Governance Contracting

Integrated Alliance

The IPPD methodology and the Alliance Contracting methodologies have a significant overlay. However, each methodology has strengths that when combined produce a significant synergy.

The primary differences are that Alliancing is more of a ‘top down’ approach, while IPPD is a ‘bottom up’ approach. Alliancing provides greater corporate alignment and flexibility than does IPPD. The IPPD methodology is bottom up driven. It provides greater alignment and integration through establishing integrated teams and shared systems forprocesses and operational teams, than does Alliancing (alliancing is usually limited to integrated teams for the Alliance Board and the Alliancing Management Team).

Through a ‘best of breed’ approach, the key features from Alliancing and IPPD are brought together to produce a ‘top down, bottom up’ methodology called Integrated Alliancing. The benefits of the merging ofthese methodologies are:

Low risk of doing business through aligning all stakeholders across the entire organisation

Synergy obtained through stakeholder input at all levels and from multiple stakeholders

Flexibility to respond to changed requirements Shared systems and processes used Stretch goals established to drive performance Alliancing principles driven down through the organisation Proven Alliancing processes used

Copyright Dr David Dombkins 2000 1

IPPD

Alliancing Allianci

ng

TOPDOWN

IPPD

BOTTOMUP

Proven IPPD systems and process used Can be expanded to include innovation, and application development

projects Can be expanded to include a broader range of stakeholders

Features of the Integrated Alliance organisational design are:

Integrated teams are established for the Alliance Board and Alliance Management Team

The fee is at risk based on its performance The alliancing business planning process is used to establish the

annual budgets The alliancing FLKPI model and a fee modifier are used to connect the

fee to performance An Alliance Balanced Score Card is established and flowed down to IPTs Partnering is used to establish and facilitate the development and

performance of all integrated teams As a part of the Partnering process, local balanced score cards are

developed and used by all integrated teams and platform groups Integrated Teams using the IPPD methodology are established for both

process and control teams Shared systems and process are established for the Integrated Teams

Each of the two methodologies are now described, the two methodologies mapped, and the best of breed Integrated Alliance Methodology defined.

Description of AlliancingAlliancing is a organisational configuration / methodology that aligns organisations through: establishing an initial business plan through a competitive selection

process that includes the contractor’ fee, fee linked key performanceindicators (FLKPI), and stretch goals

establishing integrated organisational governance (alliance board) andsenior operational management (alliance management team)

empowering the alliance board to change the business plan, fee moderator and FLKPI

operationalising the client’s objectives through FLKPI). agreeing an annual business plan with stretch goals and fee linked key

performance indicators (FLKPI) linking the contractor’s profit to their achievement of the client

objectives. Alliancing uses a unanimous vote model for decision making in the alliance board and the alliance management team.


Using an algorithm the weight FLKPI Connecting the quantum of fee payable to the contractor to a fee

moderator where for exceptional performance a contractor will receivedouble their fee, for business case performance its baseline fee, andfor poor performance no fee

Open communication and transparency establishing shared systems for financial and operational management Using business cases as the process for changing the scope of the

business plan and for all projects. Each business case defines project scope, FLKPI measures and milestones, and operational business impact measures

Description of IPPD

The United States Under Secretary of Defence (Acquisition and Technology) has identified (1995) critical changes that must take place in the US Department of Defence (DoD) in order for successful IPTs to beformed. DoD must:

"...move away from a pattern of hierarchical decision-making to a process where decisions are made across organisational structures by integrated product teams. It means we are breaking down institutional barriers. It also means that our senior acquisition staffs are in a receive mode - not just a transmit mode.The objective is to be receptive to ideas from the field to obtain buy-in and lasting change."

Integrated Product and Process Development (IPPD) is a management technique that simultaneously integrates all essential acquisition activities through the use of multidisciplinary teams to optimise the design, manufacturing, supportability and operation processes. IPPD facilitates meeting cost and performance objectives from product conceptthrough production, including field support. One of the key IPPD tenets (all of which are described in attachment 2) is multidisciplinary teamwork through Integrated Product Teams (IPTs). These teams enable making the right decisions at the right time.

