Governance Best Practice Masterclass EquaTerra

Transcription

Governance Best Practice
Masterclass
EquaTerra
June 2010
Research » Strategy » Transformation » Governance
Agenda
» 14:30: Introduction
» 14:45-15:15: Why do we need Effective Governance?
» 15:15-16:00: Demand and supply management in IT (Governance 2.0)
» 16:00-16:30: Break & networking
» 16:30-17:00: Structuring deals to avoid litigation
» 17:00-17:30: Client case study (Royal Haskoning)
» 17:45-18:15: Panel & wrap up and Q&A
This document is Copyright © EquaTerra 2009, and all rights are reserved. Permission is hereby granted to reproduce this document in whole or in part for non-commercial purposes,
provided that EquaTerra is prominently cited as the originator and copyright holder and provided that information on how to contact EquaTerra is included. The prior written permission
of EquaTerra is required to reproduce all or any part of this document, in any form whether physical or electronic, for any commercial purpose.
Copyright © EquaTerra 2010. All rights are reserved.
2
Your Presenters Today
Lee Ayling
Tim Amatt
Gerard Wijers
Julian Stait
John Beekman
EquaTerra
EquaTerra
EquaTerra
Milbank
EquaTerra
» Leads the EquaTerra » Leads the
» Gerard Wijers is the » Head of the Litigation
UK Technology
Governance and
managing director of
& Arbitration practice
Advisory Team
Transformation
EquaTerra‟s
in the London office
» 15 years experience
Advisory activities for
Governance and
of Milbank
in developing and
EquaTerra in the UK
Sourcing
» Has acted for
executing
» 20+ years experience
Management practice
both suppliers and
outsourcing
in sourcing,
for the Benelux
customers in many of
strategies in
negotiation and
region
the leading
technology
management of
» He has supported
communications,
» Breadth of strategy,
contracts
many Dutch
technology and
implementation and
» Significant number of
customers and
outsourcing disputes
optimisation
key projects with
internationals
to go before the
experience in both
clients designing and
including AD
English Courts
private and public
implementing
Nieuwsmedia, AVR, » 20 years experience
sector
governance solutions
Belastingdienst,
of handling large,
CBS, ENECO,
high stakes and
Kluwer, Prorail,
complex business
Rijkswaterstaat, TNT
and regulatory
and Vopak.
disputes
» John has worked at
EquaTerra for three
years in the role of
principal consultant
» He specialises in
Sourcing
Management and
Governance issues
» Roles for clients are
typically interim CIO
or Director of ICT,
bridging the gap
between business
and ICT services
» He has 30 years‟
experience in
business IT
alignment.
EquaTerra Services
» The Service Delivery Lifecycle
is a complex journey that
requires meticulous planning,
solution definition and rigorous
implementation control and
optimization to enable full
value from the arrangements.
EquaTerra's methodology
operates across the lifecycle.
» We apply our knowledge and
experience to your unique
situation to define an
approach that works for your
organization, focused on
delivering against your desired
business outcomes.
» Service Delivery or
Sourcing Strategy
» Service Delivery or
Sourcing Assessment
» Opportunity Analysis
& Business Case
» Internal
Improvements
» Shared Services –
Captive Center
» Outsourcing - Offshore
» InSource (back in house)
» Negotiation & Contracting
Governance
» Service Delivery
Management
» Business Alignment
» Software
» Diagnostic and
Benchmark
» Renegotiation Support
» Contract Review
» Performance &
Satisfaction
Measurement
» Transition
» Transformation
» Change Management
» Project Management
» Interim
Management
4
Geographic Reach
Advisor Specialization
Outsourcing
Competencies*
26%
Business &
Financial
20%
HR
16%
IT
38%
Advisor Presence
Asia Pacific
2%
Europe
34%
Americas
64%
*Includes specialized competencies such as governance, financial architects, negotiators, globalization
5
Representative Clients
Financial Services
Energy
Consumer Products
& Retail
Life Sciences
Seven of the top global financial
services firms; Largest global
procurement deal
70% of the competitive advisory
market place
Six of the top 10 global
consumer products companies
Over 70% of the top global
pharmaceutical companies
Manufacturing
Public Sector
Telecom, Media
Entertainment, High Tech
More than 20% of the
competitive market place
Leading independent advisor in
public sector
Deep process expertise
Transportation
Three of the top five airlines
6
Governance and Sourcing Management
» Leading providers of Governance solutions for Outsourced and Shared Services
» Supporting all stages of the sourcing lifecycle from strategy development to transformation
» Comprehensive portfolio of Governance services – advisory, interim management,
outsourcing, toolkits
» 30+ Governance and Sourcing Management advisors with substantial advisory experience
(and extensive buy-side and service provider experience)
» Dedicated Governance and Sourcing Management Practice
» Advised 80+ clients in more than 100+ engagements
