Investing in local expertise does not mean ignoring shortcomings
The Insight
Imported and regional solutions both carry risks that put a project, its client and delivery team in jeopardy.
We’ve all seen projects where locals get overlooked in favour of imported expertise and seen the glittering result unravel, after the initial fanfare, because the foreigners missed critical local issues. And we’ve seen great projects fail to shine when a local team lacked the edge the project deserved.
There’s always a case for locally-based resources to be prioritised and standard tender practices encourage us to convince a client that we are better than our opponents and that we are the right choice.
But what’s the risk to the project?
Flawed processes deliver weak outcomes and we would benefit from any attempt to open the process to scrutiny and improvement.
The Impact
There’s plenty for locals to grumble about: lost opportunities, being edged out of competition and manipulation of a policy that is supposed to protect them.
There needs to be more than a policy to defend the rights of locals.
We need a more sophisticated approach so the client can find the right solution that balances the risk and a more robust approach to the tender process rather than just blindly following (or manipulating) procedure.
Action is needed outside the process before an offer is lodged and a deal is struck.
To the regional service providers trying to take advantage of the opportunities in your community:
Relationships are the biggest distinguishing feature of business in the regions. Take advantage of your location, engage with clients and build your relationship so they can see your willingness to deal openly, honestly and professionally. Understand their needs, dispel or challenge incorrect assumptions and open a serious conversation about how to manage project risk. Help them get to know your experience and what you are doing to improve service quality.
Ensure your offer emphasizes the benefits of regional knowledge and being local.
Don’t downplay the risks your offer presents. Show how you deal with shortcomings – especially relative to a foreign bid.
Join up with other locals or out-of-town specialists to fill gaps in capacity or capability – form relationships ahead of time. Discuss with your partners ways to package imported expertise without importing the risk.
To the project managers tasked with procurement for regional projects:
Be clear about expectations – spell out the skills and capacity you think should be imported and discuss what blended delivery options might work.
Reduce risk and secure a value-for-money outcome by applying genuine and realistic assessment values and criteria that reflect the real risk and benefit to the project. Make sure that weightings are appropriate to the project specifics.
Manage tender assessments to ensure they are professional, accurate, and project focused. Require the assessment panel to defend their assessments. Use a third party to guide an assessment debate.
Engage with locals requesting feedback. Be willing and able to defend the panel’s decision with an honest appraisal of strengths and weaknesses. If you can’t defend the assessment, then the process is flawed and the result will be weak.