SOURCE, SELECT, MANAGE: THE CWM ATHLETE S TRIATHLON GUIDE SIG San Francisco Bay Symposium November 12, Matt Katz, VP Strategic Solutions

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1 SOURCE, SELECT, MANAGE: THE CWM ATHLETE S TRIATHLON GUIDE SIG San Francisco Bay Symposium November 12, 2014 Matt Katz, VP Strategic Solutions

2 WELCOME! It s another beaueful day in the Bay Area! 2

3 OPTIONAL: DO WE ALL KNOW WHAT CWM LOOKS LIKE? Enterprise boundaries con0nue to get more elas0c as external worker usage rises: 3

4 OPTIONAL: DO WE KNOW THE CORE ISSUES WITH CWM? How are employees & NON- EMPLOYEE workers different? EMPLOYEES You have employer relaeonship Headcount controls Talent management Internal talent market Ongoing relaeonship Payroll EXTERNAL WORKERS Someone else has employer relaeonship Budget controls Outcome management External skillset market Assignment management Invoices 4

5 NON- EMPLOYEE MARKET TRENDS & INNOVATION Adop0on well beyond con0ngent labor.. Comprehensive Talent Management Services Value CreaEon Projects / SOW Milestone, Fixed Bid, Unit Based On Demand Talent Pools Freelancers Private Marketplaces FTE Bench Complex Services Managed Services, Legal, Mgmt., Off Shore, etc. ConEngent Labor Time and Expense Early Adopters Market AdopEon Mature Adopters 5

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12 DID YOU KNOW? Over the three years ending in August, Bay Area bill rates for soiware developers have risen 21.4%, while na0onally the increase was only 7.4%. Overall IQNdex IT rates na0onwide have risen 9% since August 2011, while in SF metro the increase has been 14%. San Francisco metro area bill rates for soiware developers rose at 3x the na0onal rate over the past three years. Likewise, over the same 3 years the BLS Staffing Firm Producer Price Index (PPI) for Technical & Professional roles is up 8%. 12

13 GETTING READY FOR A CWM (& SOW) TRIATHLON?

14 CWM TRIATHLETE GUIDE ASSESS YOUR OPPORTUNITY ü Determine your current CWM (non- employee) spend and improvement opportuni0es PICK YOUR DISTANCE ü Sprint: Emerging (Start with CWM spend) ü Olympic: Adopted (Expand to SOW spend) ü Iron Man: Mature (Total Workforce Management) WORK YOUR PLAN ü Build the business case and roadmap ü Deploy your CWM program WIN THE RACE! ü Track your CWM Value Realiza0on ü Execu0ve Readout IQN Strategic Solu0ons IQN Strategic SoluEons August,

15 KNOW WHERE YOU ARE to Get to Where You are Going» WARNING: AGE MATURITY» Level of maturity differs by CATEGORY Maturity in IT Maturity in SOW ASSESS YOUR OPPORTUNITY» Assess 6 key areas for competency, standardizaeon and metrics 1. Strategic Focus 2. Program Management 3. Governance 4. Program Scope 5. Supplier Management 6. Technology/VMS Illustra0on: H Spend Rates for Job XX, by Org and Supplier, NoAmerica IQN Strategic Solu0ons IQN Strategic SoluEons August,

16 PROCUREMENT COMPETENCY / SKILLS MATRIX Ardent Partners and CPORising, 2014» Assess your CW Program Skills: These 14 core procurement skills can make the difference between best in class CW programs and only average performance.» These skills will be tested in each leg of the race, so know in advance where you need some coaching ASSESS YOUR OPPORTUNITY Competency Self- Assessment Competency Self- Assessment Data Analysis Financial Analysis The Sourcing Process Supply Market Knowledge Category Management Cash Management Contract Management OperaEonal Procurement Supply Risk Management Supplier Performance Management Leveraging Technology Business ConsulEng Skills PresentaEon Skills Project Management Skills 16