» Supported some of world‟s largest ITO & BPO deals
» Led the way in developing „Best Practice‟
» Developed unique Governance Software tool
Governance Design & Build
Governance HealthCheck
Retained Organisation Optimisation
Governance Workshops & Training
Change & Communication Mgmt.
Multi-provider Governance Mgmt.
Sourcing Centre of Excellence
Governance Maturity Assessment
Demand and Supply Management
EquaSiis Enterprise TM Software
7
Agenda
8
The Importance of Effective
Governance
Lee Ayling, Tim Amatt
June 2010
A Working Definition for Governance
The structures, capabilities and processes that enable the decisions and
actions needed to achieve the objectives of an organisation.
Governance is needed for management of
complex multi-party internal and external
relationships to achieve specific goals or to
ensure desired behavior.
10
IT Governance
» Definition
IT Governance is integral part of enterprise governance and consists of leadership
and organisational structures and processes to direct and control the enterprise in
order to achieve the enterprise's goals by adding value while balancing risk versus
return over IT and its processes.Source: IT Governance Institute (ITGI)
» Proper IT Governance will focus on:
– Business and IT alignment within the enterprise
– Appropriate management of IT-related risks
– Responsible use of IT resources
– Sustained delivery of (outsourced) IT services
» Therefore, IT Governance is a prerequisite for successful IT
– Outsourcing Governance is part of the broader IT Governance needs
11
Purpose of Outsourcing Governance
Risk
Mitigation
Value
Realisation
» Meet contractual obligations
» Ensure delivery of expected savings
» Ensure effective management
» Ensure market pricing
» Rapid resolution of issues
» Manage demand
» Ensure management control
» Create optimisation through
standardisation
» Provide consistent direction to
provider
» Leverage and focus provider capabilities
» Institutionalise process improvement
Outsourcing Governance must effectively balance these objectives
while bringing the intent of the deal to life
12
Outsourcing Governance: It Might Be Dull, But it Matters a
Lot to Achieving Deal Value
Loss of Outsourcing Value from Ineffective Service Provider Governance
Efforts
Duplicated
Resources
Wasted
Problems
Not
Managed
Performance
Not at
Expected
Levels
10%–20%
Value Loss
Operational
Challenges
20%–30%
Value Loss
Performance
Challenges
Total Potential Value
Gained From the
Outsourcing
Relationship
Providers
Deployed
Against
Conflicting
Or Wrong
Goal
Opportunities
Untapped
5%–10%
Value Loss
Portfolio Management
Challenges
“Net” Value Gained
From the
Outsourcing
Relationship
13
Outsourcing Governance Quality and Provider Performance
Quality (In general, the service provider meets the service levels
as set out in the Service Level Agreement)
80%
75%
80%
72%
70%
70%
60%
Price (The prices the service provider charges for its services are
(still) in line with current market price)
58%
66%
70%
62%
60%
60%
50%
50%
40%
40%
30%
30%
20%
20%
10%
10%
0%
55%
0%
Weak
Average
Good
Excellent
Weak
Governance quality
Good
Risk (The service provider shoulders reasonable commercial risk
and make necessary investments to reduce that risk)
70%
70%
59%
60%
Excellent
Governance quality
Innovation (The service provider actively identifies innovation
opportunities)
50%
Average
55%
48%
50%
44%
62%
57%
60%
40%
40%
30%
30%
20%
20%
10%
10%
52%
46%
0%
0%
Weak
Average
Good
Excellent
Weak
Governance quality
Average
Good
Excellent
Governance quality
Source: EquaTerra European ITO Service Provider Performance & Satisfaction Market Study
15 juni 2010
Know and share your objectives
Focus areas
Goal
High efficiency
1.
2.
Focus on more efficient demand supply chains (leading to FTE reductions)
Focus on Supply side
High customer satisfaction
1.
2.
Focus on improvement of service management processes
Focus on improvement of incident and problem management processes
Short time to market
1.
2.
3.
Focus on improvement of project and change management processes
Focus on improvement of operational delivery processes
Focus on contract management and sourcing strategy
Low complexity
1.
2.
3.
Focus on improved strategic planning
Focus on improvement of architecture processes
Focus on improvement of service- and project portfolio management
High quality
1.
2.
Focus on HR processes, and organisational development
Focus on quality and compliancy processes
Optimised added value of IT
1.
2.
Focus on service - and project portfolio processes
Focus on the demand side
High innovation capability
1.
2.
3.
Focus on strategic planning
Focus on architecture processes
Focus on improvement of project management processes
15
All Relationships are Not Equal
Transactional Services
Collaborative Services
Partnership Services
RELATIONSHIP CONTINUUM
» Focus is on
achieving cost
savings and market
prices
» Minimal information
sharing
» Minimal process
integration
» High trust is not
required for success
» Goals and business strategy are shared with
