As you enter into a multi-vendor operating model, aligned to the Service Integration and Management (SIAM) framework, your SIAM contract requirements must be fit for purpose. This doesn’t mean picking a pre-built SIAM contract off the shelf because every organization 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) document, it’s also not sufficient just to say, “We’re using ITIL” or “We want a SIAM model.” Because, sadly, this doesn’t provide a sufficiently detailed picture to enable the included service providers to return a suitable response.
To help, in this article I outline the key factors to consider when developing SIAM contract requirements, specifically concerning the use of a disaggregated service model, involving multiple service providers. In my experience, most organizations tend to adopt the SIAM framework as the starting point in this situation.In this article @stevebmorgan outlines the key factors to consider when developing SIAM contract requirements, specifically concerning the use of a disaggregated service model, involving multiple service providers. #SIAM Click To Tweet
6 tips for creating a fit-for-purpose SIAM contract
The following list of tips is based on our experience of helping clients to develop a set of meaningful SIAM contract requirements.
|1. Describe the current state adequately||1. What are the current challenges? Consider the following headings as the basis for answering this question: Organization, Tooling, Processes, and Governance.|
2. What are the business drivers?
3. Why is a SIAM framework being adopted?
4. What’s the context in terms of other changes which are also underway elsewhere in the organization?
|2. Describe the desired future state||This needs to be at a macro and micro level. Adopting a SIAM operating model involves wholescale 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 organization.|
|3. 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.|
|4. Describe the specific requirements||Consider the technical, process, business, and service outcomes you expect the service providers to deliver.|
|5. Describe the evaluation approach||It’s helpful to the service providers to describe how you’ll be evaluating their 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 prioritize the requirements and weigh their responses accordingly.|
|6. Consider giving some worked examples||You may wish to describe, using a cross-functional (“swim-lane”) diagram, 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 all this right, you’ll avoid the following SIAM contract issues:
- Vague responses
- Responses which include so many 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.
Hopefully, the above is helpful for your SIAM contract creation. If you have any questions, then please use the comments section below. To find out how we help organizations like yours to design and build highly effective operating models, please read our Ultimate Guide to Design + Build.