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Engaging suppliers and customers

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Engaging suppliers and customers

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When establishing the relationship between an external service provider (outsourcer) and customer, why do we document a whole operating model spanning both organisations? The whole point of outsourcing is that the supplier should be a black box, with inputs, outputs and performance requirements. What we need to define is the interface between the two entities, to ensure the operating models of each one mesh properly together: the Engagement Model.
This is more efficient: we don't redundantly document processes which already exist, and are documented elsewhere. It is more effective: we focus on the gaps, specifying the requirements for change in each organisation in order to connect their operating models.
This is pioneering stuff: there is very little published on what an engagement model should look like or how to develop and use it. Rob has built them: this presentation looks at a format, the content, and its uses

When establishing the relationship between an external service provider (outsourcer) and customer, why do we document a whole operating model spanning both organisations? The whole point of outsourcing is that the supplier should be a black box, with inputs, outputs and performance requirements. What we need to define is the interface between the two entities, to ensure the operating models of each one mesh properly together: the Engagement Model.
This is more efficient: we don't redundantly document processes which already exist, and are documented elsewhere. It is more effective: we focus on the gaps, specifying the requirements for change in each organisation in order to connect their operating models.
This is pioneering stuff: there is very little published on what an engagement model should look like or how to develop and use it. Rob has built them: this presentation looks at a format, the content, and its uses

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Engaging suppliers and customers

  1. 1. Engaging suppliers and customers Rob England v2
  2. 2. Service provider • Service integration • Service aggregation • XaaS • Cloud • “Bespoke” outsourcing
  3. 3. Mutual engagement
  4. 4. Operating model lient incident or equest Request Search for workaround or solution Knowledge base found Client resolution Incident matching Request closed Request for Change Incident resolution found Incident resolution CMDB N Y N Y problem Y N problem Y N
  5. 5. Customer 2 Customer 1 Supplier 2 Supplier 1
  6. 6. Operating model lient incident or equest Request Search for workaround or solution Knowledge base found Client resolution Incident matching Request closed Request for Change Incident resolution found Incident resolution CMDB N Y N Y problem Y N problem Y N
  7. 7. lient incident or equest Request Search for workaround or solution Knowledge base found Client resolution Incident matching Request closed Request for Change Incident resolution found Incident resolution CMDB N Y N Y problem Y N problem Y N Engagement model
  8. 8. lient incident or equest Request Search for workaround or solution Knowledge base found Client resolution Incident matching Request closed Request for Change Incident resolution found Incident resolution CMDB N Y N Y problem Y N problem Y N Engagement model Roles Policies Channels Relationships Services Processes Controls Process interlocks Agreements
  9. 9. Customer 2 Customer 1 Supplier 2 Supplier 1
  10. 10. Typical content
  11. 11. Outcomes • Clarity of expectations • Gap analysis • Specify Operating Model changes • Single operating model • Single procedural documentation • Brevity and focus • Speed and efficiency
  12. 12. A maturity model? 1: Trust. Naïve contract 2: Don’t trust. Operating Model 3: Trust. Engagement model 4: Verify. Measured engagement model 5: Contest. Open engagement model Thanks Jan Wijninckx
  13. 13. Engaging suppliers and customers Rob England www.twohills.co.nz

Editor's Notes

  • © Two Hills Ltd 2014
    Created and published by Two Hills
    letterbox@twohills.co.nz
    www.twohills.co.nz
    PO Box 57-150, Mana
    Porirua 5247
    New Zealand
    This work by Two Hills Ltd is licensed under a Creative Commons Attribution-ShareAlike 3.0 Unported License. Content must be attributed to "Two Hills Ltd www.twohills.co.nz by The IT Skeptic".
  • Talking here about engagement between the supplier and customer where each acknowledges the existence of the other and they come to an agreement, i.e. not commodity services.
  • Define process across both orgs
    Define roles for each other
    Define new mutual policies

    The issues this presents
    Duplication/redundancy
    Variation/complexity
    Assumptions
    Both organisations have a working operating model
    At least one driver is reduction of costs
    Often another driver is simplification

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