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The SIG Webinar will begin shortly.
Once the webinar begins, the sound will come from your computer
speakers.
In the meantime, please take a look at the upcoming SIG networking events listed on the right side of your screen
and plan to join us if you are in one of these cities this fall.
NETWORKING EVENTS
GLOBAL SUMMITSApril 19-21 – Orlando, FL
SYMPOSIUMS
Jan 14 – Silicon Valley, CA
Mar 24 – Minneapolis, MN
REGIONAL ROUNDTABLES
Feb 2 – Seattle, WA
Mar 3 – Hartford, CT
For more information and to register for all SIG events:
www.sig.org
RECENT POSTINGS
The SIG Career Network is
bursting with opportunities.
New jobs are posted daily by some
of the best known global companies in the world for those
seeking careers in sourcing, outsourcing, procurement and
related functions.
For more information go to: www.sig.org/career-center.php
NEW to the Career Network!
• Workday – posted Nov 4:
• Senior Strategic Sourcing Specialist
• FedEx – posted Nov 2:
• Sourcing Principal
• Options Clearing Corp. – posted Oct 28:
• Manager, Contracts & Corp. Services
• Strategic Sourcing, Lead Buyer
• Huntington National Bank – posted Oct 27:
• Senior Sourcing Manager
• Guardian Life Insurance – posted Oct 14:
• Manager, Vendor Management
• Travelers – posted October 14:
• Procurement Program Manager
• University of Notre Dame – posted Oct 13:
• Associate Director, Strategic Sourcing
• N. Carolina State Univ. – posted Oct 13:
• Director
• Travelers – posted October 8:
• Sourcing Manager
• Sourcing Manager - IT
You must be logged in to the SIG website to access the Loyalty Program.
For more information and to register for all SIG events:
www.sig.org
Become a SIG Champion and earn
points in the process by…
• Attending a networking event
• Dialing into an online event
• Speaking at a live or online event
• Submitting content to our blog or
SRC
• Referring a new member
• And more
special member
benefits
• 6 months of free buy-side
access to the Vendor
Evaluation & Assessment Tool (NEAT)
• 2 free Market Intelligence
Reports
• 15% discount on direct
hire placement fees
For more information, go to: http://sig.org/member-discounts
• $20,000 discount on Enlighta
Govern or Risk pilot
• 5 relationship assessment
surveys
• 20% discount on assessment
or implementation services
• 20% discount on research
reports on Chinese cities,
technology parks, providers
and advisory services
• 50% discount off fees
associated with GSOS
Health Check
• 10% discount on all
annual subscriptions
• Complimentary 1-hour
consulting session
• SkillsVillage membership
and software test drives
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Join the discussion in SIG’s Peer2Peer Resource program too!
Stay connected with other SIG members through various social media channels
SOCIAL MEDIA
bit.ly/SIGBlog
New Topic Each Week2:00 pm Eastern
(11:00 am Pacific)
Upcoming Free SIG Webinars:
November 10, 2015European Court Halts Flow of Personal Data from EU to US Through Safe Harbor ExceptionPresented by Mayer Brown
November 12, 2015Building a Procurement Analytics Platform to Mitigate Risks and Empower Category StrategiesPresented by IBM
November 17, 2015 Why Contingent Labor Visibility MattersPresented by PeopleFluent
November 19, 2015 Sourcing Relationship Health CheckPresented by Global Sourcing Optimization Services
Register at www.sig.org
For more information and to register for all SIG events:
www.sig.org
Upcoming Town Hall Teleconference:
November 11th
High Performance 3rd Party Management:
Designed, Built and Implemented
Presented by: Mark Anthony Vita
Strategy Engagement Manager
Accenture
SIG Town Hall Teleconferences
bring a small group of buy-side ONLY attendees together for a facilitated
discussion on top-of-mind issues in an open-mic, private conversation. Town Hall Teleconferences are NOT recorded.