IPTs are composed of representatives from all appropriate functional disciplines and stakeholders working together with a Team Leader to build successful and balanced programs, identify and resolve issues, andmake sound and timely decisions. Team members do not necessarily commit 100% of their time to an IPT, and a person may be a member of more than one IPT.Copyright Dr David Dombkins 2000 3

The purpose of IPTs is to make team decisions based on timely input fromthe entire team (e.g. program management, engineering, manufacturing, test, logistics, financial management, procurement, and contract administration) including customers and suppliers. IPTs are generally formed at the Program Manager level and may include members from both Government and thesystem/subsystem contractor. A typical IPT at the program level, for example, maybe composed of the following functional disciplines: design engineering,manufacturing, systems engineering, test and evaluation, subcontracting,safety and HAZMAT, quality assurance, training, finance, reliability, maintainability, and supportability, procurement, and contract administration, suppliers and customers.

Mapping of Methodologies and best of Breed Integrated Alliance DefinitionThe two methodologies are mapped in the first two columns, and our proposed Best of Breed Methodology Integrated Alliance Methodology defined in the third column.

INDEX TO TABLES

IPPD Alliancing Best of BreedINTEGRATED ALLIANCE

VerySimilar

VerySimilar

SlightDifferences

SlightDifferences

SignificantDifferences

SignificantDifferences

New - Not included ineither Methodology

Not Included inOther Methodology


Key Tenets


Guiding Principles Public trust through

integrity, ethic performance & cost consciousness

Listen to & be accountable to customers

Trust and respect Empowerment Open communication Innovation & continuous

improvement Value diversity

Shared Values The client and the

contractor must have common values that include trust, respect, open communication, and excellence.

A cultural test is used as part of the selectionprocess to ensure that the contractor has an appropriate culture and that there is genuine top level support for alliancing

Shared Values The client and the

contractor must have common values that include trust, respect, open communication, and excellence.

A cultural test is used as part of the selectionprocess to ensure that the contractor has an appropriate culture and that there is genuine top level support for alliancing

Maturity – Industry needs significant emotional experience before going into IPPD / IPT

Maturity not all oganisations are

suited to alliancing organisations take time

to mature

Maturity not all oganisations are

suited to alliancing organisations take time

to mature Industry needs

significant emotional experience before going into IPPD / IPT

Customer Focus - The primary objective of IPPD is to satisfy the customers’ needs better, faster and at less cost. The customer needs should determine the nature of theproduct and its associated processes.There is a high degree of mutual inter dependence

Alignment and Shared Objectives - The primary objective of Alliancing is to align the parties to achieve commonly agreed objectives. The customer’s objectives drive the alliance through reflectingthose needs in the Fee Linked Key Performance Indicators

Alignment and Shared Objectives - The primary objectives of Alliancing are to: align the parties to

achieve commonly agreed objectives

The primary objective ofIPPD is to satisfy the customers needs better, faster and at less cost.

The customer’s objectives drive the alliance through reflecting those needs in the Fee Linked Key Performance Indicators

Work together as a virtual organisation – one team, one business


Open Book All cost and data is

transparent to the client

Communicate, communicate, communicate

Transparency and Open Book – Trust and open

communication are critical

Shared systems are a keyenabler

External audit Probity Plan & Probity

Auditor

Transparency and Open Book – Trust and open

communication are critical

Communicate, communicate, communicate

Shared systems are a keyenabler

External audit Probity Plan & Probity

AuditorKeep Informed– Continuous up the line communication. You must keep your leader informed

Keep Informed– Continuous up the line communication. You must keep your leader informed

Concurrent Development of Products and Processes - Processes should be developed concurrently withthe products which they support. It is critical that the processes used to manage, develop, manufacture, verify, test, deploy, operate, support, train people, and eventually dispose of the product be considered during product development.Product and process design and performance should be kept in balance.

Asset Management . A numberof approaches are used An asset management

FLKPI is often used where the contractor takes a custodial responsibility for the assets

A significant portion ofthe contractor’s fee is directly linked to NPV at project completion

A significant portion ofthe contractor’s fee is linked to operational achievement of objectives and the ongoing maintenance and service delivery costs

Asset Management . A significant portion of

the SP fee is linked to operational achievement of objectives and the ongoing maintenance and service delivery costs.

