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

TRANSCRIPT

Engaging suppliers and customers

Rob England

v2

Service provider

• Service integration• Service aggregation• XaaS• Cloud• “Bespoke” outsourcing

Mutual engagement

Operating model

Leve

l 2 A

dmin

Leve

l 1

Client incident or request Request

Search for workaround or solution

Knowledge base

found

Client resolution

Incident matching Request closed

Request for Change

Incident resolution found

Incident resolution

Problem identification

CA-USD Request Problem analysis Problem

workaroundProblem resolution

Request for Change

Change process

CMDB

N

Y

N

Y

problem

Y

N

problem

Y

N

Customer 2

Customer 1

Supplier 2

Supplier 1

Operating model

Leve

l 2 A

dmin

Leve

l 1

Client incident or request Request

Search for workaround or solution

Knowledge base

found

Client resolution

Incident matching Request closed

Request for Change

Incident resolution found

Incident resolution

Problem identification

CA-USD Request Problem analysis Problem

workaroundProblem resolution

Request for Change

Change process

CMDB

N

Y

N

Y

problem

Y

N

problem

Y

N

Leve

l 2 A

dmin

Leve

l 1

Client incident or request Request

Search for workaround or solution

Knowledge base

found

Client resolution

Incident matching Request closed

Request for Change

Incident resolution found

Incident resolution

Problem identification

CA-USD Request Problem analysis Problem

workaroundProblem resolution

Request for Change

Change process

CMDB

N

Y

N

Y

problem

Y

N

problem

Y

N

Engagement model

Leve

l 2 A

dmin

Leve

l 1

Client incident or request Request

Search for workaround or solution

Knowledge base

found

Client resolution

Incident matching Request closed

Request for Change

Incident resolution found

Incident resolution

Problem identification

CA-USD Request Problem analysis Problem

workaroundProblem resolution

Request for Change

Change process

CMDB

N

Y

N

Y

problem

Y

N

problem

Y

N

Engagement model

Roles

Policies

ChannelsRelationships

Services

Processes

Controls

Process interlocks

Agreements

Customer 2

Customer 1

Supplier 2

Supplier 1

Typical content

Outcomes

• Clarity of expectations• Gap analysis • Specify Operating Model changes• Single operating model• Single procedural documentation• Brevity and focus• Speed and efficiency

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

Engaging suppliers and customers

Rob Englandwww.twohills.co.nz

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