NETWORKING EVENTS. The SIG Webinar will begin shortly. Once the webinar begins, the sound will come from your computer speakers.

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1 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 SUMMITS Mar Amelia Island SYMPOSIUMS March 25 Minneapolis, MN May 20 Toronto, Canada REGIONAL ROUNDTABLES Feb 4 Seattle, WA Feb 25 Hartford, CT Apr 15 Sydney, Australia Apr 29 Chicago, IL For more information and to register for all SIG events:

2 Become a SIG Champion and earn points in the process by Attending an event Dialing into a webinar Speaking at a Summit Submitting content to our blog or SRC Referring a new member And more For more information and to register for all SIG events:

3 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. NEW to the Career Network! Ecolab posted January 14: Procurement Manager Packaging Procurement Director Travel & Fleet Yahoo! posted January 9: Senior Strategic Sourcing Manager GAP Inc. posted January 7: Manager, Sourcing and Supplier Mgt Manager, Program Management Office Sourcing Manager GAPTech Software OUC posted January 6: Interim Procure-to-Pay Director RGP posted January 6: Strategic Sourcing Manager Supply Chain Project Manager Huntington Bank posted January 5: Senior Sourcing Manager Credit Suisse Americas posted Dec 29: Senior Strategic Sourcer BPO For more information go to:

4 SOCIAL MEDIA Stay connected with other SIG members through various social media channels bit.ly/siglinkedin bit.ly/sigyoutube bit.ly/sigfacebook Join the discussion in SIG s Peer2Peer Resource program too!

5 Upcoming Free SIG Webinars: January 22, 2015 Solution Deep Dive: Diving into Supplier Management Solutions Presented by Zycus January 27, 2015 How Can Global Occupiers Benefit From the Rise of Challenger Cities Presented by DTZ February 3, 2015 Solution Deep Dive: Contract Management Facilitating Signature and Compliance Presented by SAP/Ariba New Topic Each Week 2:00 pm Eastern (11:00 am Pacific) Register at For more information and to register for all SIG events:

6 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 9 May 13 October 14 June 10 November 11 July 8 December 9 Upcoming Town Hall Teleconference: February 11 th The Keys You Need for Acquiring and Managing Talent Presented by: Clyde Dornier Independent Consultant For more information and to register for all SIG events:

7 SIG Symposiums and Regional Roundtables provide education and local networking for members and invited non-member corporate users Symposiums 2015: Minneapolis March 25 Toronto, Canada May 20 Columbus Sep 16 New York Oct 15 San Francisco Bay Area Nov 13 Regional Roundtables 2015: Seattle Feb 4 Hartford Feb 25 Sydney AU April 15 Chicago April 29 Houston May 6 For more information and to register for all SIG events:

8 Keynote speakers: A SIG Global Summit is Non-commercialized Almost 70% buy-side Global brands 3 days of networking Executive Roundtables Nearly 50 breakout sessions Dr. Kenneth Sullivan Next Practices in Leadership and Sourcing: Create Value for the Greater Good Randy Lewis Adding Meaning to Your Mission: Improving Results While Making the World a Better Place Steve Peterson The Source of Value: Research-based Insights into How Procurement Drives Value 69% at director level or above, of which 43% are VP/C-level; Recent speakers include:

9 A Case Study: How Effective Risk Management Drives Global Supply Chain Optimization

10 Speakers Bryan Jacobs JLL, International Director, Corporate Solutions As a Principal member of the Solutions Development team, Bryan creates and implements real estate and integrated facility management solutions for our major global clients. He specializes in leading large assignments that call for multiple services in several geographies with a particular emphasis on large operational outsourcing. Michele Flynn Hiperos, Founder & Vice Chairman As Vice Chairman, Michele provides leadership and guidance in driving Hiperos vision and strategy of third party management that addresses risk and costs while driving value. She is also involved in expanding adoption of Hiperos third party management platform through the company s growing partner eco-system. A recognized industry visionary, Michele is best known for her development of performance based contracting and at risk fee methodologies and practices, both of which have become industry standards today. 10

11 Agenda Introductions Risk Management Today JLL s Strategy Historical Challenges Implementing the Vision Things to Consider 11

12 Hiperos Leader in Third Party Management software Purpose built to minimize risk and maximize value Partner with customers to implement forward-thinking, best-practice based solutions Designed for the way you work departmental and enterprise-wide scale across all business processes and stakeholders Single, lowest total cost SaaS product Protect contract value, Control Supplier Risk, Optimize Resources 12

13 JLL 2013 fee revenue $4.1B S.F. under management 3.1B Excellence Award (2008, 2009, 2010, 2013) Employees 52,700 Corporate offices 200+ Only real estate firm listed seven years running LEED APs 1,300+ Six Sigma Green or Black Belts 390 Americas 7 countries 95 offices EMEA 29 countries 69 offices Asia Pacific 15 countries 64 offices Platinum 400 Best Big Companies 2006, 2007 and 2008 (U.S.) Suppliers managed 50, , 2013, 2012, 2011, 2010, 2009 Global outsourcing 100 list Client spend managed $26 billion 13

