Future of Sourcing - Governance http://futureofsourcing.com/tags/governance en ESG Risk Assurance – An Opportunity for Transparency and Trust http://futureofsourcing.com/esg-risk-assurance-an-opportunity-for-transparency-and-trust <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/ESG%20Risk%20Assurance.jpg"><a href="http://futureofsourcing.com/sites/default/files/articles/ESG%20Risk%20Assurance.jpg" title="Building trust in ESG practices is complicated by the lack of transparency and consistency in reporting practices, the pace of change in reporting requirements, and huge regional and corporate variations." class="colorbox" rel="gallery-node-2175--tbUsbjw83o"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/ESG%20Risk%20Assurance.jpg?itok=7D1XOGeW" width="624" height="325" alt="Building trust in ESG practices is complicated by the lack of transparency and consistency in reporting practices, the pace of change in reporting requirements, and huge regional and corporate variations." title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <p><em>Building trust in ESG is complicated by the lack of transparency and consistency in reporting practices, the pace of change in reporting requirements, and huge regional and corporate variations says Heather Moore, Sustainability Technical Director at LRQA. She shares how the right insight makes it possible to develop reporting practices that stand up to stakeholder scrutiny and future-proof businesses against ever-evolving regulations.</em></p> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/four-resolutions-for-supply-chain-esg-management">Four Resolutions for Supply Chain ESG Management</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>Customers, employees and investors are increasingly putting ESG front and center when making decisions about the companies they engage with. <a href="https://www.ft.com/content/e3b09230-1f52-4a79-a680-1532dffc4be8" target="_blank">Rising shareholder and consumer activism</a>, as well as new forms of regulation, mean that it is no longer enough to simply state good intentions. The challenge is to prove to stakeholders that policies and initiatives are translating into meaningful action and impact.</p> <h1>Setting Standards</h1> <p>The currency at stake is trust, arguably the most important asset of any business or brand. To establish trust, third-party corroboration is key.</p> <p>Standards set by bodies such as ISO have long been established as marks of trust and integrity. In the world of sustainability, verification and assurance standards such as WBCSD/WRI GHG Protocol, ISO 14064, SASB, and TCFD are widely recognised by investors and stakeholders and support the comparability and transparency of reported ESG data.&nbsp;&nbsp;</p> <p>The problem is that the material topics for each industry can be so varied that there are no globally recognized standards for many of the requirements. In fact, there is still much international debate on the definition of the word &ldquo;sustainable,&rdquo; which &ldquo;environmental&rdquo; measures should be tracked and what exactly &ldquo;social&rdquo; responsibility should cover. So how can businesses evaluate their performance against robust benchmarks?</p> <h2>Uneven Progress</h2> <p>The fastest progress being made is in the area of carbon tracking, with concerted efforts to establish agreement on measurement and science-based targets concentrated around UN climate change meetings and being driven by organizations such as CDP &ndash; a global non-profit that runs an environmental disclosure system for companies, cities, states and regions.</p> <p>At COP26 in Scotland, the International Sustainability Standards Board (ISSB) was launched as an independent, private-sector body that develops and approves IFRS Sustainability Disclosure Standards. This will undoubtably help to increase transparency when it comes to accounting, but it has been recognized by many observers, such as <a href="https://ssir.org/articles/entry/fixing_the_s_in_esg" target="_blank">Jason Saul</a>, Executive Director of the Center for Impact Sciences at The University of Chicago, that much of the focus on ESG performance to date has been on those outcomes that are most easily measured and quantified by the world of finance.</p> <p>For both social and environmental impact, there are many more activities and measures that go beyond the balance book, including health and safety, well-being and responsible sourcing. This is not just a question of compliance; many companies undertake pro-social policies and behaviors that positively impact lives and the environment. It is these actions that do the most to establish brand purpose, driving competitive advantage and business growth. However, such social impacts are often not widely measured in ESG data, leaving the &ldquo;S&rdquo; overlooked.</p> <h2>Defining Values</h2> <p>All businesses are at different stages on their journey and there is not a one-size-fits-all solution that can be applied. In the absence of global consistency, businesses can seek to establish an assurance strategy which takes into account their own progress as well as that of their industry and comparable sectors.</p> <p>Organizations that correctly identify material topics in its industry and develop internal policies against measurable targets and goals to reflect its declared values and position in its journey toward sustainability will generate trust with its stakeholders. They will also be able to demonstrate actions with progress audited against baselines that are set in line with its policies.