Hi Emilee - that's an awesome outcome. Can I ask if you've got positive feedback from suppliers as well as internal stakeholders ? Also, given that you've achieved this, what's your next challenge - making the RFP process easier for them,, reverse auctions for your tangible products ?
Hi Semih - great question, especially as I think that we're yet to see the full impact on many supply chains of this incident.
There will be many suppliers and their customers having discussions about the potential application of this clause. One of the most simple definitions from the internet is set out below :
Unforeseeable circumstances that prevent someone from fulfilling a contract.
It's instances like this where I go back to what was a watershed moment for myself and many others in the audience when Bruce Everett and Tim Cummins challenged the audience in New Zealand last year, asking why we spend so much time trying to get the best supplier on board to give us the best possible outcome - and then run straight to solicitors when something goes wrong. Perhaps now is that opportunity, if you haven't already adopted the IACCM contracting principles into documents, and think about how you might engage directly with suppliers and customers and hope that they remember back to when everyone was happy that both felt excited to be part of a new relationship - and how to maintain that through what might be a challenging time around the globe.
If you've got a strong relationship with some of your affected suppliers, no doubt you've had a chat already about this.
If not, then perhaps you could kick that off by extending out to them the olive branch to start these discussions.
Thanks for your post. I forwarded it to Tim Cummins, our Founder and President and he wrote this blog for you and others who are interested in the impact of the virus
Hi Navdeep - look this forum is looking a bit devoid of advice, isn't it ? So here goes....
A few years ago, like you, I turned my mind to some KPI's in this area - these were purely time bound. We've ditched them now. For mine, it sent the wrong message that the outcome we were looking for was efficiency. Sure, it's important to be timely, but what is more important is getting the right outcome for the business - and sometimes being focussed on timeliness can run contrary to that focus. Instead, we have an automated email that we're now piloting that is sent 3 months after contracting to an end user representative asking them how things went and how they're going.
Will it be a better measure ? Who knows. It's certainly different to what some others with a different focus have used. But for us, it fits with our philosophy of first and foremost getting the right outcome.
I hope this helps to start some good discussion in this post.
• Ngamuru Advisory
How did you go with this? Did you find any? Having started my Performance Based Contracting (PBC) journey in 2004, including the design, implementation and management for performance measures (not just KPIs!). Over this time I have seen many, many performance measure that can be used depending on what you are trying to achieve. Indeed, over the years we have actually formed the opinion that there are more than simply KPIs, since most humans can only handle 3 - 5. Therefore, having dashboards of 20 it too much information. So while there are a number of websites that can give you a variety of performance measures, can I suggest you have a look at why you want to measure; what is the outcome you are trying to achieve? Is it the standard project ones (scope, schedule and cost), or are there other things such as the health of the relationship, the culture of safety, etc. So best to work that out first.
To help, as an IACCM Fellow I write on blog where I write about this (www.performancebasedcontracting.com), which sometimes become articles for IACCM (part of the role of an IACCM Fellow). Therefore, I'd suggest you have a look here and see if this helps. There is probably a lot of content (all free!), but hopefully it helps.
f these PBC elements.
Anyway, I hope this helps you on your journey. And don't be afraid to ask for help!