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  • 1. Increase Outsourcing Value For Customers and Service Providers By: Providing a strategic governance framework to:  Provide alignment and connection to the enterprise business / budget model and strategy  Enhance business model understanding and communication  Drive cultural change through collaboration  Identify the business risks and value opportunities with the analytics to eliminate the root causes of performance impediments  Improve standards, regulation and compliance performance  Accurately identify the enterprise performance compared to “Best-in-Class” Identifying the unmet and unidentified needs to:  Transform business processes to be resilient  Identify innovation opportunities and the process to measure and deliver it  Improve the identification of the required data, information and knowledge to support the precision of the decisions and the operational implementation of the strategy Outsourcing Value Analysis Overview: Predictive Insights Driving Prescriptive Actions for Peak Performance & Beyond 1992 – 2013 Confidential to The NorthPoint Group © Atlanta - Boston – Cleveland – Detroit - NYC 1 www.thenorthpointgroup.net All Rights Reserved
  • 2. The C-Suite agenda focuses on effectiveness, efficiency, risk identification/ management and growth … Aligning the Optimize global Driving growth in Identify / manage Leverage technologyoperating model for operations new markets risks and investments effectiveness & opportunities efficiency Sales & The value proposition is shifting from a F&A HR IT cost focus to a value focus MarketingWhile significant cost reductions were a major driver andultimate result of initial sourcing arrangements, major Access to Costnon-quantitative benefits are being sought including: innovation reduction•Knowledge•Experience Process Process•Trust efficiency transformation•Empowerment of the service leader to make critical Businessdecisions Technology upgrade intelligence•Process to identify irritants and issues•Collaborative approach to capture unmet needs(improving analytical capabilities) and unidentified needs(providing new and creative methods of achievingbusiness value) 1992 – 2013 Confidential to The NorthPoint Group © Atlanta - Boston – Cleveland – Detroit - NYC 2 www.thenorthpointgroup.net All Rights Reserved
  • 3. Outsourcing customers struggle to quantify the value of the outsourcing engagement after the second year… NorthPoint research shows that effective selling and management of outsourcing is increasing in effort and time  Outsourcing engagements under increased pressure as expected value and ROI has not been realized  Step one is cost reduction; and value is suspect after year two  Customers are expecting service providers to provide process innovation to transform their business processes  Collaborative/consultative approach to support is expected  Major non-quantitative benefits are sought (empowerment of personnel, process resiliency, etc.) while providers are focused on process efficiencies  Outsourcing contracts are more restrictive so market changes and the SLA agreement are not connected  Length of contracts and margin have decreased  Despite strong service provider SLA performance customers frequently are not satisfied Attempts to resolve the current contract / performance issues have been unsuccessful  Recognition of challenges have led some customers to develop mitigation plans in advance  As risks become clearer over time, customer executives frequently develop the view that outsourcing: • Limits the Enterprise’s flexibility • Service provider is unable or unwilling to assist in fixing the issues • Has not met the value requirements and thus should be brought back in-house or rebid  Creates crisis management environment and reviews after-the-fact Opportunity to identify and communicate how outsourcing can become more of a strategic asset NorthPoint’s Outsourcing Value Analysis software provides a new approach…  ROI for improvements made to outsourcing arrangements for customers ranged from 22%-26%  Increased service provider revenues for consulting ($725k-$1,325k) and outsourcing (35-45%) over 3-years  Substantially increased co-ownership of outsourcing initiatives 1992 – 2013 Confidential to The NorthPoint Group © Atlanta - Boston – Cleveland – Detroit - NYC 3 www.thenorthpointgroup.net All Rights Reserved