Providers and joint objectives developed
» Providers rewarded for improving productivity
and business effectiveness
» Client and Provider executives are effective
joint decision makers
» Communications are open and flexible
» Significant process integration
» High trust is required for success
» Business strategy is
co-developed and
jointly owned
» Risks and rewards
shared
» Tangible business
benefits expected
» Proven history of
high trust and joint
success is required
Outsourcing services can be viewed on a continuum: at
one end are commodity transactions and at the other
end fully-integrated solutions
16
Outsourcing governance is supply management to external service providers
The retained IT organisation = The demand-supply management organisation + internal IT delivery
Retained organisation
Internal delivery
Internal delivery
Business unit
Decentral
governance
Central
governance
Business unit
External delivery
External delivery
Decentral
governance
Business = demand
Demand - Supply management
Delivery = realisation
17
Governance Today – the Challenges
» Customers need to:
– Understand their service and outsourcing portfolio
– Prepare the organisation for change, governance and
retained organisation re-alignment
– Leverage experience
– Improve collaboration skills and competencies
– Invest more in transition and governance resources
» Service Providers need to:
– Demonstrate governance capabilities in complex environments
– Support the collaboration framework with other providers
– Level set buyer expectations on transition pain levels
– Educate buyers on the level of change needed
– Commit resources early to jointly developing strong governance
18
Agenda
19
Demand and supply management in IT
(Governance 2.0)
Gerard Wijers
June 2010
Agenda
» Demand supply model
» Organisational archetypes
» Processes
» Roles
» Sizing
21
Best practice: Demand – Supply model
Demand
management
Business
Focus on effectiveness: doing the right things
Supply
management
IT Delivery
Focus on efficiency: doing things right
Why?
What?
How?
Who?
Business processes
Functionality
Requirements
Applications
Infrastructure
IT-solutions
Best practice: Demand – Supply management
Business
Demand
management
Supply
management
IT Delivery
Business need
What
How
Realisation
» The business
management uses IT for
their daily business
processes, has needs
for changes and gives
assignments.
» The business fulfills the
ownership role for IT.
» Demand Management is
the right hand of the
business in realising it‟s
information and IT needs.
» Supply management is
focused on the delivery
of the right IT solutions
and IT services.
» Demand management
monitors and improves
the effectiveness and
efficiency of business
processes by initiating
and implementing
improvements and by
making optimal use of
information and
applications.
» Supply management
coordinates the supply
parties (internal and/or
external) and monitors
the use of company
standards.
» IT Delivery realises and
maintains IT solutions
» Maintenance includes
infrastructure, database
and application
maintenance, and
operations
23
Frame of reference
Retained organisation
Business unit
Internal delivery
Decentral
governance
Central
governance
Business unit
External delivery
Decentral
governance
Business = demand
Demand - Supply management
Delivery = realisation
24
Typical governance and organisational issues
» How to balance central and decentral responsibilities?
» Combine or split demand and supply management in the organisation?
» How to get the real business into the drivers seat?
» What is the optimal size of the demand-supply management organisation?
» Which delivery to outsource?
» How much application knowledge should retain internally and for which
applications?
» What are the right competencies?
25
Example 1
CIO
HR
CIO Office
Finance
Procurement
Information
management HQ
Information
management B2C,
MkB, Marketing
(+BI B2C + Online)
Information
management
Technology
Information
management B2B,
B2B Flex, ELES, New
Energy, SPM
Project & portfolio
management
Integration
office
IT Supply
Contract
management
IT operations
Generic
applications
Infrastructure
Information
management Trading
26
Example 2
Group IT
Design IT
Finance & Control
CIO Office
Human Resources
Contract
management
Service IT
End user support
Run IT
Information
management
Service desk
Customer systems
Architecture
Service delivery
Business systems
Business
requirements
Other
systems
Run SAP
SAP NL
SAP
TF&PS
BI
Projects
CSIA Services
SAP Process & User
Integration
Processautomation
Desktop & office
systems
SAP Hosting
D/S
IT Delivery
27
Best practice: Organisational archetypes
Federal model – separation demand & supply
Strong central model
Business
Demand
management
Supply
management
IT Delivery
Business
Demand
management
Supply
management
IT Delivery
Central management
Central demand mgt
Central supply mgt
Shared delivery
Central management
Central demand mgt
Central supply mgt
Shared delivery
Executives
CIO Office
Staff directors
Decentral management
Central demand
