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The Governance Imperative: Proper Oversight Fosters Agility and Efficiency

The Governance Imperative
Proper Oversight fosters agility and efficiency
By Caroline Storey-Sabetti

Sourcing initiatives for managed service providers (MSP) and the subsequent implementation of an MSP program requires a tremendous amount of energy, resources, and focus by the client company. A lot of time is spent on program implementation— from communication and training to defining policies, processes, and workflow. Add in configuring technology, defining service level agreements (SLAs), and finalizing reporting requirements, and a program is often defined as complete. But that shouldn’t be the case. It’s very common that after the implementation process, ongoing MSP program governance is often overlooked. An MSP program can be designed to meet current needs, but without well thought-out program governance and management protocols, it might fail to realize multi-dimensional benefits and be responsive to emerging needs, expansion, growth, and changes.

A strong governance process is essential for success, particularly when MSP programs span a wide range of contingent and outsourced services across multiple countries. A solid governance model will create a collaborative relationship between the client and their MSP provider—aligning the MSP operating model with the client’s business goals and objectives—and that will drive greater program value.

To ensure a successful long-term partnership, focus must be placed on the relationship and overarching strategy, not just service levels and contract terms. SLAs are designed to underpin program goals, but by focusing exclusively on these metrics, it is possible to lose sight of overall program strategy and—more importantly—fail to adjust goals in response to business changes. This dual focus on both program strategy and performance is a key component of successful MSP program governance, ensuring that the program’s promised value is delivered and providing a means to continuous improvement.