</p> <p>Policies developed in this manner allow organizations to maintain visibility, not only of its own impacts, but also of its own suppliers and sub-contractors further down the chain. This provides an opportunity to prove wider positive impact and leadership beyond the immediate responsibility of an organization, while building stronger relationships with suppliers and establishing more agile methods of achieving quality and control.</p> <p>The process of operating to, and being independently audited against, these measures enable better monitoring, understanding and management of performance. This ensures that efforts are made in the right areas of the organization that will have the greatest positive impact.</p> <h2>Future-Proofing for Regulation</h2> <p>Businesses that can establish robust ESG auditing will be well placed to anticipate new regulation, without being shaped reactively by it. A good example of this is <a href="https://www.jdsupra.com/legalnews/eu-proposes-mandatory-human-rights-and-6081814/" target="_blank">the EU&rsquo;s proposed directive for mandatory human rights and environmental due diligence</a> across global value chains. The proposed directive could result in costly penalties for businesses and directors for non-compliance and include a civil liability regime to allow victims to sue companies for harm resulting from the company&rsquo;s failure to comply with diligence obligations.</p> <p>There is more reputational value in moving ahead of such initiatives, while still in their early stages, by demonstrating positive behavior before others follow suit in compliance. Designing and adapting risk assurance programmes based on expert knowledge of variations in international policy will protect these investments made in reputation once regulators and competitors catch up.</p> <h2>Don&rsquo;t Get Left Behind</h2> <p>To gain first-mover advantage, businesses that want to achieve the greatest return on their ESG strategy need to establish robust methods of measurement and assurance now. The alternative is to remain reactive, forced by regulators to move later, risking reputational damage and playing catch-up to remain competitive in an increasingly ESG-focused world.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/environmental-and-social-governance-esg-0" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Environmental and social governance (ESG)</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/risk" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Risk</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/governance" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Governance</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="ESG Risk Assurance &amp;ndash; An Opportunity for Transparency and Trust - Future of Sourcing" addthis:url="http://futureofsourcing.com/esg-risk-assurance-an-opportunity-for-transparency-and-trust"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Wed, 11 May 2022 02:00:00 +0000 Heather Moore 2175 at http://futureofsourcing.com http://futureofsourcing.com/esg-risk-assurance-an-opportunity-for-transparency-and-trust#comments 9 Benefits of Supplier Performance Management Software http://futureofsourcing.com/9-benefits-of-supplier-performance-management-software <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/9%20Benefits%20of%20Supplier%20Performance%20Management%20Software.jpg"><a href="http://futureofsourcing.com/sites/default/files/articles/9%20Benefits%20of%20Supplier%20Performance%20Management%20Software.jpg" title="Procurement professionals are concerned with addressing supplier performance management." class="colorbox" rel="gallery-node-2173--tbUsbjw83o"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/9%20Benefits%20of%20Supplier%20Performance%20Management%20Software.jpg?itok=J2g73D73" width="624" height="325" alt="Procurement professionals are concerned with addressing supplier performance management." title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <p><em>Procurement professionals are concerned with addressing supplier performance management (SPM) and understand the value it brings to their overall excellence, but almost 50% of teams don&rsquo;t actually follow up on supplier KPIs, says Sam Jenks, Chief Growth Officer at Kodiak Hub. He shares nine benefits of utilizing SPM software and seven quick tips to get started.</em></p> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/procurements-dirty-little-secrets">Procurement’s Dirty Little Secrets</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>About 65% of innovations are sourced through external suppliers and partners (ISM).&nbsp;This makes supplier and partner contributions to a supply chain&rsquo;s production and profitability rather pivotal.&nbsp;</p> <p>Put into simple math: Good supplier performance = good supply chain performance.</p> <p>Supplier performance management (SPM), when done right, can help your procurement organization to harness supplier performance and innovation to positively impact your business&rsquo; top-line value creation.&nbsp;</p> <p>SPM is an area that can be challenging for global procurement teams, as supply chain complexity continues to grow.&nbsp;</p> <p>Unfortunately for many procurement teams, gaining basic buyer insights from their supplier base, such as contract, spend, performance, risk and compliance data isn&rsquo;t so easy to get a hold of or begin to analyze. Even in the most mature of procurement organizations evaluating and managing a supplier base&rsquo;s performance can be difficult.&nbsp;</p> <p>Kodiak Hub surveyed 526 procurement and supply chain professionals on LinkedIn asking what focus in supplier management is their biggest area of concern? As seen in the graphic below, 40% of respondents listed supplier performance as their top area of concern.