Concurrent Development of Products and Processes - Processes should be developed concurrently withthe products which they support. It is critical that the processes used to manage, develop, manufacture, verify, test, deploy, operate, support, train people, and eventually dispose of the product be considered during product development.Product and process design and performance should be kept in balance.


Early and Continuous Life Cycle Planning - Planning for a product and its processes should begin early in the science and technology phase (especially advanced development) and extend throughout a products life cycle. Early life cycle planning, which includes customers, functions and suppliers, lays a solid foundation for the various phases of a product and itsprocesses. Key program events should be defined sothat resources can be applied and the impact of resource constraints can bebetter understood and managed.

Business Plans – In the competitive selection process the contractors prepare detailed business plans. These draft annual and overall program business plans are developed through a ‘convergence’ negotiating process, and then finalised, prior to contract signature through input from the client.

The agreed business plan, and its associated FLKPI, then become the program business plans. These plansare then monitored to maintain alignment, fit forpurpose and value for moneyby the Alliance Board. The Alliance Board can change the Business Plans, the FLKPI, and the fee moderator to ensure that the reward process drives the alliance’s behaviour

Business Plans – In the competitive selection process the contractors prepare detailed business plans. These draft annual and overall program business plans are developed through a ‘convergence’ negotiating process, and then finalised, prior to contract signature through input from the client.

The agreed business plan, and its associated FLKPI, then become the program business plans. These plansare then monitored to maintain alignment, fit forpurpose and value for moneyby the Alliance Board. The Alliance Board can change the Business Plans, the FLKPI, and the fee moderator to ensure that the reward process drives the alliance’s behaviour

Maximize Flexibility for Optimization and Use of Contractor Unique Approaches –Requests for Proposals (RFPs) and contracts should provide maximum flexibility for optimization and use of contractor unique processesand commercial specifications, standards and practices.

Continuous Improvement and Innovation – Continuous improvement and innovation are driven through the Innovation Plan: the use of Partnering local balanced score

cards stretch goals connected

to the fee modifier and FLKPI

Encourage Robust Design andImproved Process Capability- Encourage use of advanceddesign and manufacturing techniques that promote achieving quality through design, products with

Encourage Robust Design andImproved Process Capability- Encourage use of advanceddesign and manufacturing techniques that promote achieving quality through design, products with


little sensitivity to variations in the manufacturing process (robust design) and focus on process capability and continuous process improvement. Utilise such tools as Six-Sigma process control and lean/agile manufacturing concepts to advantage.

little sensitivity to variations in the manufacturing process (robust design) and focus on process capability and continuous process improvement. Utilise such tools as Chestra.

Event-Driven Scheduling - Ascheduling framework shouldbe established which relates program events to their associated accomplishments and accomplishment criteria. Anevent is considered complete only when the accomplishments associated with the event have been completed as measured by the accomplishment criteria. This event-drivenscheduling reduces risk by ensuring that product and process maturity are incrementally demonstrated prior to beginning follow-on activities.

Milestones – milestones andtheir measurement criteria,are defined in the businessplans for key program and sub project events. The schedule FLKPI is established that measures milestone achievement. The individual milestones are individually weighted (to add to 100%) according to their importance. For earlyachievement a milestone receives a score of 2, on time achievement a score of1, and for late performancea score of 0.

Milestones – milestones andtheir measurement criteria,are defined in the businessplans for key program and sub project events. The schedule FLKPI is established that measures milestone achievement. The individual milestones are individually weighted (to add to 100%) according to their importance. For earlyachievement a milestone receives a score of 2, on time achievement a score of1, and for late performancea score of 0. This event-driven scheduling reduces risk by ensuring that product and process maturity are incrementally demonstrated prior to beginning follow-on activities.

Multi disciplinary Teamwork– Multi disciplinary teamwork is essential to the integrated and concurrent development of aproduct and its processes.

Team members have complimentary skills.

The right people at the right place at the right time are required to make timely decisions.

There is a low power differentiation among team

Integrated Teams Integrated teams are

established for the Alliance Board and the Alliance Management Team.

These teams are made up ofrepresentatives from the client and the contractor.