  • 4. NorthPoint’s Outsourcing Value Analysis software-based assessment process delivers significant value to customers and service providers in an expedited time frame NorthPoint’s Outsourcing Value Analysis software-based assessment process  Identifies risks / rewards of the emerging customer relationship, thereby increasing their propensity to “seal the deal”-new account service provider value proposition  Provides comparison against “Best-in-Class” outsourcing data and trend analytics  Identifies customers’ strategic unmet and or unidentified needs in moving support functions and processes from just an efficiency play to one that focuses on business effectiveness-client and service provider value proposition  Identifies compelling customer value propositions that shortens sales cycles and increases “win” rates- service provider value proposition  Provides deep insight into the key business issues and organizational behaviors that provide opportunities for additional value realization  Enables collaboration between the customer and service provider to maximize value realization and move the customer relationship to “Trusted Partner / Advisor” Customer Customer Customer Renews Uncertain Re-bids Service provider performance via OVA > 91.6% +/- 77.2% < 68.3% Value propositions important to customer (vs. competition) 4+ 0-1 0 - -2Significant impact on Brand value of service provider 85% 76% 64%customer satisfaction Customer retention 92% 23% - 34% 5% - 2% Customer is a positive reference (% of times asked) 95% 12% - 21% 2% - Neg. Service provider margin (% change) 12% - 32% -7% - -26% -32% - 54% Service provider sales cycle (compared to competition) < 71% > 122% > 155% Note: Scores based on NorthPoint “Best-in-Class” database 1992 – 2013 Confidential to The NorthPoint Group © Atlanta - Boston – Cleveland – Detroit - NYC 4 www.thenorthpointgroup.net All Rights Reserved
  • 5. Using Outsourcing Value Analysis to turnaround customers who are set to rebid based on concerns, issues and unmet needs…Despite SLA performance >85%, service providers face significant customer dissatisfactionand high risk of non-renewal 28 service providers used OVA to address service issues where their customers were either committed to or strongly considering rebidding their outsourcing arrangements  SLA scores ranged from 85% - 91%  Customers did not believe that the service providers were contributing to their success  Customers felt that trying to change the scope or focus of the service provider was too difficult Average performance on the first OVA assessment was 47% - 56% (“Best-in-Class” 90+%)  After the first assessment the service provider and customer assigned teams to address the issues and customer needs  A second assessment was performed within a 6-7 month period • The results after the second assessment improved 15.5 – 20.7 percentage points  The enterprise performance (process improvements, etc.) increased • 10.5 - 23.7% in the first year • 7.2 - 11.8% in second year on top of the year one improvement  Customer reaction to the OVA process and improvements  21 (75%) of the customers eliminated (17) or rescheduled (4) the rebid process  Ultimately 11 customers rebid their outsourcing service requirements • 5 customers stayed with their service provider • 6 customers changed their service provider 1992 – 2013 Confidential to The NorthPoint Group © Atlanta - Boston – Cleveland – Detroit - NYC 5 www.thenorthpointgroup.net All Rights Reserved
  • 6. OVA maps the root cause of roadblocks and puts focus on gap closure through improvements based on ROI Customer scoring for service provider performance improved significantly based on understanding of unmet and unidentified needs, implemented improvements to address those needs and an improved communications processPerformance Score Service Provider Revenue Impact Service Provider Incremental Impact Year 1 Year 2 Year 3 Revenue Benefit Outsourcing Revenue 8% 12% 15% - 25% Consulting Revenue (000s) $150 - $450 $225 - $400 $350 - $475 1992 – 2013 Confidential to The NorthPoint Group © Atlanta - Boston – Cleveland – Detroit - NYC 6 www.thenorthpointgroup.net All Rights Reserved
