governance slidepack june2010 without notes
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Successful Sourcing Governance - Method or Magic? Eleanor Winn, Director Source takes a look....TRANSCRIPT
Successful governance
Eleanor Winnsource
method or magic
Understand what governance really
means
Understand the accepted
methods for good governance
Understand what makes
governance of a relationship really
fly – the magic
OBJECTIVES
Governance is the activity of governing. It relates to decisions
that define expectations, grant power or verify performance
Governance in its widest sense refers to how any organisation, including a nation is run. It includes all the processes, systems and controls that are used to safeguard and grow assets.
governance
is
not
a
mystery
…a magic pill
governance is not…
• no surprises
• control
• joint working
• “recommend to a friend”
If there were a recipe for good governance what would be on the ingredients list?•Reporting•Performance management•Financial management•Contract management•Demand management•Risk management
ReportingWould you drive a car without looking at the
dashboard?
good reporting is …
RegularClear Complete Unequivocal metricsFit for purpose metrics
Performance management is…
Service level reporting
Problem management
System/process change
Project management
Financial management
Budgetary management
Invoice reconciliation
Benefit tracking
Business case mgt
Contract managementCompliance on both sidesMaintain lists and schedulesManage change
• It still has to be about the customer
• Collaboration between customer and supplier will make all the difference
• Keep it visible
Demand management
Risk management • Audit • Protection of commercial
position• Review of key docs such
as exit plan
3 layer model• executive• management• Operational
Each serves a different purpose and is important in its own way
Options for managing multiple suppliers • Best practice sharing – ad hoc• Formalised best practice sharing• Integrated vendor management organisation
So, where’s the magic?
Relationship• Trust• Flexibility• Mutual recognition• Alignment
Trust and
collaboration are
essential
But hold their own
dangers
Culture• Curiosity• Lack of fear• Willingness to take
risks• Shared
responsibility
Taking a longer term view isn’t easy…
…it takes balls
changeContinuous improvementActive change process