TON program wrap-up: Making decisions and defining scope

January 27, 2014

We had a great network program this past Thursday hosted by Danske Bank. The overall theme of the day was “Making decisions and defining scope”.

Here is a summary of our sessions from the day.
    Danske Bank’s Indian subsidiary, Danske IT
    Tonny Rabjerg, Danske IT’s General Manager, kicked off the day with an in-depth session on Danske Bank’s efforts to establish Danske IT in India. Some of the highlights include the continual challenges imparting and developing domain knowledge among Danske IT’s workforce in India; the relatively lower rates of attrition that they have been able to achieve by specifically focusing on work-life balance as a key differentiator for recruiting/retaining their workforce; and the realities of India as an outsourcing/offshoring destination.
    Raising productivity in Danske Banks’s staff augmentation set up
    Continuing the focus on Danske Bank, Jens Klæbel, First VP, Group IT, presented Danske Bank’s Productivity Program. The pilot program lasted from July 2012 to December 2013 and involved 12 departments. The Productivity Program evaluates both program performance and employee performance along a range of key points, e.g. recruiting, retention, and sourcing strategy. This program has been instrumental in identifying specific pain points, e.g. productivity measurements and documentation, that must be addressed in order to improve performance in both the Danish and Indian organizations.
    One of the highlights from Thursday’s program was Henrik Mathiasen’s session on decision-making. Henrik opened with a great example of the power of iteration to produce quality. He also highlighted the critical need for a sense of urgency to focus decision-making. Included in Henrik’s message was the need to make the decision-making process visible while making sure to being open to adapting decisions down the road as new realities arise.
    Does a sourcing decision, scoping, vendor selection process really have to take 9-12 months?
    Henrik Stefansen, Senior Director, Global IT Sourcing, Vestas, opened up the afternoon’s program with a provocative challenge to our normal assumptions about just how to run a sourcing project. Echoing Henrik Mathiasen’s observations earlier in the day about the criticality of a sense of urgency, Vestas’ project to outsource their data center was fueled by a need to address the issue of an aging hardware platform located in a building that had been put up for sale. In August 2013, it was decided that a decision would be made by December 1, just a mere 3 months down the road. Critical to making this almost impossible task happen was the decision to consider only three suppliers. In addition, all involved had to be willing to work in a 10-week process with standard contracting, open books (bi-lateral with Vestas), concurrent due-diligence and specifications, and standard templates. Vestas was able to achieve its goal of a decision by December 1, 2013. While Henrik might not recommend this extremely short process, he said that the exercise made it plain that a sourcing project does not need to take 9-12 months.
    COWI’s governance model serves as a critical tool to ensure continuous monitoring and improvement while the BPM model ensures business ownership in all initiatives
    Claus Hagan Nielsen, COWI’s CIO, delivered the final session of the day. His focus was on COWI’s work to establish governance and process models that help COWI to better ensure business relevance of IT projects. The model developed puts a lot of focus on global processes, standardization, cross-functional cooperation, and clear responsibility for fitting projects into COWI’s business strategy. Part of this work are COWI’s IT sourcing model principles which determines what is in and out of scope for outsourcing. For example, COWI outsources operations of business critical systems in order to focus on business development; and that the end-user interface is a critical element that must be kept in-house.
    Looking forward to March 6
    Our March 6 program will be held at GN. The overall theme of the day will be “measuring and evaluating for selection and performance.” Already confirmed for the program are Marcus Møller Larsen from CBS who will present research and findings into the hidden costs of outsourcing. Also, Pernille Bychdorf-Pedersen, Head of Offshoring for Mærsk Tankers, will present Mærsk Tankers’ approach to measuring and evaluating in offshoring and outsourcing.