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The Global Alliance is a partnership agreement between BP and Bovis Lend Lease primarily aimed at delivering retail engineering services in countries in Europe and the Americas where BP operates. The partnership provides a unique opportunity combining the expert resources of both organisations to achieve major capital productivity improvements for BP.
The relationship is relatively unique and innovative, built around an alignment of business objectives which are manifested in a challenging, incentivised performance agreement. The Global Alliance is a fine example of implementing a 'win-win' business model that delivers results and benefits to the two partner organisations beyond what is normally expected.
The overall intent of the Agreement is to create a relationship that challenges both parties to develop innovative business solutions, seeking major breakthrough in overall performance. Since its inception in 1996, the Alliance has challenged "business as usual" practices and facilitated the growth and development of BP's retail business.
The sustainability of this innovative and mutually beneficial relationship depends on the ability of both parties to develop a culture that challenges the current business norms. As a case study in partnering, the Alliance holds important lessons about the way companies can work together to achieve results.
When looking for a partner in 1996, BP received interest from over 140 companies hoping to meet the stringent evaluation criteria set down. Of these, Bovis (as it was then known) not only met BP's demands for global alignment and improved Capital Productivity (reduced build costs and increased station revenue), but also provided the skills, knowledge and Project Management experience that made it possible.
Since then, the relationship has grown and developed, and each time Bovis Lend Lease has risen to meet the challenge and offered the promise to do better still.
The value-adding capabilities of their project management and construction ability are typified by their extensive history of delivery and experience over a wide range of fields. What really appealed to BP was the fact that they were prepared to risk this financially and guarantee the delivery of continuous improvement.
Bovis were prepared to be rewarded for their work based upon Key Performance Indicators covering a wide range of demands. The Company were prepared to risk their profits and overheads because they knew that they could deliver successful outcomes consistently.
True to their word, build costs have been reduced through e-procurement, increased modularity, scale economies and learning effects, while station revenues have been enhanced via innovative engineering solutions maximising through-flow of customers.
In Bovis Lend Lease, BP has an ally truly committed to the partnership, where the transfer of knowledge is permanent and not just a means of extracting as much value as possible before a split. Additionally, mutually determined to work openly with each other the Company have worked hard to make their IT systems compatible to achieve maximum transparency.
At the outset of the alliance, BP's primary needs centred on sustained cost reduction across a limited number of countries. However, as the relationship developed, the Alliance utilised the true scope of the Bovis Lend Lease network.
This included an expansion of the Alliance onto a global scale, with it now operating in 12 of the 38 countries in which Bovis Lend Lease holds offices. By 1999 both companies realised that as well as the cost savings consistently achieved through the partnership, the relationship could be utilised to deliver additional results on top of the original targets of increased Capital Productivity.
The partners felt that it was necessary to maintain improvement in a number of increasingly important areas, and focus incentives accordingly. This led to the generation of new, challenging Key Performance Indicators focusing on Health and Safety, Business Processes, Productivity, Quality and Life Cycle Design, and the recognition of sustained development in these areas as objectives for the Alliance.
In addition to global scope, BP's dynamic investment requirements meant the Company have had to maintain a degree of flexibility in their resources. BP's needs are increasingly focused on the environment, and so the Alliance has responded by pioneering several developments, the product of transparent knowledge sharing and a joint culture based around challenging "business as usual" practices and attitudes.
The award winning 'Environmental Model' sites in Hornchurch, UK, and Madrid incorporate many renewable energy systems including, natural gas micro turbine, wind power, reed bed purification technology and rainwater utilisation. These sites represent the dedication of BP and Bovis Lend Lease to work together on innovative proposals that deliver cheaper, better and environmentally friendly retail outlets.
The Alliance also represents a tremendous opportunity for everybody involved to participate in a most challenging and exciting endeavour. It provides means at an individual level to expand horizons and be part of an organisation delivering world-class performance.
The Global Alliance manages all activities required to deliver fully operational service stations to the latest standards, agreed time, quality and budget and with an extreme emphasis on safety during construction. The Company provides engineering and technical support to BP and manages all supply chain procurement for the commodities and services required.
The potential long-term benefits as Bovis Lend Lease increase alignment with not only the development objectives but with the overall business objectives of BP are unparalleled. By putting their partner's interests first and working in a completely transparent relationship with BP, the Global Alliance is sure to prosper.
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