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Waking up from a service sourcing nightmare
 

Waking up from a service sourcing nightmare

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Presented by Dan Wilson

Presented by Dan Wilson

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    Waking up from a service sourcing nightmare Waking up from a service sourcing nightmare Presentation Transcript

    • 8 Steps to successful IT Client Services re-sourcing at
      Waking up from a Service Sourcing Nightmare
      Dan Wilson dan.wilson@vw.com
      Volkswagen Group of America IT Client Services Manager 248-754-5113
      HDI Member Advisory Board Past-Chairman
      HDI Motown Chapter Advisor
    • There comes a time with all outsourced services when your current contract or provider is not fulfilling the needs of your organization and you realize that it is time to move on.
      In late 2008, nearly a year after I joined Volkswagen Group of America, I was at that point and took action.
      This presentation covers how we took a helpless situation with 1 person and 2 bad contracts into a world class Client Services department.
      Preface
    • Assess the nightmare
      Find a solid partner
      Be diligent about the structure of the agreement
      Define and document your governance structure
      Select the team members
      Offer a ninety day grace period for SLA attainment
      Manage and hold them accountable
      Continuous review and collaboration
      8 Steps to successful re-sourcing
      • Review current SLA’s and KPI’s and benchmark
      • Deep review of current contract (transition services, staff transition, termination date or clauses, etc.)
      • Review customer satisfaction ratings
      • Review team/employee satisfaction
      • Assess team members for possible transition
      #1 - Assess the nightmare
      • Create a solid RFP
      • Evaluate at least 5 vendors
      Industry Evaluation (Gartner Magic Quadrants)
      Do homework on financials of company
      Research sub-contracting practices
      Ensure CORE competency alignment
      • Review proposals, RFP response, and SoW’s
      • Use scorecard for rating
      • Interview top 3-4 vendors
      • Contract negotiations with final 2
      • Take time to get to know the top 1 or 2!
      #2 - Get a solid partner
      • Types
      Master Contract, T&C’s
      Statement of Work
      Service Certificate
      • Terms
      Annual renewal
      Multi-year with periodic checkpoints
      • Unique/Essential Provisions
      Final approval/Interviewing rights for key roles (even under SLA contract)
      Transition of staff members upon termination of contract
      Ownership of processes, documentation, intellectual capital
      Interaction between SLA and Contract labor
      Sub-contracting restrictions
      Underperformance remediation (SIP’s)
      Staff removal rights
      XX% annually price reduction (expected efficiencies)
      #3 - Structure of the Agreement
      • Who Governs the vendor? And when?
      Operational Manager
      Governance Team?
      CTO/CIO
      • Metrics, reports, deliverables
      Types, frequency, formal/informal
      Monthly Service Review
      QBR’s
      Consider your audience for each...
      • Service Improvement Plans
      • Penalties
      • Contract Management
      #4 - Governance Structure
      • Your Team
      Contractors
      Direct employees
      Governance
      Operational Support
      Process Management
      • Their Team
      Ask to sit in on interviews for key roles
      VIP Support, Systems Admins, Team Leads, etc.
      #5 - Select the Team Members
      • What it is?
      Good gesture of partnership
      Allows them to get their feet wet
      Makes transition time shorter (save $$$)
      • What it is not…
      Last thing you want to do is have to penalize a vendor early in the relationship…
      #6 - Grace Period for SLA Attainment
      • Enforce SLA commitments and SIP’s if necessary
      • Maintain meeting cadence
      Daily – High Priority issues
      Weekly – Operational/tactical review
      Monthly – Service and KPI Review
      Quarterly – Formal QBR
      • Maintain governance structure!
      • Enforce penalties and SIP’s if necessary after grace period
      #7 - Manage and Hold Accountable
      • QBR good time for this activity
      • Make Vendor Service/Program Manager be part of your Management team
      • Understand what the vendor can provide outside of your contract resources
      Consulting, innovation, additional services…
      Don’t look elsewhere until you’ve already asked them!
      • Quarterly Team(s) Meeting for Staff to:
      Provide business updates from both sides
      Key Successes
      Recognition and Rewards
      Project updates
      Staff questions and concerns
      #8 - Continuous Review & Collaboration
    • Assess the nightmare
      Find a solid partner
      Be diligent about the structure of the agreement (SoW, Service Certificates, rate cards, penalties for missed KPI, SIP’s, etc.)
      Define and document your governance structure
      Select the team members (your side and their side)
      Offer a ninety day grace period for SLA attainment
      Manage and hold them accountable (penalize if it is necessary)
      Continuous review and collaboration
      Recap!
      • Example RFP document with accompanying documents
      • Example RFP review score sheet
      • Example service certificate
      • Example staffing SoW
      • Example separate/master contract (T&C’s)
      • Example service governance plan
      Takeaways
    • dan.wilson@vw.com