Outsourcing Health Check and Readiness Assessment: A Proactive Approach to Achieve Full Potential...
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Transcript of Outsourcing Health Check and Readiness Assessment: A Proactive Approach to Achieve Full Potential...
Health Check & Readiness Assessment: A Proactive Approach to Achieve Full Potential and Uncover New Value
Hemant Puthli, Partner & SVP, Neo Group Soumitra Rathod, Head of Globalization, Time Inc. June 30, 2015
NEO INSIGHTS SERIES
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! Since 1999, we have been helping clients achieve business objectives and address business challenges by leveraging global services and sourcing.
! We have a singular focus on the global services supply chain.
! We achieve outcomes through deep IP, real-time analytics, globally recognized experts, proven methodologies and co-creation with our clients.
! We deliver results through three distinct and linked solutions and services:
ABOUT NEO GROUP
Our Featured Clients include:
ADVISORY SERVICES
GOVERNANCE SOLUTIONS
SUPPLY MONITORING & ANALYTICS
2
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TODAY’S PARTICIPANTS 3
Soumitra Rathod, Head of Globalization at Time Inc., has over two decades of experience with the global delivery model. His early career was with captive centers, tier-1 and mid-tier services providers, in a career spanning 6 countries across 3 continents. More recently, Mr. Rathod has helped corporations such as the McGraw-Hill Companies, New York Life and Time Inc. define and execute their globalization initiatives.
Hemant Puthli, Neo Group Partner & SVP, brings around 30 years of experience in Management Consulting and IT Services. Hemant leads key engagements globally and works with clients to assist them in the development of outsourcing strategies and governance models. Hemant’s key areas of eminence include sustainable business and technology strategies
© 2015 Neo Group Inc. Proprietary
Ø What is a Health Check and why is it important
Ø Using an objective framework to assess performance and readiness
Ø Leveraging findings to build clear action steps for improvement and growth
AGENDA 4
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• Meaning, scope and purpose – Health check – determine what’s working well, what’s not working – Readiness Assessment – preparedness to handle growth in scope
and scale
• Client need – Independent and objective 3rd party evaluation of how well their
sourcing program is doing, how well their captive (Global In-house Center – GIC) is doing, how well their vendor contracts are doing
– Most locations are remote and clients are not fully aware of the nuances of supply-side market realities in remote geos
– Clients don’t know where to look for comparative data, even if they are able to carry out their own assessment
INTRODUCTION 5
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QUICK POLL #1 6
Do you use Health Checks to assess the performance of your global delivery operations?
- No - Yes, on an ad hoc basis - Yes, at regular intervals - Other (use the chat or question feature to elaborate)
© 2015 Neo Group Inc. Proprietary
QUICK POLL #1 – RESULTS
QUICKPOLL
Do you use Health Checks to assess the performance of your global delivery operations? Poll Results:
Yes, on an ad hoc basis 50%
Yes, at regular intervals 13%
Other (use the chat or question feature to elaborate) 0%
No 37%
© 2015 Neo Group Inc. Proprietary
QUICK POLL #2 8
What typically triggers an Outsourcing Health Check within your organization? (select all that apply)
- Dissatisfaction with supplier/GIC, need unbiased assessment
- In preparation for upcoming contract renewal - Occurs at regular intervals by company policy - In response to significant growth (organic or
acquisition) - Other (use the chat or question feature to elaborate)
© 2015 Neo Group Inc. Proprietary
QUICKPOLL #2
QUICKPOLL
What typically triggers an Outsourcing Health Check within your organization? (select all that apply) Poll Results:
In preparation for upcoming contract renewal 67%
Occurs at regular intervals by company policy 16%
In response to significant growth (organic or acquisition) 33%
Other (use the chat or question feature to elaborate) 0%
Dissatisfaction with supplier/GIC, need unbiased assessment 67%
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NEO FRAMEWORK COMPONENTS 10
• Execu've Sponsorship • Goals & Expecta'ons • Por8olio Strategy • Delivery Model
• Solu'on Design • Knowledge Transfer & Transi'on Management
• Facili'es • Infrastructure • Capacity
• HR Lifecycle: Hiring, Staffing
• Roles / Responsibili'es • Communica'ons & Change Management
• Physical & Data Security • Contractual Delivery Compliance
• Quality & Cer'fica'ons • Risk Management
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• 2 Perspectives – Strategic: Capability & Capacity – Operational: Efficiency & Risk
• 3 Dimensions – Process (Business Services) – People (Support Services: HR) – Technology (Support Services: Facilities & Infrastructure)
• 5 Lifecycle Stages – Initiate – Initialize – Transition – Operate – Retire
NEO HEALTH CHECK APPROACH 11
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PERSPECTIVES ON DIMENSIONS 12
Dimension
To-‐Be
As-‐Is
Readiness Assessment (future)
Health-‐check (current)
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QUESTIONS: AS-IS & TO-BE 13
Is there a strategy in place to address scalability as envisaged? • Is there a clear plan to achieve end-‐state/ targeted outcomes? • Is the plan complete and consistent?
