SOW and Program Management: Metrics and Measurements that Make Sense
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1 Sponsored by: SOW and Program Management: Metrics and Measurements that Make Sense Presented by: Sarah Tyre, SVP, Vendor Manager, Global Human Resources Bank of America Brian Cicirello, Consultant SAP Fieldglass Bryan Pena, SVP CWS Strategies & Research Staffing Industry Analysts July 14, am PDT. This webinar is broadcast through your computer speakers via the audio broadcasrng icon on your screen. You may adjust the sound volume by using the slide bar on the audio broadcasrng icon. You may dial into the call by dialing and using access code Need other assistance? Please contact SIA customer service at or The presentaron will be available 48 hours a]er the webinar.
2 Audio Listen through your computer by turning on your speakers aaer you log into the event. Sound will be coming through this icon: Do not close this audio broadcast box. To increase the volume of sound coming through your computer speakers adjust the sound bar on the audio Broadcast box shown above. If you con2nue to have trouble, please submit your need for assistance in the Q&A sec2on. Q&A icon QuesRons? QuesRons may be submi`ed at any Rme during the presentaron. To submit a quesron: Click on the Ques2on Mark icon (?) on the floa2ng toolbar (as shown at the right). This will open the Q&A window on your system only. Type your ques2on into the small dialog box and click the Send BuSon. This webinar is broadcast through your computer speakers via the audio broadcasrng icon on your screen. You may adjust the sound volume by using the slide bar on the audio broadcasrng icon. You may dial into the call by dialing and using access code Need other assistance? Please contact SIA customer service at or memberservices@staffingindustry.com. The presentaron will be available 48 hours a]er the webinar by Crain Communica2ons Inc. All rights reserved.
3 Who We Are Staffing Industry Analysts is the global advisor on staffing and workforce solurons Our staffing firm membership is composed of many of the largest regional, U.S. and global staffing firms in addi2on to representa2ves from all parts of the con2ngent workforce industry. Our CWS Council membership represents over $100 billion in annual con2ngent workforce spend. We are a trusted advisor providing objec2ve research within the con2ngent workforce ecosystem. Founded in 1989 Acquired by Crain Communica2ons ($200M media conglomerate) in 2008, headquarters in Mountain View, California and London, England Comprehensive and vast industry and advisory service experience among execu2ve, advisory and research team 2016 by Crain Communica2ons Inc. All rights reserved.
4 CWS Council Members (partial public list) 2016 by Crain Communica2ons Inc. All rights reserved.
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6 CCWP- Upcoming Classes July 27-28, 2016 Delta Air Lines, Atlanta, GA August Premier Inc. HQ, CharloSe, NC September Las Vegas, NV CCWP Continuing Education and Recertification Program Enhancement Announcement More ways to earn CE credits, More Third Party CE credits available, More automation to submit CE credits earned, More affordable. Today s Webinar Attendance = 1 CCWP CEU Credit EXTEND your CCWP Certification for an Additional Three Years! 2016 by Crain Communica2ons Inc. All rights reserved.
7 Thank you to our sponsor 2016 by Crain Communica2ons Inc. All rights reserved.
8 Our Speakers Today Sarah Tyre, SVP, Vendor Manager, Global Human Resources Bank of America Brian Cicirello, Consultant SAP Fieldglass Bryan Pena, SVP CWS Strategies & Research Staffing Industry Analysts 2016 by Crain Communica2ons Inc. All rights reserved.
9 First Some DefiniRons;
10 SOW vs Agency Temp Temporary Employee ( Temporary ) An employee who performs work for an organiza2on with the expecta2on that the work will be for a fixed duraron. Temporary employees may be hired directly by the employer or sourced through a staffing company and work fulfilling client assignments. May also refer to temporary workers from an internal pool employed directly by an organiza2on for an inten2onally limited 2me period. O]en billed in increments of Rme, i.e. hourly, daily, etc.
11 SOW vs Agency Temp Statement of Work (SOW) A document that captures the work products and services, including, but not limited to: the work ac2vi2es and deliverables to be supplied under a contract or as part of a project 2meline. In contrast to a typical temp or con2ngent work arrangement which is billed based on 2me worked, SOW agreements are usually billed based on a fixed price deliverable or for hikng specific milestones. Like typical con2ngent arrangements, they may also be billed based on 2me, including arrangements where there is a 2me- based billing that is capped at some not to exceed level for 2me and materials
12 SOW vs Agency Temp Statement of Work (SOW) Consultant Any consultant performing work on a project under a Statement of Work (SOW) arrangement. In contrast to agency consultants, SOW consultants are typically, but not always given a regular, consistent salary by their employer and con2nue to receive this salary when off project assignments (i.e., benched resource ). While SOW consultants are typically employed by consul2ng firms, a host of technology and other staffing firms have also entered the solu2ons space for its greater premium margins (the theory being that you are paying for the firm s proven methodology and chemistry of the team). At 2mes rogue managers have used an SOW arrangement in order to avoid restric2ons on the use of temporary workers or agency consultants
13 SOW s O]en Require Extra Care Larger Dollars More Senior Support OAen of greater strategic significance CW program role can be challenging to define Less Poli2cal element can be more challenging Rela2onships are more entrenched Risks of poor program performance are greater Scoping is oaen a root cause Can be difficult to address CW program oaen doesn t have domain exper2se Providers used to holding greater sway over decisions Adop2on and 2me
14 Metrics for SOW are Unique.
15 What is benchmarking in the context of SOW? It is the measurement of success assessed against internal or external measures. Internal measures could be: Previous SOWs costs, performance, etc. Es2mated costs vs Actual Metrics set for the SOW Business outcome targets
16 What is benchmarking in the context of SOW? (Cont d) External measures could be: Formal benchmark exercise Business performance compared to compe2tors (or other targets) Other external targets Regulatory targets, Market share
17 RelaRve Business Value What does Success/Failure look like? For Business, For Procurement, For HR What does success look like for the supplier? How do they measure success? How do you want to measure success More importantly How CAN you measure?
