ITIL 4 Managing Professional Certification Course: Drive Stakeholder Value (DSV) - Know How to Foster Stakeholder Relationship

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1. Mutual Readiness and Maturity

Context (explore first):

  • Create environment that allows relational patterns to emerge
  • Build and sustain trust and relationship
  • Understand service provider capabilities
  • Understand customer needs

Then assess mutual readiness and maturity

Remember: this is all part of engage, before we offer, negotiate and agree

Assess once service provider capabilities and needs of customer are known; the exact assessment needed depends on the relationship type:

  Basic relationship Cooperative relationship Partnership
Capabilities, maturity, and past performance (service provider) Crucial Moderate Minor
Readiness to collaborate (both) n/a Moderate Crucial
Readiness to change (customer) n/a Moderate Crucial
 

2. Managing supplier and partner relationships

Every organization depends on services provided by other organizations. Supplier and partner relationships are just as important as service provider and consumer

Service provider acts as the consumer in the relationship with the supplier: follows same steps of the customer journey (explore, engage, offer, agree, onboard, co‐create, realize)

Acting as a service integrator: use supplier management practice (org as SIAM, single supplier, service guardian, separate service integrator)

3. Service relationship types

  Basic relationship Cooperative relationship Partnership
Relationship Maturity

Ad hoc, order taker

Demand is prioritized based on weak or subjective data

Frequent misperceptions build distrust

The service provider is reactive and does not challenge customer requests

There is a lack of quality data to support cost or value analyses

Service provider, trusted adviser

There is a mutual understanding and appreciation of demand and supply

The service portfolio is appropriate to service consumer needs

The service provider engages early and often in the customer decision cycle, and there is a shared understanding of product and service value

Strategic partner

The service provider and service consumer share common goals with a focus on value realization

There is clear accountability for achieving value from investments in products and services and quality data to support value analysis

Approach for building a relationship

Loudest in, first out

Frequent misperceptions may lead to distrust and reactive course changes, costs are usually transparent, but value may be hidden

The routine is routine, but innovation is a challenge

Collaboration is based on mutual respect and understanding

Portfolio is aligned to service consumer demand

Shared goals for maximizing value and shared risks and rewards

Key Attributes

Little information sharing

Single channel of communication (dependent on single point of contact)

Driven by price

Easy to exit (usually a lot of alternative options)

Service provider seeking opportunities to add value

Many points of contact

Forecasting, not joint planning

Limited information sharing

Expensive and resourceintensive

Deep sense of trust and partnership

Both acknowledge the importance of each other

Streamlined process

Wide range of jointly executed activities

Free exchange of sensitive information

Difficult to exit

4. Develop customer relationships

Communicating and collaborating: listening modes (ignore, pretend, selective, attentive, empathetic)

Diversity:

  • Cultural differences, time zones, seasonal factors, organizational culture…
  • Foster respectful attitude, use correct language, safe environment for expression, take actions, continual align

5. Building service relationships

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Step Customer status Customer activities Service provider activities
Awareness

Customer should be aware of the service/service provider

Market research

Marketing activities

Facilitating effective connections

Motivation

Customer should be motivated to start a service relationship with service provider

None

Marketing activities

Understanding alternatives

Stimulate demand

Contacting

It should be easy for the customer to start a service relationship:

  • Where to go, single point of contact
  • What is offered

Contacting service provider

Browsing service catalog

Providing single point of contact

Managing service catalog

Shaping expectation

Service provider should make the customer expect good experience

Check past performance/public ratings of service provider

Due diligence

Aggregate and shape demand

Ensure appropriate capacity and capabilities for service provision

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5.1 Three C’s of Trustworthiness

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6. Service provider capabilities

Use the Four Dimensions to assess provider capabilities:

  • Organization and people: duplication of activities, communication effectiveness, trust/transparency, type of org (centralized/decentralized), knowledge/learning culture, skills and competencies
  • Information and technology: Current projects, integration, technical debt, tech trends, reliability of data, technical performance
  • Partners and suppliers: Effective management of partners/suppliers, impact of key supplier shutdown, integration to value stream
  • Value streams and processes: What processes in place and how they function, process performance, efficient management of value streams

7. Understanding customer needs

Customers do not buy services; they buy the fulfilment of particular needs:

  • Value drivers (top-down/bottom-up)
  • Risks and costs (discover with customer needs and building service relationships)
  • Experience and preferences (service quality, risk, compliance, price/cost, design/convenience…)

Once outcomes, experiences, and preferences have been identified, the stakeholders can examine options for fulfilling the needs of the service consumer and making decisions

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Go back to ITIL 4 Managing Professional Certification Course: Drive Stakeholder Value (DSV) to finish this chapter or to the main page ITIL 4 Managing Professional Certification Course.