Partnering The Key to Success

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Partnering - The Key to Success

• 2006 Conference of the Northeast Association of
  State Transportation Officials
• Mark Robinson, Ph.D., P.Eng., PMP
• SAIC

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Presentation Overview

• Why Asset Management?
• Why Partner?
• The Partnering Process
• Summary

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Why Asset Management?

• Improve Performance
• And/Or
• Save

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Partnering

• So, youve decided to release a performance-based
  contract to outsource transportation asset
  management services
• Whats all this talk you keep hearing about
  formal partnering?
• Why do you need to waste more money on some
  expensive, feel-good meeting Youve already
  told the contractor what you want to achieve

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Why Partner?

• The contract wont (cant) cover every issue that
  will come up
• You will need a mechanism to quickly solve
  project disputes over grey areas and contract
  interpretations
• Formal Partnering helps to define the unwritten
  goals of the contract
• Formal Partnering brings the key players back to
  the table in a neutral environment

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OK, Really - Why Perform Formal Partnering?

• Government Personnel are from Mars and
  Contractors are from Venus
• Lack of effective communication WILL result in
  Contract Termination or project failure

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The Formal Partnering Process

• Agreeing to Partner
• Do we really need a facilitator?
• The Initial Session
• Follow-on Sessions
• Emergency Sessions

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Agreeing to Partner The First Step

• Not all performance-based outsourcing contracts
  call for formal partnering
• Both sides must recognize the need to partner and
  be willing to participate

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Do We Really Need a Facilitator?

• YES!
• Without a facilitator, the meeting will end up
  like a regular project meeting (earplugs may be
  needed)
• The facilitator should be neutral and should be
  experienced in partnering for performance-based
  transportation contracts

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The Initial Session

• Should be held during the honeymoon period,
  before work begins on the contract
• Should be held in a neutral environment hotel
  or university conference facility
• Representatives from all levels of management
  should attend

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Initial Session - Purpose

• Introduce the notion and purpose of partnering
• Get to know each other as humans instead of
  organizational representatives
• Establish the overall project goals
• Establish a procedure for dispute resolution

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Initial Session Establishing Project Goals

• This is the most important exercise of the day
• There are project goals that are not in the
  contract
• A contract can meet all of the performance
  standards and still be considered a failure
• A contract can meet none of the performance
  standards and still be considered a success

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Project Goals An Example from D.C.

• Enhance the NHS Infrastructure by meeting or
  exceeding the performance standards
• Receive positive feedback from the public and the
  press
• Revitalize the community
• Institutionalize performance-based contracting
• Produce innovative methods, procedures and
  processes for infrastructure maintenance

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Initial Session Dispute Resolution

• Why do we need to discuss this now - Were in our
  honeymoon period Everyone is happy!
• No contract covers every conceivable issue that
  can/will come up
• Disputes will occur
• A Dispute resolution hierarchy is an effective
  tool

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Follow-On Sessions

• Well, weve met, weve established our goals and
  our dispute resolution process, why would we need
  to meet again?
• Bring the partners together in a neutral, calm,
  facilitated environment
• Track progress against the goals
• Identify areas that need improvement
• Recognize people who are going the extra mile to
  make things work

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Follow-On Sessions Frequency

• Depends on the project
• Every couple of months at first, then as needed
• The partners will get to the point where they
  feel that they dont need to hold sessions
  anymore
• However, when a session is held, they will agree
  that it is valuable to continue holding them.

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Emergency Sessions

• If things are really going wrong and the T word
  is brought up, an emergency session is needed
• This is the time to bring in top management to
  attack the issues. They are the partners with
  the power to make things change.
• Project personnel may or may not be involved.
  Diving into the details can prevent discussion of
  the real issues and potential solutions
• These sessions can save a project that is in
  trouble

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This All Sounds Great, But Who Pays?

• Typically, costs are split equally between the
  customer and the contractor
• On a per-hour basis, a good partnering
  facilitator is expensive, but he/she is worth it.

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Summary

• Formal partnering should be seriously considered
  for any performance-based transportation asset
  management contract
• The purpose of formal partnering is to encourage
  effective communication between stakeholder
  organizations
• Formal partnering allows the definition and
  tracking of important project goals that are not
  in the contract

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Summary (Contd)

• Formal partnering establishes a method of
  resolving disputes before the contract Ts and
  Cs come into play
• Formal partnering helps to avoid termination, a
  situation that all involved want to avoid

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Questions?

• For More Information, Contact
• Mark Robinson
• mark.d.robinson_at_saic.com
• 703-676-2384