</p> <p><img alt="Supplier performance is the top area of concern for procurement" src="https://futureofsourcing.com/sites/default/files/Supplier-Performance-Survey.jpg" style="width: 504px; height: 283px;" /></p> <p>At the same time, nearly half of procurement professionals who responded in the 2021 Supply Chain Resilience Report by BCI&nbsp;<em>(below)&nbsp;</em>said that they don&rsquo;t harness any kind of technology to follow up on supplier performance KPIs.&nbsp;</p> <p><img alt="Procurement teams use supplier performance technology." src="https://futureofsourcing.com/sites/default/files/SPM-Technology.jpg" style="width: 504px; height: 283px;" /></p> <p>These two statistics highlight a clear yet confusing discrepancy.</p> <p>Procurement professionals are concerned with addressing Supplier Performance Management and understand the value it brings to their overall excellence, but almost 50% of teams don&rsquo;t actually follow up on supplier KPI&#39;s.&nbsp;</p> <p>Maybe this stems from a lack of time, overly complex supply chains or a simple lack of resources. No matter the reason, one harsh truth remains: you can&rsquo;t manage what you can&rsquo;t measure.&nbsp;</p> <p>If you&rsquo;re still reading it means we&rsquo;ve made it this far in the article together. That means the above statistics may resonate with you. No need to worry. We&rsquo;re not going to utilize this article as an opportunity to reprimand or scold you for a lack of SPM. Quite the contrary.&nbsp;</p> <p>You likely know the importance and benefits of supplier performance management.&nbsp;</p> <p>But maybe you&rsquo;ve gotten discouraged along the way or don&rsquo;t know where to start.&nbsp;</p> <p>We will use this opportunity to inspire you to get back on the horse and provide some tips to get started with supplier performance management.&nbsp;</p> <h2>9 Supplier Performance Management Software Benefits</h2> <ol> <li><strong>Enhanced Supply Chain Visibility </strong>&ndash;&nbsp;Better supply chain visibility brings you closer to the pulse of your supply chain, giving you a better means to forecast and avoid costly supply chain disruptions.&nbsp;</li> <li><strong>Supplier Accountability</strong>&nbsp;&ndash; Supplier performance management systematically and implicitly expresses expectations and KPI acceptance criteria to your suppliers. This in turn allows the supplier to take accountability for their own performance and activities as partnerships are entered with a transparent framework for ideal performance, from the start.</li> <li><strong>Supplier Led (Enabled) Innovation</strong>&nbsp;&ndash; As stated in the first line of this post, 65% of innovations are supplier and partner-led (ISM). Communicating the importance of performance and innovation ambitions to partners welcomes them to more openly share their unique insights, industry-specific competency and capacity for innovation. Remember: your suppliers are experts in their field! That&rsquo;s why you started working with them in the first place. An SPM process will help you systematically listen to and absorb what they have to say!&nbsp;</li> <li><strong>Quality Performance (Product &amp; Services)</strong>&nbsp;&ndash; Follow-up on product and service quality is a straightforward win from SPM. Systematic measurement, reporting and analysis of supplier quality (deviations, complaints, claims, project quality, etc.) will help you to cut out suppliers that aren&rsquo;t making the cut and bring better quality products and services to your end customers.</li> <li><strong>Easy Follow-up on SLAs </strong>&ndash;&nbsp;A service-level agreement (SLA) defines the level of service you expect from a vendor and lays out the metrics by which service is measured, as well as remedies or penalties should agreed-on service levels not be achieved (CIO.com). SPM aids definition, measurement, follow up and actions for agreed-upon SLA&#39;s. Contract compliance can be challenging, but solutions for SPM make it cut and dry.&nbsp;</li> <li><strong>Increase Buyer-Supplier Collaboration&nbsp;</strong>&ndash; SPM software provides a common platform to enhance buyer-supplier relationships and collaboration. As said before: simple things like beginning a supplier relationship with clear expectations can prove to build trust, respect and mutual goals.</li> <li><strong>Spot Best and Worst Suppliers Faster&nbsp;</strong>&ndash; Utilizing technology to measure and analyze supplier performance KPIs will provide your team with a better means for data visualization and therefore a better means to spot <a href="https://www.kodiakhub.com/blog/do-you-know-your-best-supplier">best and worst performing suppliers</a>.</li> <li><strong>Make Sourcing and Procurement Decisions Data-Driven&nbsp;</strong>&ndash; Make systematic and data-driven decisions a priority. SPM will give you the insights you need to make more data-driven decisions, but if you choose to act upon them, it will still require the EI (Emotional Intelligence) and HI (Human Intelligence) that makes you a talented procurement professional in the first place.&nbsp;</li> <li><strong>Align Team on Business Goals&nbsp;</strong>&ndash; Sometimes broader business initiatives can feel very distant. Aligning within your procurement team on a supplier performance management framework, system and process will allow your team to have a more holistic understanding of how greatly supplier performance impacts the broader business (such as how performance creates an opportunity for savings, innovation, brand-value creation, competitive edge and more).