Executive Viewpoints | Services Transition - Navigating the Path from Agreement to Value

18 Nov 2016
by Lenny Joiner
The deal is struck. After many long, challenging months, it is finally over. The search for value generating opportunities to change to how you execute your organization’s back-office services or processes . . . joint development of an air-tight business case . . . design of a solution that meets the needs of your organization and internal customers . . . and conclusion of an agreement with a third party that provides confidence for real value creation. If ever there were a time to celebrate–this is NOT it.

To be sure, concluding a service agreement is an important milestone. Agreements establish the promise of value. That promise is defined by agreement scope, service levels, fees, and terms and conditions. Promised value takes many forms. For buyers, these include gains from technology or process innovation; access to deeper talent pools; and improved efficiency or lower costs, for example. In addition to revenue and earnings growth, providers gain new relationships; opportunities to gain deeper insight into client challenges–and to develop differentiated solutions that address them.

But promises of value are not value. Nor its guarantee. It is execution–the implementation of the many arrangements, processes, technologies, and activities the agreement calls forth–that drives value creation. And the first of execution is services transition–whether by a single bound, successive leaps, or steady migration–from “how things are” to “how things will be” as envisioned by those party to the agreement.

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