Outsourcing Recovery Services: Getting Back on Track

We use a three step approach that enables an engagement to get to the next level of performance and customer satisfaction.

Service Level Agreement - Advisory Services

In order to move beyond the frustration that has set in, it is critical to refocus on a key set of business outcomes that the vendor and client organizations jointly commit to delivering.

We enhance the Service Management Office to move beyond the traditional IT measures of SLA(s) and KPI(s) to include the implementation of a "Balanced Scorecard" which reflects the impact IT is having on the business and external customers.

We move from a traditional project management structure to an OKR Framework (Objectives and Key Results) which is an outcome-based planning and execution model that places the focus on quantifiable changes, driving results-oriented behavior. Success is measured on the results achieved not on the execution of tasks. This keeps both organizations focused on achieving the long term vision.

Client and vendor agreement on targeted outcomes and timeline

Step 1 - Realignment: Outsourcing Governance & Change Management

“ Shared understanding of the current environment and the changes necessary to achieve success”

Workshops will be conducted to understand the current landscape and identify & prioritize those outcomes that will be most impactful in advancing the overall performance of the engagement.

Key Activities include:

Clarification of Success - Create a “Balanced Scorecard” that will measure the achievement of the committed outcomes, minimizing subjectivity while emphasizing results.

Client & Vendor Leadership Inventory - What’s working and what’s not. Focus on remediating issues while protecting practices that are effective.

Remediation Roadmap - Identifies the most critical issues and determines how success will be demonstrated.

Change Assessment - A review of the relationship and cultural aspects of the engagement, including; organizational change readiness, account assimilation, change adoption, a “Trust & Toxicity” Assessment.

Step 2 - Commit to Outcomes: Cost Reductions and Improved Quality

"An agreed upon schedule for the implementation of changes and a clear definition of Done”

Focusing on outcomes instead of tasks, the joint alignment of the results that will be achieved and how success will be measured is a key difference in our approach. It doesn't matter if tasks are completed on time if those tasks do not generate the expected outcomes.

We will leverage the OKR Framework to drive our planning activities.

Objectives and Key Results (OKRs) Framework: an outcome-based planning and execution model that places the focus on quantifiable changes, driving results-oriented behavior. Success is measured on the results achieved not on the execution of tasks.

Identifies the level of performance expected at Steady State

Key Results: Measurable outcomes that reflect the progress towards the objective

Activities: Actions to be executed that will result in achieving the Key Results

Sample Objective: Improve Critical System Availability

Step 3 - Transform: Remediate IT Service Delivery

"It's all about execution of the agreed upon plan and achievement of the targeted business results"

Focus is on execution of the program and the support given from both organizations to help ensure success

Outsourcing Governance: Top-to-Top

Program Governance must include a strategic layer, “Top-to-Top”, where the leads of the vendor which oversee the account meet with the senior client resources to facilitate the restoration of the relationship.

In all likelihood, the vendor account lead is going to need support from their leadership to make the necessary changes and investments required in order to achieve the targeted results.

Strategic Sourcing: Additional Capacity

Without making staffing changes (on both sides) you are likely to end up with the same results. The remediation program needs to be run in a manner that does not disrupt current operations while possessing the accountability to identify and implement transformational changes.

Program Governance will focus on the results demonstrated and the trend in performance

Outsourcing Advisory Services