Partner Performance Improvement


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At Devenyn & Partners we have a team of expert professionals to deal with all these issues - so you can focus on running your business. You can leverage our deep and niche expertise around Cisco service programs and their performance metrics, best practice renewal processes, quoting and contract management processes and tooling, and the like.

We help you to improve your margins around the Services business. We will improve both your top and bottom line.

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  • Partner Performance Improvement

    1. 1. Partner Performance Improvement June 2014 Helping Cisco Partners to maximize margin… Governance - Process - Change ©2014 Devenyn & Partners
    2. 2. Service Offering for Partners We offer a niche consulting specific for Cisco partners: • Performance Assessment & Improvement – CSPP metrics management – Current performance review + identification improvement scenarios – Margin optimization modelling • Process improvement / best practices – Renewal instance process & organization – Pricing modeling for offers / projects – IB visibility / contract structuring processes / IB simplification • Tools – Estimate pricing automation (Excel plugins) – IB validation automation (Excel plugins) – Tooling for IB management – Network scanning tools & processes • Loan staffing – Basic training: CSCC+ CCW / onboarding – Contract management as a service 2 Governance –Process - Change ©2014 Devenyn & Partners
    3. 3. CSPP Metrics Management We help the partner to maximize margin, in the context of the CSPP program, at strategic level. • Modelling of service business, based on chosen strategy. Different scenarios can be pursued. • 2 value chain processes to be optimized – Partner to Cisco processes – CSPP metrics – Partner to End Customer processes • Excel modelling of the profitability scenarios. Calculated bottom line. – Optimized top line: maximize sales to customers – Optimized bottom line: maximize total efficiency in CSPP program management (revenue – cost) • Partners can actively steer towards more service on end customers. On the other hand, the Partner can buy more efficiently at Cisco. This can be modelled and optimized. •We can quickly benchmark your performance and target % improvement. 3 Governance –Process - Change ©2014 Devenyn & Partners
    4. 4. Performance assessment We give the Partner a performance baseline, and realistic improvement target. We report on margin improvement realized. • Partners typically only consult the high level metrics. They don’t get enough information out of PMC data. • Most partners are just not good in PMC. Partners don’t get the value out of the available metrics; PMC is too complex. • PMC provides basis for calculated business case for different scenarios. PMC allows to give profit view over 3 years. • PMC also contains the entire Install Base (IB) in detailed reports. •We help to get most out of Cisco metrics using PMC. We give you a monthly performance review, and actions to improve Partner margins (through e.g. discounts and rebates). We help partners to simplify their contract structure. 4 Governance –Process - Change ©2014 Devenyn & Partners
    5. 5. Performance improvement We help the partner to maximize margin, using a structured framework of levers contributing to margin. Execute the tactics. • There are various scenarios to improve Partner profitability. Not all levers are known or used to improve Partner margin. • Examples: – Spare more – service less – Work on cost to serve – RMA strategy – avoid revenue leaks through service overdelivery versus what is agreed upon in the contract… – Serve more contracts with same people – work on transaction efficieny. Increase margin by optimizing process efficiency. – Optimize process for renew/attach – what is really needed, when? – Optimize discount structure and rebates – Better deal negotiation & closure – Use promotions – Sell more – identify more opportunities in Install Base (EOS, LDOS) – Etc… 5 Governance –Process - Change ©2014 Devenyn & Partners
    6. 6. Process example - Simplification of Install Base We drastically simplify contracts, allowing the Partner to gain control over and realize opportunities from the install base. • Contract structuring and simplification – There are typically 40 contracts per end customer; this can drastically be reduced. – Contract consolidation and co-terming is a basic first step in simplifying the install base. The contract cleanup and structuring just does not happen; partners don’t know how to do this. – We apply a series of contract structuring best practices. – Using the partner PMC data, we can give consolidation recommendations (multiple contracts for same customer), or split contract recommendations (multiple end customers in same contract). – We advise on co-terming, so there are a limited number of contract end dates that are meaningful to the partner (FY end). – We harmonize contracts based on a meaningful partner/end customer structure, using e.g. IB architecture types, etc. These go with simplified coverage rules. – Cisco contracts are polluted if not cleaned. 6 Governance –Process - Change ©2014 Devenyn & Partners