&nbsp;</li> </ol> <p>Change can be overwhelming. Sometimes, that feeling can become the barrier to jumpstart change at all. But, in order to apply&nbsp;supplier performance management tools&nbsp;and adopt a&nbsp;framework&nbsp;that will make an impact in your organization, change is inevitable. That&rsquo;s why I&rsquo;ve laid out these tips below on how to get started:</p> <h2>7 Quick Tips To Get Started With Supplier Performance Management Solutions</h2> <h3><strong>1. Align on KPI&#39;s</strong></h3> <p>Workshop with your team to determine how you&rsquo;d like to evaluate supplier performance.</p> <p>You can break up supplier performance KPI areas into six parameters:<br /> supply chain, quality, commercial, collaboration, innovation and sustainability performance.</p> <p> Locating these key performance parameters is important to build sub-parameters and eventually find individual data feeds to structure your performance evaluations properly. See the graphic below to understand how these KPI trees can be built:&nbsp;</p> <p><img alt="Supplier performance management KPI tiers." src="https://futureofsourcing.com/sites/default/files/SPM-Performance.png" style="width: 504px; height: 280px;" /></p> <p>As you begin to define the content of these various KPI tiers, you&rsquo;ll need to align stakeholder expectations, requirements and preferences. Team members will likely have strong feelings about what should be measured and how it will be measured, but it&rsquo;s important to remember that the end goal is a common one: to improve your supplier performance management.</p> <h3><strong>2. Take a Broader Stakeholder Perspective</strong></h3> <p>In order to align on KPI&#39;s and have robust criteria for supplier performance evaluation, you need to locate KPI&#39;s that are outside of the scope of solely procurement, sourcing and supply chain.</p> <p>To achieve a broad range of stakeholder perspectives you&rsquo;ll need to include production, quality, sustainability, finances, even sales and marketing in order to truly capture the various supplier KPIs that exist within the broader value chain. This will help you to bridge functional gaps and gain perspective for the necessity of supplier performance within various functions. This may require a development and program manager or a project owner to align supplier KPIs, targets and goals cross-functionally.</p> <h3><strong>3. Typify/Segment the Supplier Base</strong></h3> <p>Supplier performance management and evaluation should be adapted based upon a supplier&rsquo;s characteristics or a supplier type. It&rsquo;s important to evaluate supplier performance in line with supplier typification. This could be based on category, country, spend, criticality or other typifications.&nbsp;</p> <h3><strong>4. Don&rsquo;t Forget About Governance and Risk Parameters</strong></h3> <p>A supplier that lacks quality management will likely not excel in quality performance. If they show high-quality performance but lack management capability this discrepancy could also cause issues.</p> <p>Taking Governance and Risk into consideration will give you a 360&ordm; picture of a supplier&rsquo;s overall performance and it will ensure that your supplier partners won&rsquo;t negatively impact brand or shareholder value.</p> <h3><strong>5. Know What&rsquo;s Going On</strong></h3> <p>We&rsquo;re living in a new reality where the value of a brand is directly linked to and impacted by the operational activities of a global supply chain and its many tiers. Consumers aren&rsquo;t sympathetic to supply chain complexity.</p> <p>If something happens in the world, you need to know about it.</p> <p>If you have a global, complex or large supply chain, then media monitoring of some sort is suggested to stay on top of current events, news, happenings, updated sanctions, blacklists and more.</p> <h3><strong>6. Locate the Right Data</strong></h3> <p>Do you need to send a performance evaluation to an internal stakeholder or a supplier or both? Do you need to send a performance evaluation to multiple stakeholders? If so, do all stakeholders need to respond to every area of the evaluation? Most importantly, do you already have the responses to the evaluation in another business solution, such as an ERP or quality solution?</p> <p>Take the time to locate where your supplier performance data can be sourced from, and it will streamline the process of gathering information. This will save your team time and headaches.</p> <h3><strong>7. Adopt a Rating Methodology</strong></h3> <p>Supplier ratings will help you spend less time with your nose in an excel spreadsheet and give you more time to drive value with the right suppliers at the right time.</p> <p>Much of performance evaluations are based upon qualitative experiences and evaluations of a supplier&#39;s performance. Focus on quantifying the qualitative. Create opportunities to make your supplier evaluation criteria into a multiple-choice format. The more you can turn into multiple-choice options, the more you can weigh the questions you ask, and automate the scoring of responses, which will also serve as a time saver.