ISO 44004-2021 pdf free download – Collaborative business relationship management — Guidelines for large organizations seeking collaboration with micro, small and medium-sized enterprises (MSMEs).
4 Context The recommendations in this document are based on the premise and experience that many large organizations tend to have evolved requirements, processes, templates and systems in place that are optimized to work within their own business while working primarily for and together with other large organizations. In some cases, these processes and systems give rise to an increased focus on internal requirements, causing the organization to be perceived as self-centred on compliance rather than interested in identifying and paying attention to the needs of partners, especially MSMEs, which are smaller and tend to have less need for complex governance structures. MSMEs typically bring more agility and flexibility to a collaborative relationship. They are also likely to have more limited resources and structures when it comes to management processes.
They are often overwhelmed by the requirements imposed through the processes and systems of larger organizations. Large organizations are likely to have processes and tools for collaboration, but they are not designed to bring out the best performance of MSMEs in collaborative relationships. Often where large organizations have taken the lead in the process and governance of collaboration initiatives with MSMEs, one-size-fits-all processes and requirements have weighed down their smaller partners, who have tried to conform to a way of working that is unnatural to them. When this mismatch occurs, all parties miss out on the intended and expected value return of the collaboration, and real financial, resourcing and efficiency barriers occur for the MSMEs. Large organizations experiencing some or all of the issues described above are likely to benefit from learning to pragmatically adjust their way of working to more MSME-friendly terms and to achieve better alignment, in line with the recommendations in this document. Consequently, this leads to greater value from the relationship and a more positive experience for the MSME when working with the large organization.
5lmplementation
5.1 Relationship management
A structured process to manage and sustain collaborative relationships underpins their success. Tobe sustainable over time, a collaborative relationship needs to be based on systems and processes,whether internal or jointly developed, together with a continued focus on monitoring and developingcompetence and behaviours. Collaborative relationships that are based solely on personal relationships,although important, are vulnerable since personnel can change over time.
When larger and more complex organizations evaluate the robustness of small company processes,they should be aware of the need of the smaller organizations for less complex processes. it is the leanmanagement approach that allows smaller organizations to be more dynamic, creative and flexible.A policy that acknowledges the need for scaling the relationship approach to be fit for purpose withsmaller organizations can be a key enabler for realizing the value of collaboration initiatives betweenlarge organizations and MSMEs.
Complex processes,systems and organizational structures of larger organizations can be difficultfor any partner to navigate and are likely to be particularly complex for smaller organizations.AnMSME relationship manager can act as direction finder for smaller organizations to navigate internalstructures and support engagement.
For larger organizations used to working in, with and for other large organizations, internal processesare often set up to operate together with single entities.Among MSMEs, however, it is not uncommon toform clusters or ecosystems to deliver as single but connected entities.This can be challenging for largerorganizations and can cause them to miss out on valuable collaborative relationship opportunities. ltrequires top level support and processes to ensure appropriate risk management for all parties.
The large organization should:
a) consider establishing a policy for encouraging engagement with smaller organizations;
b) consider appointing a MSME relationship manager with appropriate accountability to specifically
support smaller organizations as appropriate;
cestablish a platform to address the engagement process for all partners;
NOTE This can be done by producing a joint relationship management plan in which the partnersmutually define how they will work together to achieve single and joint objectives in the relationship. It alsohelps each organization understand the structure and workings of the other.
d)ensure, if appropriate, that it has the top-level support along with processes and capabilities to
work with MSME clusters or ecosystems of MSMEs.
5.2 visions and values
The visions and values of organizations wanting to work together have an impact on the effectivenessof the collaboration. Operating a collaborative business relationship inevitably involves the reputation,ethics and culture of partner organizations.As each party considers the value of a collaborativerelationship, the profile of the organization and potential compatibility with partners is a key factor inestablishing and aligning its capabilities and joint performance.ISO 44004 pdf download