Strategy

For a crown corporation, implementing effective supplier performance measures required the support of employees as well as external partners. Navigo was asked to develop a change management strategy for negotiating and implementing a new supplier agreement, and started by inviting all stakeholders to the table.

The situation

After suspending an initial supplier agreement that incorporated performance measures into determining supplier rates, our client recognized that support for the agreement with both employees and supplier businesses had waned early in the process. Engaged to develop a change management strategy to negotiate and implement a new agreement, Navigo quickly realized that acceptance and adoption of any agreement would require broader based support at a level that could only be developed with the help of leaders within supplier groups as well as the client’s organization.

The approach

Navigo began by helping to re-frame the nature of the negotiating team, which was comprised of senior leaders from the client as well as executive members of the supplier association. Through a series of workshops Navigo facilitated the transition of the team from the somewhat adversarial relationship associated with negotiation to one defined by partnership. The new joint leadership team emerged with a common responsibility to implement the supplier agreement together.

The joint leadership team then extended the partnership relationship to the front line by establishing implementation advisory teams. These teams, comprised of front line managers and employees as well as representatives from individual businesses represented by the supplier association, provided input into the implementation approach and helped raise and address issues and concerns from the front-line level. In addition, information and training was provided to both staff and supplier businesses jointly for the first time and with participation of leaders from both the client and supplier association.

Throughout the process Navigo acted as a neutral facilitator and coach, helping the joint leadership team to approach the development and implementation of the agreement from a partnership perspective, thus reinforcing the underlying theme and nature of the agreement. A series of ongoing practices were established to shift the internal organizational culture to support this partnership approach. From early on in the agreement adoption stage, leaders played a highly visible role in establishing and carrying out these practices. 

The results

As a result of joint leadership commitment to the partnership approach, the agreement was successfully negotiated and implemented. Five years later the client and supplier association continue to work together to refine and improve the agreement. The leaders of both the client organization and the supplier association continue to recognize the importance of having a jointly led approach to developing a partnership agreement.