Issue 17 October 2009

The Partner

Welcome to this edition of the electronic PARTNER featuring the most recent PSL Network event ‘Partnering in Defence’ hosted by the Royal Navy at Devonport - a very successful event attended by over 40 Network members. We are already focused on arranging the next event – Partnering in Aerospace, hosted by the RAF Museum at Hendon in November. The Executive Partnering Knowledge Network (EPKN) now comprises 62 members. New members since the last edition of this publication are Life Channel, SCC, SELEX Systems Integration Ltd, The Royal Navy and CAPITA. Most of these are thanks to the efforts of Mike Perry, PSL Business Development who has a number of others in his sights. The value of a knowledge sharing network grows with the addition of new members from a variety of business sectors. Everything PSL does has a UK connection with most of our activities UK based. This quarter has seen a number of international activities whilst David was in the USA and Abu Dhabi I was in Thailand. Each of these topics is addressed in this publication. On the people front we are all saddened with the sudden, unexpected death of Mike Wilkins our Finance Director – he is greatly missed. However, life goes on and we are delighted to welcome Yiqian Xu (Sunny to her friends) our latest intern from the University of Wisconsin through the Arcadia knowledge sharing programme. Sunny is with us until Christmas. Please contact us if you want more details on issues covered in this publication or any suggestions for the development of PSL. Les Pyle CEO, PSL

Inside this issue:

Executive PKN: Partnering in Defence

1 - 3

PSL visits Pentagon 4

Thai Print project 5

Discussion Corner: Benefits for the intelligent client

6

MOD / Abu Dhabi 7

Executive PKN members 9

PSL & PAS 11000 training partners

7

HMS Drake and the Devonport dockyard provided a unique and impressive backdrop for our October EPKN meeting. The history that exudes from the heritage of this location provides a stark contrast alongside some of the modern Royal Navy fighting ships. Our special thanks to Captain Charles King RN, Captain of the Base at Devonport Dockyard; for hosting the event and particularly Lieutenant Commander Martin Cropper who organised and managed the event along with Simon Cowls of Interserve.

Partnering in Defence EPKN meeting at HMS Drake and Devonport dockyard

Captain Charles King RN

The whole event was managed with style and true naval precision to the delight of all the members that managed the journey to Plymouth. Rear Admiral Simon Lister OBE Director Submarines at the Defence Equipment and Support procurement agency hosted a dinner on the evening before the main programme and which was greatly enhanced by the history and character of the Wardroom. The formal EPKN event commenced with an overview of Devonport by Captain King, Captain of the base. Devonport is the largest naval port in Western Europe established in 1691 and currently supporting some 26 ships and submarines including HMS Ocean, the largest ship in the Royal Navy. It engages close to 10,000 service and civilian personnel, required to maintain, support accommodate maritime forces, fit for operations, to fulfil standing military tasks or to conduct operations as required.

Click to view presentation

Issue 17 October 2009 The Partner

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Issue 17 October 2009 The Partner

Partnering in Defence (cont’d)

Luke’s presentation provided insight into the programme in moving from ‘COMPETITION TO PARTNERING RESTUCTURING IN THE UK SHIPBUILDING INDUSTRY’. It highlighted the challenges faced in UK defence shipping due to varying demand and capacity against a dramatic consolidation of the industry. Programmes front end heavy, shipyard capacity too large for base workload, Design v Engineering v Fabrication, Defence Industrial Policy and a competitive culture. Re-balanced programme in discussion with Industry included all Maritime vessels (SS & SM). It was agreed Restructuring Industry necessary and that the Procurement Strategies where unhelpful. The Maritime Industrial Strategy was the result of 9 months of discussion and required a lot of expectation management. A new programme was established with requirements met but over longer period, funding smoothed and industry acceptance of downsizing being necessary. It also separated out surface ships and submarines to provide a better development platform. The MIS was overtaken by the Defence industry strategy driving Sovereign Capability. Creating a Sustainable Industry with only one complex Surface Warship Provider and a guaranteed revenue stream (15 years) with a focus on efficiency improvement a deliverable, through Life management whilst retaining open competition for non-complex ships. With alliances and partnering approaches being developed and implemented.