Calendar of Town Hall Teleconferences
Taking place at 1:00 pm Eastern on the following dates:
February 11 August 12 April 8 September 9May 13 October 14
June 10 November 11July 8 December 9
For more information and to register for all SIG events:
www.sig.org
SIG Symposiums and Regional Roundtables provide education and local networking for members and invited non-member corporate users
Symposiums 2016:
Silicon Valley, CA – Jan 14
Minneapolis, MN – Mar 24
Columbus, OH – May 5
San Francisco Bay Area– May 19Toronto, CAN – Sep 22
New York, NY – Sep 29
Regional Roundtables 2016:
Seattle, WA – Feb 2
Hartford, CT – Mar 3
Montreal, CAN – Apr 5
Chicago, IL – Apr 7Atlanta, GA – May 24
Cincinnati, OH – Sep 27
For more information and to register for all SIG events:
www.sig.org
SIG Global Summits are semi-
annual events with 350-450
decision-makers in attendance
• Non-commercialized
• Hundreds of industry thought
leaders
• 70% buy-side
• 4-5 keynote sessions
• Global brands
• 3 days of networking
• CPO Roundtables
• Nearly 50 breakout sessions
69% of delegates are director level or above, of which 43% are VP/C-level
Recent speakers include:
www.sig.org/spring16
For more information go to: www.sig.org/siguniversity
Online learning environment
Sourcing and Governance certifications with Professional and Executive level courses
Modules with lessons, formative assessments, summative testing and final proctored exam
Certification good for 5 years
Interested in providing input?
Let us know!
For more information go to: sig.org/student-outreach.php
Partnering with Universities
Introducing students to seasoned supply chain executives
Sharing thought leadership with students in class, SIG University courses and at SIG events
Giving access to internship and job postings on the SIG Career Network
Allowing students to get real world insight into supply chain careers
Finding tomorrow's supply chain professionals today
Nipun [email protected] (510)304-3566
Joe Wroblewski Director, Third Party GovernanceTime [email protected]
Nipun SehgalCEO and [email protected]
Nipun is the Founder & CEO of Enlighta; Enlighta’s solutions havebeen deployed by global 2000 enterprises to simplify andstreamline performance management, risk management,contracts compliance, relationship and financials managementacross strategic supplier relationships.
Over the last 25 years (including 10+ years at Enlighta), Nipun hasbeen involved with architecture, implementation and deploymentof enterprise grade web solutions and middleware for Global2000 clients.
Nipun’s interests and focus areas are enterprise-class solutionsand platforms for complex, challenging and “big” problem areasthat remain unaddressed in enterprises.
Today’s Presenters
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Joe has a track record of over 20 years working with seniorexecutives to deliver business results by defining and aligningbusiness process, technology, organizational talent, andvendors. He has strong experiences across consulting, businesstransformation, outsourcing, procurement, and IT.
Joe is currently the lead for Third Party Governance for TimeWarner where he seeks to maximize the value of relationshipsbetween Time Warner and various vendors. Prior to Time Warner,Joe served as the head of Business Transformation as well as theLead of Sourcing & Procurement for a financial services companywhere he was responsible for strategic vendor relationships. Joespent over 15 years at a Management and IT Consulting firm wherehe was a Partner responsible for delivering consulting andoutsourcing services and maintaining high client satisfaction.
Joe has served as a member of The Quality Council of The ExecutiveBoard – an industry group focused on sharing best practices fordriving process and performance excellence.
Today’s Agenda
• Enlighta Introduction
• Why is Vendor Governance and Risk Management important?
• Third Party Risk Framework & Case Study
• Supplier Governance Framework & Case Study
• Key Takeaways
• Q&A
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Since 2002, providing best-in-class Supplier Governance & Third party Risk management solutions
#1 Managed Governance Tool used by Leading Advisors
#1 Customer Adoption- 50+ direct clients and partner deployments
Global Clients
- F100 Financial Svcs
- F500 Media Company
- F500 Insurance Svcs
- F500 Global Svcs provider
- F100 Retailer
- F100 Hotel Chain
- Top 5 IT Services
- F500 Bio-PharmaProfitable & Growing (CAGR over last 3 Years is 50%); In business since 2002
Only Tool deployed by all 3 players –Buyers, Advisors, Suppliers as clients
"Enlighta has proven to
be a powerful
solution for enabling
efficient
outsourcing
governance. The
support provided both during and since
implementation has been
outstanding." - Project Manager, F500 Financial Services
Introducing Enlighta
• San Ramon, HQ• Global Delivery Centers• SSAE 16 Hosting Dedicated• Cloud Hosting (AWS)• Client On-Premise Hosting
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Why is Third Party Risk & Governance Important?
