Owen Standen, Senior Vice President, EMEA ESC Procurement Category Lead for Non-Tech

Professional Services

22nd January 2015

Citi Enterprise Supply Chain (ESC)

CIPS Best in Procurement

CIPS Young Procurement & Supply Chain

Management Professional of the Year

Agenda

2

Award nomination and submission

Writing a successful entry

The winning entry

What winning the award has done for my career

Questions

2

Award nomination and submission

3

The decision to put forward submissions for Procurement industry

awards is part of a broader strategy to raise awareness of the brand of

Procurement at Citi and enhance Citi’s position as an employer of

choice

The decision to submit the entry for this award was made by an internal

Awards Committee within the global Citi Procurement organisation

The committee was looking for an individual who:

Has demonstrated strong business engagement

Is an advocate for the Procurement brand both within and outside the organisation

Has achieved success in driving the Procurement process in categories that are

recognised within the industry as traditionally challenging areas for Procurement to

penetrate

Writing a successful entry

4

Award worthy content focused on recurring themes

Delivered consistent sourcing excellence

Transformed highly complex and sophisticated categories

Driven Procurement engagement into new areas

Achieved numerous organisational Procurement ‘firsts’

Improved the perception of the Procurement profession

Well structured

Straightforward and easy to read

Provides short career background

Touched upon greater detail that was backed up by specific examples showcased in the

supporting submission

Includes visual examples of key analysis or results

References and endorsements

Includes short endorsements from managers, peers and stakeholders that work with me day in

day out

The winning entry

5

Written Entry (500 words) and 3 A4 supporting slides

Career progression to current point

Key achievements to date

Judges presentation (20 minutes)

Background / Context (About myself, Citi and Citi Procurement)

Case Study 1: EMEA Law Firm Review

Case Study 2: eAuctioning Legal Services

Case Study 3: Supporting a major EMEA Legal project

Case Study 4: Reengineering the Consulting category

Case Study 5: Procurement–VAT relationship

Appendices

Background / Context

About Owen

Jun 2007 | Aug 2007 | Aug 2008 | Dec 2009 | Dec 2010 | Jun 2012 | May 2013 | Jun 2014

Graduated with a First

Class BSc (Hons) Degree

from the University of

Manchester

Joined Barclays Global

Investors (BGI) on their

Graduate Scheme

Joined the BGI

Procurement

department as a Snr

Vendor Relationship &

Sourcing Associate

Promoted to Sourcing & Vendor

Relationship Manager post-

acquisition by BlackRock

Joined Citigroup as a

Vice President in

Strategic Sourcing

Spent 6 months on secondment

to Budapest setting up a

Professional Services team

(see appendix 5)

Promoted to EMEA

category lead for Non-Tech

Professional Services

Promoted to Senior

Vice President

About Citi

About EMEA Non-Technology Professional Services Procurement

• Comprises Legal, Consulting, Business Process Outsourcing (BPO) and Indirect Tax

• Historically, an immature collection of categories

• $70 billion in revenue • >$17 billion supplier spend • 1,000 cities / 160 countries

6

Passionate about Procurement and the value it brings

Endeavouring to set new industry standards for sourcing excellence

Continuously striving to transform, innovate and achieve organisational firsts

Investing in the future of Procurement through sharing best practice and up-skilling my team and peers

Ambassador for the profession, improving its perception inside and outside my organisation

• Senior Vice President and EMEA Head of Non-Technology Professional Services Procurement, leading

a multi-location team managing over $200 million of spend

Case Study 1: EMEA Law Firm Panel Review

Law Firms Involved

21

• Ran in a highly strategic manner with leading-edge benchmarking conducted on the panel,

including intelligent analysis encompassing highly innovative criteria

• Recommendation presented to the EMEA Legal Senior Leadership Team (SLT) with targeted

objectives pinpointed for the panel and broken down against each law firm

• Effective law firm negotiations choreographed with input from internal Legal

• Gained visibility to executive levels on the value Procurement can bring (e.g. EMEA General

Counsel, EMEA CFO and EMEA CAO)

7

• Renegotiation of the global commercial terms with Citi EMEA’s Tier I and II preferred law

firms

Cost Saving to Citi

$12.1 million

Countries / Cities Covered

62 / 142

Rates Agreed

>100,000

Achievements:

SOURCING EXCELLENCE ORGANISATIONAL ‘FIRSTS’ IMPROVED PERCEPTIONS OF THE PROFESSION

Lorraine Vines, Citi EMEA Legal CAO and Head of Legal:

Owen conducts himself with a level of maturity not found in individuals who have been in the industry for only a

few short years… He is a valued partner and I couldn’t think of anyone who deserves this award more.