Alan outlined the complex relationships involved in the development and management of the Airtanker programme and the need for creating a partnering culture. Airtanker is the largest defence PFI in the UK (£13bn, 27 year deal) and was signed 27th March 2008. It covers full service delivery including, Air-to-air refuelling (AAR),Air Transport (AT), Flight Management, Crewing and Maintenance service utilising a modified A330-200 aircraft . It has a significant dependency on sub-contractors (also shareholders- EADS, VT Group, Rolls Royce, Thales and Cobham). It will progressively take on service with full service delivery by 2017. EADS will supply the planes whilst Airtanker Services (ATrS) will manage the infrastructure and service requirements. The aim for ATrS is that by working collaboratively with our partners, they will provide a safe, efficient, effective and totally dependable air re-fuelling and air transport service to meet the global capability needs of the UK MoD. Outlining the complex relationships that exist within the Airtanker programme Alan highlighted the need for effective collaborative working. There is a clear need for an empowered team with clear accountabilities and responsibilities, Positive relationships with all stakeholders, Joint openness & trust, shared programme & risk visibility, sharing of problems, resources and solutions. The development of a collaborative partnering approach is therefore essential. To achieve this the focus is on the logical risk owner managing the risk, joint forums, working groups, programme, supply chain and phase reviews, integrated approach to contracted value chain, partnering across the supply chain to enable the above with shared goals and behaviours. So far all contract milestones met and on target to achieve ITS, including, MOB construction programme, CIS, Training, engineering & Flight Ops Solutions.

Commodore Luke van Beek

Alan Steele

Alan Steele, AirTanker, Director, Business Integration & Supply

Commodore Luke van Beek CBE RN; Director Defence Mott MacDonald

Simon Cowls MD Interserve

Project Armada was initiated in 2004 to upgrade and support the development of the accommodation facilities at for HMS Drake together with its ongoing maintenance. It was a challenging programme to overhaul what had become very tired and sometimes stuffy facilities to the new vision of ‘Drake Village’ a modern vibrant naval community. Interserve had been contracted to rebuild and refurbish living accommodation for over 1500 personnel. Construction had to blend with existing grade 2 listed buildings. Along with the refurbishment was the provision of estate management, catering and hotel services. A wide range of initiatives and programmes where encompassed within the programme including recreational facilities. The emphasis and ethos of the Armada programme was to develop a strong partnering relationship between the navy and Interserve, which was apparent to the EPKN members that attended. It also resulted in Partnering being selected winner for the best PFI programme and overall winner in the 2009 PFM awards. The engagement of Interserve, MoD and naval personnel at all levels was clearly a key factor in the success of the partnering programme.

Cont’d on next page

Simon Cowls

Click to view presentation

Click to view presentation

Marko gave us a perspective on the future defence market based on the F&S research, which outlined a number of key messages for all sides in the defence acquisition process. Not least of which was a significant reduction in defence spending, greater emphasis on through life cost and total cost of ownership and rapid technology cycles driving system obsolescence. The research had identified a number of opportunities for industry providers, particularly Strong budgetary growth in markets like South Korea, India, Brazil and Turkey highlight where business opportunities will emerge and continue to drive and support the wider market growth. There was also a strong emphasis on future spending being focused less on product and more towards service and operational support where clearly partnering has a major role to play.

