Monday, May 3, 2010

FIVE STEPS OUTLINE THE COLLABORATIVE PROCESS

Agree on the principles supporting the collaboration � Without an
understanding that the purpose is to seek higher level benefits for all
participants, one or more parties are going to withdraw at some point
in the effort to find the best enterprise processing. A simple single-page
listing of the principles and the metrics that will be improved generally
suffices to satisfy this requirement.
_ Establish a governance model to oversee the expenditure of time
and resources � There must be an illustration of how the mutual effort
is going to be conducted, managed, and implemented.
_ Validate the internal processes � As we have stated, progress to
maturity starts inside the four walls, and when the house is in order, it
can expand externally.
_ Consolidate processes � Across a platform that moves from the individual
company intranets to the network extranet, there needs to be
guidance on how the efforts of the network will be consolidated for best
results and how to transform the enterprise to an industry-dominant
position.
_ Transform the enterprise � With the purposes clear, the roadmap in
hand, and an understanding of what is in the effort for all the key
players, the stage is set for a major transformation effort that establishes
the network as the one to beat in any industry.
Step 1: Agree on Principles
As the collaborative processing begins, the parties come to a table and agree
on the principles that will guide their joint efforts The parties to this collaboration took the time
to list the enterprise process steps, much as the SCOR� model would do, and
then to overlay the principles. Note that it begins with sharing the benefits and
rewards, an essential to success. The balance of the ten principles is selfexplanatory,
but forms the backbone of how the effort will proceed. Yomi
Famurewa, vice president of supply chain for ArvinMeritor�, a leading tier one
automotive supplier, and his team used these principles to make significant
improvements in product development cycle time. Famurewa and Bauer shared
these insights with an enthusiastic audience at Supply Chain World in March
2004.

Step 2: Establish a Governance Model
With the principles established, the players can move to setting up a governance
system that will assure best results. The corporate executive committee of the nucleus firm or
driving entity behind the effort must also play a part, to make certain the
business plan objectives are being met. Design teams, assembled from the
various business units and willing business allies, are then established to perform
the actual collaboration and move the effort to specific objectives. Notice
that this council determines priorities, licenses projects, sets policy, polices the
players, and manages the enterprise bonus pool or how the benefits will be
dispersed. This list of control features needs to be analyzed and made specific
to the collaboration being conducted.
Step 3: Validate the Internal Processes
This thinking is fundamental � you
cannot expect your external allies to share equally with you and reach optimized
conditions if your own processes are broken. There must be a reasonable level
of parity with regard to key processes and the ability to add value for all
constituents before embarking on a serious collaborative effort. Moreover, there
must be a clear link between the improvement effort to the key processes and
the business strategy.
Step 4: Consolidate Processes and
Step 5: Transform the Enterprise
The final two steps become the crux of the effort, but cannot proceed without
the proper preparation. With the principles and governing structure in place, and
the internal processes ready for external collaboration, the nucleus firm organizes
the workshops, diagnostic labs, or team exercises that lead to consolidating
the processing into the one best system.
When the new state has been created and accepted, then the crucial
final step of transforming the enterprise takes place and, usually under pilot
conditions, the new model is tested and amended if necessary

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