Recover 20%+ value from failed outsourcing engagements
Our 3 Step Recovery Framework - 20+ Years in the Making
Step 1 - Rapid Assessment: the initial phase of work will set the framework for the remediation initiative. Upon completion of the phase, all parties will be aligned on the "As-Is" and the "Target" state of performance measures, there will be alignment on the prioritization of the issues to be addressed, a draft Remediation Roadmap and a draft Balanced Scorecard where results will be measured.
Step 2 - Establish the Roadmap: in this phase of work, the parties identify the activities necessary to reach the agreed upon targets, the resources required to achieve success and the interim milestones ( dates & measures) that will be used to evaluate progress to the committed goals. What differentiates our approach is that we measure outcomes not the completion of tasks as a gauge of success.
Step 3 - Transform: the final phase is all about execution. A governance structure is established for formal oversight of the initiative. The Balance Scorecard is utilized to track progress against committed objectives. In support of the initiative, a Top-to-Top leadership forum is established which aligns the vendor's regional or industry leadership with the client CIO. This provides the working teams an escalation path in the event there are roadblocks that need additional support.
Step 1 - Realignment: Outsourcing Governance & Change Management
“ Create a shared understanding of the current environment and the changes necessary to achieve success”
Approach:
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:
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Clarification of Success - Create a “Balanced Scorecard” that will measure the achievement of the committed outcomes, minimizing subjectivity while emphasizing results.
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Client & Vendor Leadership Inventory - What’s working and what’s not. Focus on remediating issues while protecting practices that are effective.
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Remediation Roadmap - Identifies the most critical issues and determines how success will be demonstrated.
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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
