Extending from my previous post on Filling Process Gaps with BPM, let me share my experience on the Partner Value Delivery Model (PVDM). The model has been developed based on our experience and now is extended to almost all current engagements. The approach has been very successful, as we will see going forward 🙂
So, lets first see what PVDM is.
PVDM is an approach to take the relationship between client and vendor to the next level, to a mutual trusting rather than being a transactional one. In this model, both parties work together to resolve business problems, with the sole focus of delivering superior business value to teams involved. One of the core and important points is to keep standard conflict agendas to back-burner viz cost, time or scope.
Going forward, lets see the model and understand it better with real examples.
Explaining the model
The model can be divided into logical stages, with each stages’ output acting as input to the next one.
Stage I – Problem Identification and Alignment on problem statement: Its very important that both parties, acting a partners, define a clear business problem. It may not happen immediately and may require a few workshops or sessions to reach to a real business problem. Once its done, all the involved parties have to sign off the problem statement.
In one scenario, we found that business problem was unhappy customers like factories, suppliers and internal end users. The unhappiness was traced to late and non-responsive purchase order amendment process being followed. There was lot of back and forth communication for each amendment, no visibility of where the amendment was at a given point in the process, there were no timelines defined by when each amendment can be closed.
Stage II – is to arrive at a business solution and if possible, arrive at a technology based solution. The key to the approach is to be patient and realize that, while business value may be delivered, its always not necessary that we may get an engagement immediately.
In the above scenario, in the next workshop, we all aligned to approach the issues 2 pronged. The most common and known amendment types were aligned to be handled through structured processes like order cancellation. The other scenarios, which were not well defined, we decided to be handle by a case management solution for unstructured communication. With these 2 approaches, we could cover all known and possible scenarios.
Stage III – is to help prepare a business case for business, if they need help with that. Its very important, if the business is not experienced with the business case preparation and presentation, so that the opportunity of delivering business value is not lost.
In another engagement, we helped business teams to prepare a business case and the value delivery possible. The case was presented to finance and funding was secured to deliver the solution.
Stage IV – is to execute the plan. The key is to keep the business involved through out so that they don’t lose focus on the value delivery plan.
In our case, we ensured that business was attending fortnightly meetings to do a regular health check and provide inputs while execution was going on.
To summarize, as a result of this model, we could build a very high trust and mutual respect based ecosystem involving with business and client organisation. The appreciations came right from business heads and board members. The model also resulted in many such business problems being thrown at us and many of them resulting in solution delivery using BPM as a tool.
For the record, we delivered business value in excess of 2 Mn EUR per year, with the team reduced by 60%, a transparent and visible process, happier business and more partnering opportunities.
Let the thoughts keep flowing and let your opinions come through.