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/supplier-relationship-management-srm" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supplier Relationship Management (SRM)</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/key-performance-indicators-kpis" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Key Performance Indicators (KPIs)</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/kodiak-hub" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Kodiak Hub</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/governance" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Governance</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="9 Benefits of Supplier Performance Management Software - Future of Sourcing" addthis:url="http://futureofsourcing.com/9-benefits-of-supplier-performance-management-software"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Fri, 06 May 2022 02:00:00 +0000 Sam Jenks 2173 at http://futureofsourcing.com http://futureofsourcing.com/9-benefits-of-supplier-performance-management-software#comments Practical Perspectives on AI Governance http://futureofsourcing.com/practical-perspectives-on-ai-governance <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/FoS%20Graphic%20%281%29_0.png"><a href="http://futureofsourcing.com/sites/default/files/articles/FoS%20Graphic%20%281%29_0.png" title="Artificial intelligence (AI) is shaping our future and becoming integrated into our lives, both at home and work. " class="colorbox" rel="gallery-node-1911--tbUsbjw83o"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/FoS%20Graphic%20%281%29_0.png?itok=wofwzJIu" width="624" height="325" alt="Artificial intelligence (AI) is shaping our future and becoming integrated into our lives, both at home and work. " title="" /></a></div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/seven-steps-to-progressing-artificial-intelligence">Seven Steps to Progressing Artificial Intelligence</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <h1>The Future With Artificial Intelligence</h1> <p>Artificial intelligence (AI) is shaping our future and becoming integrated into our lives, both at home and work. With it come many fears about what it means to jobs, humans and our future.</p> <p>First, let&rsquo;s put our minds at ease around the fear of tech run amok. We are incredibly far away from a Terminator chasing us. Now, let&#39;s focus on the idea that we can positively shape AI to our benefit.&nbsp;</p> <h1>Government&rsquo;s Role in AI</h1> <p>Most world governmental bodies and politicians are not well-versed in how technologies work. The rules around what, how, why and when for AI are still being defined. This leaves it up to organizations creating AI solutions to draw a line in the sand for all of us. Many business leaders taking the time to understand how AI works are mindful of the power it holds. As AI becomes prevalent in more areas of our lives, guardrails about AI&rsquo;s use must be established.&nbsp;</p> <p>We are starting to see governmental engagement on this topic, such as with&nbsp;<a href="https://www.pdpc.gov.sg/-/media/files/pdpc/pdf-files/resource-for-organisation/ai/sgmodelaigovframework2.pdf" target="_blank">Singapore</a>, the&nbsp;<a href="http://www.oecd.org/going-digital/ai/principles/" target="_blank">Organization for Economic Cooperation and Development (OECD)</a> and the&nbsp;<a href="https://ec.europa.eu/digital-single-market/en/news/ethics-guidelines-trustworthy-ai" target="_blank">EU</a>.&nbsp;<a href="https://www.partnershiponai.org/" target="_blank">The Partnership on AI</a>, comprising 100 partners in 13 countries, has joined together to formulate AI best practices. These efforts aim to bring consistency in identifying areas of care for organizations and service providers.</p> <h1>The Role of Organizations in AI Governance</h1> <p>How do we go from best practices to governance within organizations? What exactly is AI governance, one may ask? AI governance should evaluate and monitor processes led by algorithms for effectiveness while identifying and reducing biases to reduce risk and ensure adequate return on investment for the organization.</p> <p>Selecting appropriate best practices to implement with the burden of proper AI governance will fall onto the organizations that deploy AI solutions within their processes and functions. Organizations and employees will need to be mindful of incorporating AI governance solutions and make it part of their organizational DNA. Given the level of transformation anticipated with AI, the board of directors should prioritize change management, talent management, investments, results and the risks posed to an organization. The World Economic Forum assembled an excellent&nbsp;<a href="https://spark.adobe.com/page/RsXNkZANwMLEf/" target="_blank">Oversight Toolkit</a>&nbsp;to help boards of directors get familiar with various aspects of AI governance.&nbsp;</p> <p>Governance is not an entirely new concept for organizations who will need to shoulder these responsibilities. However, achieving desired outcomes will require organizations to create a useful and ethical governance model. A well-defined governance framework will prevent AI solutions from amplifying biases while keeping checks and balances so that AI is not misused. There are other benefits to having an AI governance framework implemented. For example, it can help reduce redundant process steps that have been accepted as the norm, reimagine processes or functions altogether, and pivot to a refined organizational model.&nbsp;</p> <h1>Foundational Blocks for AI Governance</h1> <p>Let&#39;s look at the fundamental considerations organizations must keep in mind.&nbsp;As an example, <a href="https://www.pdpc.gov.sg/-/media/files/pdpc/pdf-files/resource-for-organisation/ai/sgmodelaigovframework2.pdf" target="_blank">Singapore</a><u>&rsquo;s</u>&nbsp;approach focuses on:</p> <ol> <li>Internal governance structure and measurement</li> <li>Human involvement in AI-based decision-making</li> <li>Operations management</li> <li>Stakeholder engagement and communication</li> </ol> <p>We can adapt our existing governance frameworks to measure the value, risk and responsibilities of AI-led decisions. A useful governance model will take into account both buy and build decisions on AI solutions. The process should typically begin before AI solutions are implemented and focus on continuous improvements after roll-out.