Concurrent Session: Leadership and Execution HR vs Procurement Who Runs the Show?

Transcription

1 TUESDAY 16:00 17:00 OTTER/ESPERANCE Concurrent Session: Leadership and Execution HR vs Procurement Who Runs the Show? Moderator: Matt Norton, Research Analyst, Staffing Industry Analysts Panellists: Richard Jackson, Managing Director, Hays Talent Solutions Andy Moffitt, Group Professional Services Director, Computacenter Jonathan Winters, VP, Sourcing Team Lead, Bank of America Merrill Lynch Sponsored by: April 2015 Hotel Okura, Amsterdam

2 DIGITAL SURVEYS Don t forget to provide feedback HR vs Procurement Who Runs the Show? Rate this session by accessing the evaluation from your Conference Mobile Community OR tap the ipad screen as you exit April 2015 Hotel Okura, Amsterdam

3 Definitions: Procurement The process of obtaining goods and services from preparation and processing of a requisition through to receipt and approval of the invoice for payment. It commonly involves (1) purchase planning, (2) standards determination, (3) specifications development, (4) supplier research and selection, (5) value analysis, (6) financing, (7) price negotiation, (8) making the purchase, (9) supply contract administration, (10) inventory control and stores, and (11) disposals and other related functions. Source:

4 Definitions: Human Resources The administrative discipline of hiring and developing human capital so that they become more valuable to the organisation. Human Resource management includes (1) conducting job analyses, (2) planning personnel needs and recruitment, (3) selecting the right people for the job, (4) orienting and training, (5) determining and managing wages and salaries, (6) providing benefits and incentives, (7) appraising performance, (8) resolving disputes, (9) communicating with all employees at all levels. Source:

5 European Contingent Buyer Survey Crain Communications Inc. All rights reserved APRIL 2015 Hotel Okura, Amsterdam

6 Which of the following plays a lead role in selecting your suppliers? Procurement/finance from corporate headquarters 72% HR from corporate/headquarters Hiring managers in your organisation MSP/Master staffing supplier 40% 37% 43% Procurement/finance (from outside corporate/headquarters) HR (from outside corporate/ headquarters) Executives from corporate/hq (other than HR or procurement/finance) Executives from outside corporate/hq (other than HR or procurement/finance) 13% 28% 28% 25% Outsourced procurment/bpo 7% Source: Staffing Industry Analysts 2014 Buyer Survey

7 CW Program Management Which department is best equipped to manage the CW program day to day, by respondents' department Which department is best equipped to manage the CW program day to day? 6% 15% 9% 23% 61% 46% 89% 68% 26% 39% 5% 13% All respondents Procurement HR Other Respondents' department Procurement HR Other Source: Staffing Industry Analysts 2014 Buyer Survey

8 CW Program Management Which department is best equipped to make a longterm strategic plan for your CW program, by respondents' department 8% 2% 2% Which department is best equipped to make a long term strategic plan? 23% 48% 48% 94% 75% 45% 5% 22% 30% All respondents Procurement HR Other Respondents' department Procurement HR Other Source: Staffing Industry Analysts 2014 Buyer Survey

9 What functional group are you a part of? Procurement Human Resources IT Finance Operations Other

10 Which function is best equipped to develop a long term strategic plan for your CW program? Procurement Human Resources IT Finance Operations Other

11 HR vs Procurement Who Runs the Show? Moderator: Matt Norton, Research Analyst, Staffing Industry Analysts Richard Jackson, Managing Director, Hays Talent Solutions Andy Moffitt, Group Professional Services Director, Computacenter Jonathan Winters, VP, Sourcing Team Lead, Bank of America Merrill Lynch

12 Global MSP Clients

13 UK&I CEROW APAC Total MSP Clients Managed Spend $0.9bn $1.0bn $0.3bn $2.2bn Population 11,000 7,300 3,000 21,300

14 Who owns the contingent workforce function? 59% Procurement 20% HR & Procurement 15% HR 4% Business 2% HR, Business & Procurement

15 Geographically Who owns the contingent workforce function? Germany Netherlands UK Australia Procurement HR Business HR & Procurement Business HR, Business & Procurement 100% 50% 25% 25% 30% 30% 30% 8% 2% 20% 20% 55% 5%

16 Geographically Who owns the contingent workforce function? Germany Netherlands UK Australia Procurement HR Business HR & Procurement Business HR, Business & Procurement 100% In the UK market we see a move to a joined-up approach to ownership of the contingent workforce function. 50% 25% 25% 30% 30% 30% 8% 2% 20% 20% 55% 5%

17 As the market matures we see a more joined up approach from all stakeholders in the delivery of an outsourced programme As markets and programmes mature, cost is not the sole driver of a successful outsourced programme Contingent outsourced programmes are now enterprise wide talent initiatives rather than a cost saving exercise The range of services provided by outsourced providers has expanded materially and involves a wider range of business stakeholders As P&L s strengthen through the economic recovery the voice and involvement of the business has increased in all areas of talent acquisition