All decisions are made using unanimous vote

The Alliance Board is made up of senior off program representatives

The Alliance Management Team is made up of the

Integrated Teams Integrated teams to be

established for the: Integrated Alliance

Board Integrated Alliance Management Team

Guiding Coalition Program Control processes

Systems Engineering Teams

Subsystem IntegrationTeams

These teams are made up representatives from theclient and the


members

Team decisions should be based on the combined inputof the entire team (e.g. engineering, manufacturing,logistics, financial management, contracting personnel) to include customers and suppliers.

Each team member needs to understand their role and support the roles of the other members, as well as understand the constraints under which other team members operate. Communication within teams and between teams should beopen with team support emphasised and rewarded.

senior in program staff contractor. All decisions are made

using unanimous vote with the Client’s Delegate a member of theAlliance Board

The Integrated Alliance Board is made up of senior off program representatives

The Integrated Alliance Management Team is made up of the senior in program staff including key sub contractors

The Guiding Coalition toprovide advice to the Integrated Alliance Management Team, and to include representatives from key stakeholders

Membership of other teams to be made on the basis of the best personfor the job

Team members bring complementary skills

There is a low power differentiation among team members

Clarity of Objectives – ITPneed clarity of local objectives

Clarity of Objectives – TheAlliance needs clarity of objectives

Clarity of Objectives The alliance needs

clarity of objectives ITP need clarity of

local objectives All objectives need to

be alignedEmpowerment - Decisions should be driven to the lowest possible level commensurate with risk. Resources should be allocated to levels consistent with authority, responsibility, and the ability of the people. The

Escalation – Issues should be resolved at the lowest possible level. A liaison and issues resolution plan is developed that trains program staff in the ‘no blame’ problem resolution process and establishes an issues escalation tree.

Escalation – Issues should be resolved at the lowest possible level. A liaison and issues resolution plan is developed that trains program staff in the ‘no blame’ problem resolution process and establishes an issues escalation tree.


team should be given the authority, responsibility, and resources to manage their product and its risk commensurate with the teamscapabilities. The team should accept responsibility and be held accountable for the resultsof their effort.

Empowerment - Decisions should be driven to the lowest possible level commensurate with risk. Resources should be allocated to levels consistent with authority, responsibility, and the ability of the people. The team should be given the authority, responsibility, and resources to manage their product and its risk commensurate with the teamscapabilities. The team should accept responsibility and be held accountable for the resultsof their effort.

Seamless Management tools -A framework should be established which relates products and processes at all levels to demonstrate dependency and interrelationships. A single management system should be established that relates requirements planning, resource allocation, execution and program tracking over the products life cycle. This integrated approach helps ensure teams have all available information thereby enhancing team decision making at all levels. Capabilities shouldbe provided to share technical and business information throughout the product life cycle through the use of acquisition and support databases and software tools for accessing, exchanging, and viewing information.

Shared Systems – Shared systems are established forbudgeting, project management, asset management, configuration management, risk management, quality management, documentation, emergency response, security, reporting, planning, change control, etc.

Seamless Management tools -A framework will be jointlyestablished with the clientwhich integrates / aligns objectives and processes atall levels to demonstrate dependency and interrelationships. A single management system will be jointly establishedfor requirements planning, resource allocation, execution and program tracking over the products life cycle. This integratedapproach helps ensure teamshave all available information thereby enhancing team decision making at all levels. Capabilities will be established to share technical and business information throughout the product life cycle through the use of acquisition and support databases and software tools for accessing, exchanging, and viewing information.

Business Cases are used in the approval process for all scope changes. Each

Business Cases are used in the approval process for all scope changes. Each


business case defines the Project plan, deliverables,options, risks, and performance measures. Theseperformance measures include cost and performance FLKPIs, and milestones that are incorporated into the schedule FLKPI. Business cases are approved through the Alliance Board

business case defines the Project plan, deliverables,options, risks, and performance measures. Theseperformance measures include cost and performance FLKPIs, and milestones that are incorporated into the schedule FLKPI. Business cases are approved through the Integrated Alliance Board


Structure



EOB– Executive Oversight Board (limited use in USA)