  • 7. Outsourcing ROI maximized with NorthPoint software-based predictive tools and “Best-in-Class” database Maximize Customer ROI “Knowledge, Insight, Value” Strategy / Business Case / Transition & Implementation Improvement & TransformationCustomer Issues Contracts•Measuring ROI-based Use Software-based Use Collaborative &performance Assessment & Transparent Methods Apply Analytics to be Identify Customer’s predictive & Performance•Identifying and achieving Measurement Tools – Quick & Accurate prescriptive “Real” Needs (< 1Day)business case objectives withperformance improvement Gainanalytics Score Service Alignment & Identify Opportunities to Provider Selection or Buy-in of Key Create New Economic•Identifying & mitigating bad risks Business Case With Stakeholders Value and Prioritizeand providing the opportunity to Analytics for Action Based on ROIleverage good risks Create Roadmap to•Identifying root cause of Identify & Mitigate Predict Outcomes Maximize Returns Based on “Currentperformance issues Risks Course & Speed” Based on Measurable ROI•Building key stakeholder buy-in &ongoing support Governance (PMO) - Operational Performance & Measurement -•Delivering transition and Transformation & Change Managementimprovement projects on-time & Measure Fundamental Optimize PMO andon-budget with expected value Business Activities Change Management Identify Root Cause of Critical for Success Processes & Performance Issues•Understanding business unit / (not just SLA’s) Performanceinternal customer’s real needs Measure Knowledge,•Initiating innovation to drive new Compare with “Best- Experience & in-Class” Performanceeconomic value Capability Predictive Insights Driving Prescriptive Actions for Peak Performance & Beyond 1992 – 2013 Confidential to The NorthPoint Group © Atlanta - Boston – Cleveland – Detroit - NYC 7 www.thenorthpointgroup.net All Rights Reserved
  • 8. Move sales opportunities to: closure, expand existing accounts, sole source new opportunities with OVAService ProviderUse during•Sales & contracting•Transition implementation Differentiate•Governance process (identification of•Troubled account rescue unmet and•Deal renewal process unidentified needs, identify areas of riskValue and areas of potential•Helps differentiate service provider improvement) theand win deals service offering with•Builds stakeholder partnership and OVA to move from acommitment through collaborative competitive bidprocess•Improves delivery of transition & situation to a trustedimprovement projects on-time/on- advisor enabling solebudget, with expected value sourced•Creates higher levels of customer opportunities.satisfaction•Increases understanding of Has been proven tocustomers’ real needs as basis forcreating new value shorten the sales•Increases contract scope from follow- cycle by 40%on consulting & outsourcing services•Opens opportunities for BI and Cloudsupport•Reduces re-bid and customer turn-over 1992 – 2013 Confidential to The NorthPoint Group © Atlanta - Boston – Cleveland – Detroit - NYC 8 www.thenorthpointgroup.net All Rights Reserved
  • 9. Making outsourcing a competitive advantage for customers with knowledge, insight & value through collaboration and predictive analytics Knowledge - Build knowledge by gathering and assessing required data about the fundamental business activities impacted Insight - Create insight by using structured analysis and “Best-in-Class” database to predict outcomes based on “current course and speed”, as well as be prescriptive on what must be changed; in what sequence; for what reason and the ROI to achieve peak performance Value  Substantially increase  Alignment and support of business leadership due to real value being delivered  Understanding across both internal / external customer and provider  Key stakeholder ownership of shared service, outsourcing and improvement initiatives  Buy-in and follow through on the assessment recommendations (collaborative process)  Identify and mitigate risks associated with doing business with the service provider  Increase knowledge of internal business unit customers’ real needs (unmet and unidentified) to create new value propositions  Identify opportunities for real process transformation  Improve IT performance, security, application implementation, application integration, application testing and identify critical missing business knowledge  Improve common data definitions, accuracy of data, business processes & costs, and organization Knowledge, Experience and Performance (KEPTM)  Identify missing KEP required to support BI initiatives  Identify opportunities for capital reduction (outsourcing, cloud), IT cost reduction and overhead cost reductions  ROI for improvements made to shared service and outsourcing agreements ranged from 22-26%  Improve enterprise performance 1992 – 2013 Confidential to The NorthPoint Group © Atlanta - Boston – Cleveland – Detroit - NYC 9 www.thenorthpointgroup.net All Rights Reserved
