Value Management Assessment: Outsourcing
Assess the value at risk and governance structures associated with outsourcing and determine the level of exposure whilst focussing on internal and external regulatory requirements.
A platform for identifying risk exposure
The Value Management Assessment is a comprehensive review of the organisations exposure to risk resulting from outsourcing of processes and technology, and the extent to which the original objectives are being achieved. By primarily reviewing the Operational aspects, and the associated Contractual and Financial dimensions of agreements, the performance gaps are identified and prioritised. Due to the regulatory nature of risk, the assessment will also indicate the level of compliance and inherent stakeholder transparency.
Governance procedures will be assessed to ensure a suitable structure and communication platform between external partners and the internal organisation.
With a clear understanding of likely improvements the ideal planning and control environment can be structured for a phased implementation to suit internal requirements and to ensure regulatory compliance.
The discovery process
- Step 1: Dedicated workshops during a limited time period with a specified group of individuals will enable the analysis process. Access to documentation and operations will be required to develop a comprehensive view of the organisation.
- Step 2: The findings will be analysed and documented using an interactive process ensuring the early adoption of terminology, methodologies and ownership. Ideally the involvement of a dedicated person is required to facilitate and communicate internally.
- Step 3: Within a reasonable time period the final assessment report will be published and presented specifying findings. An initial improvement roadmap will accompany the report setting the broad value management requirements and the evolutionary steps to mitigate possible risks.
Working towards a structured approach
Throughout the assessment the focus remains on establishing a value management environment tailored to the characteristics of the organisation.
The Method to be defined must be sound and of such a fit that the time of adoption enables short term benefits and change in procedures. The secondary deployment phases can serve to further embed the method in the organisation or to enhance the Planning and Coordination processes.
The Metrics deployed must primarily reflect the communicated strategic objectives. Most importantly, whilst complying with the criteria for management metrics, it must reflect Cause-and-Effect relationships.
As part of the Planning and Coordination Process the focus is on creating an easy to adopt set of activities that can be replicated by the value management deployment phases. Having a single set of visible measures underpins the development of a trusted and accepted coordination system.
