Planning for transition and transformation

This eighth blog in the series of nine blogs on the sourcing lifecycle highlights the importance of planning for transition and transformation during the sourcing process by involving both the incumbent and future suppliers.

It is never too soon to start planning for transition and transformation. Preparation for the transition phase should begin as early as possible and shouldn’t wait until the service commencement date of the contract; it needs to begin during the sourcing process. Following contract signature, it is vital that the contract is mobilised according to the spirit of the negotiation process and as outlined in the terms of the contract.

The supplier(s) should provide detailed transition and transformation plans during the sourcing process and this should be reviewed and agreed during the contract negotiations. The customer should ensure that plans are aligned with business requirements and constraints, and that the plans are achievable and can be supported. The customer should also make sure that their transition responsibilities are clearly understood.

If there are existing contracts in place then exit planning should also be addressed during the sourcing process and a detailed exit plan should be agreed with the incumbent. The way of working between the incumbent supplier(s) and the future supplier(s) should be discussed.

In order to develop a successful plan, the transition and exit team structure should be agreed prior to contract signature. Transition is a joint activity involving stakeholders from the customer and supplier organisations. Whereas the customer should always be responsible for managing the transition process, it is normal for the supplier to perform the majority of the tasks required and to bring a far greater level of experience to the process. There must be continuity of resource and knowledge from the sourcing phase to the transition phase. This is best achieved by making the number of people allocated to the transition programme a contractual commitment for both the supplier and the customer. This commitment must extend to retaining certain key individuals from the sourcing process through the transition phase.