  • 10. OVA enables customer & service provider collaboration to identify concerns, issues, root causes and solutions to increase value realized… OVA - What is it? OVA – What does it do? Objective assessment of the entire outsourcing relationship  Prioritizes identified risk and value opportunities provided to Repeatable methodology to identify and quantify risk and improvement teams to work on root cause, solutions and value opportunities implementation Proactive and predictive intelligence  Identifies “irritants” to be addressed before they become larger issues Prescriptive tool to address identified risks and prioritize activities based on ROI to create risk mitigation plan  Provides collaborative process to identify and develop new value opportunities based on analytics compared to “Best-in- Software and database identifies the fundamental business Class” activities that are most important for maximizing value  Encourages enterprise innovation that leads to strengthened Every step, task and process is weighted in terms of relationships importance to the success of the relationship and value attainment  Provides an approach and environment for continuously monitoring areas of potential risk and reward Stakeholders give a consensus score on each of ~140 steps, tasks, processes during a facilitated session  Enables key stakeholders to gain alignment on outsourcing strategies and value expectations Stakeholder session completed in a few hours Outsourcing Value Analysis is effective throughout the contract lifecycle New customer after down-select - Current customer during pre or post contract implementation or contract duration Dissatisfied customer pre-renewal • Varied experience with outsourcing • Immature internal governance process and • Unhappy with aspects of performance – “not • Nervous over new relationship experience adding enough value” • Confusion internally on defining “success” • Focused solely on SLA performance • Willing to work with account team to improve and how to achieve it • Difficulty identifying “irritants” before they relationship • Understand business unit needs become significant issues • Establish service provider as collaborative • Not sure how to engage on value-added partner innovation • Set the governance approach 1992 – 2013 Confidential to The NorthPoint Group © Atlanta - Boston – Cleveland – Detroit - NYC 10 www.thenorthpointgroup.net All Rights Reserved
  • 11. APPENDIX- HOW OVA WORKS 1992 – 2013 Confidential to The NorthPoint Group © Atlanta - Boston – Cleveland – Detroit - NYC 11 www.thenorthpointgroup.net All Rights Reserved
  • 12. Our process is rapid, knowledge based, and inclusive of all critical stakeholders impacted by the initiative…Baseline Outsourcing Value Analysis Sessions for Customer & Service Provider Teams Step 1 Step 2 Step 3 Step 4 Step 5 Baseline Value-Risk Assessment Baseline Baseline Value-Risk Solution Closing Checkpoint Baseline Value-Risk Assessment Baseline Baseline Value-Risk Solution Closing Checkpoint Session Gap Analysis & Session The OVA Session Gap Analysis & Session The OVA Management Gaps Assessment Customer Service Provider Management Customer Service Provider Gaps Assessment Customer Service Provider Report Customer Service Provider ReportNorthPoint process overview…  Step 1: Value-Risk Assessment (VRA) Session  Facilitated session with key stakeholders (1/2-day) separately with customer and service provider  Analyze and score statements comprised of the Fundamental Business Activities (FBA’s), as well as the supporting Steps, Tasks and Processes (STP’s)  Drive stakeholder alignment through facilitator-led consensus scoring for each FBA/STP  Capture key discussion points / issues  Step 2: Baseline Gap Analysis & Management Report  Predictive analytics and prescriptive activities to address  Step 3: Value-Risk Solution (VRS) Session  Facilitated session with key stakeholders (1/2-day), separately with customer and service provider to understand assessment results  Step 4: Closing the Gaps  The customer and service provider teams meet to review the gaps identified in the Baseline Assessment Sessions and discussed in the Solution Sessions in order to develop action plans  Gain deep understanding, buy-in and follow through across the organization from collaborative methodology  Step 5: Checkpoint Assessment Sessions 1992 – 2013 Confidential to The NorthPoint Group © Atlanta - Boston – Cleveland – Detroit - NYC 12 www.thenorthpointgroup.net All Rights Reserved
