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As you enter in a multi-vendor operating model, aligned to the Service Integration & Management (SIAM) framework, it’s vital that your contract requirements are fit for purpose.

Every organisation is unique.  They have their own unique services, culture, contract structure and interpretation of the various IT frameworks, such as ITIL and SIAM.  Therefore, when the time comes for them to articulate their contract requirements in an Initiation to Tender (ITT) or Request for Proposal (RFP), it’s not sufficient just to say “we’re using ITIL” or “we want a SIAM model” . This doesn’t provide a sufficiently detailed picture to enable the Service Provider to provide a suitable response.

In this paper, we outline the key factors to consider when developing contract requirements, specifically in relating to a disaggregated service model, involving multiple service providers.  In our experience, most organisations tend to adopt the SIAM framework as the starting point in this situation.

The following tips are based upon our experience of helping our clients to develop a set of meaningful requirements.

  • Describe the current state adequately

    1. What are the current challenges? Consider the following headings as the basis for answering this question; Organisation, Tooling, Processes, Governance.
    2. What are the business drivers?
    3. Why is a SIAM framework being adopted?
    4. What is the context in terms of other changes which are also underway elsewhere in the organisation?
  • Describe the desired future state

    This needs to be at a macro and micro level. Adopting a SIAM operating model involves whole scale operating model change, so describe the target operating model.  You should be able to articulate the landscape in terms of suppliers, processes, tooling, governance and organisation.

  • Describe the scope of the ITT/RFP in sufficient detail

    This seems obvious, but you’ll need to describe the scope and more importantly those things which are outside of scope. This can be achieved by considering Who?, What?, Where?, Why? And How? as a potential structure.  You may also wish to consider getting an independent review of the scope to ensure that it makes sense.

  • Describe the specific requirements

    Consider the technical, process, business and service outcomes you expect the service provider to deliver to you.

  • Describe the evaluation approach

    It’s helpful to the service provider to describe how you’ll be evaluating the responses. You may wish to provide a template, as well as some guidance on the content to be completed.  In addition, you may wish to describe an outline scoring framework, which will help the respondents to prioritise the requirements and weight their responses accordingly

  • Consider giving some worked examples

    You may wish to outline, using a cross-functional (“swim-lane”) diagram, to describe the roles of the various players in the target operating model. You may also wish to use a RACI diagram.  Don’t be afraid to go into detail, you can read why here

If you get this process right, you’ll avoid:

  • Responses which are vague
  • Responses which include so much contingency and risk allowances, that the costs quoted are wildly inaccurate
  • Wasting time wading through pages of irrelevant content
  • Suppliers who cannot articulate your requirements nor align their responses to the outcomes you wish to achieve

To find out how we help organisations like yours design and build highly effective operating models, read our ultimate guide to Design + Build