• Volume – 3rd party work has increased drastically.
• Core Processes – 3rd Parties are more deeply entrenched in areas
of the business that in the past would have been “off the table”.
• Complexity – The activities being performed cover a wider and
more complex set of functions and business processes.
• Expectations – Clients continue to increase expectations of their
3rd parties.
Several dimensions of 3rd Party activity have evolved which increase the need for governance and risk management:
The success of businesses is increasingly more reliant on services provided by 3rd
parties.
• Location – The places from which work is done has exploded.
• Technology – Mobile, Freeware, Social, App integration, …
• Inter dependencies – 3rd Party X dependent on 3rd Party Y.
• Regulation – There is closer scrutiny from Federal, State, Industry,
and internal groups on what is being done and how it is being done.
The risk of failure and the impact (cost, reputation, market share, product launch, etc.) is also higher.
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Why is Third Party Risk & Governance Important?
Third-party relationships have been a significant area of concern for years…. We’ve unfortunately found it necessary to take serious enforcement action against some of our large institutions for problems brought on by poorly-managed third-party relationships, from debt collection companies to telemarketers.” - Thomas J. Curry, Comptroller of the Currency
A primary cause of Business Value Leakage in relationships between buyers and providers is the lack of proper governance after contract execution:
Poor Governance can erode up to 90% of the anticipated value from outsourcing- The Corporate Executive Board
Poor Governance plays a role in outsourcing failures as much as 62% of the time- The Outsourcing Center
Regulators are holding banks responsible for the faults of their vendors. About a half a billion dollars in enforcement actions.- American Banker
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Audience Polling Question
What is your organization’s current level of maturity in governing 3rd party relationships and mitigating risks to ensure delivery of business value?
Level of Maturity1) Expert – We know this stuff cold, we’re attending the webinar for fun.
2) Above Average – We have a very good handle on this but looking to improve.
3) Average – We have been doing a good job but have work to do.
4) Below Average – We aren’t doing as well as we want and are looking for best practices and tools.
5) Low – Please help me.
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Third Party Management Framework
Manage Contracts
Relationship Management
Performance Management
Consumption Management
Classify Third Party
Acquire Third Party
Assess Risk
Governance3rd Party Risk Mgmt.
Third Party Exit Mgmt.
Financial Management
Supporting Activities
Sourcing
Monitor Risk
Risk Mitigation
Re-Assess Risk
Enlighta Risk
Typically 1000-20000 Third Parties
Typically 5-250
Third Parties
Once, initially when acquiring a third-party or a new contract
When acquiring a third-party or a new contract or renewing or updating existing contract
Continuously, on an ongoing basis. Some activities are typically monthly
Once, on exit
Enlighta Govern
19
Contract• Contract Register
• Pricing: Transactional, Fixed, Rate Card ARC/RRC Dead-bands
• Contract Requests
• Contract Issues
• Interpretations
• Spend Pool Mgmt.
• Service Requests
Performance• Service Levels definition
• Internal SLA computation
• External SLA import
• Mgmt. Dashboards
• Metric Reports
• Deliverables & Obligations
• Balanced Scorecard
Financials• Invoice Validation for
consumption, timing, pricing and credits
• Disputed Charges
• Service Credits and Earn-backs tracking
• Resource Consumption, Overtime and Forecast
• Spend Actuals, Budget and Forecast & Variance
Relationship• Governance Issues
• Engagement Level (Meetings, Action Items)
• Communications
• Supplier Assessment
• Ideation
• Survey Management
Role-based Workflow, Secure Access, Configurable Processes
Risk ManagementSupplier Risk Profiler Contract Risk Profiler Risk Register Action Plans Risk Monitoring & Alerts Audits & Findings Risk Scorecards
Supplier Management Data Analytics
How Enlighta simplifies Supplier Governance & 3rd Party Risk mgmt.
