply chain…. But why?
Procurement is an important step in a project or programme lifecycle and can set the foundation for a better way of doing things.
• Can and should help clients achieve better outcomes and add value to your organisation.
• Can and should ensure that everyone involved in a project wins
• Can help reduce risk
• Can help increase innovation
• Can establish strong long term relationships
Where do we go wrong?
When it doesn’t work or the results aren’t as good as they could have been it’s often because we forget the grey in amongst the black and white.
The black and white (scope, cost, process) is of course important and having spent a number of years within the Nuclear Decommissioning sector, I know first-hand how hard it is due to the vast quantities of unknowns, the first of a kind nature of much of the work being undertaken and sometimes the timescales involved (poor planning not being an excuse!) that the black and white isn’t and possibly can’t be fully underpinned at the beginning of the procurement exercise. But this is ok if you go into the process understanding this and building the flexibility needed to overcome this.
With the nature of work often being undertaken in nuclear the importance of the grey shouldn’t be underplayed.
We often forget during the procurement process the importance of the individuals that will be doing the work. Specifically we don’t spend enough time looking past their IQ and looking at their Emotional Intelligence (EQ).
Behaviours are an important part of any project during design, construction and the operations phase. This is why behaviours should be given more consideration in procurement and throughout the projects’ lifecycle.
A project team is always an evolving one, how a team gels together can make a huge difference especially in how they react to adversity and how it creates an environment that encourages innovation.
Innovative clients across the public and private sector have already seen the benefits of behavioural assessment within the tendering process as a driver for building those effective partnerships. Highways England talk to a 20% cost saving attributable to it. So why aren’t we all doing it?
Behavioural assessment was a major part of procurement for the Environmental Agency, Highways England and recently the Thames tideway tunnel and we’re seeing that other mega project such as HS2 will also use Behavioural assessment in their procurement process.
These Mega Projects are more and more being undertaken by joint ventures and alliances, what behavioural assessment in the procurement does is make sure that the required DNA is in place to make these projects successful, and not only achieve the targets but exceed them and to exceed excellence in their performance.
JVs and alliances can be found across the nuclear industry and recently we saw this in action as four delivery partnerships were identified as key supply chain partners at Sellafield and for them to be a success the relationship between client and contractors will be key.
The use of behavioural assessment not only in procurement but throughout the onboarding and delivery process is key to ensure that the right behaviours are embedded within the organisation (both client and supply side) and that the continual challenge to do better is there, pushing greater innovation and better performance.
Much has been written in recent years about collaborative working and the vast potential benefits to clients and the supply chain from sharing information and working more collaboratively.
Behaviours and working in a collaborative way also needs to be encouraged through the way the contract is put together, used and incentivised. Working together collaboratively requires the tools in place to allow it to happen.
BS11000 and digital platforms such as BIM are developing rapidly to support this process, helped by the UK Government’s mandate for level 2 BIM adoption on their projects by 2016. However, adoption and use of both of these do not guarantee a collaborative project or programme. You still need the right people to drive the process forward.
At Invennt we can help you embed these behaviours throughout your organisation, help you design a procurement process that embraces behavioural assessment and help you join our journey to create value through construction.
If you would like to learn more or would like to discuss how we can help you achieve your strategic goals please contact myself at firstname.lastname@example.org or 07961071166