DEMANDMANAGEMENTforSHAREDSERVICES TheNewFrameworkforEffectivenessinLargeOrganisations

WhatisDemandManagement? DemandManagementisthebalancingactbetweentherequestsforproducts andservices[Demand]andthecapacitytoobtaintheresourcestodeliverthe productsandservices.[Supply] WhatisneededtoestablishDemandManagement? OntheDemandSide: Alistofcurrentandpotentialproductsandservices

OntheSupplySide: Alistofcurrentandpotentialresourcesandtheircapacities

ToManagetheDemand: WhatwillhappeniftheProductsandServicesarenotdefined? IftheorganizationhasnotyetinvestedintheestablishmentofaProduct PortfoliooraServicePortfoliothroughaworkinggroupsuchasProduct& ServiceManagement: Theorganizationmissesthefundamentalinformationtoworkeffectively. TheorganizationmissestheagilityofSupplySidetorespondtoDemand. TheDemandwillnotbepredictableenoughtoforecastandmanaged. Theorganizationwilltendtohaveabothabottomupapproach(Supply) andaTopDownapproach(Demand)thatstruggletocoordinate effectively. Amappingbetweentheproductsandservicesandresources.

WhatdoesitmeantohavetheProductsandServicesdefined? DefiningtheProductsandServicesmeanshavingaclearlistofProductsand Serviceswithfullpricingforinitiation,servicesandterminationandaprocess forchangingtherequirementsforeachservice.Thiscomprehensivelyincludes, theorganizationrequired,thehardware,softwareandpersonnelinvolved. 10/11/2011DemandManagementTheNewFrameworkforEffectiveness Author:JonathanMcGuinness+448443109304 KickRocketLtd.,KempHouse,Suite.574,160CityRoad,London,EC1V2NX,U.K.

DEMANDMANAGEMENTforSHAREDSERVICES TheNewFrameworkforEffectivenessinLargeOrganisations

TheDriversofDemandandSupply Demand:CustomerDriven Asthecustomersofsuccessfulorganisationschangeandgrowovertime,the organizationreceivesdifferentrequestsforproductsandservicesfordelivery. Supply:ResourceDriven Asadditionalanddifferentproductsandservicesaretobedeliveredto organisationsgrowandchangeovertime,theydelivernewproductsand servicestotheircustomersandtheydevelopspecialisedareasofcompetenceto dealwiththevariousareasofworkofthecompany.Theseareasincludenew businessinitiatives,servicesmanagement,portfoliomanagement,financial controlling,linemanagement,supplymanagement,humanresources, procurement,accountspayableetcDuringthedevelopmentoftheseareasof expertiseandthechangeinpeople,organisationalstructure,andbusiness processes[onoccasionthesearenottakenfullyintoconsideration]aformof entropyoccurs.Legacyhangsonandendtoendeffectivenessbecomesreduced. Thereisatendencytodegradefurtheruntilanoverhaulofthebusinessis engaged. WhatdoesDemandManagementdo?DemandManagementtakesavery practicalapproachtounderstandingthebusinessandmakingitmoreeffective byrealigningtheprocesseswiththecurrentstructureofthebusinessand removingthelegacyaswellastakinganobjectiveviewonthesetupholistically. RequirementstosetupaneffectiveDemandManagementFramework: 1CompleteSupportfromTopManagementtosetupandimplementDemand Managementacrossthecompany 2CoverageofCAPEXandOPEXoperationsforHardware,SoftwareandHuman Resources. 10/11/2011DemandManagementTheNewFrameworkforEffectiveness Author:JonathanMcGuinness+448443109304 KickRocketLtd.,KempHouse,Suite.574,160CityRoad,London,EC1V2NX,U.K.

DEMANDMANAGEMENTforSHAREDSERVICES TheNewFrameworkforEffectivenessinLargeOrganisations

