Presented by Matthew Chatterton & David Axford

January 2007

Socia

2006 Business Partnerships Survey

2

Profile of participants and the market

Sharing and maintaining control

Cultural fit

Partnership

Contents

Methodology

Making partnerships work

Initiatives, capabilities & advice

Summary

3

Methodology

A total of 92 telephone interviews conducted by Ipsos MORI– All participants personally involved in establishing/

managing a long term collaborative business partnership

– All large public/private sector organisations

Coverage– 51 public and 41 private sector companies surveyed

Outputs– Topline data; verbatim listings; presentation of

findings; PR support

Fieldwork: 2 November – 22 December 2006

4

Profile of participants & the market

5

List of participating organisations (1)

ROYAL PARKS - CEO

LONDON BOROUGH OF GREENWICH - CHIEF INFORMATION OFFICER

DCA - CIO

OFFICE FOR CRIMINAL JUSTICE REFORM - CJS MIS PROGRAMME LEADER

LLOYDSTSB FINANCIAL MARKETS - COO

TRIBAL GROUP PLC - DIRECTOR - MARKETING

GOVERNMENT OFFICE - YORKSHIRE & HUMBER - DIRECTOR CORPORATE SERVICES GROUP

BIRMINGHAM CITY COUNCIL - DIRECTOR OF BUSINESS SOLUTIONS AND IT

BARTS AND THE LONDON NHS TRUST - DIRECTOR OF FINANCE& INVESTMENT & DEPCE

DEPARTMENT FOR TRADE AND INDUSTRY - DIRECTOR OF ICT

LIVERPOOL WOMENS HOSPITAL NHS FOUNDATION TRUST - DIRECTOR OF IT

MINISTRY OF DEFENCE - DIRECTORATE GENERAL (FINANCIAL MANAGEMENT)

HERTFORDSHIRE COUNTY COUNCIL - FINANCE DIRECTOR

BMI BRITISH MIDLAND - GENERAL MANAGER

NATIONAL FARMERS UNION MUTUAL INSR. - GM-NFU MUTUAL LIFE

LONDON SCOTTISH BANK PLC - HAED OF TRAINING & DEVELOPMENT

CAERPHILLY COUNTY BOROUGH COUNCIL - HEAD OF CORPORATE FINANCE

SUNDERLAND CITY COUNCIL - HEAD OF CORPORATE HR

CANTERBURY CITY COUNCIL - HEAD OF FINANCE

ASSETS RECOVERY AGENCY - HEAD OF FINANCE

WEST SUSSEX COUNTY COUNCIL - HEAD OF FINANCIAL SERVICES

WALSALL METROPOLITAN BOROUGH COUNCIL - HEAD OF INFORMATION TECHNOLOGY

NORTH WEST LONDON HOSPITALS NHS TRUST - HEAD OF IT

CABINET OFFICE - HEAD OF IT SERVICE MANAGEMENT

LONDON BOROUGH OF LEWISHAM - HEAD OF PERSONNEL

NORTH TEES AND HARTLEPOOL NHS TRUST - HEAD OF PERSONNEL

NATIONAL SAVINGS AND INVESTMENT - HEAD OF PRODUCT FINANCE

NHS REGIONAL IMPLEMENTATION - NWAND W MIDLANDS - HEAD OF REGIONAL IMPLEMENTATION

IPSL - HR DIRECTOR

DEPARTMENT FOR WORK AND PENSIONS - HR TRANSFORMATION DIRECTOR

BIRMINGHAM CHILDREN'S HOSPITAL NHS TRUST - IM&T PROJECTS MANAGER

NHS PURCHASING AND SUPPLY AGENCY - IT DELIVERY MANAGER

WATES GROUP LTD. - MANAGING DIRECTOR-AFFORDABLE HOUSING

FRIENDS PROVIDENT PLC - MANAGING DIRECTOR-OPERATIONS

6

List of participating organisations (2)