14 Why Now? What s Changed? >60% of revenue driven by third parties Huge increase in regulatory pressure, regulations, agencies and fines Increasing worldwide domestic enforcement of bribery and corruption compliance Pace of business, speed of change ever increasing Customer/consumer expectations on transparency Board/shareholder expectations of corporate risk management Interconnected - local action leads to global reaction Due diligence third party management is a process not a one time action 14

15 Managing Exposure is Challenge The complexity of TPM is significant considering the average Fortune 1000 company has between 20-40K suppliers, which is further extended by sub-contractors exposure all of which must meet risk, compliance, and performance requirements. Regulatory forces Increased regulations Demonstrate initial and ongoing due diligence Prove risk controls vs. status controls Third-party impact to business processes Demonstrate consistency in TPM approach Spreadsheets are no longer good enough 3rd-party 3 - TPM 3rd-party Business 2 - TPM Onboard Processes 3rd-party Business 1 - TPM Onboard ingprocesses Business Complia ing Training nce Onboard Processes Complia ing Training nce Complia Risk Mgmt. Training nce Risk Perf. Mgmt. Risk Mgmt. Perf. Quality Mgmt. Mgmt. Perf. Quality Mgmt. Quality TPM Business Processes TPM Business Onboard 3rd-party Processes N - TPM Onboard ing Business Complia ing Training nce Onboard Processes Complia ing Training nce Complia Risk Mgmt. Training nce Risk Perf. Mgmt. Risk Mgmt. Perf. Quality Mgmt. Mgmt. Perf. Quality Mgmt. Quality Enterprise TPM Burden TPM Business Processes TPM Business Onboard 3rd-party Processes N - TPM Onboard ing Business Complia ing Training nce Onboard Processes Complia ing Training nce Complia Risk Mgmt. Training nce Risk Perf. Mgmt. Risk Mgmt. Perf. Quality Mgmt. Mgmt. Perf. Quality Mgmt. Quality TPM Business Processes TPM Business Onboard 3rd-party Processes N - TPM Onboard ing Business Complia ing Training nce Onboard Processes Complia ing Training nce Complia Risk Mgmt. Training nce Risk Perf. Mgmt. Risk Mgmt. Perf. Quality Mgmt. Mgmt. Perf. Quality Mgmt. Quality Business perspective Third parties are critical to our business Increased exposure to sub-contractors Vendor management is not a core competency Current regulatory environment is incremental burden Access to real-time reports and analytics Cost constraints in the organization 15

16 3PM Business Processes 3PM Business Process Coverage Onboarding Compliance Training Risk Management Performance Management Quality 3PM Solutions Approach ABAC / FCPA Compliance I-9s W9 Tax Payer ID Contract Management SAS 70 / SSAE 16 Sub Contractor Compliance Risk Assessments Anti-Money Laundering Information Management/Diversity Background Checks Compliance OCC , CFPB, SEC + Financial Viability Assessment Business Compliance Information Privacy and Security Insurance Compliance Supplier Performance New Supplier Onboarding Physical Security Ongoing Risk Management Top 5 priorities in 3PM customer business process according to 2014 ranking in proprietary Hiperos customer survey. 16

17 JLL Strategy Goal: First in Corporate Real Estate Services and Outsourcing Solutions Suppler Risk/Performance Management Dun & Bradstreet Supplier Risk Management SRM through E1/Ariba KPIs and Balanced Scorecards Hiperos 17

18 JLL Historical Context Agency vs. Principal Contract Structures Risk Transfer Transparency Regulatory Requirements Third-Party Oversight Guarantees 18

19 JLL Compliance Framework Managing Supplier and Third-Party Relationships Due Diligence 1 Prohibited entities 2 History review Business Governance 3 Procurement / requirements review Contract Management 4 Vendor Code of Conduct 5 Standard terms 6 Insurance 7 Warranties and Indemnities 8 Payment alignment 9 Legal review 10 Audit plan 19

20 JLL Vision Supplier Master Data Management (MDM) - Spend Management Onboarding - Supplier registration - Contact finder - Vendor portal - Vendor management support Risk Management - Business continuity - Risk scoring - Reputational risk - Contract management - Regulatory risk Compliance - Information security - Code of conduct - Diversity management - COI tracking - Social accountability Performance Management - Balanced scorecard - Innovation tracking - KPIs - Vendor health assessment 20

21 JLL Opportunities Managing Risk Better Enables Growth in our Business Productivity Margins Transparency Intelligence Compliance Reputation Performance 21

22 Takeaways Third party management isn t about compliance it s about good business practices driving good results The only constant is change flexibility is key to success This is bigger than just your suppliers or vendors its all of the third parties with whom you interact Automation enables you to drive consistency, execution and auditability across the entire portfolio This isn t about data it s about transforming data into actionable intelligence Effective third party management is not an option it is a must driven straight from the Board 22

23 Thank You Bryan Jacobs JLL International Director, Corporate Solutions Michele Flynn Hiperos Founder & Vice Chairman 23