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NASA defines partnering as "a voluntary
process by which two or more parties become aligned
as a team to achieve mutually beneficial goals by maximizing
the effectiveness of each participant's contribution."
This can apply to two departments working together to
improve their joint service process. It can also apply
to customer-supplier relationships, where the goal is
to shift from providing low cost products and services
to providing performance improvement.
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Some organizations are noteworthy pioneers and
leaders in the applications of partnering. For example, Magna
International, an automotive parts firm, pulled back from
the brink of financial disaster and revitalized itself by
creating a partnering solution for automotive manufacturers.
The Harvard Business Review reported in January 2001,
that Magna has made major advances in partnering with Chrysler
and now has a two-year jump on production so that it can help
select materials and to influence designs to reduce costs,
improve quality, and raise customer satisfaction.
Partnering works the same way with school boards.
Many are making major advances by moving to supplier partnering.
Angelo Sangiorgio, Superintendent of Facilities for the Toronto
Catholic District School Board, got a major lift from the
supplier-partnering component of the Service Quality System.
They shifted from the conventional strategy of focusing on
price to selecting their supplier partner on the basis of
their ability to increase productivity and quality. The result
was what Steve Ambler, President of Swish described as one
of the company's "best customer partnerships." The
new integrated solution model includes such components as
best practices process designs, optimal equipment application,
just-in-time delivery and an in-house training institute for
staff. The key to increasing management leverage and improving
productivity is in finding a supplier partner that can integrate
your solution to really deliver results — not just promises.
Successful partnerships don't just happen. They
must be managed. Each member is accountable for maintaining
his own partner relationships. There are five basic points
to remember when creating partnerships:
- Develop a shared mission or purpose.
- Develop shared goals.
- Treat work processes as shared processes
to be improved jointly for mutual gain.
- Work with a spirit of shared accountability
as opposed to finger- pointing - 80% of problems arise from
the process.
- Ensure shared and equitable risks and rewards.
Partnering also provides several personal and
organizational benefits. Partnering raises your value as part
of the organization and improves working relationships because
it removes adversarial positions. Partnering also leverages
resources, people, and know-how to increase your output and
reduce the stress created by a cost cutting environment.
From an organizational perspective, partnering
reduces wasted time and preserves resources. It is a relatively
low cost solution that is easy to implement if, of course,
all parties are willing and able to do so. Once implemented,
returns are almost immediate and relatively high. And because
partnerships become long-term relationships, they are constantly
evolving as new ways to add value are uncovered. These relationships
are not easy to dislodge.
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