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Our special thanks to Paul stepped in at the last minute to cover the presentation of ‘Route to Service ‘and gave us a valuable insight to the development of the programme, which Sigma a PSL delivery partner, was involved in helping to deploy. BAE Systems and MOD felt the need to share a common process for working in a partnered environment for non-competed contracts. A joint process was developed to initially get to contract in a faster, less expensive way called Route to Contract. A generic version of RTS has been developed and piloted and is ready to roll out to other Prime Contractors and their supply chains working with the MOD. RTS starts with Project Definition and proceeds through Joint Requirements Specification, Joint Solutions Development, and Joint Commercial Agreement to Joint Transition into Service & through Life. Development of the Route to Contract model amalgamates previous best practice approaches into one common model and is developed in conjunction with MoD project teams to complement other programme / project management models. It Affordable solutions based on balancing MOD requirements with affordability providing demonstrable of value for money through parallel pricing, incentivising Industry to: Reduce cost, Engage early with supply chain, continuously improve performance, identifies cost/risk share mechanisms to be operated with MOD. Concurrent rather than sequential approach cuts down project timescales, No surprises environment, early Stakeholder and Supplier involvement

Click to view presentation

Marko Lukovic

Paul Davis Managing Director Sigma Management Development

Marko Lukovic, Principle consultant Frost and Sullivan

Partnering in Defence (cont’d)

Paul Davis

Paul who has been an active supporter of the development of PAS 11000 provided us with his thoughts on the importance of partnering for the future of defence acquisition and value of the British Standard in taking partnering and collaborative working to the core of MoD –industry planning. Paul is also Co-chair of the Partnering Industry Working Group. It was with their support that he was able to establish MOD adoption of the standard. Paul highlighted that whilst the adoption of the standard was important it was now important to ensure that we have the ability to develop the skills needed to exploit the full potential of collaboration.

Paul Martin MoD - DES Partnering support group

PSL Sullivan House 4 Grosvenor Gardens London SW1W 0DH Main number +44 (0)207 824 1800 Les Pyle +44 (0)207 824 1801 Dave Hawkins+44 (0)207 824 1807 Email: enquiries@pslcbi.com

The Partner is a quarterly publication from PSL. If you would like to nominate colleagues to be included on the distribution please forward email details to david.hawkins@pslcbi.com

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Click to view presentation

The PAS 11000 pilot programme is progressing well. PSL has been working with the pilot companies, who are making great progress. The feedback from these support programmes has been that whilst in the main the organisations have most of the bases covered, the adoption of the standard is helping in consolidating their focus and introducing some refinements that add value to their operations. At the same time we have been working with BSI assessors to help to refine the assessment models.

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ASAP – alignment

Following the participation of PSL in the activities of ASAP (Association of Strategic Alliances Professionals ) and their interest in the development of PAS 11000 and its migration to BS and ISO, Dave Hawkins met with the operational management of ASAP to evaluate the alignment of their programmes and PAS 11000. The ASAP focus is on promoting the value of effective Alliance or Partnering management through developing the skills and competencies of these managers. A lot of work has been done, predominantly in the US, on identifying the necessary competencies through the ASAP individual certification programme. There was clearly potential synergy between ASAP and PSL but also the recognition that individual skills and organisational change through a standard had to be aligned to exploit the real benefits. With this in mind a review was carried out with the result that PSL has agreed to work with ASAP to align their skills, best practice and certification with PAS 11000, and then work jointly on the development of BS 11000 and eventually ISO. An MOU has now been developed and work has started with a view to putting a joint proposition to ASAPs Summit conference in February next year.

BSI Pilots

As a result of the work we have been doing on PAS 11000 and its adoption by the MoD Dave Hawkins was invited to meetings at the Pentagon with the Department of Defence. The invitations from Mr Randy Fowler, Assistant Deputy Under Secretary of Defense (Materiel Readiness) and Mr John Johns, Assistant Deputy Under Secretary of Defense (Maintenance Policy and Programs) came as result of a previous visit made to the UK and their introduction to the emerging standard. The discussions were largely focused on how the standard was being developed and deployed by MoD and the acceptance by industry. The interesting aspects of these discussions reflected many of the same challenges that we see being faced in the UK . There was also interest in the future development of BS 11000 and the eventual migration to ISO. The involvement of US companies in the UK pilot programme and the developments with BSI US opened the broader discussions around how the DoD might consider the standard for their applications.