18 Computacenter and CW Overview Computacenter - One of Europe s leading vendor independent IT Services companies turnover 3.1bn - 86m EBIT - 14,000+ employees Contingent Workforce contingent workers across Europe (Q average per day) UK DE FR - 130m spend

19 Approach in 3 Countries Full MSP & VMS MSP in existence since 2001 VMS added in 2009 and upgraded in 2011 Current MSP provider Hays Covers 95% of total spend Delivers cost savings, quality, control and speed of response

20 Approach in 3 Countries PSL moving to MSP & VMS 5 Platinum Partners with long tail of other providers Only 40% of spend through Platinum Partners partner selection de centralised, administration centralised Complex compliance environment and getting tougher Tender process completed in 2014 to implement MSP & VMS solution, preferred partner selected Go live planned for 1 st July 2015 to deliver UK benefits with Delivers cost savings, quality, control and speed of response

21 Approach in 3 Countries PSL Smaller numbers compared to UK and DE and PSL recently brought under control New PSL processes implemented in Q Plan to investigate MSP & VMS solution in H ready for implementation programme in 2016 with one of either the UK or DE partner

22 The relationship sits within operations why? Over 80% of the contingent workforce is involved in delivering front line services to Computacenter customers this drives the thinking The direct relationship between Computacenter service management and the MSP provider leads to a better service for the customer and improved outcomes for Computacenter The relevant operational/service manager is accountable for all aspects of customer delivery including resourcing. The MSP provider is part of the solution, regarded as a virtual member of the service delivery activity Speed of response to resolve issues and new engagements. Short notice, large requests are a feature of the service Regular regional service reviews with operational management allow the MSP provider to get under the skin of service delivery leading to improved quality and proactive and innovative solutions

23 The relationship sits within operations why? Use of contingent workers is embedded into operational strategy against which Operations are held accountable Cost models, delivery methodology, quality/customer satisfaction Over 50% of engagements are covered by pre determined rate cards. When not, operational managers are better placed to understand the market e.g. a Consultancy manager knows the market value of a Citrix Consultant as he/she recruits permanent and contracted Procurement best practice is engaged for tender processes but decision making and on going contractual relationship and management is through Operations

24 Five Key Business Segments Globally Consumer and Business Banking Consumer Real Estate * Global Wealth and Investment Management Global Banking Global Markets In Numbers Revenue $89Bn Vendor Spend $23Bn p/a EMEA: 23 Countries (150 globally) *Not a business line in EMEA EMEA: Circa 9,000 Permanent FTE EMEA: Circa 1,000 Contractors

25 Appointed in 2010 / 2013 Pontoon provide two MSPs in EMEA: Bank of America Merrill Lynch (since 2013) MBNA (since 2010) Over 1,000 contingent workers p/a, covering a huge range of skills within a high complexity, high risk environment The MSP provides resources to the Bank faster and cheaper than the Bank could do themselves

26 Appointed in 2014, AMS provide the RPO for all 23 of our EMEA territories, recruiting for a wide variety of critical roles at all levels across the EMEA business. AMS are responsible for the end to end hiring process for any permanent staff outside of Campus, Front Office and MBNA. AMS have experts across multiple industries, this helps BAML gain access to resources pools that we couldn't otherwise see.

27 & Both services are fully integrated in to our onsite HR teams, and many in the business wouldn't know that they aren't BAML employees. Both services also manage the Bank s preferred supplier lists: allowing the Bank to: Receive one invoice for all workers over a given period Be free of managing multiple agency relationships Both services are charged with 100% fulfilment regardless of channel / source. Various tools are used to ensure that fulfilment doesn t compromise one of the four key tenets of: quality, cost, speed and risk Both services are a blend of onsite and offsite maximising the service visibility whilst ensuring non client facing tasks are performed offsite

28 CW Program Management Which department manages your CW program? Industry Procurement HR Other Finance/insurance 63% 34% 3% Manufacturing 48% 45% 6% Mining, extraction and utilities 60% 40% 0% Transport/warehousing 36% 36% 27% Pharma/biotech/med 53% 47% 0% Tech/telecom 44% 52% 4% Number of employees 1,000 4,999 employees 39% 57% 4% 5,000 9,999 employees 38% 55% 7% 10,000 19,999 employees 43% 46% 11% 20,000 49,999 employees 54% 41% 5% 50,000 99,999 employees 46% 39% 14% 100,000+ employees 59% 34% 7% All respondents 48% 45% 8% n=185 Source: Staffing Industry Analysts 2014 Buyer Survey

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30 Which function is best equipped to develop a long term strategic plan for your CW program? Procurement Human Resources IT Finance Operations Other

31 Sample RACI Chart Leave business card at the end of the session

32 DIGITAL SURVEYS Don t forget to provide feedback HR vs Procurement Who Runs the Show? Rate this session by accessing the evaluation from your Conference Mobile Community OR tap the ipad screen as you exit April 2015 Hotel Okura, Amsterdam