Program steering board

Meets quarterly

AB - Alliance Board Define Program

vision, objectives and fee linked key performance indicators

Meets monthly Provide

leadership Assess alliance

performance Approve program

business plan Approves

Business Cases Issues

resolution

IAB – Integrated Alliance Board

Define Program vision, objectives and fee linked key performance indicators

Meets monthly Provide

leadership Assess alliance

performance Approve program

business plan Approves

Business Cases Issues

resolutionPM – Program Manager

In charge of the program

AMT – Alliance Management Team

Operationalise the vision

Meets weekly Develop program

business plan Manage program

implementation Integrate

stakeholders Track and report

on performance Issues

resolution Project manager

member of AMT

IAMT – Integrated AllianceManagement Team

Operationalise the vision

Meets weekly Develop program

business plan Manage program

implementation Integrate

stakeholders Track and report

on performance Issues

resolution Project manager

member of AMT

PMT– Program Management Team Advisory body top

Program Manager Meets monthly Decision body

within scope (cost,schedule, quality)

Program overall success

Leadership Independent

assessment Issues resolution

PIPT – Program IPT Manage complete

scope of program, resources and risk

Meets Integrate

Government and Contractor efforts for program success

Report project status & issues


Guiding Coalition - The Guiding Coalition to provide advice to the Integrated Alliance Management Team, and to include representatives from key stakeholders

Facilitator – a facilitator is used to assist in training, alignment, the development of the Alliance relationship and in issues resolution

Project Neutral – a Project Neutral is used toassist in training, alignment, the developmentof the Alliance relationship and in issuesresolution

Project Neutral– a ProjectNeutral is used to assist in training, alignment, the development of the Integrated Alliance relationship and in issuesresolution

SEIPT – Systems Engineering IPT

Functional Knowledge & Experience

Architecture Initial daily, then

weekly Empowered

contribution Recommendations for

program success Communicate status

& unresolved issues

No Equivalent Team SPICPT –Strategic Partnership Integrated Control Process Teams

SPICPT established for key support and controlprocesses

Interact daily Use shared process &

systems Integrated, Coordinated

& Virtual Teams

PCIPT – Program Control IPT Procurement, cost

management, scheduling, risk, quality, etc.

Interact daily Use shared process

& systems Integrated,

Coordinated & Virtual Teams

Integrated Teams (Limited use in Australia)

Key processes & functions

Use shared processes & systems

Integrated, Coordinated & Virtual Teams

SSIPT – Sub System IPT Local planning Interact daily Develop local

scheduling and milestones

Local performance measurement

Early work scheduling

Local issues resolution

Business Units (Limited use in Australia)

ITIOT –I&T integrated Operational Teams ITIOT established for

platform and cross platform teams

Sub alliances


Key BehavioursIPPD Alliancing Best of Breed

INTEGRATED ALLIANCEAlignment – The Client retains a directive responsibility

Alignment – objectives arejointly developed and alignment focused through FLKPI, Balanced Score Cards and through working in Integrated teams using shared systems

Alignment – objectives arejointly developed and alignment focused through FLKPI, Balanced Score Cards and through working in Integrated teams using shared systems

Open discussion: with no secrets Cooperation is essential Respect – all

contributions are important

Open communication: Shared systems No Blame problem

resolution Transparency No secrets Management by

Cooperation

Open communication: Shared systems No Blame problem

resolution Transparency No secretsManagement by Cooperation

Respect – all contributions are important



Sense of ownership – projectstaff feel ownership of the program and its objectives

Sense of ownership – project staff feel ownership of the program and its objectives

Sense of ownership – project staff feel ownership of the program and its objectives

Consistency – continuity of staff is essential to maintain the program strategy



Empowered Teams - Consistent, qualified, and empowered team Teams at all levels Empowered by leaders Appropriate training

Empowered Teams: Teams only at the top AB & AMT empowered Partnering workshops

used Key staff identified

and locked in

Empowered Teams Teams at all levels Teams empowered by

leaders Partnering workshops

used Key staff identified

and locked in Local Balanced Score

Cards Team mentoring

Participation - Consistent, success oriented, proactive participation

Problem Solving Reasoned disagreement Issues raised and

resolved daily

Problem Solving No Blame problem

resolution Issues quickly

escalated through escalation tree

Problem Solving No Blame problem

resolutionIssues quickly escalated through escalation tree


Teamwork Not everyone can work in

teams Show respect for those

who cannot work in teams

Teamwork Not everyone can work

in teams Show respect for those


Teamwork Not everyone can work

in teams Show respect for those



Reward Design and Performance MeasurementIPPD Alliancing Best Of Breed

INTEGRATED ALLIANCEBonus Fee at Risk – the project bonus fee is at risk based on performance as measured by Fee Linked Key Performance Indicators (FLKPI)

