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DEMANDMANAGEMENT TheNewFrameworkforEffectivenessinLargeOrganisations

Asorganisationsgrowandchangeovertime,theydevelopspecialisedareasof competencetodealwiththevariousareasofworkofthecompany.Theseareas includenewbusinessinitiatives,servicesmanagement,portfoliomanagement, financialcontrolling,linemanagement,supplymanagement,humanresources, procurement,accountspayableetcDuringthedevelopmentoftheseareasof expertiseandthechangeinpeople,organisationalstructure,andbusiness processes[onoccasionthesearenottakenfullyintoconsideration]aformof entropyoccurs.Legacyhangsonandendtoendeffectivenessbecomesreduced. Thereisatendencytodegradefurtheruntilanoverhaulofthebusinessis engaged. WhatdoesDemandManagementdo?DemandManagementtakesavery practicalapproachtounderstandingthebusinessandmakingitmoreeffective byrealigningtheprocesseswiththecurrentstructureofthebusinessand removingthelegacyaswellastakinganobjectiveviewonthesetupholistically. RequirementstosetupaneffectiveDemandManagementFramework: 1CompleteSupportfromTopManagementtosetupandimplementDemand Managementacrossthecompany 2CoverageofCAPEXandOPEXoperationsforHardware,SoftwareandHuman Resources. StepstoDemandManagementImplementation: Step1BuildaDemandManagementFramework. Step2CollectandAnalysetheBaselineMetricsfortheFramework. Step3SetTargetsforlongtermeffectivenessandshorttermefficienciesthat provethevalueofthechanges. Step4PrioritisetheChangesRequiredtoreachthelongtermandshortterm targets. Step5SupporttheKeyStakeholdersduringtheChangesandinanOnGoing manner. 03/11/2011DemandManagementTheNewFrameworkforEffectiveness Author:JonathanMcGuinness

DEMANDMANAGEMENT TheNewFrameworkforEffectivenessinLargeOrganisations

Step1BuildaDemandManagementFramework. AContracts Acompleteinventoryofallcontractsforallareasisrequired. BWorkflow Requests:InordertobuildaDemandManagementframeworkthereneedsto beanunderstandingofwheretheoriginalrequestscomeforinitiativesofwork andwhereadditionalrequestscomeforchangeoraugmentationtothose initiatives.EffectivelythesewillmainlybeforProjectsorOperations.For projectsthesewillcomefrombusinessmanagersfornewinitiativesfortheneed ofnewproducts,legalrequirementsortechnicalchangesorfromlinemanagers foradditionalhardware,softwareorhumanresources.Oncethepotential sourcesofnewrequestsisunderstood,thepathfromrequestthroughto acquisitionoftheresourcetoimplementandoperatetheserviceneedstobe trackeduntilthereisahandovertotheoperationsteam.Foroperations,these requestswillcomecapacity,remedyorpreventativeactionrequirements throughanoperationsorservicemanager.Effectively,wehavethreekeysources ofrequests,1businessmanagers,2linemanagers,and3servicemanagers. Workflow:Oncetheoriginalrequestisactivated,itneedstogothroughthe companyprocessforprioritisation,approvalorrejection,requisitionoffinances, requisitionofresourcesCAPEXandOPEX,supplymanagement,procurement, contractmanagement,logisticsforhardwareandsoftware,securitychecks, logisticsforhumanresources,vendormanagement,onboarding(security (buildingpasses,encryptionkeysforremoteworking),healthandsafety,assets [hardware(computer,phone),software,accessrightsforvarioussystems,ability torequestfurtherresourcesetc)),timesheets,expenses,invoicing,payments (bytimeandbydeliverables)etc. Termination:TheterminationoftheengagementforHardware(through lifetimeofhardware,leasingagreement),Software(throughlicensing, compatibility,compliance)andHumanResources(throughresourceallocation termination,throughcontractenddate,throughsecurityenddate,through breachofcontract).

03/11/2011DemandManagementTheNewFrameworkforEffectiveness Author:JonathanMcGuinness

DEMANDMANAGEMENT TheNewFrameworkforEffectivenessinLargeOrganisations

Step2CollectandAnalysetheBaselineMetricsfortheFramework ThekeyfundamentalareCAPEXspendandOPEXSpend.CAPEXisforHardware andSoftware.OPEXisforHumanResources(FTEsandExternalResources). Verifythefundamentalsofeachtypeofcontractineachoftheseareas.Policy checkthecomplianceofallcontractstothefundamentalsfortheirengagement intheirspecificarea.Understandingsofpurchaseagreements,leasing agreements,licensingmodels,andpersonnelmodelsaswellasacleardefinition ofthecompanysindividualpoliciesoftheseareasalongwithregionalpolicies anddataprivacypoliciesconsidered.Analyseexistingcontractsagainstthe framework Step3SetTargetsforlongtermeffectivenessandshorttermefficiencies thatprovethevalueofthechanges Alignmentwithcontractpolicies,servicetypesandpersonnelmodelswillbring immediateshorttermbenefitsintermsofsavesonexistingrelationships.This willalsosetupthelongtermeffectivenessofthenewandrenewingcontracts withvendors.Thecontinuityintheinformationfromrequesttoterminationfor eachresourcethatissourcedwillmakethemeasurementoftheEndtoEnd metricsachievableandtheautomationoftheaccountspayablefunctionthrough validationoffundsforPO,validationofexpensesandapprovals,invoicingand paymentswillmakethesystemmoreefficient.Asequenceofinitiativesneedsto beunderwaytobringthemostvaluetothis'InternalSupplyChain'. Step4PrioritisetheChangesRequiredtoreachthelongtermandshort termtargets CasebyCasepercompany,ananalysisofthecurrentsituationversusthetarget alongwiththevaluegainedwilldeterminetheprioritisationofthemosteffective effortsandinvestmentstorewardDemandManagementwitheffectivenessEnd toEnd. Step5SupporttheKeyStakeholdersduringtheChangesandinanOn Goingmanner DemandManagementwillgivetheDemandManagementfunctionintimate knowledgeoftheexistingresourcesandtheirinterdependencetosupport businessmanagersandlinemanagersmakemoreeffectivefuturedecisions consolidatedbybuildingaknowledgebaseandeducationfortheonboardingof newstaffintotheroleofmanagementpositions.

03/11/2011DemandManagementTheNewFrameworkforEffectiveness Author:JonathanMcGuinness

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