3.2 - Appraise the process of partnership implementation

Question 1

Name the 9 stages of the CIPS Partnership Cycle

Answer 1

1. establish the need
2. Plan
3. Select partner
4. Communicate
5. Define standards
6. Joint commitment and agreement
   7.Relationship management
7. Performance management
8. Review

Question 2

Name the 2 things the buyer must do when establishing the need of the partnership

Answer 2

1. They will need to consider the rationale for entering in to a partnership
2. The buyer will need to review the considerations shown in the cips rationale for partnering model to ascertain who will be affected by the partnership and the benefits and opportunities for both partners

Question 3

Name 5 resources required for the partnership procurement professionals will need to identify as part of the planning stage

Answer 3

1. Which departments will be included
2. What activities across each organisation will be included in the partnership
3. Any additional costs that may be incurred to manage the partnership
4. Whether any additional recruitment is required to manage the partnership
5. If any integration of systems is likely to be required

Question 4

What 5 things must organisations ensure to manage relationships effectively

Answer 4

1. There is regular and clear communication
2. Both parties are willing and open to information sharing, and provide complete transparency for any information shared
3. There is mutual commitment and equality
4. Any problems are addressed and dealt with quickly and efficiently
5. There are feedback mechanisms to aid early recognition of potential issues which can then be resolved

Question 5

Name the criteria that matches the products and services most suitable for partnership

Answer 5

1. They are used in products and services that represent a company’s USP
2. They represent the buying organisations greatest opportunity for profit
3. The buying organisations most important customers depend on them
4. In the case of a public sector organisation, the general public relies on the buying organisation to provide them

Question 6

Name 2 things the buyer should do when selecting a product or service suitable for partnership sourcing

Answer 6

1. Review each of the products and services in its portfolio in terms of financial risk and supply
2. Use the above information to plot these onto the Kraljic matrix. The buyer should then make a list of all the products and services located in the strategic quadrant

Question 7

What are the 3 elements to selling partnership sourcing

Answer 7

1. Selling the idea to senior management
2. Selling the idea to the wider organisation
3. Selling the idea to the potential parter

Question 8

Project champion

Answer 8

A person within an organisation that is implementing a project or business change who takes responsibility for ensuring the project or change is successful

Question 9

What will be the key to success of a partnership relationship

Answer 9

To gain the support of senior management

Question 10

Kotters 8 step change model

Answer 10

1. Create a sense of urgency
2. Build a guiding coalition
3. From strategic vision and initiatives
4. Enlist volunteer army
5. Enable action by removing barriers
6. Generate short-term wins
7. Sustain acceleration
8. Institute change

Question 11

What will the buyer need to do to sell the philosophy of the partnership to the wider business?

Answer 11

Undertake stakeholder mapping to highlight supporters, and those internal stakeholders who are likely to resist the partnership

Question 12

Name 5 standards that the buyer may be trying to achieve through a partnership relationship

Answer 12

1. Commitment to TQM
2. Ability to apply JIT
3. Ability to provide supplies locally and globally
4. Willingness to take part in innovation programmes
5. Flexibility management

Question 13

Name 3 ways that supplier-buyer relationships that operate successful TQM differ from those that don’t

Answer 13

1. They had more formal mechanisms for interacting with a supplier
2. Integration was important including formal reward and recognition programmes
3. Companies that attempted to exert influence over a supplier were less successful than those that used cooperative approaches

Question 14

What is one of the main benefits of implementing JIT?

Answer 14

To reduce stockholding which will reduce costs and improve working capital levels

Question 15

Working capital

Answer 15

Capital of a business that is used in its day to day trading operations, calculated as the current assets minus the current liabilities

Question 16

Multinational company

Answer 16

A company that operates in more than one country, for example McDonalds

Question 17

What does a buyer need to do to ensure that the partnership meets expectations and targets as part of the implementation process

Answer 17

They need to clearly define the standards it expects from the supplier at the start of the partnership process

Question 18

Why does a buyer need to make sure it innovates

Answer 18

To compete in its own marketplace

Question 19

Name 2 benefits to the buyer of innovation

Answer 19

1. Reduced costs
2. Increased profitability

Question 20

What does agile supply relates to?

Answer 20

How fast a supplier is able to respond and adapt to changing business needs

Question 21

What does flexibility management refer to?

Answer 21

The supplier’s ability to react flexibly to changes required by the buyer

Question 22

Name 2 benefits of developing agile supply with suppliers

Answer 22

1. Reduced delivery and distribution costs
2. Increased quality control

Question 23

Name 3 behaviours that will be needed in a partnership

Answer 23

1. Open and honest communications between both parties
2. Trust
3. Fair/non-opportunistic behaviour

Question 24

Name 7 factors that a buyer and supplier will need to jointly agree on include:

Answer 24

1. Shared capital investment such as investing in new equipment or real estate
2. The relationship style and length of the partnership
3. Common objectives
4. The scope of the partnership and tangible relationship links, in terms of the number of contracts and how contact is made, and the number of departments and activities to be included
5. The performance criteria for measuring progress towards objectives
6. Relevant information sharing, the areas of collaboration and the allocation of costs and risk
7. The exit strategy for ending the partnership

Question 25

Name 3 things you will need to do to develop commitment via communication

Answer 25

1. Establish a formal review structure
2. Provide clear information on the knowledge to be shared by the buyer and supplier as well as information on how this knowledge is to be managed once it is shared
3. Both the buyer and the supplier must communicate the partnership information within their organisations to support commitment

Question 26

Objective

Answer 26

A target that a company or partnership intends to achieve. Resources will be focused on achieving the objectives of the company

Question 27

What types of objectives should be developed

Answer 27

SMART

Question 28

Project steering committee

Answer 28

A group that decides on the priorities for a project and manages the general operations of the project

Question 29

Name 8 reasons why it is important to review a partnership relationship

Answer 29

1. By having KPIs and a formal review process the partners can focus on resources on the priority areas in order to achieve the required benefits
2. Reviews will ensure that the benefits and value added objectives are achieved within the required timescales
3. Documenting and celebrating success is important
4. The partners need to review what’s not working so well and how this can be changed to ensure success
5. Reviews can assess current levels of support
6. Areas for further improvement and development can be identified
7. The process of involving both organisations in the reviews via the steering committee can also derve to support the development of trust commitment to the partnership
8. The reviews can also be used as decision points

Question 30

Project audit

Answer 30

A more formal process than a review this would usually be undertaken by a party that is independent of the organisation being audited

Question 31

Name 8 benefits to undertaking an audit of the partnership relationship

Answer 31

1. The audit will review how the partnership is progressing against the implementation plan and the key milestones
2. The audit will assess the quality, time, cost and risk status of the project
3. The audit may look at the project consequences such as its impact on ethical, environmental and PR factors
4. It provides an overview of what has gone well and what could be improved. This will support the lessons learned process for the overall end review of the partnership
5. Audits can uncover problems which can then be addressed before they derail the partnership relationship, and they can ensure that the partnership relationship is efficient and effective
6. The audit will review whether the project is complying with the governance requirements as set out by the steering committee
7. It may review shared or loaned assets held in the project
8. The audit will also serve to instil a sense of confidence in the management of shareholders that the partnership is meeting the requirements of the buying organisation

Question 32

Government Furnished Assets (GFA)

Answer 32

Equipment, assets and resources loaned to a contractor in public sector contracts. Sometimes also called GFE (equipment) and GFX (extras)