18 SOW & Program Management: Metrics and Measurements That Make Sense Sarah Tyre, Bank of America Brian Cicirello, SAP
19 Agenda SOW Program Foundation Global Trend Program Components Definition as Foundation SOW Measures of Success Use Case: Bank of America Operational Management Program Balance Sample Metric: Cost Avoidance 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 19
20 SOW Program Foundation
21 Global Market Trends in SOW-Based Services Emerging category for delivering savings and efficiencies Avg Temp: SOW Spend Ratio Temp SOW 3x SOW spend compared to temp 70% 20% Addressable SOW spend in Europe & North America Annual growth in managed SOW spend * SOW includes global spend on consulting & offshore services. Source: Staffing Industry Analysts SAP SE or an SAP affiliate company. All rights reserved. Customer 21
22 Program Components Layers of Program Management Establish clear roles and responsibilities Governance: Overall program direction/strategy Vendor Management: Sourcing, engaging, execution VMS: Enablement, enforcement, visibility GOVERNANCE MODEL Goals Change Management BUSINESS PROCESSES Supplier Management Worker Management Rate Management VMS TECHNOLOGY Compliance Policies Compliance Enforcement Continuous Improvement Operational Activities Contracts Procurement Payment Complementary Systems (Finance, SSO, Contracts, Projects, etc.) PMO team 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 22
23 Definition as Foundation Enable Success through Planning Program Goals Who stands to gain the most benefit? What areas are most important to my organization (cost, efficiency, etc.)? o How do I translate this into measurable targets? o What is attainable? PROGRAM GOALS - What do you need to accomplish? - How do you want to accomplish them? Labor Channels Proper spend categorization Determines scope of implementation, breadth of management Different enterprises = different definitions; can be open to interpretation within statutes, etc. Success How closely do operations align to goals? What is the data telling me about my overall direction? VALUE DRIVER - Cost - Efficiency MEASUREMENT - Align value to goals - Respond to your data - Quality - Compliance 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 23
24 SOW Measures of Success
25 Use Case: Bank of America Implementation Considerations Planning and change management are key Simplification Consolidate available procurement paths; reduce available trailheads for labor/services engagement Global harmony; ensure process and solution design, accommodate as much of the enterprise as possible Implementation Establish controls early and reinforce often Success means never having to say you re sorry (no interruption to operational stability) Business as Usual Continued movement of program ahead of market Vendor management has seat at the table for ongoing strategic planning 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 25
26 Operational Management Internal vs. External Groups for Tactical Execution Each use case has benefits, though KPIs may differ INTERNAL - Direct employees of enterprise means complete control over group - More complete understanding of overall enterprise initiatives and objectives - Rely on industry and market expertise to deliver trending, forecasts, value - Flexible and more easily scaled with demands of your program EXTERNAL 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 26
27 Program Balance The three-legged stool Consider each aspect of engagement TIME Time How quickly do I need this completed? How long is the service timeframe/period? Skill Objective measure of candidate/vendor quality Demand for skill set SERVICES PROCUREMENT Cost What are you willing (or able) to pay for service? Preferred vendor relationships deliver value SKILL COST 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 27
28 Sample Metric: Cost Avoidance Do SOW Workers Cost More Than Contingent Workers? Sample market analysis*: Review of contingent vs. SOW hires for trailing year Line represents parity between rates, anything above is a higher average SOW rate Checking for percentage of job titles showing a higher average rate on SOW than contingent Checking for rate variance between contingent and SOW hires; ensure proper worker classification and engagement patterns Actionable: Leverage contingent pricing where possible SOW Hourly Rate $200 $150 $100 $50 $- SOW vs. Contingent Rates for Similar Job Titles $- $50 $100 $150 $200 Contingent Hourly Rate *Data shown is a market sample and does not represent actual Bank of America data or usage patterns Excludes any rate below $7.50/hr and over $400/hr 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 28
29 Time for your quesrons 2016 by Crain Communica2ons Inc. All rights reserved.
30 Thank you to our sponsor 2016 by Crain Communica2ons Inc. All rights reserved.
31 Upcoming Webinars 2016 Webinars 7/20/2016 APAC- Beyond Temps, Using Technology to Manage SOW & Outsourcing Engagements 8/11/2016 The Human Cloud: Is It Real or Merely Smoke (and Mirrors)? Watch This Weather Report! 9/8/2016 Sekng the Bar: Standards to Drive CW Program Success 9/14/2016 ConRngent Workforce Policies That SRck 10/13/2016 Legal Update /19/2016 Global SOW Trends and Strategy 11/10/2016 VMS / MSP Landscape 2016: The State of the Art 12/08/2016 Leveraging the Flexible Workforce: Buyer PerspecRves on the Promise of Total Talent Management 2016 by Crain Communica2ons Inc. All rights reserved.
32 Copies of the slides and a link to the audio recording will be distributed to all asendees within 48 hours following the webinar A replay of the webinar will be available for CWS Council Members at by Crain Communica2ons Inc. All rights reserved.
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