&nbsp;&nbsp;</p> <h1>Internal Governance Structure and Measurement</h1> <p>When building an algorithm-based AI solution, data becomes the foundation where the availability, quality, breadth and training are critical. However, when buying a market-leveraged AI solution, measure the improved acceptance of AI-led decisions by humans and end-to-end process transformation.&nbsp;</p> <p>We must track how we measure our existing processes and decision-making. If we can measure our existing processes, it will become easier to identify if an AI-led method is more effective. Suppose it is not; organizations should revisit the approach to determine areas of process inefficiencies. The root cause is usually an inefficient process and not the AI system. A correctly implemented automated process will inevitably be more efficient than a manual human-led one. The key will be to identify the source of friction and remove the barriers.&nbsp;</p> <h1>Human Involvement in AI-based Decision-making</h1> <p>Efficient measuring helps determine the level of human involvement in AI-augmented decision-making. It will make it easier to identify variations between the selection of decisions presented by AI and acceptance by knowledge workers. We should anticipate that initial iterations of AI solutions will have some data reconciliation needs. However, if the acceptance level continues to be lower than expected and does not trend upwards, reviewing decision-making for that particular task may help.</p> <p>Amazon&#39;s recruiting AI application is an excellent example of exposing and amplifying biases in the selection process that did not favor hiring certain types of individuals. In fact, training data available for AI had preferences that led to the AI system to present biased choices. A useful governance model recognizes or questions flaws in existing processes, and the process should build in accountability and ownership to help correct them.&nbsp;&nbsp;</p> <h1>Operations Management</h1> <p>A solid governance approach in a recruiting application scenario empowers the governance model to ask the right questions from an operational management perspective. For example, how have we been making selection decisions? Can we recognize if there are biases that have now become our cultural norms? What are the individual, functional leader, team and organizational responsibilities? How can we correct the identified biases so the AI system does not amplify them?&nbsp;&nbsp;</p> <p>In Amazon&#39;s case, human-led decision-making processes in HR and recruitment were left unchecked. They became the norm, which caused the AI system to amplify the biases. Smart organizations will incorporate checks and balances in the human-led decision-making process reviews.&nbsp;&nbsp;</p> <p>Consider leveraging independent experts to make AI fit your organization&#39;s purpose. They can help clarify the effectiveness of your process compared to your peers and others in the industry. These experts can review the process with an objective eye and recommend changes to combat biases that otherwise might be prevalent in your industry or organization. Until organizational internal governance capabilities mature, reviews can help organizations manage risk and adaption.</p> <h1>Stakeholder Engagement and Communications</h1> <p>For organizations, gaining maturity in the internal governance framework should be a priority for both adoption and continuous use. To get there, stakeholder engagement and communications become a critical consideration. Functional leaders should engage with stakeholders affected by an AI-led process in advance of roll-out decisions.&nbsp;&nbsp;</p> <p>A functional owner open to partnering to create a meaningful feedback loop and act on recommendations provided will gain trust and support in adapting an AI-supported approach.</p> <p>Engaging stakeholders to understand which process steps are ineffective and which have room for improvement can help prioritize the team&#39;s activities. We should be pulsing if the stakeholders are merely informed or engaged adequately by the process owner. Assess if stakeholders and process owners are working collaboratively to help remove barriers.</p> <p>Are governance decisions being documented and made accessible for review and auditing?&nbsp;Documenting the decision-making process around biases, ineffective processes, corrective steps and decision rationale will be useful to navigate future situations.</p> <p>Governance focused on uncovering ineffective processes and areas for improvement will be useful to consider since the AI system presents decisions based on training data.&nbsp;</p> <p>Think of approaches you already perform for corporate governance, outsourcing governance, and project or program governance. Apply those practices that already work within your organizational culture for AI-enabled processes. The goal isn&rsquo;t to reinvent the wheel, but rather to leverage what we already know how to do well while adding skilled resources that can bridge the gap to connect the business knowledge and domain expertise while having a thorough understanding of how AI works.</p> <h1>Final Thoughts</h1> <p>Effective governance can make it easier for process owners to become self-aware and acknowledge and correct process biases before AI applications amplify them. It can also give organizations a set of consistent criteria to apply for compliance and reduce organizational risk.