managing complex non-‐employee worker types

MANAGING COMPLEX NON-­‐EMPLOYEE WORKER TYPES Not your father’s Oldsmobile
April 9th, 2015
CAN YOU GUESS THE THEME OF OUR TALK TODAY?? Roll the tape… ONE SIZE DOES NOT FIT ALL 2 TO PUT IT ANOTHER WAY… The tradiEonal conEngent labor program model is evolving 3 NON-­‐EMPLOYEE MARKET TRENDS & INNOVATION AdopEon well beyond conEngent labor.. Value Crea:on Comprehensive Talent Management Services On Demand Talent Pools Complex Services Freelancers Private Marketplaces FTE Bench Managed Services, Legal, Mgmt., Off Shore, etc. Projects / SOW Milestone, Fixed Bid, Unit Based Con:ngent Labor Time and Expense Early Adopters Market Adop:on Mature Adopters 4 WHY ALL THE TALK ABOUT PROGRAM?? »  According to Gartner’s Leading Prac:ces for Statement of Work Services Procurement 2014… §  ”BY 2016, the adopEon of SOW life cycle, service procurement and commodity risk management soluEons will yield at least $24 billion in annual savings.” §  “Improving the governance of and compliance for SOW services procurement spending is of growing interest to buying organizaEons.” §  “Most large organizaEons, in terms of robust governance, merely have a collecEon of incomplete or insufficient soluEons in place.” 5 TYPES OF NON-­‐EMPLOYEE WORKERS I say to-­‐may-­‐to, you say to-­‐mah-­‐to CONTINGENT
OFFSHORE
INDEPENDENT CONTRACTOR
OUTSOURCED
AGENCY
EXTERNAL
TEMP
FLEXIBLE
FREELANCER
6 TYPES OF SOW-­‐BASED SERVICES I say S-­‐O-­‐W, you say “sow” CONSULTANT
BUSINESS PROCESS OUTSOURCING
PROJECT
IT SERVICES SERVICE PROVIDER
MANAGEMENT CONSULTING
PROFESSIONAL SERVICES
TEMP
MANAGED SERVICE
7 WHERE IS YOUR HIDDEN WORKFORCE? »  FT & PT »  Characteris:cs: §  Find and develop Employee talent §  Predictable payroll costs §  Processes and sogware are Fairly mature §  HR owns the processes By Hour By Deliverable By Unit Temporary Workers SOW & Projects Outsourcers Industrial Labor Consultants Unit-­‐Based Services Independent Contractors Deliverable-­‐based Services Catalog Services §  Technical-­‐IT §  Management §  IT Outsourcing §  Professional-­‐
ConsulEng §  BPO / off-­‐shore Managerial §  Office-­‐Clerical External Workers §  Industrial §  CreaEve Services §  Legal §  Research §  AccounEng §  Call Centers §  FaciliEes Maintenance §  Hospitality Services §  Field Services Process owners: Budget holders, Procurement, Finance, IT, and HR 8 THE SPEND – LABOR RELATIONSHIP CHANGES BASED ON SERVICE(S) BEING ACQUIRED Spend-­‐Labor Rela:onship Why doesn’t o-­‐s-­‐f-­‐a? Spend Full Disaggrega:on Emerging Disaggrega:on Strong Correla:on Labor Staff Aug Industrial Labor Labor focus T&M SOW Transi:on Point Outcome-­‐
based SOW Service-­‐
based SOW Outcome focus Services Con:nuum 9 SERVICES PROCUREMENT PROGRAM MATURITY PATH Program Path / Steps FuncEonal Expansion Spend Expansion Program OriginaEon Spend Under Mgmt ConEngent Labor WF SOW-­‐based Labor SOW-­‐based Services Technology Layer IQN VMS Provides Full Services P2P Service Layer MSP Services SOW AdministraEon SOW Management 10 WHY MANAGE SOW-­‐BASED SERVICES? OBJECTIVES SPEND WISELY BENEFITS SAVE MONEY §  Create and Leverage Visibility §  Scaled Governance of Spend PracEces §  Advance Broad-­‐based Procurement §  Beoer Vendor SelecEons § 
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§ 
§ 
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CapabiliEes Establish Financial and OperaEonal Controls Enable Strategic Management of Category Spend and OperaEons Compliment Supplier Performance Strategies Comply with Third Party Management Policies and RegulaEons Company-­‐specific Business Needs §  IdenEfy & Realize More Savings §  Increase Buying Power §  Improve Cycle Times §  OperaEonal Efficiencies §  Contract Compliance §  Policy Compliance §  Compliance ReporEng & AnalyEcs §  Service Channel OpEmizaEon §  Service Provider RaEonalizaEon 11 PROGRAM EXPANSION FRAMEWORK »  Recommenda:on §  IniEate Program with Temp Labor §  Expand program scope Contingent(Labor(
Process
Fully%Integrated%
Workflow
Category
Temp%Labor
IT%Consulting
Other%Consulting
Professional%Services
Other%Categories
Start SOW(Process
Engagement%
Mgmt
Contract
Sourcing
»  Ra:onale §  Natural starEng point for services procurement maturity §  Visibility helps segment other labor-­‐
based and SOW spend §  Early, aoainable program wins fuel future expansion §  ConsulEng & Prof Srvcs a natural extension from staff aug §  Centralized stakeholder group §  Small(er) supplier set that is recepEve to program §  Provides iniEal visibility into spend that paves way for strategy §  Allows improved, differenEated controls on segmented spend §  Increased chances of success (paves way for more expansion) 12 ARCHITECTING DRAMATIC RESULTS WORK FORCE ANALYTICS §  BILL RATES §  WORKER TYPE MIX §  GROWTH PLANNING SPEND & PROCESS ANALYSIS §  MEASURABLE GOALS & OBJECTIVES §  IMPLEMENTATION PHASES/ SCOPING SUPPLY MANAGEMENT §  OPTIMIZATION §  SUPPLIER MIX §  NON-­‐TRADITIONAL SOURCES PROGRAM STRATEGY §  OPERATIONS §  COMPLIANCE §  BUSINESS PROCESS §  CHANGE MANAGEMENT RISK & COMPLIANCE §  WORKER CLASSIFICATION §  CO-­‐EMPLOYMENT §  SECURITY & ACCESS §  AFFORDABLE CARE ACT TECHNOLOGY §  INTEGRATIONS §  IMPLEMENTATION §  GLOBALIZATION §  ROADMAP SOURCING & SUPPLY CHAIN STRATEGIES §  MSP(S)/PROGRAM OFFICE §  SELF-­‐MANAGED §  VENDOR ON PREMISE LEGAL INFRASTRUCTURE §  SUBSCRIPTION VS. TRANSACTIONAL §  DIRECT VS INDIRECT 13 AN INTEGRATED PLATFORM FOR COMPLEX, NON-­‐EMPLOYEE STRATEGIES Plarorm for non-­‐employee management strategy – the fastest growing segment of labor 14 Q & A