Managed Services - Assuring the Value #2

7/29/2019 Managed Services - Assuring the Value #2.

1/4

Assuring the value

Whether you are an operator or a vendor it is probable that you are not fully

realizing the value of your managed service or managed service portfolio.

Experience has taught us that in every managed service project there are

misunderstandings, things which are not clear, missing functions, disconnected

processes and a general lack of clarity.

So how to get managed service back on track?

Managed service is not a one size fits all, it is not just a bolt on extra to core

business. It is a business in itself it is something that can only be executed

successfully from a point of excellence.

Ill conceived, poorly thought out or executed the risks are great, as a vendor, endto end knowledge of his business is essential, as the client there is the possibility of

losing the license, fines and rapid subscriber churn. It is equally important for the

client to understand the vendor end to end.

Neither vendor nor operator afford these risks, yet in the scramble to grab every

piece of managed service business we have seen mistake after mistake. Yes, the

business is won but the more important battle of delivery is lost.

Why else would the trend be to change vendor at the end of the first contract? Just

examine coldly the contract churn

For once the decision to outsource has been made it is imperative that if the current

vendor is not successful that a new one be found.

But the new vendor beings his interpretation and his concept in isolation, so in the

cold light of day operators swap from one vendor to another in the hope that one

day they will find the right one.

The real problem is and always has been a failure to define the service, scope,

responsibilities and governance.

Lets not forget the number of hidden issues where service credit is paid out in order

to keep the customer.

We need to formalize the managed service business, we need to be able to get

above the squabble and bring the vision and clarity to this business. This is value

assurance and not added value, it is the maximization of the latent value in any

Managed Service project.


2/4

It is a new business and we are learning its shape, how it works and what are the

guiding principles. But most importantly we need to accumulate knowledge and take

advantage of the skills that the people who really know have.

Too often it has been a case of making a square peg fit a round hole, now with the

differing needs of operators it is the square peg that needs the round hole adapted.

We see the sales track record over 100 managed services contracts sold, but taken

in isolation that is a meaningless measure of performance. Like a doctor where the

acid test is the number of patients cured in managed services the true test is the

percentage of projects executed smoothly, without crisis and renewed.

Corporations need to learn how to be flexible and adaptable if it is going to exploit

the opportunity, dogged procedure will stifle the benefits. Just as assuredly as the

slick, cutthroat business man will.

Without the careful planning the execution is doomed from the start, the vendorwho says oh yes I have the HR needs to be tested. Vendors need to be able to

show they have the right support and culture, that they understand the operations

of the specific client and that they have the flexibility to bring it within their

portfolio.

Operators need to test these issues and challenge the vendor on his delivery,

not only the service but the whole operation. If they dont then they only have

themselves to blame when forced into litigation.

Vendors need to be ready to demonstrate their commitment to the client and veryimportantly their innovative practices which allow the vendors skill to be leveraged

for the benefit of vendor and client.

Setting projects up to succeed by ensuring that the headcount is available as

required, that HR actually does fill all the seats, making sure that third parties have

the requisite documentation. Ensuring that meaningful KPIs and SLAs have been

selected. Having the right governance and project control, it can be as simple as

making sure who are the interfaces. Critically, being sure that all necessary processes

and procedures are in place, documented and where they cross the vendor / client

boundary that they are seamless.

With the growth in managed service contracts of late it is hardly surprising that there

has been an explosion in legal battles. Yet the painful truth is that most of these

could have been contained or avoided at a fraction of the final cost. Just like fraud

control there is always the potential for a legal battle but a skillfully worded contract

can pinch many of these off with a resolution before getting out of hand.

Furthermore a containment procedure providing a dispute resolution mechanism

and arbitration process can protect both vendor and operator from a high profile,

high risk and high cost courtroom battle. A high cost, which is a direct cost to thetrading profit, surely the worst thing is to be giving the hard earned profit straight


3/4

over to lawyers and paying settlements.

Its not difficult to see that both vendors and operators moving into the managed

service space are faced with a whole spectrum of new issues, risks and control

mechanisms, its hardly surprising that there have been many painful episodes.


4/4

Tmanaged serviceConsult.net has studied these themes and crafted THE KEY

resource packaged and ready to go with the book, training, seminars and specific

engagements all with the simple aims of

Protecting both operator and vendor

Unlocking the full potential of a managed service without wastage

Turning disaster into a managed event whos effects are minimized

Bringing structure and organization so that two people will have the same

perception of what a managed service is and therefore it will be repeatable.

Drawn from nearly 50 years working experience by the partners, this is THE way

to short circuit the risks and avoid the disasters that un-checked, will continue to

plague the industry until on the brink of bankruptcy operators and vendors alike will

be forced into such measures.

Tmanaged serviceConsult.nets unique position also gives it the ability to do what

is often talked about but rarely achieved create that end2end solution so obvious

and vital yet the vendor and operator lack the objectivity to craft.

Much more than this though, the wealth of knowledge and working practices

that Tmanaged serviceConsult.net represents makes it the essential resource to

create very effective managed service teams, enforce excellence and maximize the

retention of revenue.

Documents

Managed Services - Assuring the Value #2