Most organisations have several ‘tiers’ of vendors. Vendors may be ‘tiered’ based on a variety of criteria such as deal size, criticality of service delivered, regulatory impact etc. In all cases client organisations will apply varying levels of risk, issue and performance management depending upon the Tier the supplier fits into. It is a very sensible approach but most organisations struggle to ensure that vendors in the same tier are managed to the same level and consistently. Tiering creates the illusion of consistent vendor management. Why does this problem arise?
Shared Services Governance is typically characterised by SLA , Issue and Risk Spreadsheets – together with e-mails going backwards and forwards tracking progress on updates to spreadsheets. This approach is extermely manual, error prone and inconsistent. Join our webinar to learn about the innovative new way to drive efffective governance in Shared Services – an approach that can be deployed rapidly and at low cost. Continue reading »
Traditionally ongoing management of KPIs, Risks and Issues in managed services has been labour intensive and error prone. World class service providers are now moving away from spreadsheet and e-mail based management to a more robust and consistent approach. An approach which ensures they can spend less time on creating spreadsheets and tracking data and more time analysing performance and reviewing service quality.
Management of KPIs, Risks and Issues in sourcing relationships has been inconsistent, labour intensive and error prone. Organisations are now moving away from spreadsheet and e-mail based management to a more robust and consistent approach. An approach which ensures they can spend less time on creating spreadsheets and tracking data and more time analysing performance and reviewing service quality.
Many companies use balanced score cards to track vendor and supplier performance. They vary in quality and consistency of use. More and more client organisations are now building capability to ensure that sourcing performance is manage consistently and objectively. This requires a move away from balanced or performance cards which vary from vendor to vendor. It also requires a move away from measures which can be subjective or which are not clearly understood or comparable across vendors. It is often referred to as evidence based supplier management.
Supplier Managers need to manage service performance and risk aswell as cost on an ongoing basis. Using Spreadsheets to manage SLAs or Vendor Balanced Scorecards and Risks is time consuming. It also leads to inconsistent reporting and ultimately becomes very difficult to aggregate performance to get an accurate picture of supplier performance at an organisational level.