Implementations. Maximizing Effectiveness in Source-to-Pay Technology. Allegis Group Daniel Gick Sr. Manager, Procurement

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1 Maximizing Effectiveness in Source-to-Pay Technology Implementations Allegis Group Daniel Gick Sr. Manager, Procurement The Hackett Group Chetan Rangaswamy Director

2 SIG Global Summit 2018: - Maximizing Effectiveness in Source to Pay Technology Implementations - March 2018 Dan Gick The Allegis Group Chetan Rangaswamy The Hackett Group

3 Agenda The Allegis Group Overview Project Discovery and Planning Project Gotchas Questions and Answers 3

4 Allegis Group is a global leader in talent, staffing, and recruitment services for job seekers and employers. Our Brands 4

5 Allegis Group Procurement overview 5

6 Agenda The Allegis Group Overview Project Discovery and Planning Project Gotchas Questions and Answers 6

7 About one-third of Procurement leaders plan to consolidate to a single Source-to-Pay platform, but only 8% have achieved that goal today Our goal is to consolidate all source-to-pay applications on a single platform provider but we still have disparate tools in place today 32% We use our ERP and a single source-to-pay solution for the majority of processes 31% We use our ERP provider for all source-to-pay processes with only limited exceptions 15% We have a best of breed strategy which allows us to pick and choose individual solutions based on how well they meet our requirements 14% We use a single source-to-pay software provider with limited exceptions 8% Source: 2017 Key Issues Study, The Hackett Group Source: 2017 Key Issues Study, The Hackett Group 7

8 If I had an hour to solve a problem and my life depended on the solution, I would spend the first 55 minutes determining the proper question to ask, for once I know the proper question, I could solve the problem in less than five minutes. - Albert Einstein - 8

9 Key Activities To meet our goal of implementing a single platform, our team put together a clear plan on how to execute this vision Project Management Stage 1 - Discovery Stage 2 - Implementation Stage 3 - Post Go-Live Mar Sep-15 Today Kick off project, capture current state and build a future state operating model Phased implementation approach by scope, operating company & category On-going support and success Project Scoping Initiate project mobilization Conduct interviews and current state process review Refine future state processes & recommended approval workflows Design channel strategy, supplier enablement plan & catalogue strategy Configuration of tool including data needs, test environment etc. Integration of tool to ERP including design, integration architecture, etc. User Acceptance Testing including test scripts, validation of all data in test system etc. Report on key performance/success metrics Expand supplier enablement through a wave-by-wave approach On-going administration/management of the platform Change Management (Communications + Training) Supplier Enablement 9

10 Key Activities and the driving factor for making our implementation a success was spending the time upfront to answer a host of key questions during our Discovery phase Project Management Stage 1 - Discovery Stage 2 - Implementation Stage 3 - Post Go-Live 2016 Kick off project, capture current state and build a future state operating model Project Scoping Initiate project mobilization Conduct interviews and current state process review Refine future state processes & recommended approval workflows Design channel strategy, supplier enablement plan & catalogue strategy 2017-Mar-01 Design solution components, implement Quick Wins, plan the implementation Phased implementation approach by scope, operating company & category Detailed Design - Process, Technology & Organization Configuration of tool including data needs, test environment etc. Integration of tool to ERP including design, integration architecture, etc. Implement Quick Wins User Acceptance Testing including test scripts, validation of all data in test system etc. Change Management and Socialization Planning Change Management (Communications + Training) Supplier Enablement 2017-Sep-15 Implement Service Delivery Model transformation initiatives Key Questions to Ask During Discovery Implement Transformation Initiatives - How to Enable Process with Technology? Change Management Refine SDM / Initiatives / Transformation Management and Initiative Tracking Monitor and manage transformation results On-going support of a staggered roll-out Certified & Personalized Dashboards Report on key performance/success metrics - What does a Clearly Defined Scope look like? - How to Build the Right Project Team? Expand supplier enablement through a wave-by-wave approach On-going Business Case Track Initiative Progress administration/management of tool Simple Refresh of Benchmark Metrics 10