SPEEDY HIRE PLC - MANAGING DIRECTOR-SPEEDY SURVEY

SERCO GROUP PLC - MD-EDUCATION WALSALL UK

WINCANTON PLC - MD-GENERAL RETAIL & INDUSTRIAL

M. J. GLEESON GROUP PLC - MD-GLEESON CONSTRUCTION SERVICES LTD

KIER GROUP PLC - MD-IEI BUILDING SERVICES ENGINEERS

DART GROUP PLC - OPERATIONS DIRECTOR

ERNST & YOUNG - PARTNER

DELOITTE - PARTNER

PFIZER - PARTNERSHIPS DIRECTOR

NEW LOOK GROUP LTD. - PLANNING DIRECTOR

SPECIALIST COMPUTER HOLDINGS LTD. - PRODUCT STRATEGY MANAGER

MOTT MACDONALD - SALES DIRECTOR

BOWMER & KIRKLAND LTD.

CROWN PROSECUTION SERVICE

SOUTH TYNESIDE METROPOLITAN BOROUGH COUNCIL

NORTHUMBERLAND COUNTY COUNCIL

DEPARTMENT OF HEALTH

OFFICE FOR STANDARDS IN EDUCATION

DWPF

MULTIPLEX

RM

NEWSCHOOLS

QUAYLE MUNRO LIMITED

7

17%

11%

14%

7%5%

18%

27%

Sector splits and job functions

Base: All (92)

Construction

Retail/finance Central government

Local government

Health/NHSTransport

IT/technology

55% PUBLIC SECTOR

45% PRIVATE SECTOR

Job functions– 17% FDs - 14% HR/personnel directors– 22% IT/tech directors - 47% ‘other’ directors (incl. CEO, operations, planning)

8

2%

27%

18%

5%

9%

33%

5%

None

1 - 5

6 - 10

11 - 15

Don’t know

A significant minority (1/3) have over 20 ongoing partnerships

Q4 Approximately how many partnerships is your organisation in at the moment?

Over 20

16 - 20

Base: All (92)

Mean = 12.7 partnerships

9

37%

2%

27%

3%

30%

Two-thirds expect partnership activity to increase

Q5 Do you think that the amount of partnership activity your organisation is involved in is likely to increase or decrease over the next five years or will it stay the same?

Decrease substantially

Decrease a little

Increase substantially

Increase a little

Stay the same

Don’t know

Base: All (92)

67% INCREASE

10

12%

37% 54%

53%3%

9%

32%

Collaborative partnerships seen as key to current and future success

Not at all important

Not very important

Not important

Very important

Important

EssentialFairly important

Now

Base: All (92)

Q2 How important do you feel collaborative partnerships are to the success of your organisation?

Q3 And how important do you feel they will be to the success of your organisation in five years’ time?

5 years time

85%

91%

11

15%

50%

21%

7%

8%

Under 3 years

4 – 6 years

7 – 10 years

11 or more years

The average partnership is around 5 years long

Q6 We realise that this may vary quite widely, but what is the average length of your organisation’s current or proposed collaborative relationships?

Don’t know

Base: All (92)

Mean = 5.8 years

12

Making partnerships work

13

59%

29%

28%

21%

14%

13%

9%

8%

7%

4%

Clear accountabilities

A common purpose & mutual/shared objectives

Good personal relationships

The right contract and performance measures

Having a common purpose and shared objectives seen as the main success factor

Q7 What would you say are the most important factors in building successful partnership between two organisations? TOP 10 MENTIONS

Trust/openness/honesty

Effective communication systems

Cost/value for money

A willingness at all levels to solve problems together

Clear decision-making authorities

Good understanding and acceptance of each other’s culture

Base: All (92)

14

5%

43%

42%

21%

48%

47%1%

1%

1%

1%

1%

9%

34%

46%

The greatest overall focus has been on governance and operations….