Supplier RegisterSupplier Profile Contacts Capabilities Ratings Resources
20
Why use Enlighta for Strategic Supplier Governance & Risk Management?
Automation of end to end Risk processes
Integrated “Governance and
Risk” approach
Dynamically Auto-update of Risk
Scores on real-time basis
Drill-down insight via Risk Scorecards
and Dashboards
Consistency across Categories,
Divisions and Suppliers
Easy on your Budget
Easy to Adapt Forms, Reports &
Processes
Seamless Data Aggregation
No Need to Deal with Software
21
INT
ER
FAC
ES
(b
atch
, AP
I an
d m
anua
l)E
nlig
hta
Ena
bled
Fun
ctio
nalit
ies
Seamless Integration with existing client systems and applications
Single Sign On
( LDAP )
MS Outlook
Calendar
Look Up
Performance Management
( ITSM BMC Remedy )
Contract Depository
( PeopleSoft / SAP )
Invoices ECO system
( Oracle / PS )
Asset Management
( BMC Atrium )
GRC
( MetricStream )
Financial
( PS / Oracle )
Policies Regulations
( SharePoint )
Time Tracking
( Fieldglass )
Sourcing Tools
( Ariba )
Send / Receive
Automated
Performance
Dashboard
SLA
Management
Contracts, SLA’s
Metrics Database
Invoices
& Credits
Balanced
Scorecard
Change Request /
Request for Service
PricingRisk Issues
& Actions
Risk
Controls
Contract
Risk/Audits
Contract
Risk Assessments
GEO
Risk Contract Risk
Scorecard & Analysis
On boarding /
Renewal ChecklistsSupplier
Profile
Relationship Survey
& Benchmarks
DNOs
RFX
Vendor Client Employees
22
Define Risk & Scope
AssessRisk
Interpret & Manage
Risk
Report & Monitor Risk
VerifyRisk
• Define Risk Framework • Define Risk Elements
viz. Service Categories, Suppliers and Contracts
• Define Risk Stakeholders
• Define Risk Tiers e.g. High, Med, Low
• Select Scope of Third-Parties and Contracts
• Define Risk Assessment Plan
• Define relevant Controls points
• Run Preliminary Supplier Risk Profiler or
• Preliminary Contract Risk Profiler
• Run Initial Supplier Risk Assessment or Initial
• Contract Risk Assessment• Generate Initial Supplier
(or Contract) Risk • Score & Tier• Request detailed
information/ meetings for • Recurring Supplier (or
Contract) Risk Assessment
• Review Supplier Survey responses, notes & operational data
• Recurring Supplier or Contract Risk Assessment
• Create Risk Issues and interpret risk
• Collaborate internally & with Supplier to create Remediation Plans
• Execute Remediation Plan & Reduce Risk
• Conduct Final Supplier or Contract Risk Assessment; generate Final Risk Score & Tier
• Create Risk Audit Plan• Conduct Internal and or • Third party Audits• Record Risk Audit
Findings• Record Risk Audit
Results
• Share Final Risk Score & Tier of Suppliers and Contracts with BUs, Sourcing, Legal, VG&M
• Update systems; and publish Risk Dashboards
• Periodically refine Controls & Monitor Risks
Phased Approach to Implementing Framework
enlighta
Third Parties & Contracts Register
Complete &Accurate?
Register Certification Process
no
SAPAribaOracleFeed
Service ownersContract owners
Case Study: Leading Multi-National EU/APAC Bank
23
Third-Party Entity and Contract On-boarding
Case Study: Leading Multi-National EU/APAC Bank
Third Party On-Boarding
Contract On-Boarding
Supplier and Contract On-boarding and On-goingRisk Assessments and Risk Scoring
24
Client Relationship Owners,Contract Managers and Risk Officers can provide Narratives to interpret the Risk
Visual dashboardshighlight the Risk Scores in a Scale e.g. here on a 1-5 scale
Clients can set custom RiskTiers and associated Risk Score ranges e.g. High Risk= Color Red= Score of >3 on a 5 point scale
Risk Scorecards & Automated Alerts
25
Location and Subcontractor Risk by Contract
On-boarding Assessments & Capture Site and Subcontractor Details and Location
Data Elements Accessed by
Supplier & Sub-Contractors
26
Supplier Governance Simplified
Manage Contracts
Relationship Management
Performance Management
Consumption Management
Classify Third Party
Acquire Third Party
Assess Risk
Governance3rd Party Risk Mgmt.
