ISO/PRF 44004

Collaborative business relationship management -- Guidelines for large organizations seeking collaboration with micro, small and medium-sized enterprises (MSMEs)

Titre manque

General Information

• Status: Published
• ICS: 03.100.01 - Company organization and management in general
• Technical Committee: ISO/TC 286 - Collaborative business relationship management
• Drafting Committee: ISO/TC 286/WG 3 - Micro, Small and Medium-sized Enterprises

Standards Content (sample)

INTERNATIONAL ISO
STANDARD 44004
First edition
Collaborative business relationship
management — Guidelines for
large organizations seeking
collaboration with micro, small and
medium-sized enterprises (MSMEs)
PROOF/ÉPREUVE
Reference number
ISO 44004:2021(E)
ISO 2021
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ISO 44004:2021(E)
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© ISO 2021

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ISO 44004:2021(E)
Contents Page

Foreword ........................................................................................................................................................................................................................................iv

Introduction ..................................................................................................................................................................................................................................v

1 Scope ................................................................................................................................................................................................................................. 1

2 Normative references ...................................................................................................................................................................................... 1

3 Terms and definitions ..................................................................................................................................................................................... 1

4 Context ............................................................................................................................................................................................................................ 1

5 Implementation ..................................................................................................................................................................................................... 2

5.1 Relationship management ............................................................................................................................................................ 2

5.2 Visions and values ................................................................................................................................................................................ 2

5.3 Business objectives ............................................................................................................................................................................. 3

5.4 Collaborative leadership ................................................................................................................................................................. 3

5.5 Governance and processes ........................................................................................................................................................... 4

5.6 Collaborative competence and behaviour ....................................................................................................................... 5

5.7 Trust and commitment to mutual benefit ....................................................................................................................... 5

5.8 Value creation .......................................................................................................................................................................................... 5

5.9 Information and knowledge sharing .................................................................................................................................... 6

5.10 Risk management ................................................................................................................................................................................. 6

5.11 Relationship measurement and optimization.............................................................................................................. 7

5.12 Exit strategy ............................................................................................................................................................................................... 7

Bibliography ................................................................................................................................................................................................................................ 9

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ISO 44004:2021(E)
Foreword

ISO (the International Organization for Standardization) is a worldwide federation of national standards

bodies (ISO member bodies). The work of preparing International Standards is normally carried out

through ISO technical committees. Each member body interested in a subject for which a technical

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ISO collaborates closely with the International Electrotechnical Commission (IEC) on all matters of

electrotechnical standardization.

The procedures used to develop this document and those intended for its further maintenance are

described in the ISO/IEC Directives, Part 1. In particular, the different approval criteria needed for the

different types of ISO documents should be noted. This document was drafted in accordance with the

editorial rules of the ISO/IEC Directives, Part 2 (see www .iso .org/ directives).

Attention is drawn to the possibility that some of the elements of this document may be the subject of

patent rights. ISO shall not be held responsible for identifying any or all such patent rights. Details of

any patent rights identified during the development of the document will be in the Introduction and/or

on the ISO list of patent declarations received (see www .iso .org/ patents).

Any trade name used in this document is information given for the convenience of users and does not

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expressions related to conformity assessment, as well as information about ISO’s adherence to the

World Trade Organization (WTO) principles in the Technical Barriers to Trade (TBT), see www .iso .org/

iso/ foreword .html.

This document was prepared by Technical Committee ISO/TC 286, Collaborative business relationship

management.

Any feedback or questions on this document should be directed to the user’s national standards body. A

complete listing of these bodies can be found at www .iso .org/ members .html.
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ISO 44004:2021(E)
Introduction

The aim of this document is to establish guidelines for how large organizations can adjust their approach

when collaborating with MSMEs. It is based on the principles for successful collaborative business

relationship management described in ISO/TR 44000. A similar document, ISO 44003, provides

guidelines to MSMEs on how to adopt the same principles. When read in conjunction, ISO/TR 44004

and ISO 44003 facilitate an understanding of how to apply the principles for successful collaboration

from both a large company working with MSMEs and an MSME perspective.
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INTERNATIONAL STANDARD ISO 44004:2021(E)
Collaborative business relationship management —
Guidelines for large organizations seeking collaboration
with micro, small and medium-sized enterprises (MSMEs)
1 Scope

This document gives guidance for large organizations seeking to engage micro, small and medium-

sized enterprises (MSMEs) within their collaborative relationship programmes.

It uses the 12 collaborative relationship management principles given in ISO 44001.

2 Normative references
There are no normative references in this document.
3 Terms and definitions
No terms and definitions are listed in this document.

ISO and IEC maintain terminological databases for use in standardization at the following addresses:

— ISO Online browsing platform: available at https:// www. iso. org/obp
— IEC Electropedia: available at https:// www.electropedia . org/
4 Context

The recommendations in this document are based on the premise and experience that many large

organizations tend to have evolved requirements, processes, templates and systems in place that are

optimized to work within their own business while working primarily for and together with other large

organizations. In some cases, these processes and systems give rise to an increased focus on internal

requirements, causing the organization to be perceived as self-centred on compliance rather than

interested in identifying and paying attention to the needs of partners, especially MSMEs, which are

smaller and tend to have less need for complex governance structures.

MSMEs typically bring more agility and flexibility to a collaborative relationship. They are also likely to

have more limited resources and structures when it comes to management processes. They are often

overwhelmed by the requirements imposed through the processes and systems of larger organizations.

