Good customers are imperative for the future development of the global services industry. Pushing the proposition and promoting and developing the processes, tools and practices falls squarely in their court. Customer leadership is the only way for services globalization to grow and prosper. Poor customers will set the industry back several years, leaving corporate dissatisfaction, huge costs to unwind and bankrupted providers in their wake.
Providers, both internal and external, deserve good customers. When sourcing is used as a window-shopping expedition, providers waste precious pursuit in dollars by responding to opportunities which are not clearly defined, promulgated by customers who may or may not have the right level of conviction about what and how the operating model should change.
Are You a Good Customer?
Understanding the location landscape, or lining up the right advice to do a deal does not make a good customer . Fundamentally, to reap the greatest benefit out of the change in a services model, a good customer makes a radical change in mindset, capability and approach, understanding that he becomes an integrator for a series of relationships. These relationships are underpinned by a strong command of commercial principles, skill in managing change and ability to manage complex programs. A good customer can be distinguished by several traits:
Mindset. The good customer knows he must have a clear point of view as to how to effect the right change in the operating model. He has a good understanding as to the art of the possible in terms of structure and outcomes given business context, culture, level of sponsorship and sourcing strategy. This understanding is based on asking good questions and challenging existing processes in order to change the status quo.
Capability. He knows that changing the delivery model requires a huge investment in time and resources, tools and methodology. Simply going to the market to buy services is not enough. Inconsequential investments in program management, training, communication, service-level management and governance must be factored into the business case.
Approach. The good customer understands that a contract — whether with an external provider or an internal shared-services center — should be the culmination of a relationship with a high probability of success, rather than the kickoff of a series of implementation tasks. Global services implementation is about evolving relationships, roles, and responsibilities.
Will clients rule? The next two years will tell….
Deborah Kops has observed the global services industry as a buyer, seller and advisor. Formerly a partner in two major professional services firms, and Managing Director in two global banks, she has a unique perspective on an industry that she believes will flourish, often in spite of itself.