  • 13. Step 1: Baseline Customer and Service Provider Value-Risk Assessment Sessions Baseline Baseline Service Baseline Baseline Service Customer Provider Customer Provider Value-Risk Value-Risk Value-Risk Value-Risk Assessment Assessment Assessment Assessment Session Session Session Session The ½-day Value-Risk Assessment is conducted during the sales/pursuit or delivery phases of a deal – separate session for Customer and Service Provider Teams  OVA analytical software is utilized to conduct the assessments Customer Team members evaluate, discuss and score how well the service provider meets their needs. Customer Team will understand:  The governance processes that will be in place  Value they will receive Service Provider Team members evaluate, discuss and score how well they and outsourcing initiative will meet the value expectations & requirements of the customer. Service Provider Team will understand:  Problem the customer is trying to solve  How the service provider and the initiative will solve the problem  Value requirements & expectations  Value the service provider commits to deliver 1992 – 2013 Confidential to The NorthPoint Group © Atlanta - Boston – Cleveland – Detroit - NYC 13 www.thenorthpointgroup.net All Rights Reserved
  • 14. Step 2: Customer & Service Provider sessions are compared to produce a gap analysis for critical insights for both customer and provider… Baseline Baseline Gap Analysis Service Provider vs Customer View Provider Customer Gap Analysis && Management Management Report Report OVA proprietary database contains extensive market research and experience data on the value and buying factors addressed during the purchase decision cycle. From the Baseline Customer & Service Provider sessions the database produces predictive analytics & prescriptive activities to address. Gaps between the Baseline Performance Indices are analyzed and documented. Team reviews the assessment output at the Fundamental OVA software, database and methodology equip the provider of an outsourcing Business Activity level to identify initiative with a proactive and repeatable process to ensure they understand: areas with significant performance  Gap between the value expectations and value requirements of their target buyer issues and the value committed to be delivered through the outsourcing initiative  Severity and nature of the gap  Activities required to minimize the gap  Priority of the steps to mitigate the risk in an account  Value based market messages required to win in the outsourcing market 1992 – 2013 Confidential to The NorthPoint Group © Atlanta - Boston – Cleveland – Detroit - NYC 14 www.thenorthpointgroup.net All Rights Reserved
  • 15. Step 2: Understanding the gaps and what needs to be done to resolve the issues across the 14 categoriesBaseline Gap Analysis (continued)The team can now review the assessment output at the next level of detail (in this case we are reviewing the “Developing & Maintaining theRequired Trust Between Both Organizations” FBA)For each of the major areas assessed (component level-Fundamental Business Activity scoring) there is a detailed statement with the Team’sscore of the related the Steps, Tasks and Processes.  Team scoring of the Steps, Tasks and Processes is the input to the Performance Profile Score  The lowest Performance Profile Scores indicate areas with the most significant improvement opportunities Team Step, Task, Process score 1.00 Offering project team has developed an Provider CustomerService Provider vs Customer View important and sustainable level of trust with the enterprise and its management -1.00 Source provides all of the appropriate requested information with supporting details to its customers and new buyers 2.50 Source has established trust with enterprise that it will provide offering and the associated value for the enterprise 1.00 Source has successfully demonstrated its dedication to the success of the enterprise 0.00 Offering project team is empowered to make critical decisions with customers and new buyers 1.00 Offering project team has been successful in providing a clear and compelling case as to the value of its services -1.00 Source business process is effective and efficient in managing these types of outsourcing offerings 1.00 Mutual trust established between source and the enterprise has developed into a strong business relationship 1992 – 2013 Confidential to The NorthPoint Group © Atlanta - Boston – Cleveland – Detroit - NYC 15 www.thenorthpointgroup.net All Rights Reserved
