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© 2015 Information Services Group, Inc. All Rights Reserved.
© 2015 Information Services Group, Inc. All Rights Reserved.
Meeting the Minimum Governance Table Stakes
to Stay in the Game
Governance Services:
Tina	
  Roy,	
  Partner	
  
© 2015 Information Services Group, Inc. All Rights Reserved 3
Agenda
o Contracts	
  are	
  changing;	
  expecta6ons	
  are	
  rising	
  
o How	
  to	
  change	
  the	
  game	
  with	
  good	
  governance	
  	
  
o How	
  to	
  drive	
  value	
  add	
  in	
  your	
  client	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
rela6onships	
  
© 2015 Information Services Group, Inc. All Rights Reserved 4
Did you know?
o  Contract value leakage is as high as 10% of ACV for
either party
o  Provider compliance to D&Os is typically below 25%
(even with your renewals and COLA notifications)
o  Lack of compliance for new SOWs or change orders
doubles the typical 20-day close cycle
o  ~20% of payments are delayed due to invoicing errors
© 2015 Information Services Group, Inc. All Rights Reserved 5
The client-provider relationship
is becoming more complex.
XaaS, Cloud,
Consumption
& Outcome-
based
Contracts
Focus on cost
reduction
heightened with
automation &
digitization
Multiple
suppliers and
SIAM
Mandatory
guidelines for
risk, audit &
compliance
© 2015 Information Services Group, Inc. All Rights Reserved 6
Is this where you should be spending your time anyway?
ü  Meeting basic D&O expectations
ü  Producing accurate & quality Invoice/Change Order/SOWs
ü  Correctly calculating COLA or even charging it!
ü  Ensure quality, tracking and reporting
ü  Defending rates and Service Levels
The simple stuff - if not attended to -
can shroud the relationship in doubt.
© 2015 Information Services Group, Inc. All Rights Reserved 7
Basic governance solutions help ensure …
you spend less time keeping the
lights on and justifying your value
and more time delivering high
quality service and strategizing the
future target operating model and
innovating.
© 2015 Information Services Group, Inc. All Rights Reserved 8
How do you
… improve the quality of invoices
… increase efficiency and
… reduce payment cycle times
...proactively meet your obligations?
Implement the right processes and technology
with the right resources and rates.
© 2015 Information Services Group, Inc. All Rights Reserved 9
?
Should you be adopting
state-of-the-art governance
measures like your
clients are doing
© 2015 Information Services Group, Inc. All Rights Reserved 10
Suppliers can use governance frameworks to…
ü  minimize your own losses
ü  refocus your energies and talent on
delivering next-generation services
ü  ensure your fees are competitive
ü  optimize your efforts toward delighting
your clients
…and “raising the stakes’ for the
competition
© 2015 Information Services Group, Inc. All Rights Reserved 11
…and be proactive
o  Improve contract hand off from sales to delivery
o  Focus on startup and transition activities tied to
milestones and penalties
o  Deliver good, quality service
Good governance helps you
o  Knowing and meeting your obligations
o  Ensuring your rates are not only compliant
but competitive.
© 2015 Information Services Group, Inc. All Rights Reserved 12
“Double Down” and realize the “full value”
of the contract you negotiated.
o  Create the transparency for your clients
o  Work from fact-based data
o  Leverage proven benchmark data
o  Plan for the future
o  Automate where possible
o  Adhere to stringent processes
o  Standardize your obligations across
contracts
© 2015 Information Services Group, Inc. All Rights Reserved 13
Can you identify the tactical and quality issues
to improve the relationship and service?
Risks
Processes
Roles and
responsibilities
Tools People Value leakage
Compliance Relationship
© 2015 Information Services Group, Inc. All Rights Reserved 14
What is the
ISG Essentials
Startup Kit?
© 2015 Information Services Group, Inc. All Rights Reserved 15
Captures & assigns
contract obligations.
Proactively identifies, tracks,
and alerts.
Provides an SOW
benchmark factory and
reports on key financial
measures.
Implements invoice and
service level management
validation.
Performs ongoing
reconciliation & validation.
Performs
contract interpretations.
Proactively captures and
records
critical contract changes.
Captures and tracks contract
issues to resolution.
The ISG Essentials Startup Kit …
© 2015 Information Services Group, Inc. All Rights Reserved 16
Differentiate your business through
good governance basics
o  Shift valuable resources from resolving daily,
transactional issues to delivering real value
o  Proactively meet your contractual commitments
o  Demonstrate quality, compliance & competitiveness
o  Employ new ways to communicate and inform your client
through state-of-the-art dashboards & reports
and maximizing your value
www.isg-one.com
imagine your future™
let’s	
  connect…	
  

