Dan Wilson outlines 8 steps to successfully re-sourcing IT client services at Volkswagen Group of America: 1) Assess current problems and needs, 2) Find a solid partner through a thorough RFP process, 3) Ensure the service agreement defines structure, governance, and protections, 4) Establish governance committees and meeting cadence, 5) Select internal and vendor team members, 6) Offer a grace period for the vendor to meet SLAs, 7) Closely manage and hold the vendor accountable to commitments, and 8) Continuously review performance and collaborate on improvements. The presentation provides examples and lessons learned from Volkswagen's successful transition to a new outsourcing model.

1. 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

2. 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

3. 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

5. Deep review of current contract (transition services, staff transition, termination date or clauses, etc.)

6. Review customer satisfaction ratings

7. Review team/employee satisfaction

8. Assess team members for possible transition#1 - Assess the nightmare

11. Use scorecard for rating

12. Interview top 3-4 vendors

13. Contract negotiations with final 2

14. Take time to get to know the top 1 or 2!#2 - Get a solid partner

17. Penalties

18. Contract Management #4 - Governance Structure

23. Enforce penalties and SIP’s if necessary after grace period#7 - Manage and Hold Accountable

25. Make Vendor Service/Program Manager be part of your Management team

27. 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!

29. Example RFP review score sheet

30. Example service certificate

31. Example staffing SoW

32. Example separate/master contract (T&C’s)

33. Example service governance planTakeaways

34. dan.wilson@vw.com