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/artificial-intelligence-ai" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Artificial Intelligence (AI)</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/governance" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Governance</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/stakeholder" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Stakeholder</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/operations-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Operations management</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/risk" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Risk</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Practical Perspectives on AI Governance - Future of Sourcing" addthis:url="http://futureofsourcing.com/practical-perspectives-on-ai-governance"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Fri, 15 Jan 2021 19:58:46 +0000 Purvee Kondal 1911 at http://futureofsourcing.com http://futureofsourcing.com/practical-perspectives-on-ai-governance#comments Understanding Outcome-Based Contracts http://futureofsourcing.com/understanding-outcome-based-contracts <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/Outcome-Based-Contracts_Future-of-Sourcing.png"><a href="http://futureofsourcing.com/sites/default/files/articles/Outcome-Based-Contracts_Future-of-Sourcing.png" title="Outcome-Based Contracts is a joint endeavor that rests on the strength of the relationship and an honest, open sharing of information including risk and reward." class="colorbox" rel="gallery-node-1075--tbUsbjw83o"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Outcome-Based-Contracts_Future-of-Sourcing.png?itok=adYDCZ8j" width="624" height="325" alt="Outcome-Based Contracts is a joint endeavor that rests on the strength of the relationship and an honest, open sharing of information including risk and reward." title="" /></a></div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/leveraging-behavioral-data-in-negotiations">Leveraging Behavioral Data in Negotiations</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>It&rsquo;s easy to hear a buzz word in the industry and make assumptions. However, what happens when those assumptions prove incorrect? And what happens when those assumptions are the bedrock under which a sourcing contract is being shaped, priced and a customer/service provider relationship is developed?&nbsp;</p> <p>&nbsp;</p> <p style="text-align: right;"><em style="font-size: 13.008px;"><a href="https://sig.org/search/ Outcome-Based Contracting" target="_blank"><img alt=" A successful outcome-based contract involves good planning,<br /> a clear demand for innovation and cost savings, and a genuine alignment of interests." src=" https://futureofsourcing.com/sites/default/files/Outcome-based%20Contracts.png" style="width: 300px; height: 250px; float: right;" /></a></em></p> <h1>Outcome-Based Contracting</h1> <p>I&rsquo;ve heard it many times: &ldquo;I don&rsquo;t care how you do it &ndash; but we need the job done.&rdquo; This can be a dangerous mindset if seeking to embark on an outcome-based project. If the customer is stating this, they have missed the point of an outcome-based agreement and should re-think their approach.</p> <p>If a service provider is on the other side of the table hearing that statement, they should challenge the customer&rsquo;s strategy and determine whether the customer has fully comprehended the level of work and commitment associated with the outcome-based approach.&nbsp;</p> <p>Outcome-based contracting is not a tool by which customers can shift responsibility to their service providers and seek to avoid the effort and time associated with good governance and performance delivery. It is an operational model that requires a strong customer and service provider relationship, trust, and a genuine sharing of risk and reward.</p> <p align="center"><em><a href="https://www.sig.org/blog/sig-speaks-jeanette-nyden-commercial-contracts-expert-author" target="_blank"><span data-ccp-charstyle="Hyperlink"><span data-contrast="none" xml:lang="EN-US">&gt;&gt;Mastering Performance and Outcome-Based Contracts&lt;&lt;</span></span></a></em></p> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">If a customer misunderstands what outcome-based contracting is (and perhaps confuses it with output-based contracting as this statement suggests), the customer&rsquo;s expectations are already misaligned with the service provider&rsquo;s and what each party should be committing to.&nbsp;</span></span></p> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">Outcome-based models are by no means new to the sourcing world. But now, with a greater understanding and implementation of Artificial Intelligence (AI) at the customer side, they have grown again in popularity. We see a resurgence in customers demanding greater innovation and more cost-effective service, particularly in process-driven services such as finance and accounting.&nbsp;</span></span></p> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">But with the potential for misunderstanding and customers confusing output for outcome, will we start to see an increase in issues arising from outcome-based contracts?