To MSP or Not to MSP? Pursuing an Outsourced MSP or an Internally Managed Contingent Workforce Program. Chryseis Constantine February 26, 2015
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1 To MSP or Not to MSP? Pursuing an Outsourced MSP or an Internally Managed Contingent Workforce Program Chryseis Constantine February 26, 2015
2 Housekeeping Items Everyone will be muted throughout the entire presentation You are welcome to ask questions at any time using the chat and/ or Q&A feature We will have a brief Q&A session at the end of the presentation to make sure that we answer your questions
3 CWP Mission Statement Mission: Our mission is to foster our individual member s learning through the sharing of knowledge, best practices, experiences, lessons learned and by engaging with industry experts and thought leaders. Purpose: Our goals are to enhance the professional capabilities and skills of our individual members and to bring value to the overall contingent workforce management discipline. Who we are: CW Professionals is a Professional Association of contingent workforce and strategic sourcing professionals working in multiple industries.
4 CWP Governance Steering Committee Bay Area Janice Urban, Oracle Verdis Baldridge, Kaiser Permanente Greg Johnson, Blue Shield of CA Mark Murphy, Keysight Technologies, Inc. Koenraad Lecot, Farmers Insurance Kanita Harris, Halliburton
5 CWP Benefits Networking Leveraging and sharing with your peers In-person and Online Chapter Meetings Assistance in Developing a Chapter in Your City Becoming a Steering Committee Member Events Attend our Annual Events Stay in the Know of All CW Events in your Area Knowledge Base Library of Presentations, Videos, and Recordings View Discussions from you Peers Participate/Contribute Become a Guest Speaker Become Author/Blogger/Thought Leader
6 Our Speaker Today Chryseis Constan-ne is the former Vice President and Senior Sourcing Manager in Global Procurement, managing and direc-ng a global con-ngent workforce and HR program across five con-nents for BNY Mellon. She managed the implementa-on and transi-on of VMS/ MSP providers in the US, UK, Ireland and Germany, as well as the expansion plan to AsiaPac. Chryseis Constantine Former Vice President & Sr. Sourcing Manager, Global Procurement BNY Mellon
7 Overview Benefits of employing MSP services Distinguishing pros/cons of each support model (i.e. an independent/ third-party MSP versus selfstaffed MSP) Determining the best support structure based on corporate culture Factors to be considered (mergers, global footprint/expansion, projected growth, resource transition strategies) Risk factors to neglecting a CW strategy supported by a MSP
8 What is a VMS? A Vendor Management System or VMS is a web-based application used for sourcing and billing services associated with the management of a Contingent and/or Temporary Worker program. Features such as supplier profiles, requisition creation and distribution, candidate data and submission details, time and expense tracking, on-and off-boarding requirements, reporting and consolidated billing. What is an MSP? A company that assumes primary responsibility for managing an organization's contingent workforce program. An MSP may or may not be independent of a staffing supplier. MSP s provide: overall program management, reporting and tracking, supplier relationship management, supplier selection, project/requisition distribution lists, and consolidated invoicing/ billing.
9 Forecasts predict that use of Temporary Labor in the US will increase 6% in The chart below demonstrates that the last quarter of 2014 into 2015 have already exceeded that assessment. (personally, i feel it is more like 10%) *US Bureau of Labor Sta-s-cs
10 Consider the impact of recent Organizational Trends COST SAVINGS Stricter demands on lines of business that are not profitgenerating are required to capture savings one way or another RISK Cyber-security, Data Security, Compliance, Human capital, etc. RE-ORGANIZATION Redefining job descriptions, transitioning to low-cost centres of excellence, re-evaluating roles and reporting structures
11 SIA predicts that by 2020, VMS/MSP services will be a part of every Fortune 2000 company s workforce management program. So, how should you structure your MSP, and what do these stats mean when making the determination to your support model?
12 Key Questions : Does the organization have an existing strategy for its contingent workforce? If yes, is that current strategy working for you and is it suitable for the company s growth, expansion and/or reorganization? (i.e. where do you see your program in 3, 5, 7 years?) How will change affect your organization? Who will experience the most impact from altering the existing plan or a change in the support structure? How do we (HR/Procurement/Finance) communicate with those most affected? Is it beneficial to include these groups in stakeholder discussions and/or cross-functional teams? What is the management structure and how does your organization intend to support the new strategy - either with technology, resource support, or internal functions/teams.
