Problem Solving in Contracted Operations - Part 1 of 3

Before we dive into how to write a Statement of Work that adds value to operations, should set commercial expectations for what to expect when problems and issues arise.

There are 3 problem solving tools that I've used from the Lean world that make sense to me in a contracted operations context. 5W 1H, 5 Whys and the A3 method.

Today we'll cover the 5Ws and 1H method. Per the below, it is a simple checklist of probing questions framed around What, Who, Where, Why, When and How. Why a forced checklist? Because we come into every situation like this hot. And when others have their emotions up, you tend to have yours going as well to show alignment and urgency. That you care. And this is good.

But emotions are the enemy of considered thought. So, we need to force ourselves to slow down. So, when an escalated issue comes into my shop, I ask for the homework. If an issue is big enough to cause an operations issue that has stopped productivity to the point of escalation, someone should have thought about. This will set future discover on the right path towards a fair and effective resolution.

How to use the model with contracted operations

Before any relationship or commercial action is taken, especially involving a contract change of any kind, these basic questions should be answered. Usually, they are best answered in a Q&A with the concerned customer. They probably don't have all of the answers but someone on their team does. I have found out that by answering these questions, it takes time and forces the brains to work and cools down the temperature a bit and also brings important facts into the discussion.

• The model is a negotiation preparation tool

I have added follow on questions to each W and H that over the years has helped me dig deeper to prepare for what is sure to be coming. A negotiation. First around what the problem is, and then who owns the solution and more importantly, who owns the obligation to have prevented the gap in the first place based on what the parties agreed to do.

Compare the answers to the questions in each quadrant to the contract. Sometimes you'll need to look at operating standards and documents that might not even be part of the contract. That's where your relationship management hat comes into play. How has the team been operating? Who typically does what? What is consistent with ITIL or your industries best practices? What makes sense when looking at the facts logically?

• Align on a defensible story

Next, you need to turn the problem analysis and data into a story and bounce it off of the obligation framework you have been able to tease out of the contract and related customary behavior of the team. If I don't know what the standard is, I ask the business and because they are likely biased, I ping what they tell me off of industry best practices. This is where Gartner tends to earn its money in my view. There are always grey areas in the contracts and your job is to chip away at them whenever they come up.

Here is where our internal (or consultant) is indespensible. The role of a good vendor manager is to put up a defensible straw man for any undocumented "shoulds", relative to the overall language, consistent with the purpose of the contract. Look for consistency of what has been done in the past and if applicable, done in other similar contracts in the firm and what is typically done in the industry. Also the vendor is usually brought in to do something hard as a solution. Does this issue fit into that model on their side of the line? Or do they fairly need a boundary to be set by the client?

Get alignment with the client team first. Hold your opinions and commentary. You have no opinion until you have talked with the supplier.

Once you have the facts from the line managers on your side, review with their leadership and advise on next steps. Meet with the supplier without any others to get the real story. Take them through the same model to get their perspective.

Don't get caught in a back and forth but suplier perspective on access to documents, or effectiveness of communications or approvals can be useful in planning next steps. You might also determine that the supplier has deployed a defective solution or is not doing industry standard processes as expected. Pull in as much data as you can to frame your proposed counter measure.

• Implement the Solution

Within days now you should be narrowing in on an obvious solution that even the supplier might need to agree with in order to maintain a positive relationship. So long as they can't counter you from the contract or industry standards, any reasonable request should be entertained. I often preview the direction with the account leadership to test the waters. If they are amenable, then we work it out by discussing the new SLA, control language for the service change or Deliverable quality standard, usually be reference an example or clarity.

Be overly clear here. Operation's role here is to make this work with the other party, in daily operations, now that the “should” is resolved. Ensure everyone understands this. Vendor managers need to stay out of the details of operations, and they also need to keep client operations oversight to a minimum. So long as the standard is reached, the how of the details should remain with the supplier. The more you as the client manages the more you (the client) are responsible for, which is not how managed solutions work.

Implementation starts with agreement of the final agreed language, roles and responsibilities and process flow documentation or SLA metric and formula with an example worked out for good measure. The contracting process should be completed once the new workflow has been tested for a time. Say 30 days.

Once the change has been signed off, the issues closed, which should be recorded as value for the client firm and for the support vendor manager function. The supplier should be watching the change dutifully and during review time, the focus should be on the solution and its effectiveness, not on the fact that it occurred.

If you have 25 of these types if issues, you'll need a different tool. I'd start with a relationship survey so that you can narrow in on the right solution.

If this model didn't help you solve the issue, then you might need to dig a bit deeper. We'll discuss 5 Whys next.

Happy hunting!