Here at Value Shepherd, we believe that there are 3 fundamental keys that you need to unlock the value in your Provider and Partner (IT/HR/Facilities/etc) investments. These keys must be owned and continually improved. The keys are:
Partner Relationships Built on Trust
Gone are the days when a Provider (IT/HR/Facilities/etc) could be simply seen as a business “enabler.” In fact, it is crucial to perceive them as “Partners” rather than mere “Providers.” These Partners share ownership of the business outcomes and actively contribute to the achieved business success.
Businesses are now seeking innovation to set themselves apart from competitors, cater to increasingly tech-savvy clients, and avoid falling behind in a rapidly changing environment. The traditional “Provider” relationship model undermines the value of our investment in these partners. In such a relationship, our strategies related to Technology, People, and Facilities tend to be reactive and hinder innovation and agility.
In High-Performance Organizations, these providers have transformed into Partners and are fully integrated into the corporate strategy. They not only respond to strategic changes in a proactive manner but also have the power to influence the strategy through innovative approaches. The organizational culture is recognized as an invaluable source of innovation, continuous improvement, and stakeholder satisfaction. Building high-value relationships with a shared purpose is the key to cultivating an evolving culture.
Emotional Intelligence and relationship management are closely intertwined. Emotional intelligence provides individuals and organizations with the skills and awareness necessary to manage emotions and navigate relationships effectively. By leveraging emotional intelligence, organizations can build stronger, more positive connections across their team and enhance their overall relationship management abilities.
A Value Management Culture
The traditional approach to managing IT, HR, or other valuable business partners as mere cost-centers has imposed limitations on business value. Treating these Providers as utilities, governed solely by cost, leads to an unhealthy aversion to risk. This cost-centric culture fosters a system that prioritizes cost reduction over innovation and risk mitigation over healthy risk-taking.
In High-Performance Organizations, the Partners are actively involved from the beginning and throughout the budget planning cycle. This enables the organization to identify value optimization opportunities that were previously overlooked. By evaluating opportunities based on their value and removing artificial constraints that disguise themselves as resource limitations, the business is better positioned to make informed decisions.
Service Management Excellence
Service Management has undergone significant evolution within the IT and HR domains. These industries have transitioned from being primarily focused on delivering products and solutions to adopting a “Service Provider” approach. Through continuous improvement processes, robust policies, and service-oriented governance, they have become more dependable and consistent.
While this progress is commendable, it has also given rise to a culture that resists change, struggles to accommodate unique requests, and finds it challenging to align with shifting strategic directions.
In High-Performance Organizations, the Business and their Partners have fostered Strategic Partnerships. Together, they have learned how to take calculated risks within the boundaries of the business’s tolerance. These risks foster agility, responsiveness, and innovation.
Achieving this level of High Performance necessitates:
- A strong relationship between the Partners and the Business,
- A focus on delivering value, and
- Excellence in Service Management.