management
organisation
Central supply
management
organisation
Decentral demand mgt
Decentral supply mgt
Central internal or
external suppliers
Central
Central
Executives
Central Demand - Supply
management organisation
Specific delivery
Central internal or
external suppliers
Specific delivery
Director
Business management
Decentral demand - supply
management unit
Local
Suppliers
Decentral
Director
Decentral
Staff directors
Business management
Local suppliers
Federal model – integration demand & supply
Strong decentral model
Business
Demand
management
Supply
management
IT Delivery
Central management
Central demand mgt
Central supply mgt
Shared delivery
Central
Executives
Staff directors
Central
internal or
external
suppliers
CIO Office
Specific delivery
Decentral
Director
Business management
Decentral demand - supply
management unit
Local suppliers
28
Metrics on spend demand - supply management
Demand
management
Supply
management
IT Delivery
1
Broad view retained organisation
Tactisch
12 - 24%
Narrow view
retained
organisation
Operationeel
Strategisch
Business
4 - 8%
Spend on
Demand mgt
+ Supply mgt
as a % of total
IT spend
3
4
24%
2
12%
€ 25 MiO
€ 75
MiO
Total IT spend
In the broad view of the retained organisation, between
12 -24% of total IT spend is spend on demand – supply
management
The contingency factor scale:
In small organizations the tactical coordination of IT is relatively
expensive (point 1). The optimum lies around 25 MiO; with spend above
25 MiO complexities increase, as do the demand supply mgt costs (point
2) Above 75 MiO scale advantages lead to decrease in spend on
demand and supply management towards the optimum (point 3)
Other contingency factors for determining the optimum scale:
1.
2.
3.
4.
The investment strategy. As organisations spend more aggressively on innovation, the optimum scale will rise because governance of projects
is relatively expensive
The application architecture. Organisations with a lot of custom made applications have to calculate for larger demand-supply spend and a
larger optimum scale than organisations with more standard packages
The sourcing approach (single sourcing / multi sourcing, off shoring/ near shoring, insourcing / outsourcing) influences the optimal size in
several ways
The organisational set up of demand and supply mgt influences the optimal size (central, federative, decentral)
29
Metrics for detailed sizing
(examples – non exhaustive)
Balance Demand – Supply management at STO levels
Demand
management
Supply
management
Strategic
10-15%
5-10%
15 - 25%
Tactical
35-45%
20-30%
55 - 75%
Operational
5-10%
5-10%
10 - 20%
50 - 70%
30 - 50%
100%
Balance service management
Supply
management
Contract
manager
IT purchaser
Contract
delivery
manager
Service
manager
Service level
Manager
Service
delivery
manager
Database
administrator
IT controller
Asset manager
Application
engineer
Sysems
engineer
Administrative
support
Service
coördinator
Service desk
medewerker
IT process
manager
3 - 6%
IT Delivery
94 - 97%
What do we do at S, T and O - level
Business
Demand
management
Supply
management
IT Delivery
Strategy & policies
Portfolio management & architecture
Strategic
Annual planning cycle
Organization development & human resource management
Security, compliancy & quality management
Project portfolio management
Requirements, project & change management
Release, test & transition management
Tactical
Finance
Contracts & service agreements
Service level management
Support
Operational
Operations & operational control
31
What you have to do at operational level really
depends on your sourcing strategy
Business
Demand
management
Supply
management
IT Delivery
Call management
Request fulfillment
Support
Incident management
Problem management
Availability management
Operations &
operational control
Capacity management
Monitoring & operations
Configuration management
32
Who is doing what?
Demand
management
Business
Supply
management
CEO
Strategic
planning
Business director
CIO
Process owner
Information strategy
analyst
Application portfolio
manager
IT Delivery
IT director
Service portfolio
manager
Vendor (portfolio)
manager
Enterprise architect
Business process
architect
Information architect
IT landscape architect
Solution architect
Auditor
Business
governance
Information security
officer
Risk & compliance
officer
Security & compliance
officer
Quality officer
Manager
Management
Business process
Manager
Demand manager
Supply manager
Delivery manager
IT project manager
Information owner
Project portfolio
manager
Program manager
Application owner
Business consultant
Business project
manager
Project sourcing
manager
Business process
designer
Information analyst
Application/ infra
consultant
Solution designer
Solution engineer
Meta data manager
Test manager
Test coordinator
Solution test manager
Solution tester
Change
&
innovation
Change manager
Business service
manager
Management
control
Release manager
Deployment manager
Contract manager
IT purchaser
Contract delivery
manager
Service manager
