1. The Value Of Partnerships Xander Leijnse
The Customer Connection, Utrecht, April 2006

2. Background Unisys “voice of the customer” project, UK – 2001
3rd party interviewed senior personnel from major accounts
ALL 68 respondents mentioned “partnership” in one way or another
Most RFP’s contain references to partnership

3. What then? We found there was quite some “partnership confusion”
We had little real knowledge of what “partnership” means
Research indicated there is not much available to help understand and develop “partnership”
So we created PVM to address this opportunity

4. Service Level Agreements Tactical/Legal/Control
Partnership Elements
Partnership
Relationship
Service Level Agreements
Return On Investment
Governance
Tactical/Legal/Control

5. Review Partnership Definition
Continuous Process
Preferred Partnership Model Engine Metrics (Baseline) Partnership Charter Partner Actions Workshop Report Improved Relations
Definition Workshop
Action Management
Review Partnership Definition
PVM Assessment Engine
Detailed Report Suggested Actions Improved Relations
Action Management

6. Financially sound, innovative In-depth Relationship
PVM Benchmark
Exit - Poor
Partnership
Poor to Good
Partnership
Partnering -Loyal
World Class
Partnership
Declining
Commencing
Reasonable
Average
Financially sound, innovative
In-depth Relationship
446 Current
Benchmark
Average
World
Class
Target
200
400
600
800
1000
Gap

7. SMT SMT Coal face Coal face
SMT versus coal face
Company 1
Company 2
SMT
SMT
Coal face
Coal face

8. Partnership size independent
One to One
One to Many
Many-to-Many
The more complex the relationships then the greater need for PVM

9. PVM Credentials Academic credentials Unisys Customers - examples
Cranfield University
Manchester Business School
Unisys Customers - examples
Merrill Lynch Europe
Royal & Sun Alliance (Phoenix)
Lloyds of London
London Borough of Harrow
Unisys Partners - examples
Microsoft Belgium
Microsoft UK
EMC

10. Case Study - situation Large Investment Bank
Unisys holds Outsourcing contract to deliver “managed services” (help desk, desk top support etc.)
seats
Key reasons we won initial contract:
ROI
Solve IT problem
Success?
All SLA measures green
Customer unhappy!
Openly talking about leaving
Addressed through Partnership Value Model

11. Case Study – Mine field vs Mind meld
Unisys perception
We delivered operational excellence
Excellent governance system
Customer perception
Expectations not met
Not happy with performance
Question “What Partnership did we both expect/need?”
Strategic Value not understood
Whatever happened to importance of ROI?
Relationship Elements not at all addressed
Annual “do you love us” survey
Still - Customer / Supplier, not Partner / Partner
Tactical Elements over addressed
What is measured is being done

12. Areas to address in PVM Level of Trust Win/win relationship
Level of added value
Level of shared objectives
Long term commitment
Equal share of risk and reward
Resolution of challenges
Sharing of knowledge and information
Cultural fit
Integration of partnership
Financially profitable
Joint control of services supplied
Sufficient resources to ensure success
Communication effectiveness
Effectiveness of performance metrics
Chances of failure of the partnership
Dispute resolution process
Individual roles within partnership
Patience and tolerance
Joint innovation and financial gain

13. Benefits Strategic Benefits Financial Benefits Working Together
Definition of clear strategy that defines aims, objectives and long-term goals
An improved return on investment
Risk reduction
Joint innovation
Continual focus on business process improvement
Financial Benefits
Clear, measurable value for money benefits
Continual effort at cost reduction and/or value improvement
Working Together
Fewer crises
Trust
Better end to end communications
Continuity – people changes have less impact
Full, candid, frequent and open communication between all parties
Effective mechanism for dispute resolution
An exit strategy

14. And finally
Comments
Questions
Thank you