Author: Peter Bendor-Samuel

Managing Services: A More Effective Approach | Blog

In a recent blog post, I explained that companies need to reconceive their services as an evolving journey and need to rethink how they manage services. That’s because services are becoming more strategic in a digital environment and require ongoing commitment and focus to ensure they deliver on their promise. Their evolving nature makes services a cascading change management challenge that remains as long as the service remains. One of the most difficult aspects that companies struggle with is how to build conviction and sustain momentum that they are successfully moving toward delivering value in the services.

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3 Walls IT Leaders Must Take Down | Blog

The supportive IT services that delighted businesses yesterday seldom spark the same delight today. Companies just expect IT to deliver quality technology components and services at an ever-decreasing cost per unit: That’s considered “hygiene.” Now they want IT to create new business value. But many CIOs and IT groups make three operational mistakes that build walls between the IT organization and the rest of the business. Those walls must be broken down.

Read my article on The Enterprisers Project

Companies Need To Rethink How They Manage Services In A Digital Environment | Blog

Buying services is no longer a matter of decisions that stand independently, like buying technology or products. In the past, many companies had the misconception that services are “one and done” or that they could be built and then be fine or at least fine for three or four years. But that’s not the case. Services are more of a journey – long-term commitments whose nature constantly evolves over time. It’s crucial that companies recognize this fact and that they rethink how they buy and manage services today. Why? Because the digital economy requires integrating more services into offerings, and they are becoming more integral to a company’s value proposition to customers and stakeholders.

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How to Reduce the Complexities of Change In Digital Transformation | Blog

Why do digital transformations experience more failure and face more peril than companies anticipate? Why do they take far longer than anticipated? With apologies to Einstein, I believe we can understand the answers to these questions by viewing them through the lens of “GUT” – (General Unified Theory) of digital transformation – and how many related factors intertwine to increase complexity and complicate change. I’ll explain those factors in this blog and discuss how to navigate them so your company can minimize the perils of change and end up with a beneficial economic model.

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Technology Decisions to Avoid Digital Transformation Exhaustion | Blog

Organizational exhaustion is the deadliest enemy of companies undertaking digital transformation. It may be hard to believe, but one reason this happens is that companies do a lot of work to prepare for an unknown objective. Therefore, they effectively dissipate their commitment, resources, money and energy in areas that don’t bring value. This exhaustion prevents companies from completing their digital transformation journey. Let’s look at why and how this happens, and I’ll share how to avoid it. The remedy likely will seem counter-intuitive, and it goes against all that technicians believe. But it works.

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How To Identify What Technologies To Invest In For Digital Transformation | Blog

Unfortunately, two common situations in digital transformation cause CIOs (or others leading the transformation) to deliver little or no business value. An Everest Group study last year found that 73% of the digital transformations that we studied failed to provide any value whatsoever, and 78% failed to achieve their business objective. Put another way, only 22% achieved their business objective. In both common situations that lead to delivering little or no value, the executives leading the transformation took a technology-first approach. In this blog, I’ll explain how this leads to digital transformation failures and explain an alternative approach that succeeds in delivering value.

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Why is Leadership Changing in India’s Service Provider Firms? | Blog

Leading service providers in India are going through substantial change due to executive leadership churn. The question is: is this bad? To answer, let’s look at what’s driving the churn and how long it’s likely to continue, and why.

Take Cognizant, for example. The firm has gone through leadership change for some time. First, it changed the chairman of the board and a few board members. Then it changed the CEO. With the recent resignations of Debashis Chaterjee, EVP and President, Global Delivery, and Prasad Chintamaneni, EVP and President, Global Industries and Consulting, we’re now seeing turnover in the next level down in executive leadership. And I believe we can expect more turnover.

Similar churn has been happening at other services companies given the fact that each of the top five India heritage companies announced a new CEO in the past three years.

What’s Driving the Executive Churn?

Underpinning the leadership turnover is the providers’ move to a new business model. They shifted away from struggling with the issues of the labor arbitrage model and moved to the digital platform model. As companies move down this path, I think it’s natural for their leadership to evolve.

Evolving the executive leadership is natural because the old guard must give way to the new guard – firms must bring in fresh thinking. The prejudices, paradigm and old rules of thumb don’t work in the new digital model (or, at least, only a few of them work). To succeed in this transition, the firms must change their thinking. One way to do that is changing the leadership.

The offshore services majors have extraordinarily deep talent benches. To keep their deep talent pools, they need to provide opportunities for them to progress and move on to more senior roles. When the senior teams move on, it opens opportunities for this talent. And it’s an opportunity to being in some new blood from the outside. That talent combination can be quite healthy, particularly at a time where companies are no longer scaling the known, existing model. Instead, they are moving into uncharted waters with a new business model that is evolving and being defined.

Another manifestation of the executive leadership churn is taking place at TCS, which is handling the digital shift differently. The firm reorganized to give its deep talent pool opportunities and new responsibilities. Instead of executives leaving TCS, we see a substantial reorganization that opens opportunities for the young blood, new talent, to take on more executive responsibilities. TCS handled this in a different mechanism to achieve the same goals as Cognizant – bringing new blood through. TCS retained its old blood by giving them different responsibilities and by shaking things up and moving people around.

This is what’s happening, and it affects pretty much all the service industry’s firms.

How Long Will the Leadership Churn Continue?

The executive leadership churn is predicated upon the fundamental industry shift into a new business model, which naturally causes this turnover. The turnover is healthy and inevitable, given the degree of organizational change going on.

I think it’s prudent to watch for too much of a good thing. However, the turnover is inevitable. I believe we’ll see more change as companies navigate and embrace the new digital future and move deliberately into that future.

Substantial Change as HR Becomes Data Driven and Employee-Oriented | Blog

The need to change is coming to the HR world, and it’s happening quickly. It will necessitate substantial changes in the HR mind-set, the way HR groups are organized, the supporting technology and the amount of resources invested in HR. What is driving this incredibly changing universe of HR? And what does it mean for the future of enterprise HR and for third-party HR service providers?

Rapidly changing workforce demographics, coupled with imminent talent deficits, has shifted the HR spotlight to the employee experience rather than an enterprise-facing experience. Thus, it’s now necessary for companies to take a direct-to-consumer approach (the “consumer” being an existing or potential employee).

Read more in my blog on Forbes

Journey Migrating to Hybrid Cloud has Three Issues Crucial to Success | Blog

When companies undertake digital transformation, it’s crucial that they keep executive and organizational support throughout the multi-year journey. An effective strategy for getting and sustaining that support is to focus on the “moments that matter” to the executives and/or users. Those are the moments (or events, decisions, actions) that comprise the most important issues to decide and evolve on the journey – things that the company must get right.

Leaders must not only communicate effectively about those moments but also deal with the related challenges along the way. Otherwise, progress on the digital transformation journey will slow or the journey will be derailed and likely will fail. To avoid either of these outcomes, let’s consider three moments that matter in a common digital initiative – migrating to a hybrid cloud environment.

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Need for Vendor Management in Procurement To Transform | Blog

Historically, vendor management teams built strong skill sets in acquiring services at low/competitive unit-cost prices and measuring vendor performance. But the world changed, and there is a growing misalignment between the purchasing and vendor management and the business units they serve. Businesses say the vendor management teams buy things cheaply but don’t buy the things that meet the business needs or deliver the outcomes the business wants. Businesses are asking for more value, and it’s not unusual for Everest Group’s vendor management and CPO clients to ask us for help in how they can better partner with their company’s business. This blog looks at how the current practices are ineffective in aligning with the business and how vendor management needs to change so it can deliver the value the business expects.

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