Creating value is what it is all about, is it not?
Clause 8 within ISO 44001 (stage 6) focuses on value creation that delivers benefits through collaboration with improved alignment between organisations.
Too often businesses may “partner” but do not put in the extra efforts to capture new ideas to gain continual improvement and innovation. This is a key opportunity for you to grow and exploit the potential value that exists and sadly is often missed.
It is also interesting for you to look at and review your existing relationships and see where established processes and the various types of behaviours that continually create value. This is an indication of how strong and mature that relationship is.
Implement a value creation plan
Here are the key points you need to consider and implement to facilitate value creation when you collaborating with another organisation.
- Value creation programme: Too often people think that just executing the scope of work that has been agreed is good enough. Jointly, you need to co create a value creation process with the support of the senior executive teams that clearly promotes the correct behaviour and establish what value means to both of you.
- Improvement team: Having a process is one thing and making it work is another. Creating a joint improvement team formally or informally facilitates the necessary activities that will help generate the ideas and create value.
- Improvement targets: Clearly creating new ideas and improvement needs to be justified so that time and resources are deployed to gain the most benefit. Developing appropriate benefits and cost analysis to address certain improvements in the areas of risk, complexity and costs so that they have the biggest impact is an important step for you to complete. Developing plans with targets that are routinely measured helps you to substantiate the collaborative approach.
- Value drivers: On many occasions the word “value” and “added value” are banded around by people with out truly understanding what this means. A good start is to refer back to the strategic stage and jointly develop a clear definition of “value creation” for this specific opportunity.
- Learning from experience: There have been many times when I have been involved in Before and After Action Reviews only to find that the review is filed, not shared with other people or available for them to easily find and retrieve so that they can learn from past experience. Have you had the same experience? Establishing a process, using appropriate technology and having people that are engaged and proactive can help you create a high performing, learning partnership.
- Initiating the innovation process: Organisations have various mechanisms varying from simple idea suggestion boxes to established processes and systems. You need to ensure that your joint management team establish the necessary processes and evaluate them.
- Relationship Management Plan: As you would expect, you need to update your RMP and include the innovative ideas, which have been reviewed and approved to be included into the operations.
There are times when you need to work with other organisations. If you decide that it needs to be a collaborative relationship using BS 11000, you have an opportunity to create a significant amount of new value. Not addressing this proactively means that both you and your partner will be missing out on a potentially and highly beneficial opportunity.
Discover how you can enjoy the benefits of value creation when you use BS 11000 by joining one of our very visual and collaborative ISO 44001 workshops.
In the next stage we move onto the management phase of BS 11000 to Stage 7 – Staying together Clause 9).
Keep on collaborating.