Large organizations are likely to have processes and tools for collaboration, but they are not designed to

bring out the best performance of MSMEs in collaborative relationships. Often where large

organizations have taken the lead in the process and governance of collaboration initiatives with

MSMEs, one-size-fits-all processes and requirements have weighed down their smaller partners, who

have tried to conform to a way of working that is unnatural to them. When this mismatch occurs, all

parties miss out on the intended and expected value return of the collaboration, and real financial,

resourcing and efficiency barriers occur for the MSMEs.

Large organizations experiencing some or all of the issues described above are likely to benefit from

learning to pragmatically adjust their way of working to more MSME-friendly terms and to achieve

better alignment, in line with the recommendations in this document. Consequently, this leads to

greater value from the relationship and a more positive experience for the MSME when working with

the large organization.
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ISO 44004:2021(E)
5 Implementation
5.1 Relationship management

A structured process to manage and sustain collaborative relationships underpins their success. To

be sustainable over time, a collaborative relationship needs to be based on systems and processes,

whether internal or jointly developed, together with a continued focus on monitoring and developing

competence and behaviours. Collaborative relationships that are based solely on personal relationships,

although important, are vulnerable since personnel can change over time.

When larger and more complex organizations evaluate the robustness of small company processes,

they should be aware of the need of the smaller organizations for less complex processes. It is the lean

management approach that allows smaller organizations to be more dynamic, creative and flexible.

A policy that acknowledges the need for scaling the relationship approach to be fit for purpose with

smaller organizations can be a key enabler for realizing the value of collaboration initiatives between

large organizations and MSMEs.

Complex processes, systems and organizational structures of larger organizations can be difficult

for any partner to navigate and are likely to be particularly complex for smaller organizations. An

MSME relationship manager can act as direction finder for smaller organizations to navigate internal

structures and support engagement.

For larger organizations used to working in, with and for other large organizations, internal processes

are often set up to operate together with single entities. Among MSMEs, however, it is not uncommon to

form clusters or ecosystems to deliver as single but connected entities. This can be challenging for larger

organizations and can cause them to miss out on valuable collaborative relationship opportunities. It

requires top level support and processes to ensure appropriate risk management for all parties.

The large organization should:

a) consider establishing a policy for encouraging engagement with smaller organizations;

b) consider appointing a MSME relationship manager with appropriate accountability to specifically

support smaller organizations as appropriate;
c) establish a platform to address the engagement process for all partners;

NOTE This can be done by producing a joint relationship management plan in which the partners

mutually define how they will work together to achieve single and joint objectives in the relationship. It also

helps each organization understand the structure and workings of the other.

d) ensure, if appropriate, that it has the top-level support along with processes and capabilities to

work with MSME clusters or ecosystems of MSMEs.
5.2 Visions and values

The visions and values of organizations wanting to work together have an impact on the effectiveness

of the collaboration. Operating a collaborative business relationship inevitably involves the reputation,

ethics and culture of partner organizations. As each party considers the value of a collaborative

relationship, the profile of the organization and potential compatibility with partners is a key factor in

establishing and aligning its capabilities and joint performance.

The visions and values of larger organizations can have significant internal and external implications

which can result in reputational risks when engaging with third parties. As a result, they can have

extensive requirements to ensure compliance to their policies that smaller organizations do not have

the resources or systems in place to accommodate. Larger organizations that operate multiple and often

complex compliance requirements can benefit from adopting a more flexible approach when dealing

with smaller organizations.
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ISO 44004:2021(E)

MSMEs do not always have high profile issues to consider. However, they can have a focus and often

personal commitments on corresponding visions and values that can be a key performance driver in the

relationship. Therefore, larger organizations benefit from including visions and values when evaluating

smaller organizations. For example, standardized partner evaluation criteria based largely on size and

processes can disqualify a smaller organization with great value potential that works strongly aligned

with the larger organization’s vision and values. Clarified alignment and familiarity with the visions

and values of its MSME partners strengthens the relationship. Lack of alignment can pose issues that

need to be mutually addressed.
The large organization should:

a) ensure partner selection criteria take into greater account the visions and values of MSMEs;

b) consider accepting a self-declaration where appropriate to address compliance;

c) consider using facilitated discussion around visions and values to identify influences, share

perceptions and ensure effective engagement.
5.3 Business objectives

Only when drivers for collaboration support the business objectives of each partner organization,

large or small, does a collaborative relationship make sense. Collaborative relationships can enhance

competitive advantage; however, such approaches require effort and resources to achieve the desired

goals and objectives of each of the partners. As a result, there should be clearly defined business

drivers where such investment is validated, warranted and sustainable. Implementing a collaborative

relationship can require individuals and functions within the organizations to undertake changes to

their normal operating practices. These changes need to be ratified against a robust business case

where the success of the collaboration is fundamental to the overall success of the organizations, and

is effectively communicated across all internal functions to ensure consistency. Ensuring that each

partner’s objectives can be achieved through the relationship supports continued effective engagement

at both organizational and individual levels to sustain mutual benefit.

It is a key task for larger organizations to ensure they fully understand what smaller organizations hope

to achieve and how this can benefit the collaboration. When engaging with smaller organizations, it

should be recognized that their ability and resources can be constrained. By working together, a larger

organization can strengthen the relationship and its outcomes by supporting MSMEs. For example,

rather than solely focusing on its own desired outcomes, the wide reach and resources of the large

organization can complement the capabilities of smaller organizations to achieve joint success.

The large organization should:

a) learn about the objectives of the MSME partner in order to identify points of additional value to the

objectives
...