Managed Services
Managed Services Critical Success Factors
Chris Buist 28th Sep 2016
The Managed Services lifecycle Implementing the transformation plan to achieve the planned benefits. Improving performance.
Strategy
Transform & Deliver
Transitioning the relevant personnel and assets from the current provider to the new one.
Determining what should be outsourced and how. Developing the business case and implementation plan.
Engage
Transition Managed Services World Congress - London © Copyright Coleago 2016
Selecting the optimal MSP(s) and negotiating the contract(s).
1
Contract expiry – start early
Update Strategy
Transform & Deliver
Renegotiate or Re-procure
Transition Managed Services World Congress - London © Copyright Coleago 2016
2
Overall “Don’t reinvent the wheel” – apply best practice from
elsewhere Keep an open mind about what to outsource Apply a sound methodology: –
Structured approach (phases, work-streams, etc.)
–
Clear deliverables
Managed Services World Congress - London © Copyright Coleago 2016
3
Assessing processes for outsourcing
Physical
Finance & Admin
Volume Infrastructure-based Standard processes Greater choice of MSPs
Network and BSS
Transactional
Customer Operations Marketing & Sales
Sensitive
Strategy Regulatory
Customer interaction Competitive advantage Rate of change Risk Specialised MSPs
Managed Services World Congress - London © Copyright Coleago 2016
4
Strategy phase Take time to clarify the business objectives
Considerable effort is usually needed to: –
Collect and restructure data
–
Develop the base case and scenario forecasts
Get (key) stakeholder buy-in to the base case, scenarios,
strategy and overall Business Case Don’t rush the Strategy Phase as it is the basis for
success…or failure
Managed Services World Congress - London © Copyright Coleago 2016
5
Clarify the business objectives
Improve customer experience
Increase revenue
OpEx reduction
Innovation
Time to market
OpEx flexibility
Access to skills
Improve EBITDA, ROI
CapEx reduction
Managed Services World Congress - London © Copyright Coleago 2016
6
Engagement phase Communicate clear objectives and requirements to the
bidders Prepare the evaluation model and draft contract in parallel
with the requirements Evaluation should include references and site visits Contract completion should depend on bilateral due diligence Thorough preparation for negotiation – don’t rush to start
Design the “To-Be” operating model in parallel with the
RFP process
Managed Services World Congress - London © Copyright Coleago 2016
7
“To-Be” operating model design Operator
MSP(s)
Processes Process maps | Procedures | KPIs | Vols
People As-Is Design
Business Plan MS Business Case
Organogram | Staff db | Governance | T&D
To-Be Design Implementation Plan
Systems Architecture | Specs | Assets
Infrastructure Architecture | Specs | Assets
Managed Services World Congress - London © Copyright Coleago 2016
8
Transition phase Take time to develop and communicate a detailed Transition
Plan Most communications activity is in this phase but the Communications Plan should have been started during the Strategy Phase The retained organisation is critical for future success: – Use change management principles and approach – Take time to communicate, brief, train and develop the new organisation Be proactive about KM – particularly with respect to Transition and Exit Managed Services World Congress - London © Copyright Coleago 2016
9
Knowledge management (KM) Treat knowledge as another asset
Create
Apply
and KM as another process throughout the MS lifecycle
Capture
Key outsourcing risk is the loss of
knowledge from the operator but… …this should be offset by gaining
access to the MSP’s knowledge…
Knowledgebase
…and mitigated through a proactive
Acquire
Assess
Share
joint KM Plan, process and systems to ensure that: –
No loss during transition or exit
–
Both parties benefit during the life of the contract
Managed Services World Congress - London © Copyright Coleago 2016
10
Transformation & delivery phase The MSP should have developed a detailed Transformation
Plan with your input; ensure that they report progress against the Plan, etc. Similarly for continuous improvement
Schedule Periodic Reviews during the life of the contract
and follow up on the agreed action plans
Managed Services World Congress - London © Copyright Coleago 2016
11
Periodic reviews Relationship • Executive/senior management • Contract and demand management • Project and change management
Delivery • People and third parties • Processes • Systems
Performance • Customer/stakeholder satisfaction • KPIs, benchmarks and commercial impact • Innovation/added value Managed Services World Congress - London © Copyright Coleago 2016
12
Thank you
Managed Services World Congress - London © Copyright Coleago 2016
13
Chris Buist 28th Sep 2016
The Managed Services lifecycle Implementing the transformation plan to achieve the planned benefits. Improving performance.
