Collaborative Workshop – A forum for problem solving and innovation
By: Katherine Kawamoto, IACCM
Marcos Saraiva, Vale S.A. CPO, was initially reluctant to participate in the IACCM/ProcureCon Collaborate to Innovate Awards program. When his team first approached him about competing, he questioned the benefits and whether they even had the time to complete the nomination process. But like a proud father, he decided his team deserved to take the time to share their enthusiasm for excellence and highlight the results of their collaboration methodology. The decision to participate in the competition paid off. Vale was honored with the ‘Collaborative Negotiation” Award for their Collaborative Workshop process which they use to identify ways to increase shareholder ROI. | |
Vale achieves total cost reductions through in-depth participation from the various stakeholder areas, generating and evaluating alternative solutions throughout the supply chain. The workshop’s methodology is based on a common alignment on the most important issues to be addressed.
The Collaborative Workshop’s fundamental premise is that collaboration is the sole way to guarantee the successful implementation of select initiatives. The workshop’s methodology was carefully designed to engage internal and external stakeholders to identify issues and together find suitable solutions.
Soon after alignment with internal stakeholders, a kick-off meeting is scheduled in which all stakeholders are represented, preferably by individuals who have direct accountability for the issues being discussed. During the kick off meeting some pre-defined information is presented in order to support further discussions. The group jointly identifies what could be done to improve the situation or solve the issue and prioritizes the initiatives. Only at the end of the session is top management brought into the discussion and decides which initiatives should move forward.
Vale’s Collaborative Workshop methodology has enabled several hundred million in cost savings worldwide. By utilizing the Collaborative Workshop with their suppliers, associations and local communities Vale was able to apply an innovative approach to a severe environmental issue.
Another benefit of the Vale collaboration methodology is that it speeds up the new supplier development process and enables out-of-the-box thinking by identifying innovative solutions to some of their toughest business problems. With the workshop’s feedback, suppliers are able to present innovative ideas on such things as recycling and new technologies (tracking and monitoring, chemical specs adjustment). These ideas when implemented have a direct impact on the bottom line.
Besides providing proven financial gains, the Collaborative Workshop methodology is able to break silos and foster long term collaborative work. According to Marcos, “Procurement is the change agent at Vale. Procurement is the enabler to create the collaboration in the organization.”
When asked whether Vale is taking steps to embed collaborative and innovative behaviors into Procurement, Marcos replied with a resounding “Yes, absolutely. One of the ways we do that is through our hiring process. We look for people who exhibit the right attitude and behavior. We look for people who share our beliefs but at the same time are not afraid to challenge the status quo. They need to be big picture thinkers who are able to demonstrate their ability to work with others to achieve Vale’s objectives, not just their own personal objectives.”