88
Getting it culturally right is something that has certainly been taken on by NBN Co:
“Our company values form the foundation of our SRM framework. This was a very deliberate step in aligning the expectations of SRM participa- tion with the principles of good behaviour that every NBN Co employee commits to by signing their employment contract. I believe this is a crit- ical first step in building any SRM programme, as the creation of value from SRM relies heavily on people’s behaviours and attitudes towards each other from day one”. – MARK SAINT, HEAD OF SRM AT NBN CO. So while potentially not recognising the changing behaviour towards collaboration as SRM in discussions, the survey shows that businesses understand collaboration will bring greater reward. DEFINITION OF SRM ‘The executives catch up on the golf course / at the footy’ or ‘we have regular meetings but there’s no agenda and no actions captured’ are definitions we hear of SRM. While these are extreme examples, it does underline the fact that SRM can take on different guises for different people. The survey results show that Australasia considers contract management and supplier perfor- mance management activities, such as monitoring SLAs and KPIs, as the main SRM drivers, to a greater extent than the rest of the world. This would support our idea that SRM is not neces- sarily defined as a separate entity to performance and contract management locally. Global companies where SRM is more established, are twice as likely to have robust performance management as Australia and New Zealand, and three times more likely to have robust contract management . This indicates they have defined, and to a greater extent, dealt with the building blocks for SRM.
1 Figure 3.17. Performance and contract management – ROW and Australasia
■ 76 100% ■ 51 75% ■ 26 50% ■ 0 25% ■ DON'T KNOW
GLOBAL EXC AUSTRALASIA
AUSTRALASIA ONLY
0% 20% 40% 60% 80% 100%
2
■ 76 100% ■ 51 75% ■ 26 50% ■ 0 25% ■ DON'T KNOW
GLOBAL EXCL. AUSTRALASIA
AUSTRALASIA ONLY
0% 20% 40% 60% 80% 100%
Potentially respondents recognise the need to have in place strong foundations of contract management and performance management to enable SRM to deliver improvements. Or perhaps businesses are misunderstanding contract and performance management to be SRM. Either way, the good news is there is a focus to get the foundations right and once these have been dealt with there is more value to come through SRM that businesses are not yet aware of.
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