  • 16. Step 2: Prescriptive actions identified to resolve the issues and develop the plan to add more value to the organizationBaseline Gap Analysis (continued)The team can now identify the prescriptive improvements required to improve performance for each Step, Task and ProcessThe Steps, Tasks and Processes in conjunction with the notes recorded in the software from the facilitated session (scoring ofthe statements) provides the knowledge required to address the root cause of the issues. Team Step, Task, Process score 1.00 Offering project team has developed an • There is a new engagement process that has been initiated to exchange issues , from important and sustainable level of trust with irritants to fundamental issues and missed opportunities, that is now an important part of the the enterprise and its management culture and performance improvement process. -1.00 Source provides all of the appropriate • There has been a quick path process implemented for the request and results of requested information with supporting details to its customers and new buyers requested information for both the service provider, the ultimate customer and vice versa. 2.50 Source has established trust with • The process of full disclosure has been implemented and there is the process of enterprise that it will provide offering and the associated value for the enterprise engaging senior management in issues deemed critical. 1.00 Source has successfully demonstrated its • The customers, users and service provider have completed a joint strategy session dedication to the success of the enterprise to improve the enterprise performance and resolve issues. 0.00 Offering project team is empowered to make critical decisions with customers and • The team now makes the decisions and implements over 90% of the identified new buyers opportunities without prior approvals. 1.00 Offering project team has been successful • The assessment process has identified the unmet and unidentified needs and the in providing a clear and compelling case as associated ROI and is now tracking implementation of the improvements and the impact to the value of its services on EBITDA. -1.00 Source business process is effective and efficient in managing these types of • The service provider has improved its relationship and commitment with the end outsourcing offerings customers and users by over 80%. 1.00 Mutual trust established between source and the enterprise has developed into a • Each party has increased its scoring of the trust factors from 62% to 87% over the strong business relationship course of 3 assessments. *These Steps, Tasks and Processes support a Performance Profile result from the prior page 1992 – 2013 Confidential to The NorthPoint Group © Atlanta - Boston – Cleveland – Detroit - NYC www.thenorthpointgroup.net All Rights Reserved 16
  • 17. Step 2: Deliverables developed from the software based tool that identify areas that will require focus if improvements are to be made… Management reports include:  Summary of “Best-in- Provider Class” results, Customer analysis, findings, conclusions on barriers to value & risk management recommendations  Summary of Baseline Sessions  Graphical outputs & comparative charts  Performance & risk metrics generated by comparing the outsourcing initiative to “Best-in-Class” within NP’s database. 1992 – 2013 Confidential to The NorthPoint Group © Atlanta - Boston – Cleveland – Detroit - NYC 17 www.thenorthpointgroup.net All Rights Reserved
  • 18. Step 3: Baseline Customer and Service Provider Value-Risk Solution Sessions Separate Performance Scorecards covering 12 buying value barriers prepared for the Enterprise View (Customer and Source View (Service Provider) Baseline Baseline Service Baseline Baseline Service Customer Provider Customer Provider Value-Risk Value-Risk Value-Risk Value-Risk Solution Solution Solution Solution Session Session Session Session Customer & Service provider teams re- convene separately for a 1-day session to review VRA output 1992 – 2013 Confidential to The NorthPoint Group © Atlanta - Boston – Cleveland – Detroit - NYC 18 www.thenorthpointgroup.net All Rights Reserved
  • 19. Step 3: Baseline Customer and Service Provider Value-Risk Solution Sessions (continued) Separate Performance Scorecards prepared for the Enterprise (Customer)and Source (Service Provider) Views that cover 14 fundamental outsourcing activities 1992 – 2013 Confidential to The NorthPoint Group © Atlanta - Boston – Cleveland – Detroit - NYC 19 www.thenorthpointgroup.net All Rights Reserved
  • 20. Step 4: Closing the Gaps Closing The Closing The Gaps GapsClosing the GapsThe customer and service provider teams meet to review the gapsidentified in the Baseline Assessment Sessions and discussed in theSolution Sessions.Leaders are identified to address the areas of low performanceTeams are commissioned, responsibilities assigned, metrics aredefined and timeframes are agreed to.The service provider may be required to revise the supportagreement resulting in:  Additional consulting projects  Additions to outsourcing scope  Revised SLA’s 1992 – 2013 Confidential to The NorthPoint Group © Atlanta - Boston – Cleveland – Detroit - NYC 20 www.thenorthpointgroup.net All Rights Reserved
