Supplier Development
Work with suppliers to identify opportunities for mutually beneficial development, such as by adapting processes and products/services, improving performance levels, co-investing in research and development, joint marketing activities, or temporarily exchanging or transferring staff.
Improvement Planning
Practices-Outcomes-Metrics (POM)
Representative POMs are described for Supplier Development at each level of maturity.
- 1Initial
- Practice
- Rely on the best endeavours of available personnel
- Outcome
- There is no path for improving IT suppliers and possible additional costs of replacing key suppliers lacking long-term capability.
- Metric
- Key IT supplier churn rate.
- 2Basic
- Practice
- Provide remedial training to IT suppliers in response to any major incidents impacting on the rest of the business.
- Outcome
- There is improved IT supplier performance and quality.
- Metric
- Historical analysis: IT supplier related incidents impacting on business, # remedial courses required.
- 3Intermediate
- Practice
- Provide formal training programme to key IT suppliers to address any important SLA performance gaps.
- Outcome
- There is a reduction in SLA performance gaps.
- Metric
- Historical analysis: number of suppliers receiving formal training programs, SLA performance gaps.
- 4Advanced
- Practice
- Implement long-term development program for key IT suppliers.
- Outcomes
- There is improved alignment between the IT function and IT suppliers to eliminate gaps between organization roadmap and IT supplier capability.
- This reduces risk by enabling longer term relations with suppliers.
- Metric
- % Key suppliers with long-term development programme; historical analysis: Key IT supplier churn rate.
- 5Optimized
- Practice
- Make significant direct investments in suppliers (via capital or time) in joint initiatives with agreement on risk sharing.
- Outcome
- There are exceptionally strong links between the IT function and IT suppliers.
- Metric
- Historical analysis: Investments in suppliers.