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Execution-MiH ENCYCLOPEDIA →
Execution Making-it-Happen →
SECTION - Focus & Money-Machine →
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CHAPTER -
| Business Partner Focus and Alignment |
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Today's era of focusing on core-competencies, has created a highly inter-dependent world where an organization is an ensemble of multiple business partners-vendors working in harmony to represent a complex operating infrastructure. The business partner focus includes alignment of contractuals, SLAs & metrics, business partner & vendor matrix, business partner process alignment etc...
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Topics
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Aligning performance metrics- Cost-Quality-Time
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In today's world where companies are maintaining the core-competencies and outsourcing the rest, the service providers make-up a large proportion of what we call as virtual-organization. Just like one works on the internal employees and functions, the same rigor also has to be applied on the external entities. First and foremost, one has to change the performance metrics and review process which should fit with the changed expectations from the business partners.
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Aligning behaviors and skills
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As you progress on the execution agenda, the chances are that you will expect a greater degree of skills from your business partner in terms of project management, business process management, domain expertise, cost-management, effective communication, etc....It is important for you to share the top 3-5 changes in the behaviors and skills in your business partner. If you feel that your partner is not inherently equipped to make that change, you should either support the partner through external help or distribute your risk.
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Aligning the contractual
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As an organization restates the expectations from a business partner and reflects it in the expected performance metrics, behaviors and skills, similar changes also need to be made in the contractuals. For critical areas, where you want a visible change in terms of expectations from the vendor, one has to open the contracts. If it is not built in the contracts, it may not be sustainable.
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Aligning information pipelines
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Information should ideally be flowing seamlessly across your organization and business partners-service providers. A good proportion of important information will be coming from external entities who are selling, distribution and making your products. One needs to create an information map which cuts across the organizational boundaries. One needs to work with business partners to upgrade their information pipelines so that they can feed you with right information and at the right time.
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Aligning processes
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The process touch-points between the business partners are mostly the weakest links in process cost-quality and timeliness. Typically, an organization re-designs its internal process, making assumptions that business-partner will be able to address the corresponding changes at their end. It's preferable to include the business partner in the process re-alignment from the beginning.
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Aligning Business Partner Matrix
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Depending on the execution agenda, one has to set the business partner matrix and approach. This will have various dimensions- How much you want to outsource?, would you outsource to a single partner or multiple partners?, how many of tier I, II, III partners you would like to maintain?...
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All Chapters in "Focus & Money-Machine." Section
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