Collaboration Prepared for ARACY workshop April 2004

2. CULTURE OF COLLABORATION ‘This is the labour of partnership, of folks who have pulled together and enjoyed what they’ve done and have become partners in what we’ve accomplished.... we’ve had a lot of great leaders in this company, and the greatest thing is we’ve got ideas from all 380,000 associates. That’s the best part – all of us working together. I hope we can keep it going’ – Sam Walton, President, Walmart ‘Our success depends on each of us. We work together in a way that recognizes and takes advantage of this... we supplement individual accountability by creating a team environment in which we collaborate to maximize overall performance’ – Warren Larsen, Former CEO, NZDB ‘The single most important thing is to remember that knowledge transfer and how-how transfer are simply part of performance. So when managing and directing the firm’s performance, you have to say explicitly that this is part of the strategy and that it’s very important’ – Sir John Browne, CEO, BP

3. ORGANIZATIONS NEED BOTH PLATFORMS FOR COLLABORATION AND A SUPPORTIVE ENVIRONMENT

4. COLLABORATION SHOULD BE VALUE CREATING WITH MECHANISMS SUPPORTED BY AN OPEN ENVIRONMENT

5. KNOWLEDGE DATABASE – XEROX KM FOR CUSTOMER SERVICE REPRESENTATIVES

6. INFORMAL AND FORMAL NETWORKS – BP’s ‘PEER GROUPS’

7. PERMANENT TEAMS – FORD’S ‘GLOBAL STUDIO’

8. THE ‘BOUNDARYLESS’ GENERAL ELECTRIC

9. COLLABORATION VIGNETTES (I)

10. COLLABORATION VIGNETTES (II)

11. COMPLETE QUOTES ON COLLABORATION (I) ‘You can’t expect others to share their knowledge and resources with you fully unless you have a strong relationship with them’ – John Browne, CEO, BP ‘People are much more open with their peers: they are much more willing to share and to listen, and are much less likely to take umbrage when someone disagrees with them. Regardless of the team, if it isn’t operating on a peer basis, it’s not going to get the right interactions’ – John Browne, CEO, BP Knowledge transfer and know-how transfer are simply part of performance’ – John Browne, CEO, BP ‘The most important aspect of any relationship is understanding what your partners hope to get out of it and to work hard to help then achieve that goal. It is the key to transforming a contractual relationship into a genuine collaboration’ – John Browne, CEO, BP ‘The way management treats the associates is exactly how they associates will then treat the customers’ – Sam Walton, President, Walmart ‘It is this learning, sharing and action-driven culture, when laid across the diverse business of GE, that gives us our true advantage, an advantage single-industry companies can never match – what we call ‘horizontal learning’ across more than 250 diverse, global GE business segments’ – Jack Welch, CEO, General Electric ‘To me, the most important element in establishing a happy, prosperous atmosphere is the insistence upon open, free, and honest communication up and down the ranks of our management structure and with our associates’ – Sam Walton, President, Walmart

12. COMPLETE QUOTES ON COLLABORATION (II) ‘Our challenge has been getting people to systematically capture information the company needs in order to be able to use both explicit and implicit knowledge repeatedly. In the case of explicit knowledge, that means recording the actual data. In the case of implicit knowledge, it means keeping a record of the people who have the know-how to solve a problem so that others can find them when the need arises’ – John Browne, CEO, BP ‘This is the labour of partnership, of folks who have pulled together and enjoyed what they’ve done and have become partners in what we’ve accomplished... we’ve had a lot of great leaders in this company, and the greatest thing is we’ve got ideas from all 380,000 associates. That’s the best part – all of us working together. I hope we can keep it going’ – Sam Walton, President, Walmart ‘Our success depends on each of us. We work together in a way that recognizes and takes advantage of this... we supplement individual accountability by creating a team environment in which we collaborate to maximize overall performance’ - Warren Larsen, Former CEO, NZDB ‘You can’t expect others to share their knowledge and resources with you fully unless you have a strong relationship with them’ – John Browne, CEO, BP ‘People are much more open with their peers: they are much more willing to share and to listen, and are much less likely to take umbrage when someone disagrees with them. Regardless of the team, if it isn’t operating on a peer basis, it’s not going to get the right interactions’ – John Browne, CEO, BP ‘Knowledge transfer and know-how transfer are simply part of performance’ – John Browne, CEO, BP ‘The most important aspect of any relationship is understanding what your partners hope to get out of it and to work hard to help then achieve that goal. It is the key to transforming a contractual relationship into a genuine collaboration’ – John Browne, CEO, BP

13. COMPLETE QUOTES ON COLLABORATION (III) ‘It is this learning, sharing and action-driven culture, when laid across the diverse business of GE, that gives us our true advantage, an advantage single-industry companies can never match – what we call ‘horizontal learning’ across more than 250 diverse, global GE business segments’ – Jack Welch, CEO, General Electric ‘To me, the most important element in establishing a happy, prosperous atmosphere is the insistence upon open, free, and honest communication up and down the ranks of our management structure and with our associates’ – Sam Walton, President, Walmart ‘We now see knowledge sharing as a business discipline as important to the future as the quality movement turned out to be in the early 1980s’ – Xerox Website

14. CULTURE OF COLLABORATION : KEY ELEMENTS

15. THERE ARE FIVE MAIN TYPES OF COLLABORATION

16. THE APPROPRIATE FORM OF COLLABORATION IS CHOSEN THROUGH APPLYING TWO COLLABORATION MATRICES

17. FRAMEWORK FOR ACHIEVING A COLLABORATIVE ENVIRONMENT

18. 1. DETERMINE WHERE COLLABORATION CREATES OVERALL VALUE (I)

19. 1. DETERMINE WHERE COLLABORATION CREATES OVERALL VALUE (II)

20. 2. DETERMINE THE MOST APPROPRIATE FORM OF COLLABORATION

21. IMPLEMENT/REVIEW CHOSEN FORM OF COLLABORATION (I)

22. IMPLEMENT / REVIEW CHOSEN FORM OF COLLABORATION (II)

23. IMPLEMENT/REVIEW CHOSEN FORM OF COLLABORATION (III)

24. MEASURE THE EFFECTIVENESS OF THE COLLABORATION (I)

26. ENCOURAGE A COLLABORATIVE ORGANIZATIONAL CULTURE Organization Articulates collaboration as an organizational value Expects and invests in trust, openness, honesty and mutual respect Considers sharing to be a desirable norm Senior management Role includes collaboration Puts company performance before own business unit interests Relates and behaves as employees are expected to eg information does not determine individual power Communicates collaborative goals to employees Hires people who are willing to work in a team Promotes according to individual performance and track record as a collaborative team player Responds if people do not behave collaboratively when it is expected Manages trade-offs in resources

27. TEAMS CAN BE ACROSS BUSINESSES OR FUNCTIONS

28. EACH STEP OF FORMING A TEAM NEEDS TO BE DOCUMENTED

29. A. DEVELOP TEAM CHARTER (I)

30. A. DEVELOP TEAM CHARTER (II)

31. AGREE APPROPRIATE MEMBERSHIP AND ROLES

32. AGREE APPROPRIATE MEMBERSHIP AND ROLES (II)

33. AGREE APPROPRIATE MEMBERSHIP AND ROLES (III)

34. C. LAUNCH TEAM AND DEVELOP PROTOCOLS

35. D. DEVELOP NECESSARY PROCESSES (I)

36. D. DEVELOP NECESSARY PROCESSES (II)

37. E. DETERMINE COLLECTIVE ACCOUNTABILITIES (I)

38. E. DETERMINE COLLECTIVE ACCOUNTABILITIES (II)