BSI Pilot and the standard

PAS 11000 moves forward to BS 11000

The BSI has now formally adopted the decision to progress PAS 11000 to a full BS with an ambitious target of completing the development by the end of 2010. This is another major milestone in the history of PSL and one which will move partnering and collaborative working firmly into the mainstream. The kick off committee meeting will be held November 19th and it is extremely encouraging that a wide range of organisations have agreed to participate including the MoD, National Audit Office, OGC and many trade associations underlying the recognition that establishing a robust approach to relationship management is clearly high on the agenda.

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PSL visits Pentagon

As part of the BSI programme to promote PAS 11000 PSL participated in the development of a webcast outlining the value and approach of the standard. It is available at the following link; http://seminar.bsi-global.com/PAS11000100909

BSI—PAS 11000 Webcast

Thai Print

The most recent PSL Thai Government project (our 6th to date) came to a successful conclusion at the end of September. This project focused on relating the UK Print market needs to Thai Printing capabilities with the objective of Building Business relationships between customers and potential suppliers. The project involved a major market research exercise handled by the PSL business partner Forum Print Management. PSL and Forum ran a seminar at Sinsakhon Thai Print City which attracted over 80 delegates including 5 visiting Print executives from the UK. The seminar was formally opened by the Thai Minister of Commerce and the British Ambassador to Thailand. That evening the British Ambassador hosted a reception at the British Embassy in Bangkok. This was attended by the PSL Chairman Lord David Evans and the CEO of Senate Caroline Smith, a PSL Network member.

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The following day involved a matchmaking programme for the 5 visiting UK Print Executives and 12 of the most advanced Thai Print companies. It is expected that this will generate business as the start of a strategic business relationship between the UK and Thailand for Printed products. PSL expects that the undoubted success of this project will lead to further projects with our Thai Government contacts. Lord Evans used the opportunity whilst he was in Thailand to address members of the British Chamber of Commerce Thailand (BCCT). He focused on the challenges facing the UK economy and the actions the UK Government is taking in this time of unprecedented challenges.

PSL Chairman Lord Evans being greeted by the British Ambassador to Thailand Mr Quinton Quayle

Caroline Smith CEO Senate and PSL Network member being greeted by the British Ambassador to Thailand

PSL Chairman Lord Evans saying a few words PSL CEO Les Pyle saying a few words

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Over the past few months we have seen the impact of the economic upheaval start to emerge across the business arena and perhaps even more prominent when considering the impacts of government debt. Whilst some may suggest we are seeing the green shoots of recovery, the aftermath of the banking crisis will likely be with us for years to come. The implication of these challenges has already opened a vista of budget cuts, credit squeezing, fire sale acquisitions and opportunistic purchasing. Economic pressure is perhaps a time for alternative thinking, not traditional bloodletting but it raises the point that to harness potential benefits from alternative approaches requires intelligent customers. There is no doubt that no organisation can afford to be altruistic in the current economic climate but what is also clear is that short term approaches will have limited value and not be sustainable. Over the course of the past few weeks a message has started to emerge from a variety of sources that alliances, partnering and collaborative working can provide the catalyst for developing more sustainable solutions. What is also becoming more apparent is that the skills and capabilities to deliver these results are in short supply. As such the potential to exploit alternative models is limited from both sides of the trading platform. This deficit is prompting some organisations to look again at customer profiling to assess their engagement strategy. Partnering, as we all know, is not easy but has historically demonstrated that it can deliver significant value when managed properly. It is also recognised that it cannot be a one sided affair that simply looks to leverage a relationship for traditional win / lose outcomes. When considering a response to the market a balance has to be made between available resources and the real potential to develop an approach that is mutually beneficial. In this context the evaluation is not simply the client finding the right partner but the partner finding the right customer. Difficult times call for innovation and new approaches but a reliance on traditional business processes and inflexibility will frequently create a situation of negative compliance, which in turn will frustrate those focused on optimising benefits. If this situation is created under cover of a pseudo partnering umbrella that will aggravate the relationship to where the partnering ethos is devalued and worse becomes counterproductive. For those seeking to engage, the challenge is not can we bring more value but will the client listen or accept change. If not, then diverting scarce resources to more productive opportunities makes sense, with the result that it is the customer that is losing out. In these difficult times it will be the intelligent customer that will attract the major sustainable benefits.

