PMO and VMO: How They Help Intuit Effectively Manage its IT Contingent Workforce

Transcription

1 PMO and VMO: How They Help Intuit Effectively Manage its IT Contingent Workforce Presented by Keith Koo, Tim Gray Intuit April 26 th, 2012

2 Agenda CWP Introduction of Guest Speakers Keith Koo and Tim Gray Presentation: PMO and VMO: How They Help Intuit Effectively Manage its IT Contingent Workforce The Intuit VMO The Intuit Infrastructure PMO: Demand Management, Resource Planning and Contingent Workforce Acquisition 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 industry. Who we are: CW Professionals is a Professional Association of contingent workforce and strategic sourcing professionals working in multiple industries.

4 Governance Steering Committee Bay Area Mark Murphy, Agilent Technologies (Hewlett Packard Spin-off) Wendy Barnard, Charles Schwab Verdis Baldridge, Gap Inc Ed Mosley, Kaiser Permanente Greg Johnson, Blue Shield of CA Janice Urban, Oracle Steering Committee Houston Holly Olszewski, BMC Software Nandita Joshi, Shell Mike Pruente, ConocoPhilips Krista Vo, Halliburton

5 May CWP Event: Preview Health Care Reform and the Contingent Workforce Speaker: Bill Kramer, MBA, Executive Director, National Health Policy, Pacific Business Group on Health Bill Kramer is executive director for National Health Policy at the Pacific Business Group on Health. In this role he leads PBGH s work at the federal and state level to advance policy in ways that improve health care quality and reduce costs. Mr. Kramer also serves as project director for the Consumer-Purchaser Disclosure Project, a collaborative led by PBGH and the National Partnership for Women & Families to improve the quality and affordability of health care. He serves on the National Priorities Partnership, the Measure Applications Partnership Coordinating Committee, and the AQA Alliance Steering Group. Mr. Kramer has an MBA from the Stanford Graduate School of Business and a BA from Harvard.

6 Intuit Profile Intuit is passionate about inventing solutions to solve important problems, perfecting those solutions and delighting its customers Founded in 1983, Public in 1993 Target Markets: Consumer and Small Business Flagship products: Quickbooks, TurboTax, Quicken Fiscal Year 2011: Revenue: $3.9 billion Non-GAAP Net Income: $798 million Employees: 8,000 (majority in North America) Other Products: Mint.com (7 million customers) Intuit Financial Services (1,900 financial institutions serving 10 million customers) Intuit Health Patient Portal (49,000 doctors and 4 million patients)

7 The Intuit VMO

8 Intuit VMO Engagement Model Components Procurement Finance Legal VMO Engagement Model Client (HR) Vendor New Technology Spend Request Existing Relationships Vendor Escalations

9 Contingent Workforce at Intuit Contingent Temporary Contract Workers Independent Contractors Outside Service Providers Retained and paid through independent agency Sole proprietorships, less than 3 full time ee s. Independent entities w/ 3 or more full time ee s, contracted for services

10 Case Study: OSP Rationalization From No clear view of OSP supply base or spend for a functional group. Approx 40 consultants currently active in one organization Currently engaged with 10 OSPs OSPs engaged have widely varying rates for similar positions To Established list of preferred OSP s and rate cards Partner with managers, finance and procurement to reduce number of OSP s Reduce OSP number to 4-5 Reduce yearly annual spend by approx. 10% Put in place competitive rate cards matched desired skillsets to eliminate variances

11 Case Study: Rationalization Process Phase 1 OSP Identification Phase 2 OSP Evaluations Phase 3 OSP Recommendation Review spend ID top 30 by spend Cross reference to SOW db Send questionnaire to mgrs for feedback OSP Interviews (core competency and rate cards) Manager Interviews Create scorecard based on skillsets, dependencies, etc. Quantify ratings of service providers (rate card, Supplier interviews, mgr feedback, relationship) Final decision

12 The Intuit Infrastructure PMO: Demand Management, Resource Planning, and Contingent Workforce Acquisition

13 Infrastructure PMO at Intuit Our Mission Manage demand, create transparency, and ensure successful delivery for Hosting and Employee Solutions (HES) technology solutions and services that support Intuit s global business strategies and growth High Level Organization View HES PMO 2 Managers, 9 Program Managers, 15 Project Managers (16 Employees, 10 Contractors) Business Unit Portfolios Team Functional Group Portfolios Team PMO Program Manager Team

14 Process and Resources for Infrastructure Delivery Infrastructure Request Provision Server Provision Storage Enable Network Connectivity Final Server Configuration Platform Operations Engineers Storage Engineers Network Engineers System Administrators, Database Administrators Multiple teams and resource types are needed to deliver infrastructure to business partners for hosting their applications Most teams employ concept of team lead that has greatest technical expertise and domain knowledge

15 Demand Management Intuit is making significant computing infrastructure investments Software as a Service (SaaS) strategy, data center consolidation, technology refresh (hardware and software) Several initiatives over the past two years have driven significant staff augmentation HES PMO actively manages infrastructure demand to inform data center capacity and HES resourcing needs

16 Resource Management Resource demand model has been built and refined over the past two years Leverages task-based (project) and production-based demand concepts Inputs are new infrastructure, service requests and general project demand Outputs are demand over time for key skill types: System Administrators Database Administrators Storage Engineers Network Engineers Project Managers New Infrastructure Total Headcount By Qtr Q1 Q2 Q3 Q4 Projects Run The Business Resourcing Forecast Supply Demand

17 Resource Acquisition Create Role Requirements Engage Vendors Screen Candidates Select, Negotiate, Complete Contract Onboard and Ramp Up Managers execute the resource acquisition process Utilize both Temp and Contract resources Some resource types are easier to find and leverage (e.g. project managers) This drives different strategies for each type (employee vs contract) VMO and Procurement: Enable access to qualified and vetted suppliers (Preferred Vendor List) Support negotiations (price, terms) Support contract and risk requirements compliance

18 What the PMO Looks For in a Preferred Supplier Understands our business and resource requirements Quickly brings forward qualified candidates that are good cultural fits with Intuit Offers competitive pricing Looks for creative ways to provide additional value Adapts to changing Intuit business practices Works with Intuit when we wish to convert a contractor to an employee

19 QUESTIONS Speaker Contact Information Keith Koo Director, Vendor Management (650) Tim Gray Director, HES PMO (650)