ASIL, Inc. Proprietary Information1 Effective Provider Relationships Powered by ASIL, Inc. “Business Performance Management ”

ASIL, Inc. Proprietary Information2 Effective Relationships = Good Business

ASIL, Inc. Proprietary Information3 Relationship Facts They start with a joint value proposition. They proceed through various stages over time. They can regress as conditions and changes develop. Acceleration/De-acceleration of stages can be influenced by leadership and collaboration styles. Communication and commitment are essential in fostering effective relationships.

ASIL, Inc. Proprietary Information4 Commitment: An agreement to do something in the support of a mutual value proposition Collaboration: To work together with others especially as part of an intellectual endeavor The Key is to enable the Three “C”s of a Successful Relationship Communication: A process by which information is exchanged between individuals; a technique for expressing ideas effectively Focusing on the 3Cs will create effective relationships. Communication Commitment Collaboration

ASIL, Inc. Proprietary Information5 Types of Provider Relationships Time Type of Relationship

ASIL, Inc. Proprietary Information6 Types of Provider Relationships Time Type of Relationship Alignment and Values High Low Med True Alliance Partner Sharing Supplier Certified Supplier Adequate Supplier Set Line Transactional Providers Relational Providers Set Line Less Involvement Less Risk More Involvement More Risk More Gain

ASIL, Inc. Proprietary Information7 Outsourcing Preparedness Stage of the Relationship Outsourcing Phases Create Develop Strengthen Optimize Provider Selection and Implementation Stabilize and Implement Optimize the Network The Provider Relationship Lifecycle

ASIL, Inc. Proprietary Information8 The Provider Relationship Lifecycle Create Strengthen Develop Optimize Relationships continually evolve

ASIL, Inc. Proprietary Information9 Successful Provider Relationships Performance Audit Plan Develop Clear Success Criteria Assess Potential Candidates Develop and Manage RFx Process with Candidates Complete BAFO Process with Candidates Award Program Performance Scorecard Plan Closed Loop Performance Relationship and Communications Plan Mutual KPI Measures Mutual Incentive Plans Joint Strategic Planning Joint Investment Planning Create Strengthen Develop Optimize Successful Provider relationships occur in the journey!

ASIL, Inc. Proprietary Information10 Create Strengthen Develop Optimize Creating Provider Relationships Focus is on assessment and understanding of Vision and Strategies Values Goals Core competencies, skills and capabilities Communication Styles Credibility by actions and results The outcome is understanding and awareness.

ASIL, Inc. Proprietary Information11 Create Strengthen Develop Optimize Developing Provider Relationships Focus is on creating and developing alignment of Vision and Strategies Values Goals Core competencies, skills and capabilities Communication and Operating Styles The outcome is credibility, respect, teamwork, common ground and alignment.

ASIL, Inc. Proprietary Information12 Create Strengthen Develop Optimize Strengthening Provider Relationships Focus is on shared accountability and responsibility of: Vision and Strategies Values Goals Core competencies, skills and capabilities Problem solving Communicating for results Investing for success The result can be trust, shared accountability and partnership.

ASIL, Inc. Proprietary Information13 Create Strengthen Develop Optimize Optimizing Provider Relationships Focus is on an integration of: Vision and Strategies Values Goals Core competencies, skills and capabilities Problem prevention and mitigation capabilities Common Technology and Communication infrastructures Predictable actions that further the relationship’s interests The outcome is predictable and sustainable actions and results in integrity with the best interests of the relationship and the companies involved.

ASIL, Inc. Proprietary Information14 Problem Resolution Activity Activities that Impact Success Stage of Relationship Type of Relationship Relationship Health Assessments Areas to evaluate Satisfaction with the Relationship Attributes (+) (-) Provider X Health Assessment Gaps and Opportunities

ASIL, Inc. Proprietary Information15 Examples of Questions posed in Relationship Health Assessments Relationship Health Assessments Are you satisfied with the relationship with the Provider? Is the Provider meeting agreed to Financial Targets ? Are you leveraging the Provider’s skills and expertise to adopt new changes in business processes and practices ? Does the Provider proactively identify problem areas that need to be addressed? Does the Provider make time to foster improvements in the relationship? Is the Provider instituting concessions to resolve issues ?

ASIL, Inc. Proprietary Information16 Relationship Health Check Assessment Report Example

ASIL, Inc. Proprietary Information17 Relationship Health Assessments Commitment and Action = Successful Provider Relationships Conduct Relationship Health Check Assessment Company or Personal Values Communication Learning Styles Interpersonal Styles Company or Personal Goals Self-Values Assessment Communication Assessment Learning Styles Assessment Interpersonal Styles Assessment Goals Assessment Analyze Communication Results Analyze Learning Styles Results Analyze Interpersonal Styles Results Analyze Results Goals Assessment Create Mutual Goals from Assessments Analyze Results Values Assessment Relationshi p Working? Schedule Future Relationship Health Check Assessment Yes No Assess Areas of Opportunity Assign Actions Track Closure Communicate Results from Assessments START

ASIL, Inc. Proprietary Information18 The path to successful Provider Relationships: It’s a good thing to focus energies in developing Provider relationships. Don’t implement a rigorous relationship management model for all Providers. Know what stage you are in, where you want to be and manage the next step. Periodically assess the health of the relationship. Communicate, Collaborate and Commit. Do not be surprised. In Summary

ASIL, Inc. Proprietary Information19 Contact Information ASIL, Inc Tasman Drive, Suite 117 Santa Clara, CA (408) Warren White Visit our web site: