Governance

Long before a contract is executed with selected suppliers, the client organization must begin preparing for managing the provider relationship and performance to contractual commitments with governance process outsourcing.

Before a retained organization can take responsibility for managing the provider, executive leadership needs to provide answers to business process outsourcing questions like:

• How prepared is the organization to assume the required new roles and responsibilities?
• How should the retained organization be structured to best govern the new relationship?
• How is the retained organization’s work different from what it used to do?
• What new governance processes need to be defined and put in place before the contract is signed?

Without answers to these and many more detailed questions around transition and governance, the client organization will not realize the value expected from the strategic sourcing initiative.

Our research indicates 40 to 70% of the potential value identified in the outsourcing business case will be lost unless strong relationship management and governance processes are put in place within the retained organization prior to contract execution. We provide our client’s with guidance and direction over the course of the engagement in a number of ways such as:

• Assessment of organizational readiness
• Retained organization design
• Roles and responsibility definition
• Personnel suitability assessment and alignment
• Creation of the Transition Management Office (TMO)
• Process definition and mapping
• Process documentation and training
• On-going TMO support and management as required

Processes for managing the relationship to specific outcomes are important to value optimization to ensure the client gets what they’re paying for. Many clients are not prepared to manage the contract and nuances that arise as both parties seek to operationalize what was in the proposal, and then documented in the Master Services Agreement and related documents.

We use specialized knowledge of the governance process and leverage artifacts, templates, and process maps developed over many years to quickly address client specific requirements to operationalize the deal.

This experience-based-suite of services provides the following:

• Accelerates the process of preparing the client organization
• Adapts to specific contract language and other client specific requirements
• Ensures that value does not leak away and that it’s optimized over the life of the relationship.