Download Customer Experienced Based Action Solution

The Value Of Partnerships
Xander Leijnse
The Customer Connection, Utrecht, April 2006
Background
• Unisys “voice of the
customer” project, UK – 2001
• 3rd party interviewed senior
personnel from major
accounts
• ALL 68 respondents
mentioned “partnership” in
one way or another
• Most RFP’s contain
references to partnership
What then?
• We found there was quite
some “partnership confusion”
• We had little real knowledge
of what “partnership” means
• Research indicated there is
not much available to help
understand and develop
“partnership”
• So we created PVM to
address this opportunity
Partnership Elements
Partnership
Service
Level
Agreements
Relationship
Tactical/Legal/Control
Governance
Return
On
Investment
Continuous Process
Preferred Partnership Model
Engine Metrics (Baseline)
Partnership Charter
Partner Actions
Workshop Report
Improved Relations
Definition
Workshop
Review
Partnership
Definition
Action
Management
Action
Management
PVM
Assessment
Engine
Detailed Report
Suggested Actions
Improved Relations
PVM Benchmark
Exit - Poor
Partnership
Poor to Good
Partnership
Partnering Loyal
World Class
Partnership
Declining
Reasonable Financially sound, innovative
Commencing
Average
In-depth Relationship
0
200
400
446 Current
Benchmark
Average
600
Gap
800
World
Class
Target
1000
SMT versus coal face
Company 1
Company 2
SMT
SMT
Coal face
Coal face
Partnership size independent
One to One
One to Many
Many-to-Many
The more complex the relationships
then the greater need for PVM
PVM Credentials
• Academic credentials
– Cranfield University
– Manchester Business School
• Unisys Customers - examples
–
–
–
–
Merrill Lynch Europe
Royal & Sun Alliance (Phoenix)
Lloyds of London
London Borough of Harrow
• Unisys Partners - examples
– Microsoft Belgium
– Microsoft UK
– EMC
Case Study - situation
• Large Investment Bank
– Unisys holds Outsourcing contract to deliver “managed services”
(help desk, desk top support etc.)
– 25.000 seats
• Key reasons we won initial contract:
– ROI
– Solve IT problem
• Success?
– All SLA measures green
• Customer unhappy!
– Openly talking about leaving
• Addressed through Partnership Value Model
Case Study – Mine field vs Mind meld
• Unisys perception
• We delivered operational excellence
• Excellent governance system
• Customer perception
• Expectations not met
• Not happy with performance
• Question “What Partnership did we both expect/need?”
– Strategic Value not understood
• Whatever happened to importance of ROI?
– Relationship Elements not at all addressed
• Annual “do you love us” survey
• Still - Customer / Supplier, not Partner / Partner
– Tactical Elements over addressed
• What is measured is being done
Areas to address in PVM
• Level of Trust
• Financially profitable
• Win/win relationship
• Joint control of services supplied
• Level of added value
• Sufficient resources to ensure
success
• Level of shared objectives
• Long term commitment
• Equal share of risk and reward
• Resolution of challenges
• Sharing of knowledge and
information
• Communication effectiveness
• Effectiveness of performance metrics
• Chances of failure of the partnership
• Dispute resolution process
• Individual roles within partnership
• Cultural fit
• Patience and tolerance
• Integration of partnership
• Joint innovation and financial gain
Benefits
• Strategic Benefits
–
–
–
–
–
Definition of clear strategy that defines aims, objectives and long-term goals
An improved return on investment
Risk reduction
Joint innovation
Continual focus on business process improvement
• Financial Benefits
– Clear, measurable value for money benefits
– Continual effort at cost reduction and/or value improvement
• Working Together
–
–
–
–
–
–
–
Fewer crises
Trust
Better end to end communications
Continuity – people changes have less impact
Full, candid, frequent and open communication between all parties
Effective mechanism for dispute resolution
An exit strategy
And finally
• Comments
• Questions
• Thank you