Is there a comprehensive governance model in place that enables the necessary oversight
Is the current opera'ng base efficient and robust? Is it a good enough founda'on to build on for the future?
• Is it efficient at current scale? Will it con'nue to be efficient at scale? • Are opera'onal risks contained within acceptable limits? Will risks
increase dispropor'onately as the opera'ons scales up?
Strategy & Governance
Organiza'on & Opera'ons
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LIFECYCLE STAGES OVER DIMENSIONS 14
Exit Manage Career Train On-‐board Recruit
Sunset Deploy Commission Procure Select
Discon'nue Deliver Services
Manage Transi'on
Design Solu'on
Iden'fy Opportunity
Peop
le
Process
Techno
logy
Ini'ate Ini'alize Transi'on Operate Re're
© 2015 Neo Group Inc. Proprietary
• Leverage Neo templates, tools, questionnaires
• Interviews & data collection, walk the floors
• Benchmark data from Neo KnowledgeBase and Research team
• Compare with peers: gap analysis, risk analysis – As-is – To-Be
• Classify findings as:
– Preserve – Enhance – Change
• Develop recommendations and socialize with key executives
NEO APPROACH – METHODOLOGY 15
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Interviews and data collection: what we look for • Short description of role and areas of responsibility • Overview of transitioning process and/or steady-state operations
(as applicable), with a focus on: – Roles & Responsibilities RACI – Policy & Procedures/ Process Maps (or related documentation) – SLAs/ KPIs/ Metrics – Customer Satisfaction (CSAT) – Quality Systems/ Continuous Improvement – as relevant
• What went/is going well • What didn’t work/isn’t working • Satisfaction level with internal support services • What needs to change/improve
KEY FOCUS AREAS 16
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ASSESSMENT OUTPUT SAMPLE SNAPSHOT 17
1
2
3
4
5Performance Management
Financial Management
Relationship ManagementResource Management
Contract Management
Best-in-class Score
Comparison Organization ScoreClient Score
Best-in-class Score
Comparison Organization
Score
Client Score
Performance Management 4.10 2.94 2.39
Financial Management 4.00 2.81 2.91
Relationship Management 3.80 3.32 2.57
Resource Management 3.80 2.76 2.54
Contract Management 3.90 3.08 3.46
1
2
4
3
5
Client Operational Governance Score 2.74
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HEALTH CHECK ANALYTICS – SAMPLE 18
High Priority Core Challenges
Quick Hit Lowest Priority
Difficulty to Attain
Critical to valu
e creation
Gap Analysis: Cri.cal Value Enhancers
Low High
High
Bring pricing to industry standards
Change IT helpdesk service delivery model
Build performance based incentives
Onboard one more project manager
Comparison with industry standards
0 1 2 3 4 5
Factor: Introducing best practices
± ±Your Score
Industry Comparison Top 25% Average Bottom 25%
0 1 2 3 4 5
Factor: Staffing efficiency (support ratio)
± ±Your Score
Industry Comparison Top 25% Average Bottom 25%
0 1 2 3 4 5
Factor: Overall Outsourcing Effectiveness
± ±Your Score
Industry Comparison Top 25% Average Bottom 25%
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• The value and validity of a Health Check is dependent on the objectivity and depth and breadth of industry experience of the reviewing party.
• Health Checks provide an organization with a reality check about what to preserve, enhance or change.
• The findings of a Health Check form a blueprint for next steps to achieve strategic objectives.
KEY TAKE-AWAY’S 19
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THANK YOU 20
NEO GROUP GLOBAL HEADQUARTERS 6200 Stoneridge Mall Road, 3rd Floor Pleasanton, CA 94588, USA ASIA-PACIFIC HEADQUARTERS No.13, B-2, 1st floor, C Block Embassy Heights, Magrath Road Bangalore-560 025, India AMSTERDAM, NETHERLANDS ATLANTA, USA AUSTIN, USA BOGOTA, COLOMBIA LONDON, UK NEW YORK, USA SAO PAOLO, BRAZIL SILICON VALLEY, USA SYDNEY, AUSTRALIA
HEMANT PUTHLI Senior Vice President [email protected] www.NeoGroup.com www.SupplyWisdom.com [email protected]