    7. 7. Process example - Visibility on IB We help partners to gain structure insight in total customer IB and value. We help you to get opportunities from your IB. • Partners do not have adequate visibility on the IB. Partner contracts are typically a mess. – Then the renewal logic typically is : Do we still have that customer? If yes, we renew it all… There could be important savings to be made. – There could be opportunities for EOS/LDOS equipment. There could be an architectural play as migration project. • Partners can also benefit from network assessments; probing. – Partners are also interested in ‘smart’ : What, where, how old, warranty, …? What is covered /uncovered? – Only very dedicated Cisco Partners have this under control; smaller Partners do not. Partners typically have no systems to adequately manage IB. • But partners do not want to give too much transparency to Cisco. There is misalignment on the “IB truth” between Customer / Partner / Cisco. • Inventory management processes (CMDB) • Scanning tools & IB maintenance processes • Gaining insight in total customer IB structure and value. Getting opportunity reporting (e.g. ICEBreaker, RCC reporting,…). Both at operational as Exec level. 7 Governance –Process - Change ©2014 Devenyn & Partners
    8. 8. Tools example - Service Pricing & IB validation plugins We provide excel plugins to instantaneously validate and price your IB lines. Partners can quote any IB size file in Excel in minutes. • We have conceived and developed the ‘Estimate Tools’, which are being rolled out globally within the Cisco Field, and Field supporting functions. But this is for internals only. •We now offer a version that is tailored for Partners, as a support against a subscription fee. – Quickly understanding product SKUs, service levels, etc. (basic understanding IB) – The Estimate Tools allow to simulate pricing for large IB files in Excel. This can be done in minutes. – There is no need to use CSCC for obtaining a basic pricing scenario, and to simulate Service Levels for commercial offers. – End of Life information (End of Sales, Last Date of Service, and migration products) are instantly available. – Any custom template that is used by the Partner (e.g. margin calculation / quote to end customer) can embed these automated pricing formulas and macros. • Pricing is a lot faster than a quote… 8 Governance –Process - Change ©2014 Devenyn & Partners
    9. 9. Cisco services, systems and transactioning training We provide cost effective training for your backoffice quoting teams. • Cisco tools are complex (CSCC, CCW, PMC,…) . There is a steep learning curve. Tool quality remains sometimes an issue. • Cisco Services in general, and programs for partners are also complex. There is a need to know more about services in general, policies, partner programs, CSPP… • Partners have smaller teams; these people also rotate. Within Cisco people also rotate. Real expert knowledge is quickly gone. • Current training by Cisco is being offered primarily online instead of one-to-one. Focus goes to larger Partners. Advanced training is typically not available (only basics). • We offer tailored system and process training for your teams. So your new people can be on boarded a lot faster. • Partners typically don’t know how to make the Cisco ‘customer service’ teams work for them. We help you to get the most out of the Cisco support teams. 9 Governance –Process - Change ©2014 Devenyn & Partners
    10. 10. Contract Management as a service We offload partners from the contract management headache. We offer nearshore expertise (loan staff) for this specialist area. • Contract management teams at partners are always understaffed. They have no time to actually look at the IB. Hence they don’t have time to clean and structure IB data. – The contract management domain requires a very deep expertise in the Cisco quoting and IB data validation area. – Backoffice teams primarily want to quote and renew. They don’t want to do contract mgmt. • The result : contracts in Cisco systems are not up to date. Misalignment between Partner/End Customer/Cisco view on the truth. Timely renewal is very difficult. Results in many escalations. • Issues typically encountered when trying to renew are: – Basic IB management (address changes, RMAs…) – Partners put kit also on their own addresses (install at). Partners move kit between end customers. – Minor to major (config changes, card switching) – How to structure a contract in simplified way? How to do spare management? How to do software renewals? – Cleanup specific to Tandberg business 10 Governance –Process - Change ©2014 Devenyn & Partners
    11. 11. Contact Devenyn & Partners Edward Pynaertkaai 106 9000 Gent T +32 9 231 28 53 T +32 475 904 781 11 Governance –Process - Change ©2014 Devenyn & Partners