©ASIL, Inc. 2012 Proprietary Information 1 Effective Provider Relationships Powered by ASIL, Inc. Business Performance Management

ASIL, Inc.ASIL, Inc.

©ASIL, Inc. 2012 Proprietary Information

1

Effective Provider

Relationships Powered by ASIL, Inc.

“Business Performance Management”


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Effective Relationships = Good Business



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Relationship Facts

• They start with a joint value proposition.

• They proceed through various stages over time.

• They can regress as conditions and changes develop.

• Acceleration/De-acceleration of stages can be influenced by leadership and collaboration styles.

• Communication and commitment are essential in fostering effective relationships.



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Commitment: An agreement to do something in the support of a mutualvalue proposition

Collaboration: To work together with others especially as part of an intellectual endeavor

The Key is to enable the Three “C”s of a Successful Relationship

Communication: A process by which information is exchanged between individuals; atechnique for expressing ideas effectively

Focusing on the 3Cs will create effective relationships.

Communication Commitment Collaboration



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Types of Provider Relationships

Time

1 2 3 4 5 6 7 8

Typ

e o

f R

ela

tio

ns

hip



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Types of Provider Relationships

Time

Typ

e o

f R

ela

tio

ns

hip

Alig

nm

en

t an

d V

alu

es

High

Low

Med

1 2 3 4 5 6 7 8

TrueAlliance

Partner

SharingSupplier

CertifiedSupplier

AdequateSupplier

Set Line

TransactionalProviders

RelationalProviders

Set Line

Less InvolvementLess Risk

More InvolvementMore RiskMore Gain



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Outsourcing Preparedness

Sta

ge

of

the

Re

lati

on

sh

ip

Outsourcing Phases

Cre

ate

Dev

elo

pS

tren

gth

enO

pti

miz

e

Provider Selectionand Implementation

Stabilize and Implement

Optimize theNetwork

The Provider Relationship Lifecycle



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The Provider Relationship Lifecycle

Create

Strengthen

DevelopOptimize

Relationships continually evolve



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Successful Provider Relationships

PerformanceAudit Plan

DevelopClear Success

Criteria

AssessPotential

Candidates

Develop and Manage RFxProcess withCandidates

CompleteBAFO

Process withCandidates

AwardProgram

PerformanceScorecard Plan

Closed LoopPerformance

Relationship andCommunications

Plan

Mutual KPIMeasures

MutualIncentive

Plans

JointStrategic Planning

Joint Investment

Planning

Create

Strengthen

Develop

Optimize

Successful Provider relationships occur in the journey!



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Create

Strengthen

DevelopOptimize

Creating Provider Relationships

Focus is on assessment and understanding of• Vision and Strategies• Values• Goals• Core competencies, skills and capabilities• Communication Styles• Credibility by actions and results

The outcome is understanding and awareness.



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Create

Strengthen

DevelopOptimize

Developing Provider Relationships

Focus is on creating and developing alignment of• Vision and Strategies• Values• Goals• Core competencies, skills and capabilities• Communication and Operating Styles

The outcome is credibility, respect, teamwork, common ground and alignment.



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Create

Strengthen

DevelopOptimize

Strengthening Provider Relationships

Focus is on shared accountability and responsibility of:• Vision and Strategies• Values• Goals• Core competencies, skills and capabilities• Problem solving • Communicating for results • Investing for success

The result can be trust, shared accountability and partnership.



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Create

Strengthen

DevelopOptimize

Optimizing Provider Relationships

Focus is on an integration of:• Vision and Strategies• Values• Goals• Core competencies, skills and capabilities• Problem prevention and mitigation capabilities• Common Technology and Communication infrastructures • Predictable actions that further the relationship’s

interests

The outcome is predictable and sustainable actions and results in integrity with the best interests of the relationship and the companies involved.



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Problem Resolution

Activity

Activities that ImpactSuccess

Stage of

Relationship

Typeof

Relationship

Relationship Health AssessmentsAreas to evaluate

Satisfaction with the

Relationship

RelationshipAttributes

(+)(-)

1.

2.

3.

4.

5.

6.

Provider XHealth Assessment

Gaps and Opportunities



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Examples of Questions posed in Relationship Health Assessments

Relationship Health Assessments

• Are you satisfied with the relationship with the Provider?• Is the Provider meeting agreed to Financial Targets ?• Are you leveraging the Provider’s skills and expertise to adopt new changes in business processes and practices ?• Does the Provider proactively identify problem areas that need to be addressed?• Does the Provider make time to foster improvements in the relationship?• Is the Provider instituting concessions to resolve issues ?



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Relationship Health Check Assessment Report Example

Date Assessor Assessed Name

Company Type of Relationship

Stage of Relationship

Assessment Questions Assessed Rating

4/16/2005 Johnson, Mark

Frederick, John

Internal WYC - Executive

Formative We have an open and honest relationship

4 - Sometimes


Frederick, John


Formative We engage on a regular frequency

5 - Not really


Frederick, John


Formative We engage on a personal and business level

5 - Not really

4/18/2005 Walton, Sam

Safeway, Jack

Walmart BC - Project Growth Overall Company Satisfaction with the Provider

1 - Very Dissatisfied


Safeway, Jack

Walmart BC - Project Growth Is the Provider meeting agreed to Financial Targets



Safeway, Jack

Walmart BC - Project Growth If not, is there clear ownership and accountability to the areas of concern and are actions being taken to resolve them




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Relationship Health Assessments

Commitment and Action = Successful Provider Relationships

Conduct Relationship Health Check Assessment

Company orPersonalValues

Communication

LearningStyles

InterpersonalStyles

Company orPersonal

Goals

Self-ValuesAssessment

CommunicationAssessment

Learning StylesAssessment

InterpersonalStyles

Assessment

GoalsAssessment

AnalyzeCommunication

Results

AnalyzeLearning Styles

Results

AnalyzeInterpersonal

Styles Results

Analyze ResultsGoals

Assessment

Create MutualGoals from

Assessments

Analyze ResultsValues

Assessment

Relationship

Working?

Schedule FutureRelationship Health Check Assessment

Yes

No

Assess Areas of Opportunity

AssignActions

TrackClosure

CommunicateResults fromAssessments

START



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The path to successful Provider Relationships:

• It’s a good thing to focus energies in developing Provider relationships.

• Don’t implement a rigorous relationship management model for all Providers.

• Know what stage you are in, where you want to be and manage the next step.

• Periodically assess the health of the relationship.

• Communicate, Collaborate and Commit.

• Do not be surprised.

In Summary



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Contact Information

ASIL, Inc.

2901 Tasman Drive, Suite 117

Santa Clara, CA 95054

(408) 980-9904

Warren White [email protected]

Visit our web site: www.asil-inc.com


mailto:[email protected]

http://www.asil-inc.com/

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©ASIL, Inc. 2012 Proprietary Information 1 Effective Provider Relationships Powered by ASIL, Inc. Business Performance Management