Background
• Unisys “voice of the customer” project, UK – 2001
• 3rd party interviewed senior personnel from major accounts
• ALL 68 respondents mentioned “partnership” in one way or another
• Most RFP’s contain references to partnership
What then?
• We found there was quite some “partnership confusion”
• We had little real knowledge of what “partnership” means
• Research indicated there is not much available to help understand and develop “partnership”
• So we created PVM to address this opportunity
Partnership
Service Level
Agreements
Return On
Investment
Governance
Tactical/Legal/Control
RelationshipRelationship
Partnership Elements
Continuous ProcessPreferred Partnership ModelEngine Metrics (Baseline)Partnership CharterPartner ActionsWorkshop ReportImproved Relations
Detailed ReportSuggested ActionsImproved Relations
Definition Workshop
Action Management
PVMAssessment
Engine
Action Management
ReviewPartnership
Definition
0 200 400 600 800 1000
DecliningCommencing
ReasonableAverage
Financially sound, innovativeIn-depth Relationship
Partnering -Loyal
World ClassPartnership
Exit - PoorPartnership
Poor to GoodPartnership
446 Current446 CurrentBenchmarkBenchmarkAverageAverage
WorldWorldClassClassTargetTarget
GapGap
PVM Benchmark
Partnership size independent
The more complex the relationships then the greater need for PVM
One to One One to Many Many-to-Many
PVM Credentials
• Academic credentials– Cranfield University– Manchester Business School
• Unisys Customers - examples– Merrill Lynch Europe– Royal & Sun Alliance (Phoenix) – Lloyds of London– London Borough of Harrow
• Unisys Partners - examples– Microsoft Belgium– Microsoft UK– EMC
Case Study - situation
• Large Investment Bank– Unisys holds Outsourcing contract to deliver “managed services”
(help desk, desk top support etc.)– 25.000 seats
• Key reasons we won initial contract: – ROI– Solve IT problem
• Success?– All SLA measures green
• Customer unhappy!– Openly talking about leaving
• Addressed through Partnership Value Model
Case Study – Mine field vs Mind meld
• Unisys perception• We delivered operational excellence• Excellent governance system
• Customer perception• Expectations not met• Not happy with performance
• Question “What Partnership did we both expect/need?”– Strategic Value not understood
• Whatever happened to importance of ROI?
– Relationship Elements not at all addressed• Annual “do you love us” survey• Still - Customer / Supplier, not Partner / Partner
– Tactical Elements over addressed• What is measured is being done
Areas to address in PVM
• Level of Trust
• Win/win relationship
• Level of added value
• Level of shared objectives
• Long term commitment
• Equal share of risk and reward
• Resolution of challenges
• Sharing of knowledge and information
• Cultural fit
• Integration of partnership
• Financially profitable
• Joint control of services supplied
• Sufficient resources to ensure success
• Communication effectiveness
• Effectiveness of performance metrics
• Chances of failure of the partnership
• Dispute resolution process
• Individual roles within partnership
• Patience and tolerance
• Joint innovation and financial gain
Benefits
• Strategic Benefits– Definition of clear strategy that defines aims, objectives and long-term goals – An improved return on investment – Risk reduction – Joint innovation– Continual focus on business process improvement
• Financial Benefits– Clear, measurable value for money benefits – Continual effort at cost reduction and/or value improvement
• Working Together– Fewer crises – Trust– Better end to end communications– Continuity – people changes have less impact– Full, candid, frequent and open communication between all parties – Effective mechanism for dispute resolution – An exit strategy