13 Who is the sponsor or internal administrator for your con-ngent labor program now? Where does your current program stand in re: Procurement HR Jointly managed - partnership between HR and Procurement How do these factor into your service model decision? Total Annual Spend Geography Poten-al growth/expansion Users and their service expecta-ons/ demands
14 Structuring the rela-onship Contract Ownership will impact the level of influence each party has in the program, its management and levels of responsibility. VMS CLIENT VENDORS *Tri- party rela-onship *Independently managed contracts *MSP exclusive MSP CLIENT MSP (OR VMS) MSP CLIENT VMS VENDORS ALL CONTRACTS DIRECT PARTY RELATIONSHIP ALL CONTRACTS DIRECT PARTY RELATIONSHIP FUTURE STATE (SOW MSA C2C) SUBVENDORS
15 THE PERSONALITY GAME Selecting the right people for the MSP team who fit your culture, your program, and meet your expectations as a Client is the most challenging tasks for the Program Sponsors (HR, Procurement, Finance) Recommendations: Demand the right to interview or have some level of influence over the hiring decision for the MSP team. Try and Buy if self-sourcing the team Remove problematic or unfit team members immediately. Embrace a team with diverse experience - Vendor experience, recruitment, HR management, Operations, Project Administrators, Project Managers Hold weekly meetings with MSP and Sponsors - voice concerns, need for guidance.
16 T R U S T Reliability Responsibility Integrity As stakeholders, trust in your MSP to handle the daunting tasks of program management is fundamental but to what extent do they manage? Have you selected the right individuals and team to manage Supplier Management & Selection Compliance & Governing policies and procedures (creation & enforcement) Risk Mitigation Cost-savings strategies Demand Management (they must understand large scale projects, the demands from managers, internal stakeholders /sponsors priorities and business initiatives)
17 What is your desired service model? Third Party Managed Service Provider (MSP) aka Vendor Neutral or Master Supplier (similar concerns) PROS Trained staff on VMS Use/License permissions included in terms of agreement Change Management - replacing MSP support falls on supplier Provide training to users as needed In depth understanding of system Reporting services and automation Program Sponsors can focus on big picture matters Greater access to market data and industry trends. All payment distributions to agencies are directed through MSP Consolidated Invoicing CONS IDERATIONS Supplier Buy-In (concern over relationships, pricing, MSP neutrality, etc.) With Master Supplier - how can other suppliers compete? Finding the right team experience, knowledge Management concerns (sharing proprietary info) Global limitations on support Need to consider how much oversight you feel is necessary on data, team management, reports, invoicing
18 What is your desired service model? SELF-MANAGED CONS IDERATIONS Program funding Costs associated with each User license Change Management - replacing MSP support falls on your organization. May have to provide training to users Program Sponsor must be involved. New or revisions to functionality $$$ Supplier management, audits, CV review, market research, no external opinion to help gauge best practices If global - can you find a team that can communicate over time zones as a unified group sharing in same goals When it goes bad, your holding the bag with no support Liability and risk factors are yours to assume. PROS Its your team - they answer to you and only you. Management comfort re: sharing project details / confidentiality. Global limitations on support Need to consider how much oversight you feel is necessary on data, team management, reports, invoicing Ideal for small domestic programs Liability and risk associated with a more direct relationship with suppliers, resources, and the talent selection process. Understanding corporate culture, manager-specific needs
19 Assessing the levels of support your internal customers want, and determining what they need can a self-sourced MSP team support these requirements?
20 Regardless which service model you choose, undoubtedly, there are benefits to employing MSP services PROGRAM GOVERNANCE Designing and structuring program governance is the key to a successful program and where the MSP can provide support LONG/SHORT TERM STRATEGIES & OBJECTIVES PROGRAM BENEFITS Spend Visibility, Risk mi-ga-on, Process improvement and efficiencies, automated services, cost- savings. PROGRAM COMPARISONS / BEST PRACTICES Access to industry peers, solu-ons they employ for new legisla-ve challenges, share concepts, ideas, successes & not- so successes PROGRAM BENEFITS Spend Visibility, Risk mi-ga-on, Process improvement and efficiencies, automated services, cost- savings. PROGRAM EXPANSION Having a dedicated team to support the program provides opportunity for expansion, consumer (user) buy- in, and enhanced organiza-onal efficiencies.
21 Additional Questions? Chryseis Constantine Many Thanks to Joseph Nordlinger, CWP and to all those who participated today!
22 Thank You! WINNER! Webinar Recording: You can find the recording of this webinar event, a copy of the presentation & a list of upcoming events here Contingent Workforce Professionals Contingent Workforce Professionals 22
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