Governance Slidepack June2010 Without Notes

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Successful Sourcing Governance - Method or Magic? Eleanor Winn, Director Source takes a look....

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Governance Slidepack June2010 Without Notes

  1. 1. Successful governance Eleanor Winn source method or magic
  2. 2. Understand what governance really means Understand the accepted methods for good governance Understand what makes governance of a relationship really fly – the magic OBJECTIVES
  3. 3. <ul><li>Governance is the activity of governing. It relates to decisions that define expectations, grant power or verify performance </li></ul>
  4. 4. <ul><li>Governance in its widest sense refers to how any organisation, including a nation is run. It includes all the processes, systems and controls that are used to safeguard and grow assets. </li></ul>
  5. 5. governance is not a mystery
  6. 6. … a magic pill governance is not…
  7. 7. <ul><li>no surprises </li></ul><ul><li>control </li></ul><ul><li>joint working </li></ul><ul><li>“ recommend to a friend” </li></ul>
  8. 8. <ul><li>If there were a recipe for good governance what would be on the ingredients list? </li></ul><ul><li>Reporting </li></ul><ul><li>Performance management </li></ul><ul><li>Financial management </li></ul><ul><li>Contract management </li></ul><ul><li>Demand management </li></ul><ul><li>Risk management </li></ul>
  9. 9. <ul><li>Reporting </li></ul><ul><li>Would you drive a car without looking at the dashboard? </li></ul>
  10. 10. <ul><li>Regular </li></ul><ul><li>Clear </li></ul><ul><li>Complete </li></ul><ul><li>Unequivocal metrics </li></ul><ul><li>Fit for purpose metrics </li></ul>good reporting is …
  11. 11. <ul><li>Performance management is… </li></ul>Service level reporting Problem management System/process change Project management
  12. 12. Financial management Budgetary management Invoice reconciliation Benefit tracking Business case mgt
  13. 13. <ul><li>Contract management </li></ul><ul><li>Compliance on both sides </li></ul><ul><li>Maintain lists and schedules </li></ul><ul><li>Manage change </li></ul>
  14. 14. <ul><li>It still has to be about the customer </li></ul><ul><li>Collaboration between customer and supplier will make all the difference </li></ul><ul><li>Keep it visible </li></ul>Demand management
  15. 15. <ul><li>Risk management </li></ul><ul><li>Audit </li></ul><ul><li>Protection of commercial position </li></ul><ul><li>Review of key docs such as exit plan </li></ul>
  16. 16. <ul><li>3 layer model </li></ul><ul><li>executive </li></ul><ul><li>management </li></ul><ul><li>Operational </li></ul><ul><li>Each serves a different purpose and is important in its own way </li></ul>
  17. 17. <ul><li>Options for managing multiple suppliers </li></ul><ul><li>Best practice sharing – ad hoc </li></ul><ul><li>Formalised best practice sharing </li></ul><ul><li>Integrated vendor management organisation </li></ul>
  18. 18. So, where’s the magic?
  19. 19. <ul><li>Relationship </li></ul><ul><li>Trust </li></ul><ul><li>Flexibility </li></ul><ul><li>Mutual recognition </li></ul><ul><li>Alignment </li></ul>
  20. 20. Trust and collaboration are essential
  21. 21. But hold their own dangers
  22. 22. <ul><li>Culture </li></ul><ul><li>Curiosity </li></ul><ul><li>Lack of fear </li></ul><ul><li>Willingness to take risks </li></ul><ul><li>Shared responsibility </li></ul>
  23. 23. Taking a longer term view isn’t easy… … it takes balls
  24. 24. change Continuous improvement Active change process
  25. 25. Eleanor Winn [email_address] M: 07966 242665 source

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