Are you really in charge global sourcing

Joann Martin, Global Director BPO at PBI

2 2

“A good alliance is like a unicorn. Everybody had heard of them, but few have actually seen them.” Tom Hooks Motorola

1. What are the most critical factors in selecting a vendor or a partner.

2. How to set the right business expectations to ensure aligned engagement on both sides.

3. How to keep control of the relationship while providing the partner sufficient flexibility to innovate and improve

4. How to measure success and how to handle failures.

Key Decision

Criteria Weights

Architectural -

Technology 15

Operations 10

SLAs - KPI 10

Quality 10

Implementation 10

Risk Mitigation 10

Pricing 30

Value Add 5

Overall 100

Key Decision Criteria Weights

Costs 25

Program Management/

Continuous Improvement 15

Hiring/Training/Retention

Practices 10

Customer Retention 5

Similar Experience 10

Capability/ Technology 10

Transition 15

Personnel 10

Overall 100

Performance Criteria

Financial

What does the vendors balance sheet look like compared to others? Its trends?

What part of the vendors portfolio will we be

Technology

Has technology investment been yearly?

Where are they investing?

Does it match our strategy?

Process

How do they measure quality? Is it industry standard?

Do they measure outcomes? Cycle time?

Does the measurement match our goals?

Employees

What is their attrition? Hiring practices?

Do they have good talent management plans?

Is there an adequate labor pool available geographically?

Organization

Is there a global account rep?

Are there global barriers?

Do they have structural alignment with us?

1. Continued

Long term Mutual Success COMMUNICATION Flexibility Alignment ◦ Culture

Leading Practices in ◦ Technology & Innovation ◦ Financial measurements ◦ Risk Mitigation

Multi-Vendor Handoffs and Accountability How long are you in this relationship for?

1. Continued

What’s Most Important Today?

Trust and Alignment

Communications

1. What are the most critical factors in selecting a vendor or a partner

Get past the dollar and cents, you are in this for

the long run.

2. Continued

Who we are:

• Organizational structure

• Financials & Risk Structure

• Special Programs (Green, Diversity)

• Future Goals

• Financial, Value Proposition, Market Share, Locations

What we are looking for:

• Savings

• Enablers & Flexibility

• Risk Mitigation

• Innovation & Best of Breed

Intros and Want Ads

2. Continued

Are the goals in the same playing field?

Can we get there?

• Costs versus Best of Breed

• Costs versus Risk

• Accountability

• Growth and location

• Short term wins versus long term success

• Dedication & CONTROL

We set expectations – But here is reality

2. Continued

Reality

Expectation

Expectation

Expectation

2. Continued

Communication

• Proactive

• Engage senior leadership early on

• Ensure consistent delivery of key messages

• Multifaceted approach to communication

• Live

• Email

• Instant Messaging

• Webinar

• Seminars

• QBRs/Annuals

• Target approach and messages to different

audiences

Communication

Trust and Alignment

Communications


Don’t Box Yourselves in!

3. Continued

Governance and Stakeholder Management

Perform Will take responsibility for a significant portion

of the project.

Sponsor Will provide the resources and leadership

necessary for the success of the project.

Oppose Will attempt to block an action.

Allow Will allow the project to proceed but may not

directly support it.

Assist Will help in some way to ensure the success

of the project.

Involv

em

ent

Com

mitm

ent

3. Continued

Vendor Customer

Executives

Account Owners

Project Level

Build Trust


Vendor and Customer mapped in alignment

3. Continued


Relationship Management

Service Request and Receipt Verification Management

Performance Management

Escalation Management

Project Management

Security, Business Continuity, Disaster Recovery Management

Financial Operations Management

Asset Management

Contract Management

Change Management

Communications Management

3. Continued

• Business Case Continually reviewed

• Strategic responsibility kept close to the top

• Multilevel organizational links

• Regular, goal-oriented meetings

• Utilize communications technologies

• Scorecard and Metrics used

Communication

.

When things are going well, something will go wrong.

When things just cannot get any worse, they will.

3. Continued

Trust and Alignment

Communications


What is the true intended value and success?

Performance KPI Measurement

Financial Costs in budget

Economic

Technology New tools

Impact on functionality

Process Improvement over x%

Full compliancy

Employees Attrition less than x%

Organization Customer Satisfaction

4. Continued

SLAs and KPIs from the contract?

Why isn’t success that easy?

Performance KPI Measurement

KPI Service Credit

KPI Service Loss

4. Continued

Win-Wins Gain Sharing?

Why isn’t success that easy?

4. Continued

Define Success

Which metrics are more relevant to your business

Tangible objective

Leading Indicators

End Value or current activity

Manage end to end

Process Improvements

Compete in the future

Purpose of Metrics

Recognize trends

Motivate behaviors

Prioritize resources

Allow benchmarking

Compensation

Alignment

Data Driven Communications

4. Continued

Intended Value - Balanced Measurement

Tangible

Financial

Costs per X

Net Savings

Operational

Speed

Volume Reduction

Defect Reduction

Intangible

Strategic

Innovative

Satisfaction

Relationship

Decision Making

Degree of Alignment

Communication

4. Continued

Define Failure

Differentiate between failure and problem/escalation driven change

Lack of Success

Lack of Tangibles

Lack of Intangibles

Lack of Communication

Trust and Alignment

Communications

4. How to measure success and how to handle failure

Business Networking Sessions

Workshops, Forums

Conferences

Trade Shows

Congressional Sponsored Events

Pre Proposal/Pre Solicitation Conference

Vendor Outreach Sessions

Industry Day

Social Networking

How to Learn More

COMMUNICATE