When establishing the relationship between an external service provider (outsourcer) and customer, why do we document a whole operating model spanning both organisations? The whole point of outsourcing is that the supplier should be a black box, with inputs, outputs and performance requirements. What we need to define is the interface between the two entities, to ensure the operating models of each one mesh properly together: the Engagement Model.
This is more efficient: we don't redundantly document processes which already exist, and are documented elsewhere. It is more effective: we focus on the gaps, specifying the requirements for change in each organisation in order to connect their operating models.
This is pioneering stuff: there is very little published on what an engagement model should look like or how to develop and use it. Rob has built them: this presentation looks at a format, the content, and its uses
4. Operating model
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6. Operating model
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7. lient incident or
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Engagement model
8. lient incident or
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Incident
resolution found
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Engagement model
Roles
Policies
Channels
Relationships
Services
Processes
Controls
Process
interlocks
Agreements
11. Outcomes
• Clarity of expectations
• Gap analysis
• Specify Operating Model changes
• Single operating model
• Single procedural documentation
• Brevity and focus
• Speed and efficiency
12. A maturity model?
1: Trust. Naïve contract
2: Don’t trust. Operating Model
3: Trust. Engagement model
4: Verify. Measured engagement model
5: Contest. Open engagement model
Thanks Jan Wijninckx
Talking here about engagement between the supplier and customer where each acknowledges the existence of the other and they come to an agreement, i.e. not commodity services.
Define process across both orgs
Define roles for each other
Define new mutual policies
The issues this presents
Duplication/redundancy
Variation/complexity
Assumptions
Both organisations have a working operating model
At least one driver is reduction of costs
Often another driver is simplification