Service level Manager
Service delivery
manager
IT controller
Asset manager
Administrative
support
End user
Operational
control
Key user
Data administrator
Functional support
Data analyst
Service coordinator
IT process manager
Application engineer
Service desk agent
Systems engineer
Database
administrator
33
Who is doing what?
Management
control
Contract manager
IT purchaser
Service manager
IT controller
Asset manager
Administrative support
Demand
management
Business
Supply
management
CEO
Strategic
planning
Business director
CIO
Process owner
analyst
manager
IT Delivery
IT director
Service portfolio
manager
Vendor (portfolio)
manager
Business process
architect
Solution architect
Auditor
Business
governance
officer
Risk & compliance
officer
officer
Quality officer
Manager
Management
Business process
Manager
Information owner
Application owner
Change
&
innovation
Demand manager
Project portfolio
manager
Supply manager
Delivery manager
Program manager
Business consultant
Business project
manager
Project sourcing
manager
Business process
designer
Information analyst
Application/ infra
consultant
Solution designer
Solution engineer
Meta data manager
Test manager
Test coordinator
Solution tester
Change manager
Business service
manager
Management
control
IT project manager
Release manager
Deployment manager
Contract manager
IT purchaser
Contract delivery
manager
Service manager
Service delivery
manager
IT controller
Asset manager
Administrative
support
End user
Operational
control
Key user
Functional support
Data analyst
Data administrator
Service coordinator
IT process manager
Service desk agent
Systems engineer
Database
administrator
34
Design example with roles per organization unit
CIO
HR
Finance
Procurement
HQ
B2C
Technology
B2B
Trade
Information management
• Information manager
• Application portfolio manager
• Business consultant
• Business process analyst
• Application consultant
• Functional manager
• Change manager
Online
• Business consultant
• Concept & Design consultant
• Interaction designer
• E-performance consultant
• E-platform manager
• Web content manager
• Web publisher
• Online support engineer
CIO Office (no manager)
• Information strategist
• Information security officer
• Compliancy manager
• Information economics officer
• Program manager
Manager
Project management
• Project manager
• Test manager
• Project portfolio manager
• Resource planner
• Administrative support
Manager
Essent IT Online
Manager Integration Office
• Enterprise architect
• Information architect
• Infrastructure architect
• Application landscape architect
• Project architect
Manager Generic applications
• Application consultant
• Software engineer
• Application portfolio manager
Manager IT operations
• Service manager
• Service level manager
• Problem manager
• Change manager
• Release manager
• Asset/configuration manager
• Lean belt
• Quality assurance officer
Manager Infrastructure
• Infrastructure consultant
• Infrastructure portfolio manager
Manager Contract management
• Contract manager
35
Thanks For Your Attention to This
Introduction on EquaTerra’s Governance 2.0
Best Practices
Demand
management
Business
Supply
management
IT Delivery
Strategy & policies
1
Spend on
Demand mgt
+ Supply mgt
as a % of total
IT spend
3
4
24%
Strategic
Organization development & human resource management
2
12%
Tactical
Finance
€ 25 MiO
€ 75
MiO
Support
Operational
Total IT spend
Benchmark D/S spend
D/S Process Chains
Process models
RACI Matrices
Governance Workplace
Demand
management
Business
Supply
management
CEO
Strategic
planning
Business director
CIO
Process owner
analyst
manager
Business process
architect
IT Delivery
IT director
Service portfolio
manager
Vendor (portfolio)
manager
Solution architect
Auditor
Business
governance
officer
Risk & compliance
officer
officer
Quality officer
Manager
Management
Business process
Manager
Demand manager
Supply manager
Delivery manager
Information owner
Project portfolio
manager
Program manager
Application owner
Business consultant
Business project
manager
Project sourcing
manager
Business process
designer
Information analyst
Application/ infra
consultant
Solution designer
Solution engineer
Meta data manager
Test manager
Test coordinator
Solution tester
Change
&
innovation
Change manager
Business service
manager
Management
control
IT project manager
Release manager
Deployment manager
Contract manager
IT purchaser
Contract delivery
manager
Service manager
Service delivery
manager
IT controller
Asset manager
Administrative
support
End user
Operational
control
Key user
Functional support
Data administrator
Data quality analyst
Service coordinator
IT process manager
Service desk agent
Systems engineer
Database
administrator
Organization Structures
D/S roles
Governance Structures
36
Agenda
37
Structuring Deals to Avoid Litigation
Julian Stait
June 2010
Agenda
39
BEIJING
FRANKFU RT
HONG KONG
LONDON
LOS ANG ELES
MUNICH
NEW YORK
SINGAPORE
TOKYO
[Place image in picture box.]
How to avoid, manage and
effectively resolve IT disputes?
