2005 TCGSUG Governance Presentation

© neoIT 2005. All rights reserved

www.neoIT.com

GOVERNANCE

Beyond Vendor & Project Management

September 22, 2005

Chas MullinsManaging Director

Atul VashisthaCEO

© 2005 neoIT2

neoIT Overview

Services Globalization Lifecycle

Governance Framework

• Layers of Governance

• Organizational

• Functional

• Operational

Agenda

© 2005 neoIT3

About neoIT: Our Capabilities & Client Outcomes

StrategyEffective services globalization strategy that stands the test of

time

ExecutionOptimized, efficient operations

through flawless execution

GlobalizationDriving competitive advantage by harnessing the forces of services

globalization

neoIT advises clients on how to best plan and implement services globalization strategies

Operations Improvement

Risk ManagementDe-risking services globalization is a prerequisite for any corporation.

Expansion & GrowthAddressing growth issues through services globalization should be a priority for every organization positioning for long-term success.

Through services globalization organizations are becoming streamlined, effective operating units.

© 2005 neoIT4

Some of Our Valued Clients

CONFIDENTIAL LIST

© 2005 neoIT5

SUPERSTARSUPERSTAR

Thought Leaders

neoIT leverages experience, expertise and proprietary methodologies to create superior outcomes

Industry RecognitionOpinionPublications

Original Content

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

Vietnam

IndiaChina

Thailand

Philippines

Romania

Brazil

Costa Rica

Russia

Malaysia

Mexico

Hungary

Poland

South Africa

Israel

Singapore

Canada

Ireland

0%

2%

4%

6%

8%

10%

12%

14%

Salary Grow th rate

Average annual salary, USD Year-over-year growth in average salary

Industry average growth rate = 8.7%

© 2005 neoIT6

neoIT Overview




• Organizational

• Functional

• Operations

Agenda

© 2005 neoIT7

• Knowledge & Learning

• Planning & Strategy

• Sourcing

• Management & Governance

A Lifecycle Approach to Governance

Leveraging Services Globalization is more than sourcing….… and requires governance through the entire lifecycle

Leveraging Services Globalization is more than sourcing….… and requires governance through the entire lifecycle

Source: neoIT

© 2005 neoIT8

neoIT Overview




• Organizational

• Functional

• Operations

Agenda

© 2005 neoIT9

Governance – At All Levels

© 2005 neoIT10

ExecutiveSteering Committee

Global Solutions Firm wide“Air Traffic Control”

“Deal Team”“Air Traffic Control”

Operational Governance

LOB/HR Finance IT CRM

IT IT IT IT

Contact Center of Excellence (CCOE)SoftwareVoice Related

ApplicationsLOB Specific

HardwareInfrastructure

ProcessesDemand Analysis

Business Requirements

ProgramManagement Office

Functional Governance

Captive Site“Satellite PMO”

Other LOB “ATC”Structures

Organizational Governance

Enterprise Technology Services

Third PartyVendors

Governance – Level By Level

© 2005 neoIT11

Company Culture

Affinity for outsourcing & globalization including

past experiences

QualityNeed for consistent quality

and service levels

RiskManage stability, security, privacy,

volatility, etc.

ControlOwnership

preference as influenced by risk &

culture factors

Cost SavingsNeed for reducing cost or

fundamentally altering business model

CorporateStrategy

Business plan, goals and results expected-acquisition,

cost structure, growth, flexibility, risk aversion, profitability, cash etc.

SocialResponsibili

tyIssues related to job loss, globalization, employee upheaval,

etc.

Industry Activity

Offshore actions of competitors and industry

players

Globalization

Strategy

Framework

Globalization

Strategy

Framework

Source: neoIT

Organizational Governance – Strategic Alignment

© 2005 neoIT12

LeadershipCommitment

OrganizationDesign &Structure

Transition Planning

CommunicationsEducation & Development

6 1

2

34

5Process Redesign

1

2

3

4

5

6

Leadership CommitmentObtaining executive-level buy-in and commitment

Organization Design & StructureDevelop new operating model to include jobs and work structures & performance management systems

Transition PlanningDevelop transition activities including application and business process sequencing, knowledge transfer and resource planning; managing current commitments

CommunicationsProvide communication to all stakeholders throughout the transition

Education & DevelopmentBuilding the needed competencies to perform in a global delivery model

Process RedesignDefine processes to include new development cycle, knowledge management processes and problem-change management processes

Understand Transformation Levers

Organizational Governance – Managing Transformation

Source: neoIT

© 2005 neoIT13

Functional Governance

Air Traffic ControlInitiative Coordination, Facilitation and Consolidation

North America Asia / PacificEMEA

LOB LOBLOBLOB LOBLOBLOBLOBLOB

Shared Services Shared ServicesShared Services

Project Project ProjectProjectProjectProjectProject ProjectProject

Supply SideDemand Side

External Providers

Internal Captive

Tactical

Cross-Functional

Strategic

© 2005 neoIT14

Operational Governance – All About Execution

Expect to invest 5-8% of total spend in governance

• Service levels – monitoring, reporting

• Schedule management

• Issues in quality

• Offshore workload management

• Process flow for onsite/offshoredelivery

Performance Management

Invoice reviewBudget to actualsExpense allocationInvoicing procedureChange management to base model

Financial Management

Contract ManagementKey personnelStaffing, attritionBackground checks, insuranceDR/BCP plans, readinessReformulate service levels forrelevancy

Resource ManagementRetention, buffer, trainingVacation, holidaysOnboarding, resource transitionsConserve knowledge transfer Skills update

Relationship ManagementClient of choice initiativesOne teamTrack issues to closureBridge culture gaps

© 2005 neoIT15

Finally The PMO, But P is for Program

PMO Charter

Communications

Management

Integration Management

Quality Management

Scope Management

Cost Management

Project (Time) Management

Resource Management

Risk Management

Provider/Vendor

Management

The following diagram highlights the primary functions that will be managed by the PMO across all projects.

PMO Charter

The Project Charter provides an overview of the project and formally authorizes the project. The project charter should be issued at a level appropriate to the needs of the project, so that the PMO/Project Governance Committee will have the authority to apply organizational resources to project activities.

The primary function of the PMO is to support firmwide initiatives and provide a framework to:

Mitigate and manage risks and interdependencies,

Enhance and optimize cross LOB interaction,

Promote transparency of communications among all constituents

Enabling knowledge and best practice sharing,

Leverage synergies across all lines of business,

Implement a common language and process understanding, and

Track, monitor and report project progress against plan.

Identify and communicate the benefits and critical success factors associated with the effort.

Clarify how the PMO can assist with the aggregation and analysis, coordination and facilitation, marketing and communication across all agenda constituents.

© 2005 neoIT16

Contact Information

Chas MullinsManaging Director, [email protected]

Atul VashisthaCEO, neoITCo-Author, The Offshore [email protected] (m)

neoIT Global Headquarters

2603 Camino Ramon, 2nd FloorSan Ramon, CA 94583 USA

neoIT Asia Headquarters

210, Bellary Road Upper Palace OrchardsBangalore - 560 080 India

neoIT Philippines8/F Pacific Star BuildingSenator Gil Puyat Ave. cor Makati Ave.Makati City, Metro Manila, 1200, Philippines

Documents

2005 TCGSUG Governance Presentation