Case Study #4802 - Vendor Management Process : Superannuation
The organisation had entered into a new IT managed services agreement with an external vendor. The organisation was transitioning to the new vendor. During this time Cherub was engaged to implement a number of vendor management solutions to support the organisations need to better manage external vendors.
Cherub worked with the client to develop three essential tools that would support the organisation into the future.
Contract On A Page Summaries
We reviewed the outsourced contract in detail and provided a number of summaries, including Reporting requirements; Service Level Agreement summaries; Statement of Work Summaries; and Meeting Summaries.
The benefit of this is that staff within both the organisation and the vendor could quickly review and understand relevant requirements of the contract, without the need to review a 200+ page document.
We developed an executive scorecard that will be produced on a quarterly basis. The scorecard identifies the key business drivers that the organisation used when selecting the vendor, and reports on vendor performance against these drivers. The report audience is organisation senior executives, and the vendor senior executives.
The benefit to the client and the vendor is that the organisation's business requirements are understood, and measured, by both the organisation and vendor. This creates a much stronger alignment of needs and goals than simple SLA reporting.
Cherub led the client through an analytical process of classifying its multiple vendors into Tier 1, 2, 3 and 4. Following this, appropriate layers of management were identified for each Tier.
The benefits to the client are that they can better understand where they need to apply more effort for certain vendors, and where they can appropriately apply less effort for other vendors. The client quickly identified certain vendors where they urgently needed to implement risk mitigation strategies and other vendors where they could reasonably spend less time managing them. This resulted in optimising their internal effort with limited staff.
The company has tools and disciplines in place that will allow them to properly manage the outsource vendor. They are able to monitor the quality of service at multiple levels and make adjustments with the vendor when required to ensure the ongoing success of the contract.
For more information, please contact our lead Director for this engagement.