Julian Stait
10 June 2010
WASHINGTON, DC
What are large scale IT cases/trials really like?
 Long
 Document heavy
 Expensive
 Disruptive
 Damaging
 Unpredictable
 Very challenging:
 Strategy
 Managing expectations
 Patience/perseverance/stamina
 Stress
 Organisational alignment and
sponsorship
What are the causes and origins of IT disputes…
…and why is it important to know?
Sales
v
Procurement
Other causes of IT disputes
Further causes include :
 Requirements: clarity and
certainty
 Poor expectation management
 Tensions in the delivery/
development process
 Complex, novel projects
 Poor service/performance
 Off contract performance
 Poor
management/monitoring
 A lack of co-operation
Phase 1: the procurement phase and the negotiation and
execution of a contract
 The genesis of many major IT disputes
(including Sky v EDS)
 Create and retain evidence relating to the
bid and of pre-contractual discussions and
negotiations
 May be admissible and assist on key issues,
e.g.:
 (mis)representations
 extent of negotiations
 reasonableness of certain exemption
clauses
 resolving ambiguities
 rectification and estoppel by
convention
 Keep the executed contract and all
amendments in a safe place!
Which areas of the contract will come under particular scrutiny
in any dispute?
These include the following:
 Rights and obligations: scope and
certainty
 Entire Agreement
 Variation and change control
 Charging and cost
 Liability and exemption provisions
 Termination and suspension
 Notices and service of process
 Dispute resolution mechanisms
including escalation procedures
(mandatory or optional?)
 Law and jurisdiction
Phase 2: performance and non-performance
 Beware of the “bottom drawer”
syndrome
 Ensure that all contractual "loose
ends" are tied up
 What do you do if they are not?
 Note key contractual obligations
and monitor performance
 Diary of key contractual dates
 Contractual variations: a major
potential area of exposure…
 …record properly otherwise risk
inevitably follows
Phase 2: performance and non-performance
 Don‟t be frightened of acting in
accordance with the contract
 Organisational alignment and
communication are key
 Records of (non-)
performance/complaints/responses
 Minutes of meetings (published or
internal)
 Records of key conversations
 Implementation by the whole team
of a proper document management
system
 Internal investigations: care!
Documentary evidence and disclosure
 What are “documents”?
 Why are they so important?
 Which documents must be disclosed?
 those on which you rely
 those which adversely affect your
case or your opponent's case
 those which support your
opponent's case
 Unless they are „privileged‟
 Lack of appreciation of the impact of
disclosure/documents
 The propensity of parties unnecessarily
(and often inaccurately) to say
damaging things…
Avoidable ‘bad documents’…
 Examples of damaging comments
made in internal documents:
 “The Plan and resources will be
artificially manipulated to commit
to deliver within the budget”
 “a marketing/sales ploy for the
client”
 “To Obtain the Best Possible
Price for the Purchase of an
Unspecified set of Deliverables
and Ensure that the Solution is
Fit for [the company‟s] Purpose”
 “We need one of these!”…
Avoidable ‘bad documents’…
 Examples of damaging comments
made in internal documents:
 “The Plan and resources will be
artificially manipulated to commit
to deliver within the budget”
 “a marketing/sales ploy for the
client”
 “To Obtain the Best Possible
Price for the Purchase of an
Unspecified set of Deliverables
and Ensure that the Solution is
Fit for [the company‟s] Purpose”
 “We need one of these!”…
Phase 3: what should you do when it all starts to go wrong?
 Organisational alignment is key:
 documents
 objectives and desired outcome
 strategy
 Reluctance to involve in-house lawyers
and to escalate can sometimes be
misplaced
 Monitor key correspondence/notices
 Monitor/control document creation
and deletion
 Evidence: who/what are you going to
need in order to prove your case?
 Evidence of loss?
 Termination: sound alarm bells
Phase 4: escalation and litigation
 Look after witnesses and other key
players
 Be careful of departing employees:
 Documents
 Evidence (proof/witness
statement)
 Ongoing co-operation
 Document preservation: take early
steps
 Retain/reserve key professionals
from the outset
 Access to systems/software: order
for preservation?
Strategies for the successful resolution of IT
disputes
 Set initial goals, objectives and
strategy
 Keep settlement strategy under
review
 Agree lines of communication
(internal and external)
 Build and maintain consensus
within the company
 Team alignment (both internal and
external) is key
 Manage internal and external
stakeholders
 Remain focused on objectives
rather than process
Julian Stait
jstait@milbank.com
+44 20 7615 3005
Agenda
56
Royal Haskoning Case Study
John Beekman
June 2010
The impact of governance on
sourcing arrangements
John Beekman
CIO Royal Haskoning (2008 -2009)
June 10th 2010
Agenda







