Building the Business Case for a Dedicated Sourcing Function

Presenter

• Search/Research Services• Search/Research Success™ by ExecuQuest learning workshop• Performance Coaching

• Advisory Services to companies that wish to build or optimize an internal sourcing function.

Prior to joining ExecuQuest, Marc served as the SVP, Sourcing Solutions Director, for Wachovia. He built and led a team of geographically dispersed research and sourcing professionals that grew from 6 to 55 over a six-year period. He is a member of the International Association for Corporate & Professional Recruitment, the International Coach Federation, and he served on the Board of Directors for the American Cancer Society, and the Regional HIV/AIDS Consortium and has served on the National Advisory Board for the Human Capital Institute.

Marc Hutto is Managing Principal, ExecuQuest, LLC. His previous fifteen years with Wachovia Corporation in conducting and leading recruiting, research and sourcing brings an execution-focus to ExecuQuest in the delivery of –

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Our Time Today…

• 15 Minutes today• 60 Minutes in March “Drill-Down Session”• Please note your questions for today (slide

number or topic)• Some topics/questions will need to

conveyed into the March “Drill-Down Session” via teleconference

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Seven-Step Process Overview1) Identify your funding environment

2) Determine the model to be proposed (centralized, decentralized, or hybrid)

3) Define and document objectives for creating a sourcing function (what are you trying to solve?)

4) Define and document how success will be measured (aligned to objectives for creating it)

5) Illustrate how the model will operate

6) Execute!

7) Measure and report successes and address issues

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1. Identify Your Funding Environment

Funding: Centralized Budget, Line of Business Funding, Fee-for-Service

• Centralized Budget Success is Evaluated by: Budget performance (goal vs. actual) Sourcing/Hiring Results in alignment with enterprise or business

unit(s) supported• Line of Business Funding Success is Evaluated by:

Results in alignment with enterprise or business unit(s) supported• Success in a Fee-for-Service Framework is Evaluated by:

Revenue – Goal vs. Actual Results in alignment with enterprise or business unit(s) supported

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2. Determine the Model to be Proposed

Centralized Characteristics – Efficiency & Effectiveness

Standardization Administration of Resources

Common Reporting & Metrics Budget control – enterprise

Authority vs. Influence Training Deployment

Planning & Execution Role Purity (individuals and mgmt)

Coaching & Execution Rapid propagation of learning

Role vs. Non Role Buying power - vendors

Stronger compliance Singular accountability

Reporting – enterprise view Others?

Others? Others?

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2. Determine the Model to be Proposed

Decentralized Characteristics – Customization & Control

Customization Timely response

Fewer broad policies Higher level of support for roles

Deployment of personnel Budget control – business unit

Rapid attainment of expertise Role diversity

Accountability to the business unit Part of “the team”

Others? Others?

Others? Others?

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2. Determine the Model to be Proposed

Hybrid Model Characteristics – Best of Both Worlds

Central Control/Accountability Aligned by team/business unit

Authority vs. Influence Higher level of support for roles

Role vs. Non Role Budget control – enterprise

Rapid attainment of expertise Reporting – enterprise view

Accountability to the business unit Part of “the team”

Buying power - vendors Rapid propagation of learning

Others? Others?

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Define Success at TWO levels: Enterprise AND Line of Business

Clarity on Pass/Fail (Measurable) Criteria Prioritize and then DEFINE

• Cost• Diversity• Speed• Quality• Quantity

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At what point do expenses become a concern?

A. Determine current expenses (amounts and sources) and agree upon goals.

B. Assess goals against current budget or funding sources (Fee-for-Service, Line of Business)

C. How will variances be measured? Each line item Overall (one number)

Defining Success: COST

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Which identity groups are underrepresented?

A. Gather available data for each identity group

B. Determine enterprise and line of business goals/objectives

C. Assess: Commitment Competence

Defining Success: DIVERSITY

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Which one(s) will be the measure?

A. Time to a list of identified prospects?

B. Time to resume/CV?

C. Time to interview?

D. Time to hire?

E. Time to start?

Defining Success: SPEED

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How will we determine this?A. Candidate’s match to criteria we’ve

established?

B. Location of prospects?

C. Retention?

D. Performance of the new hire?

E. Surveys (manager’s impression)?

Defining Success: QUALITY

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Too many or too few (each vacancy or pipeline)?

A. What is the “right” number of prospects (names)?

B. What is the “right” number of resumes/CVs?

C. What is the “right” number of interviews?

Defining Success: QUANTITY

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Remember the Interrelationships! Is achieving our Diversity goal possible with the

desired Speed? Is the Hiring Manager prepared for potential

Costs associated with the desired Quality? Can the Speed be achieved if the desired

Quantity is too high? Will the organization accept higher Costs for

improved Speed? Etc, Etc, Etc…

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Measuring Success

Defined and Documented Objectives

Cost

Diversity

Speed

Quality

Quantity

Options for Reporting Outcomes

Hiring Cost Per Source Cost Savings Analysis

Hires – EEO Data

Inferred by Source Supply Chain View

(Identify, Present, Interview, Offer, Hire, Start)

Submittal-to-Hire Ratio

Identified or Submittals

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Building the Business Case – TEMPLATE An 8-page, How-To Guide on Content, Strategy, and

Compelling Arguments Executive Summary How to outline the benefits of the change proposed Articulating the business case Outlining resource needs and those involved Illustrating linkage to enterprise objectives Conveying current and future-state environment Change-Readiness planning Risk assessment and mitigating strategies Financial Pro Forma and Staffing Model templates Demonstrating Return on Investment (ROI)

“Drill Down Session”

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