Third Party Exit Mgmt.
Financial Management
Supporting Activities
Sourcing
Monitor Risk
Risk Mitigation
Re-Assess Risk
Enlighta Risk
Once, initially when acquiring a third-party or a new contract
When acquiring a third-party or a new contract or renewing or updating existing contract
Continuously, on an ongoing basis. Some activities are typically monthly
Once, on exit
Enlighta Govern
Invoice & Line Item Validation, Pre-
Payment Approvals
Supplier Balanced Scorecards
Supplier Health Check Surveys
SLAs, OLAs, KPIs Deliverables &
Obligations
Resource Units Forecasts & Actual
Consumption
Contract Changes, SOWs, T&Cs,
Pricing, Key Dates
Issues, Events, Exceptions &
Actions
27
Service Level Management
Supplier Balanced Scorecards Automated Feeds Exception Handling Requests to Suppliers Supplier Input Resource Units Volume Management Service Levels Service & Resource Credits Deliverables & Obligations Issue Management Events & Automated Actions
Multi-Tower, Region, Supplier, LOB
28
Deliverables & ObligationsPeriodic (Annual, Quarterly, Monthly, Weekly) D&Os with Automated Reminders, Action Items
Shared Calendar of Governance & Risk Activities
29
Supplier Relationship Health Check Surveys
Easy to model and distribute supplier survey health assessments
Report and Analyze Assessment Results
30
Enlighta is used as a Supplier RelationshipHealth Check Assessment platformFor 100s of client-supplier relationships
Case Study: CitigroupAnnual Assessment based on Enlighta for over 4000 participants and 12+ Suppliers and Global Shared Services Organizations
Recent Assessments (in partnership with GSOS): National Bank of Canada and multiple suppliersPratt & Whitney and multiple suppliers
Time Warner Case Study
31
Background• Multiple Business Divisions with Significant Autonomy• Meaningful Reliance on 3rd Parties to Enable Business Success• Desire to Leverage Scale across Multiple Divisions • Various processes, tools for 3rd Party Governance across Business Divisions• Solution needed to be “easy to use” and “easy to tailor”
Manage Contracts
Relationship Management
Performance Management
Consumption Management
Governance
Financial Management
Contracts – Standardize. Repository of obligations.
Relationships – Healthchecks / client satisfaction survey. Issue Management.
Performance – SLA Library. Metric Tracking.
Consumption – Insight into SOWs, resource allocations, dates, checklists.
Financial – Rate card. Rate Management. Forecasting.
• Single Platform shared by 3rd Parties and employees.• Dashboard reporting plus query functionality for ad hoc.• Rules/workflow engine for consistency and notification.
“highly customizable solution and high flexibility for UCB
admin to create and modify elements in
the system”
“modern web-based layout, user-friendliness,
response time, 24/7 support”
“attractive pricing model based on the application use and
scope”
“focus on the functionalities and not on additional
services”
N. Ricci, External Partnerships
S. Baton, External Partnerships
M. Mezei, Finance Shared Services
Case Study: UCB – Leading European Pharma
Enlighta enables supplier contract compliance, performance management and invoice validation across top 20 IT, BPO and clinical trial partnerships
32
Key Takeaways
• Regulatory and Business Drivers make for an easy business case
• Consider a holistic framework that combines Third Party Risk Management & Supplier Governance
• Getting started is easy – go-live within 3 months with phased deployments
• Supplier adoption and rapid adaptability of solution is a key consideration
• Q&A
33
Interested in learning more? (ask about SIG member discount!)
Maximize business value from supplier relationships by measuring performance, monitoringcontract compliance and risk, effective change control and management decision support
Q & A
Please contact: [email protected]
Nipun [email protected] (510)304-3566
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