StepstoDemandManagementImplementation: Step1BuildaDemandManagementFramework. Step2CollectandAnalysetheBaselineMetricsfortheFramework. Step3SetTargetsforlongandshorttermeffectivenessandefficiencies. Step4PrioritiseChangesRequiredforlongtermandshorttermtargets. Step5SupporttheKeyStakeholdersduringtheChangesandinBAU. Step1BuildaDemandManagementFramework. AContracts Acompleteinventoryofallcontractsforallareasisrequired. BWorkflow Requests:InordertobuildaDemandManagementframeworkthereneedsto beanunderstandingofwheretheoriginalrequestscomeforinitiativesofwork andwhereadditionalrequestscomeforchangeoraugmentationtothose initiatives.EffectivelythesewillmainlybeforProjectsorOperations.For projectsthesewillcomefrombusinessmanagersfornewinitiativesfortheneed ofnewproducts,legalrequirementsortechnicalchangesorfromlinemanagers foradditionalhardware,softwareorhumanresources.Oncethepotential sourcesofnewrequestsisunderstood,thepathfromrequestthroughto acquisitionoftheresourcetoimplementandoperatetheserviceneedstobe trackeduntilthereisahandovertotheoperationsteam.Foroperations,these requestswillcomecapacity,remedyorpreventativeactionrequirements throughanoperationsorservicemanager.Effectively,wehavethreekeysources ofrequests,1businessmanagers,2linemanagers,and3servicemanagers. Workflow:Oncetheoriginalrequestisactivated,itneedstogothroughthe companyprocessforprioritisation,approvalorrejection,requisitionoffinances, requisitionofresourcesCAPEXandOPEX,supplymanagement,procurement, contractmanagement,logisticsforhardwareandsoftware,securitychecks, logisticsforhumanresources,vendormanagement,onboarding(security (buildingpasses,encryptionkeysforremoteworking),healthandsafety,assets [hardware(computer,phone),software,accessrightsforvarioussystems,ability torequestfurtherresourcesetc)],timesheets,expenses,invoicing,payments (bytimeandbydeliverables)etc. 10/11/2011DemandManagementTheNewFrameworkforEffectiveness Author:JonathanMcGuinness+448443109304 KickRocketLtd.,KempHouse,Suite.574,160CityRoad,London,EC1V2NX,U.K.

DEMANDMANAGEMENTforSHAREDSERVICES TheNewFrameworkforEffectivenessinLargeOrganisations

Termination:TheterminationoftheengagementforHardware(through lifetimeofhardware,leasingagreement),Software(throughlicensing, compatibility,compliance)andHumanResources(throughresourceallocation termination,throughcontractenddate,throughsecurityenddate,through breachofcontract). Step2CollectandAnalysetheBaselineMetricsfortheFramework ThekeyfundamentalsareCAPEXspendandOPEXSpend.CAPEXisforHardware andSoftware.OPEXisforHumanResources(FTEsandExternalResources). Verifythefundamentalsofeachtypeofcontractineachoftheseareas.Policy checkthecomplianceofallcontractstothefundamentalsfortheirengagement intheirspecificarea.Understandingsofpurchaseagreements,leasing agreements,licensingmodels,andpersonnelmodelsaswellasacleardefinition ofthecompanysindividualpoliciesoftheseareasalongwithregionalpolicies anddataprivacypoliciesconsidered.Analyseexistingcontractsagainstthe framework Step3SetTargetsforlongandshorttermeffectivenessandefficiencies Alignmentwithcontractpolicies,servicetypesandpersonnelmodelswillbring immediateshorttermbenefitsintermsofsavesonexistingrelationships.This willalsosetupthelongtermeffectivenessofthenewandrenewingcontracts withvendors.Thecontinuityintheinformationfromrequesttoterminationfor eachresourcethatissourcedwillmakethemeasurementoftheEndtoEnd metricsachievableandtheautomationoftheaccountspayablefunctionthrough validationoffundsforPO,validationofexpensesandapprovals,invoicingand paymentswillmakethesystemmoreefficient.Asequenceofinitiativesneedsto beunderwaytobringthemostvaluetothis'InternalSupplyChain'. Step4PrioritiseChangesRequiredforlongtermandshorttermtargets. CasebyCasepercompany,ananalysisofthecurrentsituationversusthetarget alongwiththevaluegainedwilldeterminetheprioritisationofthemosteffective effortsandinvestmentstorewardDemandManagementwitheffectivenessEnd toEnd. 10/11/2011DemandManagementTheNewFrameworkforEffectiveness Author:JonathanMcGuinness+448443109304 KickRocketLtd.,KempHouse,Suite.574,160CityRoad,London,EC1V2NX,U.K.

DEMANDMANAGEMENTforSHAREDSERVICES Step5SupporttheKeyStakeholdersduringtheChangesandinBAU. DemandManagementwillgivetheDemandManagementfunctionintimate knowledgeoftheexistingresourcesandtheirinterdependencetosupport businessmanagersandlinemanagersmakemoreeffectivefuturedecisions consolidatedbybuildingaknowledgebaseandeducationfortheonboardingof newstaffintotheroleofmanagementpositions. TheNewFrameworkforEffectivenessinLargeOrganisations

10/11/2011DemandManagementTheNewFrameworkforEffectiveness Author:JonathanMcGuinness+448443109304 KickRocketLtd.,KempHouse,Suite.574,160CityRoad,London,EC1V2NX,U.K.