Bay Area Digital Executive Dinner Series 

Register for the event by completing the form below.

Farallon | 450 Post Street | San Francisco, CA 94102
Wednesday, May 1 at 6pm PT

ISG Partner, Prashant Kelker will present
Implementing & Tracking a Digital Operating Model

TOPIC:  Implementing & Managing New Digital Operating Models

WHY ATTEND:  This session will focus on understanding what others are doing to establish and govern digital operating models in the new world.  We will be speaking to the challenges they face, and how some companies have overcome these challenges – the key topics we will address are:

• How should the organization structure adapt/change to address new digital models, and how have the leading companies executed change management?

• How will the design and execution of technology transformation programs inform and build its required target business capabilities iteratively using an evolving provider ecosystem?

• How do you ensure a solid digital backbone and operating model is established and maintained to scale and ensure quality in your transformation programs?

• How do you harness emerging technologies and bring them to mass scale usage within your enterprise (automation, analytics, ML, cloud, blockchain, etc.)

AGENDA:

  • 6pm PT Networking/Happy Hour:  45 minutes
  • 7pm PT Dinner:
  • Appetizer:  Implementing & Tracking a Digital Operating Mode
    Presented by Prashant Kelker, ISG Partner - Digital Strategy & Solutions
  • Dinner:  Open Q&A
  • Dessert:  Future Topics & Networking

This is a great opportunity to network and learn from peers. Feel free to bring a colleague!

Upcoming dinners:

Date TBD - Palo Alto: Blockchain Reality & Impact

Date TBD - San Francisco: The Automation Journey Conundrum

Managing Outsourcing as a Business Relationship

It’s easy for advisors to talk about process, the bread and butter of consulting. When we developed our process model for the business management of outsourcing six years ago, we knew from our collective experience that it was a good approach, but it was untested. After implementing the process with clients – now more than 40 globally – I’ve come to believe that in an entirely different way than I initially expected.

Generally, when clients outsource, they tend to focus on services – especially IT organizations – and believe that the challenge lies in managing service delivery and service levels. The many frameworks for managing different types of services range from COBIT, to CMMi, to ITIL v2 and now ITIL v3. From a service management perspective TPI Top 5 on ITIL, these are very valuable for providing structure to both client services, and service provider standards they are to achieve. However, none of these service delivery management models provide standards or processes for managing service providers (with the small exception of ITIL v3, which mentions the need to manage suppliers). The Carnegie Mellon eSCM for Clients, which TPI co-authored, was the first time the industry had an academic view of the business standards needed to manage outsourcing as a business relationship.

There is no doubt that managing services and service delivery are important, but an entirely new layer of management is required when a third party is providing the services. This often takes client management teams by surprise as they are typically not prepared to execute. There are four major categories of business management processes to note:

1) Contract Management – Ensuring compliance with the contract deliverables and obligations
2) Financial Management – Validate and manage costs, ensure value achieved
3) Performance Management – Ensuring the right work is done – and done right
4) Relationship Management – Governance, satisfaction, and direction setting

What we’ve learned over the years is that these management practices apply regardless of the service outsourced. This model has been implemented in HR benefits, call centers, IT infrastructure, and Application Development & Maintenance engagements and these best practices have applied across the board.

So what was the most surprising thing to me to discover? It is that the introduction of this business management structure was a key element to reducing conflict in the relationship between the client and service providers both at the start of relationships and during relationship remediation. The process model delivers all the other expected business benefits – accountability, cost control, risk management – while adding value around the potential for innovation and creative thinking between the two teams as the relationship between the parties improves.

Why is the business management important? And how is it different from managing services? I’ll answer these questions in an upcoming blog – there’s a lot to discuss!

About the author

Cynthia brings 25 years of experience helping clients develop their sourcing governance and service management design. Having worked with more than 50 organizations to improve business management and service management processes in both single-provider and multi-provider environments, Cynthia has become a recognized expert in sourcing governance, vendor and contract management. She currently serves as the architect for ISG’s service methodology and global integrator of its products and services. Cynthia works to leverage ISG’s accumulated intellectual property resources to help enterprises create effective transformation and governance capability, and maintains a continuing role in the Strategy and Organizational Change Enablement practice.