Managing Performance – keeping to the straight and narrow

Like all other parts of the business, relationship performance needs to be monitored, managed and reviewed, however, standard KPIs such as those governing finance and investment will not be sufficient in a joint operation. While you are used to managing diverse team members from across your own organisation, now you will also have to work with staff, processes and KPIs from another company. This is why Relationship Managers need to be senior, experienced people, often a Board member.

“The operational relationship is driven to make the business successful and is end customer focused. However, the management relationship is inconsistent. When things go wrong or don't provide the expected answers there is a lot of finger-pointing and the relationship becomes difficult and sour.”

Senior Manager, Global Engineering Company

 At the top level joint strategic reviews will consider performance past and present, ensure that the objectives are still appropriate, the benefits and outcomes are as expected and, look ahead to how the collaboration will develop in the next period. They might even decide that the business is no longer viable and should be wound up.

 “Our customer does not have a strategic view of our relationship. This is a big problem. They ignore future systems requirements. They think that's someone else’s problem.”

Project Manager, Defence Supplier

 On a day-to-day basis the Relationship Managers will jointly oversee work schedules using agreed KPIs to ensure targets are appropriate and being met. They will deal with risks, IP questions, resourcing and problem solving. Benefits tracking is also important. They will be constantly on the look-out for ways of making the operation more efficient and productive (reducing friction) and have an ‘eagle eye’ for new business opportunities. The outcomes of these activities will be contained in transparent, comprehensive records of decisions and actions. They will tell everybody how the collaboration is going.

 “Frequent contacts, even as often as daily, build confidence, reduce risks of misunderstandings and keep the team focussed.”

Team Leader, IT Outsourcing

 “A lot of early design decisions and agreements were not followed by the construction personnel which resulted in major savings in whole life costs being lost. Although we have a partnering arrangement, better through-project co-ordination on buildability is required and appropriate staff need to be involved.”

Project Director, Global Construction Company

 Finally, the Relationship Managers will keep key policy documents such as the joint business plan, the risk register and the exit plan up to date.

 There is a lot of detailed guidance including checklist that support this post in our book, Implementing and Managing Collaborative Relationships, A Practical Guide