Defining a Governance Operating Model

Governance Operating Model and the framework with which I plan to apply to my job function as a Vendor Manager. Defining an operating governance model is crucial to guiding my relationship with my supplier and driving transformation, change, and performance results.

 

This is an opportune time to apply my learnings as I am working with a supplier who has demonstrated poor performance this past year and has developed a reputation where the business feels they need to be more engaged and priced too high. I aim to leverage the components of the governance operating model to transform the relationship and drive better results.

 

I learned how important it is to understand the key steps involved in organizing a framework that is easy to understand and follow. My goal is to lay out a newly defined framework that demonstrates my company’s values, goals, and objectives and also establishes updated rules and processes that will govern my interactions with the supplier and then work with the supplier to determine how aligned they are to the same goals and objectives and whether or not they are a good fit to work with in the future.

 

The supplier has experienced recent turnover, so this is an excellent time to identify the key governance roles involved in managing the relationship. I’ll want to make sure I understand whom the lead supplier relationship manager or what we refer to as a key client partner is, the delivery leads on each contract, and other stakeholders responsible for oversight and decision-making.

 

Once I fully understand who the key players are, then I can start assigning responsibilities to each role based on their expertise and the specific tasks they will be responsible for, such as monitoring supplier performance, managing contracts, and resolving disputes promptly. The supplier has yet to prove to be accountable for delivery issues in the past, so I plan to discuss who from the supplier team will be responsible for addressing areas where they can significantly improve.

 

Critical to my role is establishing clear communication channels to ensure that all parties are informed and aligned. Even though we have weekly cadenced calls on the calendar, the supplier often requests to cancel a meeting or not show up due to conflicts. I plan to enforce the need to meet regularly to discuss issues and updates and ensure we remain aligned on our goals and objectives. I also plan to implement policies and processes so that proper audits and controls keep the relationship compliant. 

 

I will also keep up with ensuring reporting is up-to-date with all the pertinent information needed to drive strategic discussions, especially if the supplier still needs SLAs. The supplier is often delayed in providing me with reporting materials I need to do my job accurately, so being proactive and sending reminders is ever so important. I also plan to develop a more efficient method to receive more frequent feedback and performance reviews from the business. Waiting until the end of the year for stakeholder feedback is less accurate than many of them forget some of the finite details of the engagement. Monitoring the supplier’s performance regularly is critical to ensure that they meet their obligations and deliver the expected outcomes while also identifying areas for improvement.

 

Finally, I’ve learned how important it is to continuously review and refine my operating governance model to ensure it remains practical and relevant. Sometimes incorporating feedback from stakeholders and adjusting processes and procedures is needed, so I’ll need to plan how to engage stakeholders. This requires a structured approach and an ongoing commitment to collaboration and improvement. I look forward to implementing these new learnings into my workings with my supplier.