Not applicable None at all Fair amount A great dealJust a little

Governance

Q8 Thinking about the partnerships you have been involved in, typically how much effort has been focused on each of the following general areas….?

(a) Governance (by which I mean contracts, decision-making and control)(b) Operations (that is, management information, service levels and learning)(c) Behaviours (such as leadership, problem solving, cultural compatibility)

Behaviours

Operations

Base: All (92)

89%

93%

64%

15

15%

52%

3%

29%

…but behaviours is recognised by most as offering the greatest additional value

Q9 Thinking about these three elements of collaborative partnerships - governance, operations and behaviour – in which ONE do you think organisations could realise the greatest additional value by focusing more closely on it?

Behaviours

Governance

Operations

Don’t know

Base: All (92)

16

Shared values seen as underpinning successful governance

Q10a What specific aspects of governance should organisations focus on?

Base: All mentioning governance as element where organisations could realise greatest additional value (14)

MOST FREQUENT MENTIONS

Ensure values are appreciated/shared (36% or 5 mentions)

Better focus on objectives (29% or 4 mentions)

Building relationships/partnerships (21% or 3 mentions)

Mutual understanding (21% or 3 mentions)

Have a well-established set of requirements before entering into an agreement. They should be managed throughout the agreement and moderated as required [Construction]

Mutual values to ensure shared values are appreciated.. secondly [that] the right people are in place with the right skills…and thirdly, openness [Local government]

17

Continued and consistent focus on objectives needed for operations to

work properlyQ10b What specific aspects of operations should organisations focus on?

MOST FREQUENT MENTIONS

Better focussing on objectives (30% or 8 mentions)

Building relationships/partnerships (22% or 6 mentions)

Mutual understanding (19% or 5 mentions)

Good communication (15% or 4 mentions)

The partnership is over a long period of time. It is very easy for the focus to slip – one starts with good intentions but you must keep focussed throughout the duration[Central government]

Understanding them better – it’s very broad and depends on the client. Focus on cost efficiency and better ways of doing things[Finance]

Base: All mentioning operations as element where organisations could realise greatest additional value (27)

18

Building relationships seen as demanding but vital to success

Q10c What specific aspects of behaviours should organisations focus on?MOST FREQUENT MENTIONS

Building relationships/partnerships (56%)

Mutual understanding (35%)

Good communication (17%)

Ensure values are appreciated/shared (15%)

It’s really quite bog-standard stuff, like values and keeping promises, along with openness and integrity…also the ability to acknowledge when you have done something wrong and work to fix it[IT/technology]

By looking at the rewards and benefits and minimising the pain[Construction]

It comes back to leadership and clarity of purpose[Local government]

Base: All mentioning behaviours as element where organisations could realise greatest additional value (48)

19

Cultural Fit

20

45%

40%

14%

1%

Cultural fit is significant part of selection criteria for most

Very significant

Not significant at all

Not very significant

Fairly significant

Base: All (92)

Q12 When selecting an organisation to partner with, how significant is the fit between their culture and the culture of your own organisation, as part of the selection criteria?

Not applicable

85% SIGNIFICANT

21

29%

24%

23%

22%

19%

18%

6%

5%

4%

14%

8%

Size of the company

Understanding them/their culture

Analyse the partner by how experienced they are

Analyse the partner by looking at their attitudes

A range of ‘hard’ and ‘soft’ analysis undertaken to test cultural fit

Q13 How do you analyse the cultural fit of a potential partner?

Look into their history/track record

What their values are

Policies

Amount of effort they’re willing to spend on relationship

Other

Communication/general conversations/face-to-face meetings

Base: All who think cultural fit is very/fairly significant part of selection criteria (78)

Don’t know

22

In their own words

Partly by researching and ensuring the information is sound and then taking the time to consider the partner’s historical track record and experience….and if necessary engage with third party assistance[Local government]

Face to face meetings, understanding their ethos[Transport]

Analysis. The size of the company - but it’s difficult to asses without coming face to face[Central government]

Q13 How do you analyse the cultural fit of a potential partner?