Total Fee at Risk: The onlyway that the contractor canmake a profit is by achieving the client’s objectives The contractor’s total

fee, including off project overheads is at risk based on performance against Fee Linked Key Performance Indicator performance.

A fee moderators scale (0 to 2) the quantum of fee payable:

Exceptional performance receivesdouble the baseline fee

Achievement of target receives the baseline fee

Poor performance receives no fee

Total Fee at Risk:The only way th contractor can make a profit is by achieving the client’s objectives: The contractor’s total

fee, including off project overheads is at risk based on performance against Fee Linked Key Performance Indicator performance.

A fee moderators scale (0 to 2) the quantum of fee payable:

Exceptional performance receivesdouble the baseline fee

Achievement of target receives the baseline fee

Poor performance receives no fee

Base fee and off project overheads not at risk – thebase fee and the off project overheads are included in recoverable costs and are not at risk

Cost Recoverable – The actual cost of the project is recoverable



Competition – the cost estimates, technical solution, management approach, etc. are established through competition

Competition – the cost estimates, technical solution, management approach, etc. detailed in the Business Plans are established through competition

Competition – the cost estimates, technical solution, management approach, etc. detailed in the Business Plans are established through competition

FLKPI include: budget milestones Technical Baseline Technical Performance

Management levels. Ie spare capacity

Products delivered by Phase

Programatics – catch allfor other key objectives

The composition of the FLKPI change over the program life cycle

FLKPI include: budget milestones Technical Baseline Services levels. Ie

spare capacity Products delivered by

Phase Other key client

objectives The composition of the

FLKPI change over the program life cycle

FLKPI include: budget milestones Technical Baseline Technical Performance

Management levels and Service Levels. Ie sparecapacity

Products delivered by Phase

Other key client objectives

The composition of the FLKPI change over the program life cycle

Algorithm - an algorithm is Algorithm: Algorithm:


used to weight and link FLKPI

an algorithm is used to weight and link FLKPI

The Alliance Board reviews the composition of the FLKPI over the project life cycle and can change the weightingof the algorithm

an algorithm is used to weight and link FLKPI

The Alliance Board reviews the composition of the FLKPI over the project life cycle and can change the weightingof the algorithm

Stretch Goals – for each FLKPI a range of performance standards are established (0 to 2), the fee modifier scores. In itsannual review process, the Alliance Board seek to ‘ratchet up performance’ through establishing stretch goals in the baseline score. This process drive ongoing continuous improvement and innovation

Stretch Goals – for each FLKPI a range of performance standards are established (0 to 2), the fee modifier scores. In itsannual review process, the Integrated Alliance Board seek to ‘ratchet up performance’ through establishing stretch goals in the baseline score. Thisprocess drives ongoing continuous improvement and innovation

Proactive Identification and Management of Risk - Critical cost, schedule andtechnical parameters related to system characteristics should be identified from risk analyses and user requirements. Technical andbusiness performance measurement plans, with appropriate should be developed and compared to best-in-class industry benchmarks to provide continuing verification of the degree of anticipated and actual achievement of technical and business parameters.

Benchmarking – To ensure that competition is maintained over the life ofthe contract, a BenchmakingPlan is developed. The contractor is required to equal benchmark performance.

Benchmarking – To ensure that competition is maintained over the life ofthe contract, a Capability Maturity Model (CMM) Benchmaking Plan will be developed. The contractor will equal benchmark performance.

Risk of Doing Business – The risk of doing business to complete the project andrisk mitigation strategies are defined in the BusinessPlans. Business cases are used to approve all projectscope changes.

Risk of Doing Business – The risk of doing business to complete the project andrisk mitigation strategies are defined in the BusinessPlans. Business cases are used to approve all projectscope changes.