11 Aligning on which processes will be enabled by technology 1 Regular Recurrence/Review P2P Transactions 8 Supplier Set Up Ongoing Management Strategic Direction & Prioritization 2 1 Category Management Spend Analysis & Reporting Sourcing Events 3 Strategic Sourcing 6 Contracting Transaction Setup & Management 11 Supply Master Data Management 12 Catalog Management Requisition and PO Processing Supplier Scheduling Receive Goods/Services Process Accounts Payable As Needed Project Pipeline Management & Savings Tracking Supplier Management Compliance Management 4 Tactical Sourcing 10 Stakeholder Engagement Process & Technology in Scope 11

12 Key Scoping Consideration Spending the time upfront to clearly define our scope, significantly reduces the dreaded scope creep. 2 Procurement Category Business Units & Geography Technical Business Processes User Counts Direct vs. Indirect Capex vs. Opex Good vs. Services Inventory vs. Non- Inventory Material Category Specific Nuances Regional vs. Global Unique ERP by Business Unit Regional Tax Variation Integration w ERP Ok to Pay vs Full P-Doc Integration # of Chart of Accounts # of Supplier Master Source-to-Pay Business Process Regional Process Variation Existing Supplier Catalog Migration Total User Counts by Up & Downstream Supplier Enablement Count & Vision 12

13 Establishing the governance structure and clearly defining roles and responsibilities for all team members 3 Project Charter Project Resources & Expected Outcome Project Sponsors B. Hale (A1) M. Fine (A1) B. Derocher - Hackett Principal in Charge H1) Hackett QA Principal (H1) Stage 2 P2P Implementation Procurement Business Process Owner (A5) AP Business Process Owner (A6) Finance Process Owners (A7) P2P Extended Team (A8) THG Associate (H3) THG Associate (H4) Ariba Associates Contract + SIPM Implementation Procurement Business Process Owner (A5) AP Business Process Owner (A6) P2P Extended Team (A8) THG Associate (H5) Ariba Associates Project Management D. Gick - Allegis Project Leader (A3) C. Straub Allegis IT Project Manager (A4) C. Rangaswamy - Hackett Project Manager (H2) Integration IT Integration Leader IT Integration Support Ariba Associates Supplier Enablement Procurement Business Process Owner (A5) THG Associate #4 Ariba Associate Project Advisory Board C. Slifer Chair (A2) 6-OpCo Representative TBD (A2)) L. Ray - IT Representative (A2) Change Management Change Management Owner (A10) THG Associate (H6) Resource Plan Allegis Team Detailed Responsibilities and Commitment Allegis Role Allegis Responsibility Stage 1 Stage 2-3 Project Advisory Board (A2) - Responsible for attending monthly advisory board meetings - Is the escalation point of contact for Allegis Project Sponsors - Works to prevent project from being derailed through a focus on goals versus individual features - Provides a forum for the OpCos to receive updates on the program, influence key decisions and drive the change management within their respective businesses Project Sponsor (A1) - Responsible for attending twice a month steering group meeting - Responsible for participating in Project Kickoff to provide executive support of the initiative and to carry this support through the duration of the project - Is the executive decision maker for the project and will provide timely review/signoff of project deliverables - Will step in to make decisions and elevate project discussions to ensure alignment with project goals listed above <5% <5% 5% 15% Project Manager (A3, A4) - Responsible for overseeing the overall implementation and is the owner of the master 75-85% 75-85% project plan - Coordinates all internal activities related to project - Responsible for providing information to the Allegis Implementation Consultants to determine future state business process, configurations, etc. - Resource Should have a strong Plan understanding Hackett of the overall Team goals of the implementation to elevate project discussions to ensure alignment with project goals - Detailed Works to Responsibilities prevent project from being and derailed Commitment through a focus on goals versus individual features - Drives Hackett decisions Role in a timely manner Hackett Responsibility Stage 1 Stage 2-3 Client Lead and QA - Main point of contact for Allegis to ensure customer success % 10-20% (Hackett Principals) - Responsible for attending steering group meeting with Allegis Executive and Project (H1) Sponsors, Allegis Project Manager and Ariba Implementation Consultants. - Responsible for participating in Project Kickoff to provide Ariba support of the initiative and to carry this support through the duration of the project. Reproduction of this document or any portion thereof written - prohibited. Is the escalation point of contact for Allegis Executive Sponsor and Allegis Project The Hackett Group, Inc. All rights reserved. without prior consent is Sponsors. Project Manager (Hackett Manager) (H2) - Drives day-to-day execution. - Provides Allegis Project Manager(s) with Ariba related tasks in project plan format so that Allegis Project Manager may incorporate into overall Master Project Plan. - Assists the Allegis Project Manager in driving tasks within the overall master Project - Works with Allegis Project Manager to develop and lead Project Kickoff meetings. - Provides Allegis Executive Sponsor and Allegis PM with weekly status on Ariba owned tasks (inclusive of overall assessment of project status to project plan and risks/mitigations). - Coordinates Ariba resources. - Responsible for keeping project on track and measuring project progress against project plan. - Conduct interviews for Procurement Transformation. - Prepare Procurement Transformation outputs. - Facilitates Business Process discussions utilizing Ariba Platform functionality as underlying foundation. - Works with Allegis Project Manager to ensure User Acceptance Test system readiness. - Works with Allegis Project Manager to create Move to Production checklist. 100% 100% 2016 The Hackett Group, Inc