  • 21. Step 5: Checkpoint Assessment Sessions (Recommended every 90-120 days after Baseline completion) Checkpoint Checkpoint Checkpoint Checkpoint Service Provider Checkpoint Checkpoint Service Provider Customer Gap Analysis Assessment Customer Gap Analysis Assessment Assessment & Management Session Assessment & Management Session Session Report Session Report  Service Provider team meets  Customer team meets to  The data from both the Customer & Service to evaluate their value evaluate value received Provider Checkpoint Sessions are embedded delivery commitments. versus value committed. into the database in order to produce predictive analytics & prescriptive activities.  Session allows provider to  Customer team provides identify additional areas to feedback on other issues,  Any gaps between the Performance Indices provide value, beyond the concerns or new are analyzed and documented. Service Level Agreement requirements.  Any areas that need to be improved or new (SLA). customer requirements will be identified.Customer & Service Provider Checkpoint Assessment  The management report will include the Sessions can be combined to promote collaboration following:  Updated performance & risk metrics generated by comparing the outsourcing initiative to NP’s “Best- in-Class” database.  Mapping of Checkpoint metrics to Baseline metrics, identifying areas of improvement, change and areas that still need focus.  Redefine the value propositions to be delivered. 1992 – 2013 Confidential to The NorthPoint Group © Atlanta - Boston – Cleveland – Detroit - NYC 21 www.thenorthpointgroup.net All Rights Reserved
  • 22. OVA helps move outsourcing engagements from just an efficiency focus to more of a business effectiveness focus… Statement Type Issues # of Covered Statements as a % 1 Identify restrictive business processes that were an issue to the 45.26% 62Economic / Management Results competitive advantage of customer Economic Results 2 Lead to new outsourcing opportunities for provider with customer 34.31% 47  ROI for Provider 19% to 28.8% (26 assessments) 3 Brought out new issue that were a priority with customer 35.77% 49  ROI for Customer 22.3% to 26.2% (41 assessments) 4 Brought serious issues with how the SLA was managed and 6.57% 9 Management Results administered  Number of issues that required 5 Identify and initiate issues requiring resolution between business and IT 36.69% 53 resolution Yr. 1 – 15 leadership  Number of issues that required 6 Lead to new customer opportunities to improve their business processes 33.58% 46 resolution Yr 2 – 20 7 Lead to customer outsourcing scope changes 27.74% 38 8 Identify gaps of issue resolution between provider and customer 18.98% 26 9 Lead to new process improvements between provider and customer 23.36% 32 10 Lead customer to accept new opportunities to improve relationship 29.93% 41 11 Lead provider and customer to collaborate together 23.36% 32 12 Used as they applied to provider and customer 98.54% 135 1992 – 2013 Confidential to The NorthPoint Group © Atlanta - Boston – Cleveland – Detroit - NYC 22 www.thenorthpointgroup.net All Rights Reserved
  • 23. OVA measures outsourcing management and governance processes, which are critical to the success of outsourcing engagements Outsourcing Management & Governance Relationship Management  Communications management  Stakeholder expectation management Risk Management Outsourcing Management & # of % of  Meet contractual obligations Governance Statements Statements • Commercial management Customer Relationship Management 26 19.0% • Service quality Risk Management 42 30.7% • Compliance management Value Realization Management 27 19.7%  Ensure effective management 95 69.3% • Change management  Rapid resolution of issues  Ensure management control  Provide consistent direction Value Realization Management  Ensure delivery of expected savings  Ensure market pricing  Manage demand  Create optimization through standardization  Leverage/focus provider  Institutionalize process improvement 1992 – 2013 Confidential to The NorthPoint Group © Atlanta - Boston – Cleveland – Detroit - NYC 23 www.thenorthpointgroup.net All Rights Reserved
  • 24. OVA governance processes identify the right priorities and supportexecution for performance improvement 1992 – 2013 Confidential to The NorthPoint Group © Atlanta - Boston – Cleveland – Detroit - NYC 24 www.thenorthpointgroup.net All Rights Reserved