Performance Tracking – Measure product outcomes

(cost, schedule, risk, flexibility)

Measure team / IPPD processes

Measure image and reputation

Measure team member professional growth and

Performance Tracking FLKPI tracked and

reported on by the Alliance Management Teamto the Alliancing Board

Services Levels tracked,with some service levelsbundelled as FLKPIs

On a small number of alliance projects:

Performance Tracking FLKPI tracked and

reported on by the Alliance Management Teamto the Alliancing Board

Services Levels tracked,with some service levelsbundelled as FLKPIs

Balanced score cards developed for the overall


satisfaction Measure team self

assessment

Balanced score cards are developed for theoverall program and for sub projects

Partnering is used asan ongoing process

Partnering self performance assessment

Sub project FLKPI areestablished

program and for sub projects. Tracked throughshared systems

Partnering is used as anongoing process

Partnering self performance assessment

Sub project FLKPI established

Measure team member professional growth

Sub Alliances – Key subcontractors are includedthrough: including major

subcontractors in ITPs flowing the FLKPI model

into subcontractors

Sub Alliances – Key subcontractors are includedthrough: flowing the alliance

process and FLKPI model into subcontractors

Sub Integrated Alliances – Key subcontractors are included through: including major

subcontractors in Integrated Teams (ITPs)

flowing the alliance process and FLKPI model into subcontractors

Bid Submittals include: Technical Baseline Contracting strategy Management approach Cost Proposed fee structure Schedule Work Breakdown Structure

Bid Submittals include: Technical Plan Support and Refresh Plan Strategic Plan Management Plan Liaison and Issues

Resolution Plan Documentation Plan Benchmarking Plan Program Management Plan Cost Plan Performance Measurement

Plan Innovation Plan Quality and Risk Plan Security Plan Proposed fee structure Proposed FLKPI and

algorithm Schedule Work Breakdown Structure

Bid Submittals include: Technical Plan Support and Refresh Plan Strategic Plan Management Plan Liaison and Issues

Resolution Plan Documentation Plan Benchmarking Plan Program Management Plan Cost Plan Performance Measurement

Plan Innovation Plan Quality and Risk Plan Security Plan Proposed fee structure Proposed FLKPI and

algorithm Schedule Work Breakdown Structure


Figure 3.5 - MeasuresIPPD Alliancing Best of Breed

INTEGRATED ALLIANCEOutcomes MeasuresTransition Objectives Procedures established Resources established cost

Program Objectives (including Sub Projects Performance Cost Schedule Risk Flexibility

FLKPI Transition Objectives Procedures established Resources established Cost Compliance Business continuity

Program Objectives Business objectives

Performance Cost Schedule Compliance Innovation

Sub Projects Business objectives Milestones Cost FLKPI

FLKPITransition Objectives Procedures established Resources established Cost Compliance

Program Objectives Client Objectives SP Business Plan FLKPI SP Balanced score Card SLAs


IPT / IPPD process measures Meeting mechanics Decision making Problem solving Conflict management Brainstorming Contracting Oversight Manufacturing Risk management Prototyping Cost as an Independent

Variable Design Quality Functional

Diagram Testing Earned value

Alliance Board and Alliance Management Team process measures: Unanimous decision

making Brainstorming Workshoping Business planning No Blame problem

solving Balanced Score Cards Sub alliances Risk management Prototyping Secure feedback Staged roll out Business cases Value for money / fit

for purpose Needs determination Snowball

Integrated Alliance Board,Integrated Alliance Management Team, and IPT process measures: Unanimous decision

making Brainstorming Workshoping Business planning No Blame problem

solving Balanced Score Cards Sub alliances Risk management Prototyping Secure feedback Staged roll out Business cases Value for money / fit

for purpose Needs determination Snowball

Image and Reputation Measures Team interviews 360 degree feedback

Team Dynamics Measures: Partnering self

assessment measures MBTI 360 degree feedback staff satisfaction

surveys surveys

Team Dynamics Measures: Partnering self

assessment measures MBTI 360 degree feedback staff satisfaction

surveys surveys customer satisfaction

surveys

Team Self Assessment Measures test instrument Interviews


Governance Contracting

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