Small is beautiful - small businesses working together for transport

In an uncertain political and economic climate, transport is under more pressure than ever. The sector is expected to ensure reliable and efficient transport networks across the UK, successfully launch key flagship projects such as Crossrail and High Speed Rail 2, as well as support economic growth and reduce its carbon emissions.

Tough times, big projects

It's a tough call and the industry will rely heavily on its suppliers to help them deliver. “Public sector clients need specialist advice in the hot areas of affordability, sustainability and carbon management, although they also have to demonstrate that any expertise they buy offers real value for money,” said Chris Connor of RedRay Consulting. So, who are they going to call on? A new breed of specialist firms is emerging to help the industry. They are niche experts in critical areas, know the sector inside out, and can work flexibly and cost-effectively. They are small firms whom, by working in consortia, manage to offer the breadth of service required by the industry as well as the vital 'value for money' guarantee.

New style of provider

Project and programme management firm Moorhouse, leads a consortium made up of thirteen specialist companies. The Moorhouse Consortium was created in February this year to offer private sector clients additional benefits, and to enable public sector clients to buy them via the new Management Consultancy and Accounting Services (MCAS) framework managed by Buying Solutions, the government's procurement portal. Consultant Mark Warren explains how the consortium of experts came together, and what this type of collaborative working can do for the industry.

“We know from experience that our transport clients require a breadth of skills for their projects – but every purchasing decision is under scrutiny,” tells Mark. “There is pressure on everyone to do more with less, yet there is no room for error. As a stand alone company, we could never be 'all things' to our customers – nor would we try to be – but we created the Moorhouse Consortium so, as a team, we can help our clients deliver their big programmes and hit targets on affordability, emission reduction, and sustainability.”

So, how did Moorhouse find the right partners? “We took a lot of time to carefully select our partners on the basis that their offering is complementary to ours, and fits exactly what the clients need,” Mark explains. “It was also critical to ensure that their personalities and cultures suited our own. After all, if we don't share similar values and a sense of purpose – life isn't going to be much fun, for us or our customers.” The team also put a significant amount of time into examining how the consortium would bid for and staff client projects, and created a unique Partner Selection Assessment Tool to help ensure clients' get exactly the right specialists for the job. The hard work has paid off and Moorhouse has gathered a team of experts with some 1300 consultants at their disposal in the UK, with experience in developing solutions in strategy development, change management, organisational design, leadership coaching, cost reduction, BPR and lean, eProcurement, sustainability, strategic partnering and outsourcing, category management and portfolio, programme and project management (PPM). Mark concludes: “As a group we provide equivalent scale, expert skills and breadth of disciplines provided by the 'Big Firms', yet offer a more tailored, personal approach and deep specialist expertise. As a result, we believe the Consortium is perfectly placed to provide a seamless service, one that not only pragmatically delivers what the customer wants, but also offers a clear and simple approach that ensures we never outstay our welcome. We see plenty of opportunity for our clients to realise significantly improved value for money, if they chose to change their procurement strategy.”

A true alternative to the traditional supply model

It all sounds good, but are these small firm consortiums really a true and safe alternative to the traditional 'big firm' consultancies? Derek Salkeld from risk analysis firm DS&A thinks so. "Buying from a larger consultancy has its benefits but there are two nagging worries for the client," Derek explains. "Firstly, if their suppliers' thousands of consulting staff have learned their trade working on a multitude of projects across a variety of sectors, they can't help but ask - 'Am I really getting an expert in my field?' Secondly, a big brand name inevitably means large corporate overheads - and the bill tends to reflect this."

However, when you hire expertise from a consortium of niche players what you get is someone with a proven track record in your area and at a lower cost. Derek continues: "Taking the MCAS framework as a case in point, every single firm on it is a specialist with years of experience in one subject and yet has the low overheads of a small supplier. However, each one has an ability to adapt and to expand as needed by turning to their partners. You could choose to hire a procurement expert and a few months later decide you also need an expert in affordability modeling. Your first supplier can introduce you to someone with that expertise from a company of similar corporate overhead free size. Both being experts in their respective fields, they will be acutely aware of the need to maintain their professional reputations by giving the client a first class service. Plus there will be no sudden budget bursting supervisory fees. Just the ability to call off what support you need as and when you need it - with minimal hassle or risk."

Government buyers can find The Moorhouse Consortium on the MCAS framework by clicking here.

© 2011 Moorhouse.

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