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Governance Services: Meeting the Minimum Governance Table Stakes to Stay in the Game

  • 1. © 2015 Information Services Group, Inc. All Rights Reserved.
  • 2. © 2015 Information Services Group, Inc. All Rights Reserved. Meeting the Minimum Governance Table Stakes to Stay in the Game Governance Services: Tina  Roy,  Partner  
  • 3. © 2015 Information Services Group, Inc. All Rights Reserved 3 Agenda o Contracts  are  changing;  expecta6ons  are  rising   o How  to  change  the  game  with  good  governance     o How  to  drive  value  add  in  your  client                                   rela6onships  
  • 4. © 2015 Information Services Group, Inc. All Rights Reserved 4 Did you know? o  Contract value leakage is as high as 10% of ACV for either party o  Provider compliance to D&Os is typically below 25% (even with your renewals and COLA notifications) o  Lack of compliance for new SOWs or change orders doubles the typical 20-day close cycle o  ~20% of payments are delayed due to invoicing errors
  • 5. © 2015 Information Services Group, Inc. All Rights Reserved 5 The client-provider relationship is becoming more complex. XaaS, Cloud, Consumption & Outcome- based Contracts Focus on cost reduction heightened with automation & digitization Multiple suppliers and SIAM Mandatory guidelines for risk, audit & compliance
  • 6. © 2015 Information Services Group, Inc. All Rights Reserved 6 Is this where you should be spending your time anyway? ü  Meeting basic D&O expectations ü  Producing accurate & quality Invoice/Change Order/SOWs ü  Correctly calculating COLA or even charging it! ü  Ensure quality, tracking and reporting ü  Defending rates and Service Levels The simple stuff - if not attended to - can shroud the relationship in doubt.
  • 7. © 2015 Information Services Group, Inc. All Rights Reserved 7 Basic governance solutions help ensure … you spend less time keeping the lights on and justifying your value and more time delivering high quality service and strategizing the future target operating model and innovating.
  • 8. © 2015 Information Services Group, Inc. All Rights Reserved 8 How do you … improve the quality of invoices … increase efficiency and … reduce payment cycle times ...proactively meet your obligations? Implement the right processes and technology with the right resources and rates.
  • 9. © 2015 Information Services Group, Inc. All Rights Reserved 9 ? Should you be adopting state-of-the-art governance measures like your clients are doing
  • 10. © 2015 Information Services Group, Inc. All Rights Reserved 10 Suppliers can use governance frameworks to… ü  minimize your own losses ü  refocus your energies and talent on delivering next-generation services ü  ensure your fees are competitive ü  optimize your efforts toward delighting your clients …and “raising the stakes’ for the competition
  • 11. © 2015 Information Services Group, Inc. All Rights Reserved 11 …and be proactive o  Improve contract hand off from sales to delivery o  Focus on startup and transition activities tied to milestones and penalties o  Deliver good, quality service Good governance helps you o  Knowing and meeting your obligations o  Ensuring your rates are not only compliant but competitive.
  • 12. © 2015 Information Services Group, Inc. All Rights Reserved 12 “Double Down” and realize the “full value” of the contract you negotiated. o  Create the transparency for your clients o  Work from fact-based data o  Leverage proven benchmark data o  Plan for the future o  Automate where possible o  Adhere to stringent processes o  Standardize your obligations across contracts
  • 13. © 2015 Information Services Group, Inc. All Rights Reserved 13 Can you identify the tactical and quality issues to improve the relationship and service? Risks Processes Roles and responsibilities Tools People Value leakage Compliance Relationship
  • 14. © 2015 Information Services Group, Inc. All Rights Reserved 14 What is the ISG Essentials Startup Kit?
  • 15. © 2015 Information Services Group, Inc. All Rights Reserved 15 Captures & assigns contract obligations. Proactively identifies, tracks, and alerts. Provides an SOW benchmark factory and reports on key financial measures. Implements invoice and service level management validation. Performs ongoing reconciliation & validation. Performs contract interpretations. Proactively captures and records critical contract changes. Captures and tracks contract issues to resolution. The ISG Essentials Startup Kit …
  • 16. © 2015 Information Services Group, Inc. All Rights Reserved 16 Differentiate your business through good governance basics o  Shift valuable resources from resolving daily, transactional issues to delivering real value o  Proactively meet your contractual commitments o  Demonstrate quality, compliance & competitiveness o  Employ new ways to communicate and inform your client through state-of-the-art dashboards & reports and maximizing your value