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Managing 3rd Party Service Providers

Opening Presentation to a negotiations course

David Mouland

on 26 May 2010

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Transcript of Managing 3rd Party Service Providers

There were hidden costs Service Level Agreements were poorly defined The supplier did not give the customer's business the focus that it needed and instead just treated it as an extension of their own business Managing 3rd Party Service Providers Management of Service Level Agreements Service Quality & Performance Customer/Consumer Expectations Commitment to Deliver SLA to Manage Customers' Expectations To Provide Perception of Quality To Improve Satisfaction Levels Better planning & cost efficiency Customers need to know their obligations Prior Notice Minimum Training and proficiency levels Compliance with standards Compliance with operating rules Be sure we are both pulling in the same direction Use an SLA to coordinate efforts Managing a 3rd Party Service Provider Make the provider accountable Check for Gaps Reviews Reviews help to set the scene for renewal Reviews give the opportunity to strengthen the relationship By using Reviews you can Avoid Disputes List and agree what should be reviewed Renegotiations Should they be allowed? Valid and invalid reasons for renegotiation Avoiding surprises using effective account mgt Renegotiations must occur only at specified times Dispute Resolution Try talking before fighting Define processes and procedures Good Monitoring systems can help facilitiate Dispute Resolution Disputes must be seen to be resolved If you need to resort to independent arbitration then you have already lost Planning for Renewal Starts immediately after negotiation Every review is a step towards renewal Is the relationship still working? Are we both still winning?
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