14 Agenda The Allegis Group Overview Project Discovery and Planning Project Gotchas Questions and Answers 14

15 While our project was a success, it came with many challenges and a few gotchas on the way 1 Delegation of Authority & Approval Workflow 2 Change Management 3 Integrations 15

16 Delegation of Authority is always a tough decision making process, since there are many options to think through 1 Management Hierarchy Approval Category Approval Cost Center Approval Strategic Sourcing Approval Additional Notes & Considerations Catalog Requisition and Free form Requisition can have different workflows Each document type (Req, PO, C/O IR) can have its own workflow Approvals can leverage Pool Approvals and Parallel Approvals On behalf of requisitions will be routed based on who the requisition is on behalf of, rather than the requisitioner Custom Field Approval 16

17 An appropriate Change Management strategy for the P2P transformation would consist of three components to support a successful implementation. 2 1 Risk Assessment Identify and prioritize risks associated with rolling out changes to organizational structure, roles and responsibilities, policies, processes, and technology Develop strategies to mitigate risks that could delay or hinder project success 2 Communications Create a communications plan to effectively support successful implementation Engage stakeholders with communications to inform them of upcoming changes and positive impacts to the business 3 Training Ensure organization is educated about procurement transformation components Identify, develop, and deliver required training modules to build the skills of the procurement organization and prepare key stakeholders to use new processes and polices prior to go-live 17

18 Oracle Supplier Ariba If you think you have built enough time in your plan for integrations, double it 3 Allegis Procure to Pay Landscape Create Requisition Approvals Create/Dispatch PO Receipt Invoice/Payment No Services purchase that requires multiple invoices? Yes Access to Ariba P2P Submit Contract Request Initiate Requisition Shop: Non- Catalog, Catalog (Punchout, Hosted) Finalize Requisition and submit Budget Validation (1) Approval Workflow Requisition Export (2) PO transmitted via AN or manual PDF Record Receipt Receipt Export (6) Invoice data manually entered Invoice created Invoice matched Invoice Approvals/ Exception Handling Approved Invoice Invoice Export (7) Punchout PO received/ Order receipt confirm/ Shipment notification Invoice submitted via paper Invoice submitted via AN Receive payment via ACH, Check, Wire Ship To, Deliver To, Cost Center, GL Account, CER, Supplier, Company Code, Purchase Org PO created real-time Purchase Order Exports (3, 4, 5) Generate Receipt Invoice created Invoice matched Invoice Payment Processing Payment Status (8) Typical Transactional Integrations 1) Budget Validation 2) Requisition Export 3) Purchase Order Export 4) Change / Cancel Order Export 5) Close Order Export 6) Receipt Export 7) Invoice Export 8) Payment Status 18

19 Questions? 19

20 Evaluation How-to: Why? How? Your feedback drives SIG Event content By signing and submitting your evaluation, you are automatically entered into a prize drawing From the App 1. Select Sessions 2. Select Day 3. Select Session S16 4. Click on Clipboard Icon COMPLETE & SUBMIT EVAL

21 Session # 16 Maximizing Effectiveness in Source-to-Pay Technology Implementations The Hackett Group Chetan Rangaswamy Download the App: sig.org/app Tweet: #SIGspring18

22 Thoughtonomy

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