Improving  Business Process Performance

Optimizing Business Process Sourcing

Phase2: EVALUATE
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The EVALUATE phase is typically the longest and most crucial phase of the methodology. This evaluation is based on outcomes from the PLAN phase and an assessment of internal process and project structures, to determine candidates for business process improvement and or outsourcing.  During this phase, an evaluation will be made of:

Some of the questions include:

  • What improvement options would work best? - Business Process Reengineering, Technology Implementation and / or Outsourcing?

  • What Sourcing Model should be used? Insource (BUILD) or Outsource (BUY)?

  • Is Outsourcing an option to consider? What other models can be used?

  • If Outsourcing is an option, what Processes or Projects should be Outsourced?

  • What country or location should the projects be outsourced to?

  • What vendors / suppliers / products should be selected (if required)? 

  • How should they be selected? 

  • What criteria must be used to minimize any potential risks?

Criteria for selecting the projects / processes are determined in this phase and the matrix of such projects and processes is built. The selected processes will be evaluated for reengineering. If appropriate, process effectiveness may be improved by reengineering process elements and steps. Often, technology implementation may further assist the reengineering process. Advisere will conduct the required assessments and implementations. BUILD versus BUY evaluations will be also be conducted as appropriate for the technology implementation.  

Once the processes are optimized through process reengineering and technology, a detailed assessment of potential sourcing models and their applicability to the business environment is conducted. A comparative assessment of various sourcing models available is conducted with respect to long term objectives of the organization.

Evaluating business processes for outsourcing involves an assessment of these processes against criteria such as:

  • Mission Criticality

  • Process Maturity

  • Competitive Edge or Core

  • Readiness for Remote Delivery

  • Labor Ratio and Human Interaction Factors

  • Cultural Factors

  • Technology & Process Factors

  • Legal Factors

Advisere leverages its extensive databases and knowledge of the global sourcing marketplace to evaluate potential locations best suited for selected projects. If the sourcing model selected requires partnership with a supplier/vendor, an evaluation of potential vendors is made. Vendor shortlists are based on market research and the Advisere Supplier Network database.

 

The final selection of suppliers/vendors is based on an exhaustive RFP process, and, may involve physical site visits to review the suppliers capabilities. Our vendor evaluation methodology is based on the eSCM-SP framework. Key evaluation criteria are depicted in the graphic below:

Advisere in specific cases also measures supplier capabilities against 84 best practices (scoped by the Strategic Strategic Initiatives Team) in the following 10 Capability Areas:

  • Knowledge Management

  • People Management

  • Performance Management

  • Relationship Management

  • Technology Management

  • Threat / Risk Management

  • Contracting

  • Service Delivery

  • Service Design & Deployment

  • Service Transfer

As a result, a detailed analysis (Quantitative & Qualitative) of each suppliers performance in each of the capability areas and impact on the quality of services delivered is available for an informed decision.

 

Deliverables (At the end of the EVALUATE phase)

  • Final list of projects / processes to be outsourced

  • Recommended Sourcing Model

  • Shortlist of viable geographical locations with recommendations

  • Shortlist of potential suppliers / vendors with recommendations

  • Detailed RFP (Request for Proposal) and Evaluation criteria

  • Site Visit Checklists

  • Final Recommendations

 
Goto PLAN  Goto EVALUATE Goto IMPLEMENT Goto MANAGE  
Phase1: PLAN
Establishes Program objectives and defines the criteria for success. This phase kicks off the Program and focuses on building a draft Plan for achieving established objectives. Assessment Workshop is conduced to study Business Objectives, Operating Environment and, Business Processes.
 
Phase3: IMPLEMENT
Implements the decisions of the EVALUATE phase. Negotiations are finalized;  Expectations defined; Service Level Agreements setup; Contracts finalized, Transition Plans fine-tuned and; Baseline Assessment are conducted to assess the current performance.
Phase4: MANAGE
Ensures that the planned engagement and relationship provides anticipated value at an ongoing basis. A Governance model is developed; Executive Steering Committee setup to review and manage relationship and Program Management ensures project performance. 

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