Looking at their methods…at whether they have worked in our industry…Personal empathy [with] people involved[Finance]

Illustrative verbatim comments

23

Sharing & Maintaining Control

24

15%

13%2%

2%

11%

48%

9%

Two-thirds have found handing over control of some operational functions difficult…

Very easy

Very difficult

Fairly difficult

Fairly easy

Base: All (92)

Q14 Establishing partnerships often involves giving up some direct control over certain aspects of your operations. How easy or difficult do you think your organisation has typically found the process of giving up control?

We didn’t give up any direct control

Neither/nor

Don’t know

63% DIFFICULT

25

23%

25%

13%

8%

20%

15%

54%

55%

75%

78%

53%

63%

…and this varies by organisation size and type

Difficult Easy

All

5,000+ emps

< 5,000 emps

Base: All (92); <5,000 employees (51); 5,000+ employees (40); FDs (16); IT/tech (20); HR/personnel (13)

Q14 Establishing partnerships often involves giving up some direct control over certain aspects of your operations. How easy or difficult do you think your organisation has typically found the process of giving up control?

IT/technology

FDs

HR/personnel

26

Previous experience and internal cultural help in process of relinquishing some control

Q15 Why do you think that process is typically easy?

Base: All who think process is easy (14)

We’ve had a good experience/been through this before (5 mentions)

It’s a matter of culture (4 mentions)

Building trust (1 mention)

If you get the relationship established the right way it’s easy [and have] a clear shared vision of what you want to do[Central government]

We have previous experience….by the time you release control you know the key performance indicators you share….I know by looking at the key performance indicators that things are under control[Finance]

It’s the culture within our business. It’s how people are taught and trained. We want to be in partnerships[Construction]

27

Difficulties appear to stem from deep-seated concerns (most of which are rational)

Q15 Why do you think that process is typically difficult?

Base: All who think process is difficult (58)

Control element/giving up control (48%)

It’s a matter of culture (36%)

Building trust (7%)

Change in management (3%)

There is accountability for funding and all governments need to know what they are getting[Central government]

[It’s] cultural. One wants to preserve and control, keep perceptions of the brand[Retail]

That we don’t have a 100 percent understanding of the process - in other words we are not sure what we are giving up[Finance]

The people who run the firm are control freaks! [Finance]

28

96%

90%

86%

51%

5%

1%

Financial measures

Activity measures

Relationship measures

‘Hard’ measures used in nearly all cases but more limited application

of ‘softer’ metricsQ16 Which, if any, of the following types of performance measures do you have

in place to assess the progress of the partnership?

Don’t know

Base: All (92)

Other

Outcome measures

29

46%

40%

8%5%

1%

Nearly all concede that earlier planning helps mitigate later operational issues

Base: All (xx)

Q11 To what extent do you agree or disagree with the following statement: most problems experienced during the operation of a partnership could have been avoided by more careful planning at the set-up stage

Neither/nor

Strongly agree

Strongly disagree

Tend to disagree

Tend to agree

Don’t know

86% AGREE

30

Initiatives, Capabilities & Advice

31

18%

14%

11%

9%

9%

8%

8%

Building good relationships

Used outside consultants as advisors/coaches

Not undertaken any initiatives/ changed practices etc.

