STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
CASE STUDY 167
‘SHARED MIND’ COLLABORATION MODEL
COMPANY
Both parties assigned a senior executive sponsor, their purpose to deliver consistently on partnering expectations and set clear direction. Workshops were held, and common goals and objectives agreed. A collaboration model was built to organise both parties around common components, congruent with the sought after outcomes. The model established one baseline upon which good conversations could take place. LV= shared its business plans and key business stakeholder challenges with State of Flux to further support openness and trust in all dialogue. It would be naïve to suggest the relationship ran smoothly throughout, though it was the difficult conversations that ultimately led to the greatest value. The key was agreeing the relationship rules and behavioural expectations up front.
DEPARTMENT
METRICS
SUPPLIER STAKEHOLDER
BEST PRACTICE
LEADERSHIP
MUTUALLY BENEFICIAL VALUE
GUIDELINES
CHANGE MANAGEMENT
FRAMEWORK
TEAM
OPENNESS
POLICIES
TRUST
TOOL SELECTION
ESCALATION
INTEGRATION
MAINT & UPGRADES
INFORMATION MANAGEMENT
AUTOMATION
ADOPTION
TRAINING
TALENT AND CAPABILITY
Personal development plans were designed to include measurable objectives and with a line of sight up to board level. Following a State of Flux led skills gap analysis, a personal training programme was developed for each supplier Manager. The programme included ‘Managing Supplier Relationships – Inside the Account Manager’s Head’ training, focused on collaborative working styles and, in particular, how to develop joint supplier account plans. It also taught the skills required to develop sustainable business relationships and how to strategically position a customer of choice dialogue. The Supplier Management Framework was developed to connect the dots between all relevant stakeholders across LV=, to facilitate single and cohesive management of all key suppliers. With senior executive sponsorship, the framework was embedded into LV= via targeted roadshows and implementation of a self-service intranet experience. Self-service has been rolled out to more than 400 colleagues, connected in a social collaboration environment. It delivers a sharing workspace with access to experiences, tools and techniques. Regular coaching, review and feedback sessions are led by the supplier management team to ensure a fresh approach and results are being delivered.
Supplier manager role profiles were jointly written and the wider business engaged to ensure full buy-in. The roles focused on behavioural profiling, and in particular, collaborative working, influencing capability and creative thinking. Within six months Keith Bray, Head of Supplier Management, was recruited, shortly followed by four experienced supplier managers. Keith’s selection focused on talent potential and behavioural skills, then technical competency. Talent management was at the heart of the agenda.
THE VALUE OF PARTNERING
LV= contract with approximately 1,200 approved suppliers across an annual spend profile of £300M. A segmentation model was designed to establish which suppliers are the most important now and moving forwards. All suppliers are now assessed annually and segmented into one of four categories: strategic, preferred, approved or
legacy. LV= and State of Flux’ combined experience of how to sell to challenging
stakeholders the value of supplier management, alongside a joined up communication strategy, delivered significantly earlier buy-in across LV= than originally anticipated.
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