Introduction
Organisational developments
Objectives 2008-2009
Governance
Communication
Maturity programme
Questions
59
Profile Royal Haskoning





Consultants, architects & engineers.
4,400 professionals.
Established in 1881.
Independent ownership structure.
A network of knowledge, offices, partners and
relations.
 Great diversity and synergy in extensive knowhow
and expertise.
 Worldwide experience.
60
Royal Haskoning International
61
Agenda







Introduction
Governance
Communication
Maturity programme
Questions
62
Organisational developments (growth)
Inf ra s t ruc t ure Us e rs
4.000
3.500
3.000
2.500
Deni s Wi l son
VHP
Cor smi t
BM
2.000
Van Heugt en
Dor dt se Engi neer i ng
Aut onomous gr owt h
User c ount l ast y ear
1.500
1.000
500
2003
2004
2005
2006
2007
2008
63
Organisational developments (increased innovation)
Volume (mEur)
10,0
8,0
Projects
Services Contract
6,0
4,0
2,0
0,0
03/04
04/05
05/06
06/07
07/08
64
Agenda







Introduction
Governance
Communication
Maturity programme
Questions
65
Objectives KIM




Back to basics.
Architecture.
Governance.
Sourcing strategy.
66
Back to basics








Stabilise infrastructure.
Improve service delivery.
Application rationalisation.
Improve communication.
Establish clear service requirements.
Maximise use of existing workplace functionality.
Increase cross divisional working.
Establish ICT contingency plan.
67
Architecture






Design & implementation mail & calendaring infra.
Design & implementation fileserver infra.
Design & implementation centralized back up.
Redundancy single points of failure.
Implementation VOIP.
Access foreign offices to RH network homelands.
68
Governance







Redesign KIM organisation.
IT Executive Board.
IT Portfolio Board (GIS & CAD).
Corporate Project Portfolio meetings.
Formalised project proposals.
Communication with the business.
Collaboration KIM & other Corporate Groups.
69
Sourcing strategy
 Customer Intimacy  KIM (demand).
 Operational excellence  strategic partners (delivery).
70
Agenda