Meetings/workshops and in-house training are main initiatives applied

Q18 How, if at all, have you addressed the challenges of collaborative partnerships and built partnering capability? TOP MENTIONS

Base: All (92)

Regular meetings/seminars/workshops

Offered in-house training to existing staff

Set up a specialist in-house team to manage partnerships/alliances

Sent people on external training courses

32

25%

22%

21%

15%

12%

9%

9%

8%

Good communication

Focus on what went wrong/learning from mistakes

Being open/honest

Effective communication and working on the relationship help to prevent

‘blame response’Q20 How have you avoided slipping into a more confrontational approach or adopting

a ‘blame response’ when serious issues arise? TOP MENTIONS

Having strong governance

Having the right framework in place at the set-up stage

Have not avoided this/still many issues/problems

Being clear/up-front

Having/developing good relationships/partnerships

Base: All (92)

33

In their own words

Good communication and being open about issues. Also being consistent on the ground you can’t give away and being able to compromise on the vast area of middle ground[IT/technology]

Seriously hard work on both sides[Central government]

Have very clear and well- constructed contracts. A good level of communication from the earlier stages[Construction]

Q20 How have you avoided slipping into a more confrontational approach or adopting a ‘blame response’ when serious issues arise?

Focus on the facts. Look at alternative perspectives - we’ve bought in a brokering person. [I] think it’s a challenge for the partnership[Retail]

Illustrative verbatim comments

34

70%

64%

54%

48%

46%

45%

9%

Programme management

Commercial management

Dispute resolution

Improved relationship management/collaborative leadership capabilities seen as particularly useful

Q17 Organisations require a range of qualities or capabilities in order to partner successfully. Which, if any, of the following qualities/capabilities would you like to have had more access to in setting-up and running a collaborative partnership?

Have the necessary qualities

Base: All (92)

Relationship management

Collaborative leadership

Facilitation and coaching skills

5,000+ emps=73%

5,000+ emps=60%

35

54%

27%

25%

17%

16%

13%

9%

7%

Develop good understanding/sharing objectives/goals/ business

Take more time building relationships

Ensure good communication

Developing a deeper understanding and ensuring objectives are truly shared seen as

cornerstones of successful partneringQ21 What would be the key pieces of advice that you would give to someone about to

take on a role that involved managing a collaborative partnership?

Structure governance

Devote more time and effort

Other

Ensure accountability is right

Ensure greater clarity/be more open

Base: All (92)

36

Do a lot of talking[NHS/Health]

Get as much advice as you can before you start. Ensure both sides have a clear understanding of what to achieve from the partnership[Central government]

Don’t think it will be easy - treat it like a marriage where you have to work at it to get the long term results and benefits[Construction]

Q21 What would be the key pieces of advice that you would give to someone about to take on a role that involved managing a collaborative partnership?

Make sure the foundations are right, basic principles are in place - joint aims/ joint goals[Central government]

Work on the relationships and ensure that accountability is right[IT/technology]

In their own words

Illustrative verbatim comments

37

Partnership

38

Strongly agree Tend to disagree Strongly disagreeTend to agree

Partnerships are not seen as a ‘passing fad’

4% 21% 72%

Q19 To what extent do you agree or disagree with the following statement?

(a) “Partnerships are a passing fad that won’t have a long term place in the world of work”

Base: All (92)

92% DISAGREE

39

Over 9 in 10 see partnering as a key management tool for future success

Q19 To what extent do you agree or disagree with the following statement?

(b) “Partnering will be a key management tool for success in the future”

65% 27% 2%

Strongly agree Tend to disagree Strongly disagreeTend to agree

Base: All (92)

92% AGREE

40

Most do not see partnerships as a ‘necessary evil’ which must be endured

Q19 To what extent do you agree or disagree with the following statement?

(c) “Partnerships are a necessary evil and we have to learn to live with them”

9% 11% 18% 49%

Strongly agree Tend to disagree Strongly disagreeTend to agree

Base: All (92)

67% DISAGREE

41

9 in 10 disagree that the benefits of partnerships rarely outweigh the costs

Q19 To what extent do you agree or disagree with the following statement?

