Governance Services: Meeting the Minimum Governance Table Stakes to Stay in the Game

© 2015 Information Services Group, Inc. All Rights Reserved.

© 2015 Information Services Group, Inc. All Rights Reserved.

Meeting the Minimum Governance Table Stakes to Stay in the Game

Governance Services:

Tina Roy, Partner

© 2015 Information Services Group, Inc. All Rights Reserved 3

Agenda

o Contracts are changing; expecta6ons are rising o How to change the game with good governance

o How to drive value add in your client rela6onships


Did you know?

o  Contract value leakage is as high as 10% of ACV for either party

o  Provider compliance to D&Os is typically below 25% (even with your renewals and COLA notifications)

o  Lack of compliance for new SOWs or change orders doubles the typical 20-day close cycle

o  ~20% of payments are delayed due to invoicing errors


The client-provider relationship is becoming more complex.

XaaS, Cloud, Consumption & Outcome-

based Contracts

Focus on cost reduction

heightened with automation & digitization

Multiple suppliers and

SIAM

Mandatory guidelines for risk, audit & compliance


Is this where you should be spending your time anyway?

ü Meeting basic D&O expectations ü  Producing accurate & quality Invoice/Change Order/SOWs ü Correctly calculating COLA or even charging it! ü  Ensure quality, tracking and reporting ü Defending rates and Service Levels

The simple stuff - if not attended to - can shroud the relationship in doubt.


Basic governance solutions help ensure …

you spend less time keeping the lights on and justifying your value

and more time delivering high quality service and strategizing the future target operating model and innovating.


How do you … improve the quality of invoices

… increase efficiency and … reduce payment cycle times

...proactively meet your obligations? Implement the right processes and technology with the right resources and rates.


? Should you be adopting

state-of-the-art governance

measures like your

clients are doing


Suppliers can use governance frameworks to…

ü  minimize your own losses ü  refocus your energies and talent on

delivering next-generation services ü  ensure your fees are competitive ü  optimize your efforts toward delighting

your clients

…and “raising the stakes’ for the competition


…and be proactive

o  Improve contract hand off from sales to delivery o  Focus on startup and transition activities tied to

milestones and penalties o  Deliver good, quality service

Good governance helps you

o  Knowing and meeting your obligations o  Ensuring your rates are not only compliant

but competitive.


“Double Down” and realize the “full value” of the contract you negotiated.

o  Create the transparency for your clients o  Work from fact-based data o  Leverage proven benchmark data o  Plan for the future o  Automate where possible o  Adhere to stringent processes o  Standardize your obligations across

contracts


Can you identify the tactical and quality issues to improve the relationship and service?

Risks

Processes

Roles and responsibilities

Tools People Value leakage

Compliance Relationship


What is the ISG Essentials Startup Kit?


Captures & assigns contract obligations.

Proactively identifies, tracks, and alerts.

Provides an SOW benchmark factory and reports on key financial

measures.

Implements invoice and service level management

validation. Performs ongoing

reconciliation & validation.

Performs contract interpretations.

Proactively captures and records

critical contract changes.

Captures and tracks contract issues to resolution.

The ISG Essentials Startup Kit …


Differentiate your business through good governance basics

o  Shift valuable resources from resolving daily, transactional issues to delivering real value

o  Proactively meet your contractual commitments

o  Demonstrate quality, compliance & competitiveness

o  Employ new ways to communicate and inform your client through state-of-the-art dashboards & reports

and maximizing your value

www.isg-one.com

imagine your future™ let’s connect…

Governance Services: Meeting the Minimum Governance Table Stakes to Stay in the Game

Business