Ensure a Successful Transformation through Procurement Branding

Transcription

1 Ensure a Successful Transformation through Procurement Branding GuideWell Tim Cronin Vice President & Chief Procurement Officer

2 ENSURE A SUCCESSFUL TRANSFORMATION THROUGH PROCUREMENT BRANDING Tim Cronin GuideWell Vice President & Chief Procurement Officer

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4 1. How many have led or been involved with a procurement transformation? 2. How would you rate the buy-in of the transformation a. Great, the organization understood what we were doing b. Good, our best relationships understood what we were doing c. Average, we made it through d. Poor, we started all over 4

5 Why does procurement matter? Increased outsourcing of strategic services More complex relationships Consolidation of suppliers to leverage spend More money and quality at risk with each supplier More financial controls and compliance regulation More transparency and supplier accountability Implementing Strategic Sourcing processes Only 1 st step to sustained savings Increased emphasis on performance-based contracts More tracking and measurement required 5

6 Reasons for supplier failure, each impacted by the sourcing and supplier management processes Poor performance, 8% Other, 14% Unclear expectations, 23% Sourcing Process 54% Supplier Management Process 32% Poor governance, 13% Poor Communication, 11% Misaligned interests, 15% Poor cultural fit, 5% Not mutually beneficial, 11% Source: Outsourcing Center 6

7 The combination of strategic sourcing and supplier management addresses third-party risk across the enterprise Shared Services Catalog Category Sourcing Base Procurement Strategic Sourcing Contract Management Supplier Management Procure to Pay Enabling Technology Organization and Governance Data and Analytics 7

8 but will struggle without a successful transformation People Subject Matter Experts Business Relationship Management Know the Business Process Speed to Market Risk Management & Controls Flexible Systems Right Sized End-to-End Communication Branding Early and Often Personalized 8

9 Branding your Procurement Transformation o Align to Company strategy o Understand Procurement s value proposition o Develop brand ambassadors o Build excitement o Continuously deliver and prepare for change 9

10 Healthcare is facing an unprecedented change Value-Based Contracting Affordable Care Act Big Data Innovation Specialty Pharmaceuticals Administrative Ratios Increasing Cost of Care Medicaid Managed Care Wearables Electronic Records Federal Exchanges State Exchanges Private Exchanges Coordination of Care Consumerism Preexisting Health Conditions Preventative Care Tort Reform Baby Boomers Accountable Care Organizations 10

11 Our Mission To help people and communities achieve better health Our Vision A leading innovator enabling healthy communities Our Values Respect Integrity Imagination Courage Excellence 11

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14 1. Align to Corporate Strategy Gather Align Refine Review Current Process Collect Voice of Customer Understand Gaps Process People Technology Utilize Procurement Executive Board Involve your team and your advocates Do not be afraid to change midstream Understand Big Rocks Talk to superusers and collect feedback 14

15 2. Understand Procurement s Value Proposition o Understand the needs of the business Cost Value Compliance Risk Speed o Align services to those needs o Measure the services that you deliver o Report the measurements 15

16 Service offering Service category Service description PRC-01: Strategic sourcing PRC-01: Strategic sourcing PRC-01: Strategic sourcing PRC-01: Strategic sourcing Category strategy Supplier selection Supplier selection High-level strategic guidance from Governance Board on services or goods to be procured across the enterprise or specific to segments. Guidance will be based on an assessment of risk and opportunity across the enterprise Supplier market analysis conducted to perform initial vetting and due diligence on potential suppliers Supplier selection process to include: RFI, RFQ, and RFP processes, supplier selection assessment and negotiation PRC-01: Strategic sourcing Contract management Creation and negotiation of new contracts, statements of work and regulatory exhibits PRC-01: Strategic sourcing Contract management Management and required updates to existing contracts PRC-01: Strategic sourcing Contract management Execution and administration of contracts PRC-02: Supplier procurement PRC-02: Supplier procurement Supplier procurement Supplier selection process to include: RFI, RFQ, and RFP processes, supplier selection assessment and negotiation PRC-02: Supplier procurement Supplier procurement Routine and ad hoc supplier spend analysis to support business and procurement needs PRC-02: Supplier procurement Supplier procurement Administration of supplier diversity program and community involvement of Enterprise and suppliers of the Enterprise PRC-03: Contract lifecycle management PRC-03: Contract lifecycle management Contract management Creation and negotiation of new contracts, statements of work and regulatory exhibits PRC-03: Contract lifecycle management Contract management Management and required updates to existing contracts PRC-03: Contract lifecycle management Contract management Execution and administration of contracts PRC-03: Contract lifecycle management Contract management Support from additional stakeholders (e.g., Compliance) in supplier relationships and contract management PRC-04: Procure to invoice PRC-04: Procure to invoice Procure to invoice Support of Requisition process and self-service ordering PRC-04: Procure to invoice Procure to invoice Creation and management of Purchase orders PRC-04: Procure to invoice Procure to invoice Receipt and validation of invoices. Creation of PeopleSoft vouchers PRC-04: Procure to invoice Procure to invoice Payment process through epayables, EFT or check PRC-05: Supplier management PRC-05: Supplier management Supplier management Procurement sets SRM governance processes for different suppliers PRC-05: Supplier management Supplier management Procurement analyzes vendor performance data and syndicates performance reports (e.g., formal reviews; data to be collected) PRC-05: Supplier management Supplier management For designated suppliers, procurement conducts development, risk management and performance management activities 16

17 3. Develop Brand Ambassadors Involvement Belonging Trust Communication Plan Training Plan Knowledge Excitement 17

18 4. Build Excitement PRODUCTION: epro Teaser Video VIDEO: 1 of 4 Corporate Procurement PURPOSE: What is coming from epro generate excitement 18

19 Introductory Teaser Video 19

20 4. Build Excitement PRODUCTION: epro Impossible Mission Video VIDEO: 3 of 4 Corporate Procurement PURPOSE: Introduce State and Status functionality including real-time data and Spend Analytics 20

21 State & Status Video 21

22 5. Continuously Deliver and Prepare for Change Short Term Results Issues Capabilities Deliver required benefits Cost savings Innovation Risk management Performance Metrics Resources Skill shortage Business linkage Perform long-term Leadership Skill building Structure 22

23 Thank You 23

24 Contact Information Tim Cronin Guidewell Vice President & Chief Procurement Officer (904)

25 Evaluation How-to: Why? Your feedback drives SIG Event content By signing and submitting your evaluation, you are automatically entered into a prize drawing How? Option 1: App 1. Select Schedule 2. Select Schedule by Day 3. Select Day 4. Select Session 5. Scroll to Description 6. Click on the Evaluation link Option 2: Browser 1. Go to 2. Select Session (#51) COMPLETE & SUBMIT EVAL

26 Session #51 Ensure a Successful Transformation through Procurement Branding Tim Cronin Guidewell Vice President & Chief Procurement Officer (904) tim.cronin@floridablue.com Download the App: bit.ly/sigcaapp Tweet: #SIGfall15

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