Introduction
Governance
Communication
Maturity programme
Questions
71
GAP analysis
Contracted
Service
As documented in the
contract
Expected
Service
Centre of
Excellence
As captured through
IT SAT & captured
through interview
process
Delivered
Service
As documented in
Service Reports and
captured through
interview process
GAP 2
72
Demand and Supply in the Information chain
Doing the right things
Doing things right
Business
Demand
management
Supply
management
Delivery
Business need
What
How
Realisation
» Business
management uses IT
for its daily business
processes, for
instance sales,
marketing.
» Business need result
in IT related projects.
» Demand Management (or
Information Management)
is the right hand of the
business in realising it‟s
information and IT needs.
» IT Supply management
is focused on the
delivery of the right IT
solutions and IT
services.
» Demand management
monitors and improves
the effectiveness and
efficiency of business
processes by initiating
and implementing
improvements and by
making optimal use of
information and
applications.
» IT Supply management
coordinates the supply
parties (internal and/or
external) and monitors
the use of company
standards.
» IT Delivery realises and
maintains IT solutions
» Maintenance includes
infrastructure, database
and application
maintenance.
73
Business
Demand
management
Supply
management
Delivery
Strategy & policies
Strategic
Organisation development & human resource management
Tactical
Finance
Support
Operational
74
Business
Demand
management
Supply
management
Delivery
Strategy & policies
Strategic
Tactical
Finance
Support
Operational
75
KIM domain old
Business
Demand
management
Supply
management
Delivery
Strategy & policies
Strategic
Tactical
Finance
Support
Operational
KIM domain new
76
Demand & Supply Management
Division
Industrial
Installations
Functional
management
Division
Architecture
& Building
Functional
management
KIM
Policies
Compliance
Workplace
management
Subcontractors
Business
applications
Subcontractors
Planning &
Control
Services
Corporate
Finance
Corporate
HRM
Fixed
telephone
Functional
management
Solutions
Functional
management
Mobile
telephone
77
Agenda







Introduction
Governance
Communication
Maturity programme
Questions
78
Improvement measures









IT Executive Board.
IT Portfolio Board [ CAD, GIS ].
Steering committee [ CRM, Doc Mgt ].
Participation in division MT meetings.
Visiting RH offices.
Appointed Service Managers KIM [NL & UK].
Dedicated project reporting [to relevant stakeholders].
Newsletter [ bi-monthly ].
Activity schedule [ bi-weekly ].
79
Agenda







Introduction
Governance
Communication
Maturity programme
Questions
80
Maturity objectives
Maturity
3
Learning
2
1
Dashboard
Governance
Architecture
Sourcing strategy
Proactive
Break Fix
Reactive
2008
2010
2012
Time
81
Maturity objectives
Maturity
3
Learning
2
1
Dashboard
Governance
Architecture
Sourcing strategy
Proactive
Break Fix
Reactive
2008
2010
2012
Time
82
Bottom Line
 Demand & Supply deserve balanced focus.
 Create awareness & responsibility of demand in the





business.
Align maturity levels in the demand – supply chain.
Hire the appropriate level of competences.
Keep contracts & service levels up to date.
Translate business needs into ICT services.
Communicate objectives and successes.
83
84
Our mission and vision
 Mission
Creating solutions for issues relating to the sustainable
interaction between people and their environment.
 Vision
Continuously increasing the added value of our services
for our clients. We consider our client‟s problems to be
ours.
We aim to be among the leaders in our market.
85
Organisational structure
86
86
Internal relationships (liaison role)
Division director
KIM director
Strategic
Manager Services
Manager Solutions
Tactical
Division MT
Contract & SLA manager
Business consultant
Tactical
Demand Mgr
Helpdesk
Engineers
Users
Operational
KIM
DIVISION
87
Provider
Provider
Provider
Additional
Repro
Printing
Specific software
Generic Software
WAN provider
WAN integrator
Business applications
Workplace automation
KIM
Realignment of contracts & processes (to-be)
RH
Service Integrator
provider
Provider
provider
88
Provider
Provider
Provider
Additional
Repro
Printing
Specific software
Generic Software
WAN provider
WAN integrator
Business applications
Workplace automation
KIM
Realignment of contracts & processes (as-is)
SD
RH
SD
provider
Provider
provider
89
Agenda
90
Panel and Wrap Up
EquaTerra and Millbank
10th June 2010
About EquaTerra
Contact Us
EquaTerra sourcing advisors help clients achieve sustainable value in their IT
and business processes. Our advisors average more than 20 years of industry
experience and have supported over 2000 transformation and outsourcing
projects across more than 60 countries.
Europe/Asia Pacific
+44 (0) 845 838 7500
infoeuapac@equaterra.com
Supporting clients throughout the Americas, Europe, and Asia Pacific, we have
deep functional knowledge in Finance and Accounting, HR, IT, Procurement
and other critical business processes. EquaTerra helps clients achieve
significant cost savings and process improvement with internal transformation,
shared services and outsourcing solutions.
Americas
+1 713 470 9812
infoamericas@equaterra.com
www.equaterra.com
92

Governance Best Practice Masterclass EquaTerra

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