17 ASSESS YOUR HEALTH / KNOW WHERE YOU ARE STARTING» Assess your current programs and categories against these 6 key areas for competency, standardizaeon and metrics.» Some of your programs maybe swimming in the shallow end of the pool, while others are doing laps. PICK YOUR DISTANCE Emerging (Sprint Distance) Adopted (Olympic Distance) Mature (IronMan Distance) Strategic Focus TacEcal Cost savings, visibility Evolving Strategy Spend management, compliance, visibility OpEmized Strategy Workforce management and services spend strategy, demand management, value crea0on Program Management Program Implemented Standardize and automate business process, improve visibility, implement baseline best prac0ces Program OpEmizaEon Policies for compliance, strategic repor0ng, program performance measures, quality process improvements Best- in- Class Program Operate strategically, business process op0miza0on, execute against strategic plan, best prac0ces deployed Governance Informal Governance Single- or limited program sponsorship Established Governance Steering commisee established with key stakeholders, clearly defined program charter, goals and mee0ngs Global Governance Stakeholders across the enterprise, formal strategic engagement on program vision and goals Program Scope Limited Scope Temp labor under management, limited geographic, limited business units Expanded Scope Addi0onal labor and spend categories, addi0onal global geographies, new business units Enterprise- wide Scope Global/enterprise- wide expansion, fully integrated scope Supplier Management Established Supplier Marketplace Temp labor suppliers categorized, compe00ve bidding via automated sourcing, performance measured OpEmized Marketplace by Category Temp labor suppliers ra0onalized, SOW supplier marketplace established and measured, cross- category supplier u0liza0on Strategic Supplier Management Supplier engagement via established sourcing strategies, Supplier marketplaces ra0onalized, strategic suppliers leveraged Technology / VMS Baseline AutomaEon Automa0on of temp labor workflow, repor0ng suite, baseline integra0ons (user, CAC, approvals, invoice) Expanded AutomaEon & FuncEonality Supports category/geographic expansion, addi0onal integra0ons (SSO, DW, provisioning), expanded repor0ng Fully Integrated SoluEon Localized, integrated technology solu0on suppor0ng en0re program, op0mized repor0ng and analy0cs IQN Strategic Solu0ons IQN Strategic SoluEons August,

18 KNOW WHERE YOU ARE GOING SWIM! The Founda0on of the Business Case» Top 3 factors 1. Why does it make sense? Align with strategic ini0a0ves Look to the business goals, C- suite, core competencies, M&A WORK YOUR PLAN 2. Where s the pain? Iden0fy greatest ROI (compliance, savings, risk, efficiency) 3. Who s ready? Find low- hanging fruit Determine expansion readiness» ConsideraEons Evaluate (candidly) your Corporate Culture Distributed or centralized decisions? Avtude towards change? Acceptance of technology? Understand your Stakeholder s Influence Sponsor level and their ability to influence change (scope? magnitude?) Geographical reach or spend categories?» The business case builds the story You will always need to be selling A Good Story gets remembered, gets repeated and resonates IQN Strategic Solu0ons IQN Strategic SoluEons August,

19 SWIM!» Build your business case and support for a CWM (non- employee) Spend Program, or expand exiseng program governance. WORK YOUR PLAN Distance DescripEon Next Step Deliverable Sprint Emerging Program: We don t know how much spend we can on- board to this program. Spend Process Analysis and Field Work Business Case / Execu0ve Review Olympic Adopted Program: We don t know how much SOW spend we can on- board to the exis0ng CW program. Determine your organiza0on s approach to change Business Case / Stakeholder Review Iron Man Mature Program: We don t know how to achieve op0mal supplier performance, and total workforce management with our own talent pools. Leverage SIG, benchmark with peers, consider external advice Business Case / Full Program Review 19