Case Study 2: eAuctioning Legal Services

• Partnered with Citi Real Estate on a global Citi-

first, Procurement–Legal partnership to conduct

rapid, point-in-time tendering of legal instructions

• Through using RFQs and eAuctions, Citi was

able to benefit from capacity-driven law firm

pricing, securing greatly reduced (up to 50%),

point-in-time rates

• Partnership received global, firm-wide visibility

and was the subject of a global Citi internal

newsletter article

• Broke a major milestone for eProcurement tools

at Citi with the projection of live eAuctions to

EMEA Legal and the EMEA CAO creating

interest and showcasing the tool’s possibilities

8

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0 5 10 15 20 25 30 35 40 45 50 55

Proposed Fee

Level as a

proportion of

incumbent's initial quote

eAuction Duration (mins)

Legend: Law Firm A (incumbent) Law Firm B Law Firm C

24%

eAuction Activity Summary

Incumbent initial proposal (outside of eAuction environment)

Agreed law fee

Robert Leigh, Citi UK Real Estate Head:

Owen showed strategic leadership throughout the project... I have pleasure in recommending him for this award.

SOURCING EXCELLENCE

ORGANISATIONAL ‘FIRSTS’

IMPROVED PERCEPTIONS OF THE PROFESSION

PROCUREMENT ENGAGEMENT IN NEW AREAS Achievements:

Case Study 3: Supporting a major EMEA Legal project

• Actively engaged by EMEA Legal leadership

• Shaped and developed a detailed and objective

selection process, including a full Procurement-

managed RFP – a new Citi first

• Developed intelligent analysis to support an objective,

transparent and fully auditable decision-making

process

• Received critical acclaim within the global Citi Legal

community and executive level visibility

• The success of the project and its visibility is

continuing to drive Procurement engagement into new

areas

= Baseline fee level

16% = Proportion of fee over baseline

( )

Legend

(35%) = Proportion of fee less than baseline

65% = Agreed, capped fee as a proportion of baseline

9

100% = Total fee proportion

Jonathan Boustead, Global Head of Legal Services Procurement:

This relationship [EMEA Procurement and Legal] has evolved to a level of

maturity where the Legal community actively engage Owen in new

external legal counsel engagements.

ORGANISATIONAL ‘FIRSTS’

SOURCING EXCELLENCE

IMPROVED PERCEPTIONS OF THE PROFESSION

PROCUREMENT ENGAGEMENT IN NEW AREAS Achievements:

Case Study 4: Reengineering the Consulting category

• Historic strategy too focused on low-spend engagements adding little value and causing

delays and frustration to business partners

• Post-reengineering, team ROI went from less than break even to over 700%

• Improved Citi gatekeepers’ awareness of value Procurement brings

• Implemented relationship meetings with major consulting firms with clear positioning and

visibility on key deals

• Major milestones achieved include:

10

Presenting about Procurement at a major

consulting firm offsite: Presented to an

audience of Partners at a major consulting firm

strategy day offsite – a first for their organisation

Strategic Procurement-led tendering of

consulting deals: Strategic, high-value

tenders are now being run achieving savings of

up to 25% and gaining executive level visibility

Sean O’Connor, Managing Director and Citi Client Controlled Function Officer:

Owen has done an outstanding job supporting my organisation over a difficult and very time-sensitive period to

get three consultancy engagements over the line… It is this type of teamwork and collaboration that makes a

real difference!

TRANSFORMING CATEGORIES

IMPROVED PERCEPTIONS OF THE PROFESSION

ORGANISATIONAL ‘FIRSTS’ Achievements:

SOURCING EXCELLENCE

Case Study 5: Procurement–VAT relationship

• Built and developed a strong relationship with Citi’s EMEA Head of VAT fostering numerous

Citi firsts

• Major achievements include:

Launching VAT Procurement Handbook to draw attention to key dos

and don’ts

Inclusion of VAT on EMEA Deal Review Board – the peer review

forum for high-value deals

Targeted deep-dive reviews on areas of likely VAT overpayment

resulting in a multimillion dollar tax authority refund

Lizzie Mhagrh, Citi EMEA Head of Professional Services Procurement & Owen’s direct line manager:

He [Owen] is materially transforming the nature of the categories, breaking new ground and is building stronger

relationships with business stakeholders to drive more engagement in value-added Procurement activity.

11

PROCUREMENT ENGAGEMENT IN NEW AREAS

IMPROVED PERCEPTIONS OF THE PROFESSION

ORGANISATIONAL ‘FIRSTS’ Achievements:

TRANSFORMING CATEGORIES

What winning the CIPS award has done for my career

12

Major confidence boost

Gained me greater visibility and

access to the highest levels of Citi

Procurement

Significantly improved my visibility within the profession

Strengthened my candidacy for future roles

Questions

13