Stakeholder Perspectives and Knowledge about Party Management Capabilities

The party management capability known behaviors

Translating audit and governance into business requirements in order to provide the global requirement for any organization or agency.  The baseline by which we might apply as a reference in business architecture. 

A commerce relationship

  1. Due diligence or burden of proof rest with the seller in proving that a viable customer was validated – known requirement for doing business and standard in ISO with countless key controls for reporting GAAP/GARP versus non-GAAP/GARP revenue to shareholders and investors via SEC reporting.
  2. The first checkpoint MUST confirm the user or contact has met the legal entity rule; 
    1. Consumer
      1. Is the person a delegate or authorized representative of a customer?  A contact
    2. Citizen’s
      1. Is the person of age to enter into a legal agreement?
      2. Is the person of sound mind or have the mental capacity to enter into a legal agreement?
      1. ISO 9001 series certification and re-certification – Audits the operating procedures, supported by corporate policies (unlike a functional policy) a master or parent policy governs the global rules in a way that intends to guide decision making by executives and the delegates who lead employee decision making. 


Integrity of an organization or agency – General Accounting Acceptable practices prescribe due diligence rest with the seller.  Before entering or accepting a purchase order from a customer on credit terms; a seller must have performed due diligence on the proposed customer using Dunn and Bradstreet to perform a credit check and establish terms not to exceed an amount as compared to current debts.  

In a consumer model any credit accounts must use the same form of validation although the source may be three credit reporting agencies instead of Dunn and Bradstreet. 

Design Key Controls for Party Management Master Records – reference source for all expense and revenue transactions in ERP. 

Priority must be made on protecting and enabling zero down time and zero data loss on the ERP process in order to prevent threats in all transactions where pricing may be altered as an example.  If this design fails, all transactions within the workflow must be excluded from GAAP/GARP revenue reporting to SEC as two different performance measures. 

Brand Protection

An exclusion from GAAP/GARP can imply a serious operational gap and potentially cause concern without outside stakeholders. 

Reporting to external stakeholders

An exclusion from GAAP/GARP can imply investments known to be an exclusion; Innovation offers are exclusions from reported revenue of this type.  However, these exclusions are typically not any higher than 30% of total revenue dollars.  Based on the exclusion, ideally not using the revenue stream would best manage the life cycle of the innovation offers and clear the path for your fast lane offers. 

Business Models

The segmentation of business models enables the three maturity phases an offer will be associated with over the life of the offer. 

  1. Pricing on all transactions may be altered
    1. Top line revenue threats are at risk in allowing changes to the customer master as certain data points increase discount thresholds. 
      1. Brand protection Type – if a customer vertical market is changed to federal or education a deep discount may be applied with or without validation. 
        1. The vertical market is an external assigned value not subject to internal “fit for purpose” decision making nor functional decisions.


Maturity of an Offer

Well beyond the reporting requirements we have operational support and processes or procedures which can make the business model seem highly complex or you can leverage the wisdom of an expert who’s tried and refined many businesses.

Segment by maturity and your business model becomes much more predictable and focused on the customer experience. 

Employee Stakeholders

Employee assigned coverage to a specific vertical market or a region or an assigned account all play a different role in the transaction life cycle and each has a different business model.  The following highlights known design patterns and proven best practices.

    1. The segmentation of customers for internal assignment of account resources or territory coverage is either directly or indirectly related to the segment sales may apply in a fit for purpose or functional purpose. 
        1. Account teams may be assigned to support a regional customer base of vertical types-the value may be used for sales assignment coverage. 
          1. Operations teams may be assigned based on the sales teams and expertise
        2. Skill and work experience are vital decision criteria for how resources are assigned to customers by size. 
          1. Resource Skill Design Patterns
            1. Mature offers – small and medium with partner or channel resale models including Tier 1 and 2 through distribution having the greatest coverage will be a place for entry level up to an advanced skill or competency.  An employee investment into their development triggers the next tier of resource from general to advanced skill types. 
            2. Advanced Offers – hosted providers, service providers, financial institutions and federal sponsors to local government and merger and acquisition companies are typically the stakeholders in the middle lane business models, as the complexity increases the size of the customer or layers of stakeholders increases.  Fewer with greater demands. 
            3. Innovation Offers – The experts who have earned both book knowledge and on the job experience. 
          2. Many will try other business models and learn that the most effective and lowest risk model promotes accountable employees who invest in their development and return a greater results or produce assets of higher quality in their performance and pride in their work. 

Customer Stakeholders

An enterprise generally infers an organization or agency over 1000 employees with more than a billion in revenue over a period of 3 years.  However, highly technical stakeholders have defined the Enterprise to extend beyond an organization or agencies corporate boundaries including suppliers and customers.  The changes to definition we need to avoid, the technical parts of our business really need to step up and be more pro-active or drive their own understanding or acquisition of knowledge.   Please use before you define or alter the definition of business language.  The criticality of this requirement cannot be stated more clearly. 

Before we get too far into the topic, let me advise you of the countless policies around data specifically customer data. 



Figure 2 Political and regulatory issues




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