20 KNOW HOW TO GET THERE WORK YOUR PLAN» A widespread rollout for muleple regions and/or categories of spend» When is it opemal? Level Stakeholder(s) administers global plan by gaining buy- in across department, regions, owners» Why do you choose? Need Big Bang results The cultural stars and stakeholders are aligned Go Global or Go Home OR» A step- by- step approach undertaken for a single region or line of business» When is it opemal? One internal stakeholder who understands value of VMS» Why do you choose? Land and Expand Need for speed Cultural implica0ons indicate distributed decision- making If I don t like it, I don t have to do it! IQN Strategic Solu0ons IQN Strategic SoluEons August,

21 BIKE! Deploy the right technology, process discipline, and program office for your organiza0on to achieve program success» Establish standards to promote adopeon» DisEnguish between BIG RULES and LITTLE RULES BIG corporate- wide guidelines LITTLE regions and categories WORK YOUR PLAN Distance DescripEon Success Factors Sprint Olympic Iron Man Emerging Program: Basic process defini0ons. Adopted Program: Process controls and discipline Mature Program: Op0miza0on and analysis Each hiring manager makes supplier selec0on, decides rates Departmental budgets for spend control External worker informa0on within a system Usually difficult to derive past individual or vendor performance Enforced approvals for different types of external workers Financial controls for contracts and spend Part of workforce planning and analy0cs Process uses only approved vendors and benchmarked rates» Preserve Speed and Flexibility» Provide Value to All Stakeholders 21

22 SETTING UP YOUR CW PROGRAM OFFICE Run! A roadmap for a]aining CW self- sufficiency» Establish Support Groups for CW and SOW process governance Steering Commisee and IQN Engagement Model Hiring Manager educa0on and repor0ng (CW) Project Manager educa0on and repor0ng (SOW) Approving Manager educa0on and repor0ng Supplier educa0on and on- boarding Other Contrac0ng and Procurement Opera0ons Program analy0cs and insight genera0on» Staff the Help Desk (Tier 1) for end users, and anecipate common requests» Establish Release Planning / Business Readiness / Incremental IQN Features and Modules» AnEcipate Program Expansion / IntegraEon of other Corporate Hiring programs WORK YOUR PLAN 22

23 WIN THE RACE! Manage your program to deliver maximum Value Realiza0on in the shortest period of 0me, crossing the finish line! WIN THE RACE!» Tracking all components which lead to faster value realizaeon, and success! 23

24 THE FINISH LINE: YOUR TAKE AWAY S» Assess your current programs, and progress towards the highest compeeeve capability» Chart an annual plan to get started, or take your programs to the next compeeeve level» Maintain a Eght relaeonship with your VMS and your MSP» Get off the couch! 24

25 IQNAVIGATOR AT WORK Working with the Largest Companies World- Wide AWARD- WINNING VMS with industry- first innova0ons, and industry s only soiware patents MARKET- LEADING SOW & PROJECTS FEATURES according to industry analysts FINANCIALLY STRONG: 100% DEBT- FREE, PROFITABLE OVER 700 INTEGRATIONS (INCL SAP, ORACLE) GLOBAL PRESENCE 144 countries accessing system, 16 languages MOBILE COMPUTING: IPAD, IPHONE, BLACKBERRY, ANDROID STANDARD WEB SERVICES THROUGH DEVELOPER.IQN.COM OVER 5.1 MILLION GLOBAL USERS MORE THAN 45% OF SPEND ORIGINATES OUTSIDE THE US 14 YEARS OF SAAS LEADERSHIP 25

26 IQN S VISION FOR TOTAL WORKFORCE PLANNING Strategic and tac0cal insight and analy0cs across the C- suite IntegraEons from HCM and ATS IQN Database IQN ReporEng and AnalyEcs 26

27 THANK YOU!» Contact us: Mak Katz, VP Strategic SoluEons +1 (415) Nathan Aswege, Sr. MarkeEng Manager +1 (303)

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