Concurrent Session: Sales & Marketing Confessions from the Dark Side : Moving Beyond the Buyer

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1 FRI, MAR 21 10:15 AM AQUA CD Concurrent Session: Sales & Marketing Confessions from the Dark Side : Moving Beyond the Buyer Bryan Peña, VP, Contingent Workforce Strategies and Research, Staffing Industry Analysts Sponsored by:

2 DuPont

3 Why you?

4 What are your current perceptions? or or

5 The answer is or

6 Assumptions about buyer behavior Unaware of buyers lack of trust Reinforcing negative assumptions Neglect clients/companies true needs Buyers don t buy new services Develop and offer services to meet needs

7 Buyers are changing.hopefully

8 Breadth vs. intensity: buyers' top priorities Buyers' priorities (multiple choice) 70% 60% 50% 40% 30% 20% 10% Non agency CW Cons olidating Suppliers Expanding Suppliers IC Compliance VMS MSP Preparing for HC Reform Globally Integrating CW Internal Cus tomers CW in Strategic Planning Controlling Cos ts 0% 0% 5% 10% 15% 20% 25% Buyers' single top priority Source: Staffing Industry Analysts

9 What are you working on in 2014? Additional Deployments Of Existing Models, Project Plans And Timelines, New Savings Benchmarking Contingent Worker Proper Classification Continue To Bring Sow And Outsourcing Spend Into Tool Continued Global Expansion Expanding The Internal Cwm Program From 3 Segments To 7 Segments In The Enterprise. Getting Our MSPs In Order, Branding The Program And Adding Sows IC Compliance Implementation Of International Contract Labor Into Enterprise Processs And VMS More Fully Utilizing Our VMS Technology, And We Are Going To Tackle Onboarding Issues And Light Industrial Worker Challenges That We Have In Our Program More Sow. Strategic Planning. What Does Our Program Look Like 5 Years From Now. Movement Of Execution oriented "Consulting" To Contract Labor MSP Program MSP Reviews, VMS Roll Out, And Potential Resourcing Rpo None At The Moment. One VMS Tool For All Contingent Labor Spend Europe One Program/Portal For All Contingent Labor Spend Europ Payroller Rfp Looking For A Solution That Can Handle Low end Payroll To High End, 1099, Corp To Corp. Supplier Optimization Program To Track All Non employee Resources, With Facility And/Or Asset Access Redeploy VMS, Supplier Consolidation Restructuring Pricing Model From Rate Card To Mark Up. Trying To Engage Senior Leaders In Discussions About Centralizing Contingent Labor Company wide (Instead Of Silos Of Contingent Labor) Review Market For It Service Providers ( Not Contractor) For Key Skills In Na. Review Sap Services In Europe And Design Optimum Labor Mix. Review Labor Strategy In India. Rfp For VMS And MSP Sow (It And Non it) Sow Implementation And Expansion Beyond It Supplier Rationalization, Geographic Expansion, Sow Service Category Expansion China, Identity Mgmt. Japan VMS Implementation We Are In The Process Of Rolling IC Compliance Into Our Current Program. (Currently We Only Have Temp Agency Workers In Our Program.)

10 Programs are evolving.

11 The Big Question: Where to Next? Decentralized Several suppliers Procurement done on an ad hoc basis Management done internally Preferred suppliers Selective set of suppliers selected Contracts in place Service level agreements (SLA s) in place Master Vendor One supplier (possibly managing 2nd and 3rd tier suppliers) One point of contact Direct cost savings on bill rate and usage Customized SLA s and process Managed Service Provider (MSP) Contingent workforce spend under management One contact point Direct cost savings on bill rate/usage Customized SLA s and process Non compliant spend elimination Total cost of ownership savings Total Talent Management Total workforce spend under management Complete workforce visibility Direct cost savings on bill rate and usage Customized SLA s and process Non compliant spend elimination Increased total cost of ownership savings Additional productivity and process savings High degree of value added services CW as a Strategic Competitive Advantage CW talent as business differentiator Management strategies move beyond tactical considerations into strategic ones Combination of multiple CW models to solve complex business problems. Technology crosses multiple platforms in the enterprise Risks managed on a total enterprise basis with big picture focus on risks of action and inaction

12 Where is this business going?

13 The understanding chain How can we help? What s the situation? How does this compare to previous (Year, Goal, Etc.) What are the options you are considering? Why? This is similar to what client X has done.

14 Does your value proposition align?

15 Value is assessed in terms of the value added by the product and the importance of the product to the business and the impact on the company's profitability. High Value Low Value Leverage Strategy Exploit purchasing power, for instance through tendering, target pricing, and product substitution. Non-Critical Strategy Standardization, process efficiency (p-card) & Optimization (kanban, fill programs) Low Risk Strategic Specialist nature, or market with few supplies or suppliers. High mutual dependence. Critical to BU continuity. Requires careful management of strategic partnerships. Strategy Exploit, Balance, Diversify Bottleneck Essential to ensure supply. Strategy Multiple Suppliers, security of pipeline, hedging, broadening specifications, searching for alternative sources, back-up plans, and long term contracts. High Risk Risk is measured by, supply scarcity, complexity of the supply market, substitution, barriers to entry, logistics, and monopoly conditions.

16 Tactical Problems to Strategic Solutions

17 Need Timeline/Planning Horizon Integrated with Inputs Outputs Scenario Planning Approach Operational Approach Strategic Approach Accurately forecast hiring and/or training needs Develop the best talent strategies for longer term success Usually 12 months with a quarterly focususually 3 years or longer matches the organizational matches the yearly business plan strategic plan Annual or quarterly financial/budgeting process Strategic planning process Mostly internal data, some management Wide range of internal and external information including decisions demographics, business strategies, global trends, etc. Staffing plans, skill gaps Human Resource/People Strategies Uses variables to explore different models of staffing Forecasting Key focus Only part of the process Uses futuring techniques to question current paradigms and explore alternative futures Segmentation FocusInternal demand Internal and external, demand and supply are all segmented Skills Competencies may be audited or gathered at Strategic Capabilities analyzed and gathered at the group an individual level level Performed by HR or staffing organization with input from the business Business, facilitated by HR Focus Operational Management Line and BU Managers Strategic Management Executive and Board Aligns to Business Plan Strategic Plan Terms used Predict, Calculate Explore, Design

18 RFP s are the worst form of decision making for supplier selection, except for all those other forms that have been tried from time to time.

19 KPI s vs SLA s KPI SLA

20 Transparency

21 Know Thyself

22 Always be moving forward

23 Remember The role of the buyer is evolving Cost savings while always relevant are sometimes not the most important Try to create cheerleaders Don t limit yourself to your own understanding of the situation Take the long view, create transparent partnerships ALWAYS question your value to the client