Facilitator: David Papapostolou, Research Analyst, Staffing Industry Analysts Speaker: Rachid Schmitz, Client Services Director, Randstad Sourceright

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1 TUESDAY 12:05 13:05 HEIAN Concurrent Session: Integration Unanswered Questions: How do you Know You are Getting the Most Value for Money from your Statement of Work (SOW) Projects? Facilitator: David Papapostolou, Research Analyst, Staffing Industry Analysts Speaker: Rachid Schmitz, Client Services Director, Randstad Sourceright Sponsored by: 2015 Crain Communications Inc. All rights reserved April 2015 Hotel Okura, Amsterdam

2 DIGITAL SURVEYS Don t forget to provide feedback Unanswered Questions: How do you Know You are Getting the Most Value for Money from your Statement of Work (SOW) Projects? Rate this session by accessing the evaluation from your Conference Mobile Community OR tap the ipad screen as you exit Crain Communications Inc. All rights reserved April 2015 Hotel Okura, Amsterdam

3 How do you Know You are Getting the Most Value for Money from your Statement of Work (SOW) Projects? Rachid Schmitz, April 2015

4 4 typical scenarios

5 failure If we know why projects fail and we know how to prevent their failure, why do they still fail? Martin Cobb Former CIO for the Secretariat of the Treasury Board of Canada in 1995 no visibility into resources scope creep lack of visibility of all projects overruns of schedule and cost failure to learn 5

6 6 to become in control incorporate your SOW s under a MSP realising hard cost savings, full spend transparency, reduced risks, reduced process cycle times.

7 agenda What is a SOW? Why should you want to include SOW in a MSP program? What is an advanced SOW program? How do you run a SOW? What are some best-practices when running an SOW program? 7

8 what is a SOW? A statement of work (SOW) captures and defines all the work activities, deliverables, and timelines a supplier must execute in performance of specified work for a client 8

9 why include SOW in a MSP program? select the best supplier create substantial cost savings (10-20%) manage SOW lifecycle creating transparency & ensure process control why? hold suppliers accountable to terms / results mitigate contract leakage track SOW worker compliance 9

10 what do the processes look like? 10 * For the main part handled by the client with the support of the MSP in the RFx process ** Handled by the client *** This can be either based on schedules, events (milestones), fees and SOW workers

11 MSP evolution phase 1 phase 2 phase 3 plan project collect technology & integration requirements, supply chain, data, processes, reporting requirements, pay & bill requirements design to be process and supply chain implementation to be process, supply chain and VMS tool go live rationalize supply chain implement new negotiated strategies implement rate cards optimize operational process execute supplier performance implement optimized cost savings programs optimize operational teams incorporated SOW in MSP implement advanced SOW 11

12 12 difference

13 consultancy project tender client requirements / scope not clearly defined and supplier needs to design solution based on their best practice / competences select best supplier to handle total project (all consultants from one supplier) PMO* (client and or supplier) monitors progress of the individual consultants and supports project / program manager (supplier) local / regional / global projects ± > 25 external professionals 13 * PMO = project management office

14 best of breed professionals client requirements / scope are clearly defined and they need high skilled professionals for execution select best professional in the market place for each required project role PMO* (client and MSP) monitors progress of the individual professional and supports project / program manager (Client and/or Supplier) local / regional projects ± < 25 external professionals 14 * PMO = project management office

15 advanced SOW to gain additional savings client requirements / scope are clearly defined and they need high skilled professionals for execution select best professional in the market place for each required project role PMO* (client and MSP) monitors progress of the individual professional and supports project / program manager (Client and/or Supplier) local / regional projects ± < 25 external professionals client requirements / scope not clearly defined and supplier needs to design solution based on their best practice / competences select best supplier to handle total project (all consultants from one supplier) PMO* (client and or supplier) monitors progress of the individual consultants and supports project / program manager (supplier) local / regional / global projects ± > 25 external professionals 15 * PMO = project management office

16 16 how do the advanced SOW process look like?

17 how do you run a SOW process? determine in RFx best of breed professional vs consultancy project tender automated & standardize SOW creation how? track resources, review & approve project milestones, manage project budget control on-off board protocols execute project performance management secure contract terms & conditions 17

18 difference in management standard role descriptions start date end date hourly rate project requirements scope deliverables acceptance criteria contracted based fewer basic commercial easier to change start date end date hourly rate scope management budget control deliverable tracking revision management dependent on customer providing: direction resource workspace SOW focusing on: deliverables expertise final outcomes 18

19 SOW program best practices supply base standardize relationships review & measure performance increase competition benchmark & analysis organize supply base process fit Consolidate Spend Leverage Spend Optimize Specification Standardize purchase demand cost, quality & service total cost of management optimize supply chain develop cost savings reduce total cost of mngt. re-engineer process reduce/eliminate transactional costs automate & integrate 19

20 20

21 DIGITAL SURVEYS Don t forget to provide feedback Unanswered Questions: How do you Know You are Getting the Most Value for Money from your Statement of Work (SOW) Projects? Rate this session by accessing the evaluation from your Conference Mobile Community OR tap the ipad screen as you exit Crain Communications Inc. All rights reserved April 2015 Hotel Okura, Amsterdam