Magazine article Management Today

Building Trust

Magazine article Management Today

Building Trust

Article excerpt


Adopting a radical new approach to your business -- 'thinking outside the box' -- is difficult and often beset by obstacles. These can seem insurmountable because they arise from the very structure or culture of the enterprise. Organisations in this category are those whose vision has taken them away from the expected and which have had the courage and determination to move into new kinds of business, or institute radical new ways of doing business in their sector


The usual way of working in the building industry doesn't really work that well. After a radical rethink of existing practices, North Tyneside Council opted to pioneer a new construction partnership scheme.

'Our vision was to replace the rules and regulations of the tender-led procurement route with projects built on teamwork and trust,' explains the council's building services divisional manager John Hollingsworth.

Key to the council's approach was the decision to select three contractor partners for work starting in 2000 on quality criteria alone. 'Price didn't come into our thinking and the council found that difficult to accept at first,' Hollingsworth admits. Under the new scheme, although contracts up to [pound]10 million are awarded individually, the contractors agree to partner not only with the council but also with each other, forming a unique pool of experience and expertise.

This mutual collaboration aims to bring benefits in terms of labour supply, choice of sub-contractors and cheaper materials. …

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