Strategy
Transform & Deliver
Transitioning the relevant personnel and assets from the current provider to the new one.
Determining what should be outsourced and how. Developing the business case and implementation plan.
Engage
Transition Managed Services World Congress - London © Copyright Coleago 2016
Selecting the optimal MSP(s) and negotiating the contract(s).
1
Contract expiry – start early
Update Strategy
Transform & Deliver
Renegotiate or Re-procure
Transition Managed Services World Congress - London © Copyright Coleago 2016
2
Overall “Don’t reinvent the wheel” – apply best practice from
elsewhere Keep an open mind about what to outsource Apply a sound methodology: –
Structured approach (phases, work-streams, etc.)
–
Clear deliverables
Managed Services World Congress - London © Copyright Coleago 2016
3
Assessing processes for outsourcing
Physical
Finance & Admin
Volume Infrastructure-based Standard processes Greater choice of MSPs
Network and BSS
Transactional
Customer Operations Marketing & Sales
Sensitive
Strategy Regulatory
Customer interaction Competitive advantage Rate of change Risk Specialised MSPs
Managed Services World Congress - London © Copyright Coleago 2016
4
Strategy phase Take time to clarify the business objectives
Considerable effort is usually needed to: –
Collect and restructure data
–
Develop the base case and scenario forecasts
Get (key) stakeholder buy-in to the base case, scenarios,
strategy and overall Business Case Don’t rush the Strategy Phase as it is the basis for
success…or failure
Managed Services World Congress - London © Copyright Coleago 2016
5
Clarify the business objectives
Improve customer experience
Increase revenue
OpEx reduction
Innovation
Time to market
OpEx flexibility
Access to skills
Improve EBITDA, ROI
CapEx reduction
Managed Services World Congress - London © Copyright Coleago 2016
6
Engagement phase Communicate clear objectives and requirements to the
bidders Prepare the evaluation model and draft contract in parallel
with the requirements Evaluation should include references and site visits Contract completion should depend on bilateral due diligence Thorough preparation for negotiation – don’t rush to start
Design the “To-Be” operating model in parallel with the
RFP process
Managed Services World Congress - London © Copyright Coleago 2016
7
“To-Be” operating model design Operator
MSP(s)
Processes Process maps | Procedures | KPIs | Vols
People As-Is Design
Business Plan MS Business Case
Organogram | Staff db | Governance | T&D
To-Be Design Implementation Plan
Systems Architecture | Specs | Assets
Infrastructure Architecture | Specs | Assets
Managed Services World Congress - London © Copyright Coleago 2016
8
Transition phase Take time to develop and communicate a detailed Transition
Plan Most communications activity is in this phase but the Communications Plan should have been started during the Strategy Phase The retained organisation is critical for future success: – Use change management principles and approach – Take time to communicate, brief, train and develop the new organisation Be proactive about KM – particularly with respect to Transition and Exit Managed Services World Congress - London © Copyright Coleago 2016
9
Knowledge management (KM) Treat knowledge as another asset
Create
Apply
and KM as another process throughout the MS lifecycle
Capture
Key outsourcing risk is the loss of
knowledge from the operator but… …this should be offset by gaining
access to the MSP’s knowledge…
Knowledgebase
…and mitigated through a proactive
Acquire
Assess
Share
joint KM Plan, process and systems to ensure that: –
No loss during transition or exit
–
Both parties benefit during the life of the contract
Managed Services World Congress - London © Copyright Coleago 2016
10
Transformation & delivery phase The MSP should have developed a detailed Transformation
Plan with your input; ensure that they report progress against the Plan, etc. Similarly for continuous improvement
Schedule Periodic Reviews during the life of the contract
and follow up on the agreed action plans
Managed Services World Congress - London © Copyright Coleago 2016
11
Periodic reviews Relationship • Executive/senior management • Contract and demand management • Project and change management
Delivery • People and third parties • Processes • Systems
Performance • Customer/stakeholder satisfaction • KPIs, benchmarks and commercial impact • Innovation/added value Managed Services World Congress - London © Copyright Coleago 2016
12
Thank you
Managed Services World Congress - London © Copyright Coleago 2016
13