PSL FORTHCOMING EVENTS

17 November 2009 Executive PKN Meeting ‘Partnering in Aerospace’ RAF Museum, Hendon 1-4 February 2010 ASAP Summit Los Angeles, USA 17 March 2010 Executive PKN Meeting ‘Partnering in Sport’ Sport England, London 12 May 2010 Annual House of Lords Partnering reception - 20 years! ~ Other events will be notified as arranged ~

Benefits for the intelligent client

Goodbye to Mike Wilkins

It was with great regret that we had to announce the death of Mike Wilkins, the PSL Finance Director, in August. Mike was the longest serving member of the team and will be missed by all who knew him. He had been with PSL since 1992 supporting our efforts and providing us all with a steady hand couched in his own particular brand of humour. Our best wishes go out to his family.

Highlighting the broad value of PAS 11000, PSL recently delivered a workshop for Leeds University Technology support community.

Leeds University

The latest in our range of online tools is currently being tested by a number of organisations. The aim of this tool is to provide an initial profile of an individual’s experience and approach to gauge their collaborative Leadership capability. It is not intended to be definitive nor a form of psychometric testing, but simply to point individuals and organisations towards the practical skills and experience that can enhance performance.

Collaborative leadership profiling

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The adoption of PAS 11000 has now been firmly established with the focus on partnering and collaborative working within future MoD programmes. PSL has been engaged by the Partnering Support group, who provide internal advice to project teams, to help them develop and refine their best practice advice in line with PAS 11000 and utilisation of CRAFT methodologies, tools and approaches alongside existing management models. This will include training a deployment of our on-line tools which have already been adopted by the PSG.

The agreement for PERA to formally become one PSLs delivery partners has been put in place and training activities are underway alongside some early identified opportunities to help PSL spread the partnering message.

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FM Guru to deliver PAS 11000 support

PSL provided some focused training to some of the key FM Guru facilitators and we are now developing a structured approach that takes partnering and PAS 11000 firmly into the FM sector.

Pera & PSL collaborating on PAS 11000

As part of the relationship with Sigma we are jointly launching a support programme for PAS 11000 implementat ion. By combining our skills and resources we can reach out further into industry. We have also initiated a programme to provide support to SMEs working with SBAC and SC21.

Sigma—PSL & PAS 11000

PSL Contributes to MOD skills development

Partnering for Defence was also the subject of a recent conference in Abu Dhabi at which Dave Hawkins was invited to speak. The interest for the Emirates defence sector is to localise equipment support and training. The conference was also attended by a number of representatives from other states with similar interest. Whilst the defence sector may not be as large as the major countries, it is equally important to change traditional business models and ensure local skills and knowledge become part of future acquisition programmes. It was interesting to revisit this part of the world and observe a new level of thinking from the young decision makers who want to be more engaged with industrial organisations. There are already some major partnering arrangements being established, and significant investment. Partnering may not yet be fully entrenched but it is certainly high on the agenda.

Abu Dhabi

The 2010 edition of The Partner will be special for two reasons: ⇒ It is the 20th anniversary of the founding of PSL. ⇒ We shall be recognising the first organisations to

obtain BSI PAS 11000 certification The publication will be launched at the annual PSL House of Lords Partnering reception on May 12th 2010. We hope that PSL Network members will be able to support the publication by contributing articles. The Partner is a not-for-profit self-financed undertaking. The investment required from Network members depends on how many commit. Given the significance of this particular publication – 20 years and BSI Certification - we would like as many Network members as possible to feature in the publication. If we can get half the membership to commit we would need to charge £ 500 per entry. This is our task. Inclusion means an article of up to 2 x A4 pages. A full page colour advert will cost an additional £100. If you wish PSL to write the article based on bullet points supplied by you there will be an additional charge of £250. We are looking for articles under three classifications: ⇒ Experience of gaining PAS 11000 certification ⇒ Thought Leadership ⇒ Partnering Case Studies Timescales are always an issue. We must receive all articles and adverts by 28th February. If you wish us to write the article the deadline for receiving your material will be 31st January. Either way, it would be helpful if you could let us know before 31st December if you are planning to participate. Tim Lee who will again edit The Partner will contact you shortly. In the meantime, if you require further information then please contact Tim on tim.lee@mj4m.co.uk or on 01202 868730.

