CASE STUDY: SETTING UP A COMMERCIAL FUNCTION

OVERVIEW

While our client’s capability was
growing, we provided commercial expertise to bridge the gap, and as part of helping establish the client’s internal capability, we developed
a full set of commercial processes
and procedures. Once the internal team was in place we carried out a detailed knowledge transfer programme to ensure a successful handover.

SERVICES PROVIDED BY CROSS 8

Cross 8 led a series of large negotiations on the client’s behalf, managed the transition to new outsourced providers, provided ongoing supplier management, and developed a robust delivery assurance function.

KEY THEMES

  • Commercial management
  • Leading outsourcing
  • Delivery assurance
  • Capability development
  • Implementing best practice

THE CLIENT

A large UK utilities company.

THE CHALLENGE

Our client had traditionally developed many of its IT and operational solutions in house, however, when a large scale, government mandated transformation arose, they recognised the need to outsource much of the delivery. This presented several related commercial challenges.

Selecting the right service providers, managing the commercial aspects of the transition, and ensuring that the suppliers delivered high quality outcomes, all posed a substantial capacity challenge.

While the client did have pockets of commercial excellence around the business, they did not have the necessary capacity to manage commercial arrangements of this number and scale.

OUR APPROACH

Cross 8 provided a small team of highly effective individuals to address the immediate challenges, strengthen the existing commercial areas, and build a new commercial function. Some of the key areas we worked on included:

Field Force Providers Selection
The team led the selection and approval process for field force providers, defining requirements and selection criteria with the operational business, coordinating the RFP and tender processes.

Strategic Supplier Management:
Leading the negotiation, contracting, and management of supplier arrangements, across Big 4 Consultancy, Global System Integrator and 30+ supporting parties including operational and software deliveries. We were able to ensure a consistent delivery approach across the multiple
supplier types, that took into account areas such as Supplier Risk and ESG.

Delivery Assurance Framework:
Cross 8 implemented a robust delivery assurance function based
on a three-line defence model, with a large audit firm acting as external auditors providing an additional layer of oversight.

BENEFITS OF THIS APPROACH

The approach we adopted meant that the client was able to quickly establish stable commercial arrangements and realise the value of the programme more quickly.

The contracts agreed in the rapid stabilisation phase supported the delivery of the programme, and remained in place until they became operationalised as the function was integrated into the client’s BAU business.

In addition, Cross 8’s work in mentoring, training, and shadowing the new commercial function led to the development of the client’s internal capabilities, enabling a seamless transition of commercial management functions. 

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