Governance Services: Meeting the Minimum Governance Table Stakes to Stay in the Game
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Transcript of Governance Services: Meeting the Minimum Governance Table Stakes to Stay in the Game
© 2015 Information Services Group, Inc. All Rights Reserved.
Meeting the Minimum Governance Table Stakes to Stay in the Game
Governance Services:
Tina Roy, Partner
© 2015 Information Services Group, Inc. All Rights Reserved 3
Agenda
o Contracts are changing; expecta6ons are rising o How to change the game with good governance
o How to drive value add in your client rela6onships
© 2015 Information Services Group, Inc. All Rights Reserved 4
Did you know?
o Contract value leakage is as high as 10% of ACV for either party
o Provider compliance to D&Os is typically below 25% (even with your renewals and COLA notifications)
o Lack of compliance for new SOWs or change orders doubles the typical 20-day close cycle
o ~20% of payments are delayed due to invoicing errors
© 2015 Information Services Group, Inc. All Rights Reserved 5
The client-provider relationship is becoming more complex.
XaaS, Cloud, Consumption & Outcome-
based Contracts
Focus on cost reduction
heightened with automation & digitization
Multiple suppliers and
SIAM
Mandatory guidelines for risk, audit & compliance
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Is this where you should be spending your time anyway?
ü Meeting basic D&O expectations ü Producing accurate & quality Invoice/Change Order/SOWs ü Correctly calculating COLA or even charging it! ü Ensure quality, tracking and reporting ü Defending rates and Service Levels
The simple stuff - if not attended to - can shroud the relationship in doubt.
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Basic governance solutions help ensure …
you spend less time keeping the lights on and justifying your value
and more time delivering high quality service and strategizing the future target operating model and innovating.
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How do you … improve the quality of invoices
… increase efficiency and … reduce payment cycle times
...proactively meet your obligations? Implement the right processes and technology with the right resources and rates.
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? Should you be adopting
state-of-the-art governance
measures like your
clients are doing
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Suppliers can use governance frameworks to…
ü minimize your own losses ü refocus your energies and talent on
delivering next-generation services ü ensure your fees are competitive ü optimize your efforts toward delighting
your clients
…and “raising the stakes’ for the competition
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…and be proactive
o Improve contract hand off from sales to delivery o Focus on startup and transition activities tied to
milestones and penalties o Deliver good, quality service
Good governance helps you
o Knowing and meeting your obligations o Ensuring your rates are not only compliant
but competitive.
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“Double Down” and realize the “full value” of the contract you negotiated.
o Create the transparency for your clients o Work from fact-based data o Leverage proven benchmark data o Plan for the future o Automate where possible o Adhere to stringent processes o Standardize your obligations across
contracts
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Can you identify the tactical and quality issues to improve the relationship and service?
Risks
Processes
Roles and responsibilities
Tools People Value leakage
Compliance Relationship
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What is the ISG Essentials Startup Kit?
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Captures & assigns contract obligations.
Proactively identifies, tracks, and alerts.
Provides an SOW benchmark factory and reports on key financial
measures.
Implements invoice and service level management
validation. Performs ongoing
reconciliation & validation.
Performs contract interpretations.
Proactively captures and records
critical contract changes.
Captures and tracks contract issues to resolution.
The ISG Essentials Startup Kit …
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Differentiate your business through good governance basics
o Shift valuable resources from resolving daily, transactional issues to delivering real value
o Proactively meet your contractual commitments
o Demonstrate quality, compliance & competitiveness
o Employ new ways to communicate and inform your client through state-of-the-art dashboards & reports
and maximizing your value