The Partner 2010

Senate Consulting

Serco

Siemens

Siemens Enterprise Communications

Sixt

Sport England

TNT

Toshiba

TWI

UKAEA

UK Trade & Investment

University of Bath

University of Cranfield

University of Exeter

University of Southampton

University of Strathclyde

University of Surrey

VT Group plc

EMCOR

Equanet

Foreign and Commonwealth Office

Frost & Sullivan

Fujitsu

Health and Safety Executive

The Life Channel

Lockheed Martin

Logistics International

Manchester Business School

Merrill Lynch

Ministry of Defence

Mott MacDonald

National Air Traffic Services

Networking for Industry

Nuclear Decommissioning Authority

Office of Government Commerce

Oracle

PERA

Pfizer

Policy Connect

Raytheon

The Royal Navy

SCC

SELEX Systems Integration Ltd

Acer

AMEC

Ascent

Association of Strategic Alliance Professionals

Atomic Weapons Establishment

BAe Systems

British Energy

BSI

British Retail Consortium

BT

CAPITA

CBI

Chartered Institute of Purchasing and Supply

CH2M Hill

Cofely-GDF Suez

Defra

D-Link

Dept for Communities and Local Government

D’t for Business Enterprise & Regulatory Reform

Department for Transport

Department for Work and Pensions

DNV

EADS

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E x e c u t i v e P a r t n e r i n g K n o w l e d g e N e t w o r k M e m b e r s

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Issue 17 October 2009 The Partner

PSL launches Network PLUS+

For an annual subscription of £95, Network PLUS+ subscribers will receive materials and services with savings of over £500.

The Partner Issue 17 October 2009 The Partner Issue 17 October 2009

Membership Subscription Package:

PSL publications contained on a CD which will be refreshed annually including: ⇒ Future Connections (£17.65) ⇒ Initial Partnering Profile (£11.75) ⇒ Internal Self-Assessment (£175) ⇒ Strategic Partnering Overview for Directors Guide

(£23.50) ⇒ Partnering Strategy Guide £23.50) ⇒ Supply Chain Partnering Guide (£23.50) ⇒ Partnering for Service Guide (£23.50) ⇒ Value Creation Guide (£23.50) ⇒ Partnering Contracts Guide (£23.50) ⇒ Outsourcing & Partnering Guide (£23.50) ⇒ Strategic Partnering Overview Guide

(£23.50) ** PLUS: a free copy of The Annual Partner 2008 (£10)

40% Discount on public one day workshops available to non-members at £300. The following are part of the current programme: ⇒ Developing Strategic Partnering Programmes ⇒ Introduction to PAS 11000 and CRAFT Methodology ⇒ Monitoring and Measuring Collaborations ⇒ Critical Behaviours

10% discount on all in-company or company specific programmes you may be considering covering; collaborative development, training, and support

£300 value!

Login to the Network on PSL’s website to subscribe

PSL has a broad range of useful tools, guides and services to help businesses realise the value of partnering and collaborative relationships. Our recently created subscription package, Network PLUS+, contains a series of PSL products and services, aimed to help you identify strengths and weaknesses of your current and future business relationships. This subscription includes discounted workshops, free PSL publications, and access to a range of tools and services. Our interns from the United States, Samantha Cooper and Jordan Mandel, have contributed to the development of this subscription package. They are thrilled to be working closely with PSL, and have shown great interest in learning about the benefits of partnering across all sectors. The aim of Network PLUS+ is to further encourage our members to use PSL tools and services, to maximize the effectiveness of their collaborative relationships.

£400 value!

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Issue 17 October 2009 The Partner