(d) “The benefits of partnerships rarely outweigh the costs and should be avoided where possible”

2%4% 35% 55%

Strongly agree Tend to disagree Strongly disagreeTend to agree

Base: All (92)

90% DISAGREE

42

58%

3%

35%

2%

Over 9 in 10 agree that collaboration will be a vital foundation for long term global

economic success

Neither/nor

Strongly agree

Don’t know

Tend to disagree

Strongly disagree

Tend to agree

Q22 To what extent do you agree or disagree that the ability to collaborate with others in different businesses and different cultures will be a vital foundation for long term success in a globalised economy?

1%

Base: All (92)

92% AGREE

43

41%

47%

3%

4% 1%3%

Nearly 9 in 10 agree that partnering can transform how well we meet future business

and social goals

Neither/nor

Strongly agree

Don’t know

Tend to disagree

Strongly disagree

Tend to agree

Q23 To what extent do you agree or disagree that partnering and collaboration between organisations has the potential to transform our ability to meet business and social goals in the future?

Base: All (92)

88% AGREE

44

Extra analysis

45

59%

49%

29%

14%

13%

9%

8%

7%

4%

Clear accountabilities

A common purpose & mutual/shared objectives

The right contract and performance measures

A common purpose/shared objectives and having close relationships with trust/honest

seen as main success factorsQ7 What would you say are the most important factors in building successful

partnership between two organisations? TOP 10 MENTIONS

Effective communication systems

Cost/value for money

A willingness at all levels to solve problems together

Clear decision-making authorities

Good understanding and acceptance of each other’s culture

Base: All (92)

Good personal relationships/trust/openness/honesty (combined)

46

96%

90%

86%

51%

5%

1%

96%

81%

85%

50%

8%

0%

95%

94%

86%

53%

5%

2%

Financial measures

Activity measures

Relationship measures

No significant differences in actual implementation of performance measures

(eg relationship measures) Q16 Which, if any, of the following types of performance measures do you have

in place to assess the progress of the partnership?

Don’t know

Base: All (92)

Other

Outcome measures

Do not mention “good personal relationships” *

All respondents

Mention “good personal relationships” *

* Q7 ‘Good personal relationships’ as one of) the most important factors in building a successful partnership (spontaneous)

47

A slightly higher proportion of those saying giving up control was ‘easy’ do not see

partnerships as a ‘necessary evil’ to be enduredQ19 To what extent do you agree or disagree with the following statement?

(c) “Partnerships are a necessary evil and we have to learn to live with them”

7%

9%

14%

10%

29%

14%

50%

53%

9% 11% 18% 49%

Strongly agree Tend to disagree Strongly disagreeTend to agree

Base: All (92)

All respondents

Those who found giving up control ‘easy’ *

Those who found giving up control ‘difficult’ *

* Q14 How easy or difficult has your organisation typically found the process of giving up control?

48

Summary

49

Summary (1)

Collaborative partnerships seen as “essential/very important” to their success by around 9 in 10 organisations (now and in the future)

A third have 20+ ongoing partnerships at the moment– Two-thirds expect an increase in partnership activity

More effort is focussed on governance and operations than behaviours– But behaviours seen as offering the best way to add value

85% say cultural fit is a “significant” part of their selection criteria

Two-thirds have found giving up control “difficult”

BUT most have performance measures in place (except relationship measures)

AND 86% agree that more careful planning during set-up could have prevented operational issues

50

Summary (2)

Two-thirds would have liked more access to collaborative leadership resources in the early stages of their partnership(s)

– Among the largest organisations the need is even more widespread

Getting ‘under the skin’ of the partner organisation – understanding their goals, culture and objectives – is the main advice to others considering collaborative partnerships

Partnerships are seen as ‘here to stay’ by 9 in 10 and are seen to be a key management tool for success by the same proportion

There is strong disagreement (90% disagree) that the benefits of partnership rarely outweigh the costs and should be avoided

Partnerships are also felt to offer a wider role for the future – in terms of global economic success and even for helping us to meet social goals

51

Thank you.Any questions?