&nbsp;</span></span></p> <h1><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">Strategic Planning for Outcome-Based Model</span></span></h1> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">A true outcome-based model requires a considerable amount of strategic planning from the customer before engaging with service providers. A customer needs to be capable of introspective analysis to understand, develop, and communicate its business values and strategic agenda. </span></span></p> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">However, this flow of information will need to go both ways as the parties will need to determine whether they share the same business values and approach on which to base the relationship. While trust will be of utmost importance, this flow of communication should be subject to early contractual commitments of confidentiality. </span></span></p> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">Both parties may want to share, at a high level, their business strategies and potentially confidential information about business projections and future aspirations. This should be done in a controlled and respectful manner, sharing only the information that will benefit the relationship, with the requisite protections in place.&nbsp;</span></span></p> <h1><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">Securing Organizational Buy-In</span></span></h1> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">Ultimately both parties need &ldquo;buy-in&rdquo; from senior stakeholders and commitment from every level of the organization before a strong working relationship can be established. All levels of the customer organization have to want to work with a service provider as a strategic partner and see the benefit in the service provider, helping them achieve their organizational goals. </span></span></p> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">This is more than just the parties outlining and agreeing to specific contract outcomes. A well-developed and robust business case should be circulated to ensure that internal alignment. In turn, the service provider has to want to align its business with the customer and trust that the customer will commit to a true risk and reward model.&nbsp;</span></span></p> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">Each party will need to invest in the process at an early stage. The customer will need to have the right resources available for its internal analysis and baseline of existing services. Both parties will need their project teams to invest time and effort in deal structuring and seeking to exclude external factors that may impact the measurable outcomes that the service provider is remunerated upon. </span></span></p> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">Early investment of this type (on both sides) will be vital in demonstrating commitment to the process and a successful, working contract. The time spent in the early stages of development of core principles, agreed measures and conducting due diligence means that there is a significant level of work done before the parties reach contractual negotiation. </span></span></p> <p align="center"><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"><em><a href="https://www.sig.org/search/Outcome-Based%20Contracting" target="_blank"><span data-ccp-charstyle="Hyperlink"><span data-contrast="none" xml:lang="EN-US">&gt;&gt;Get more resources,&nbsp;research and data on Outcome-Based Contracting&lt;&lt;</span></span></a></em></span></span></p> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">If customers are not capable or cannot spare the resource to take on these tasks, they would do well to consider using a consultant who understands the complexities of an outcome-based approach. Someone who can assist with baselining the relevant existing services and create a true risk and reward program is critical.</span></span></span></span></p> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">Although not yet at the contracting phase, the work effort involved in this early stage of development should be documented and agreed to by the parties. In addition, the baselines from which the outcomes can be measured, the outcomes themselves and any risk factors that may adversely impact the service provider&rsquo;s efforts should also be agreed on and clearly documented. </span></span></span></span></p> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">Outcome measurements will involve negotiation and discussion between the parties. Each measurement should be capable of being objectively monitored rather than an internal metric understood by only one of the parties.&nbsp;</span></span></span></span></p> <h1><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">Governance Structure for Outcome-Based Model</span></span></span></span></h1> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">Strong governance is critical in most (if not all) sourcing relationships, but it is even more important when working on an outcome-based model. Governance structures should be developed early in the relationship and be robust with the ability to flex over time in line with the relationship needs and both customer&rsquo;s and service provider&rsquo;s businesses. </span></span></span></span></p> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">It is of paramount importance that the parties &ndash; at all levels of the relationship &ndash; adhere to the agreed structure. Like with all sourcing models, if one party deviates from the model, the relationship is strained and trust is lost.&nbsp;</span></span></span></span></p> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">The parties will need to trust each other sufficiently to afford a greater level of transparency than is customary with other contractual models. If a party experiences changes in its interests, business strategies or demands, it is important that this information is shared in sufficient detail to allow the parties to address what changes may need to be made. </span></span></span></span></p> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">This information will also shed light on whether that should cause a re-baselining or a change in measurable business outcomes. These will be difficult to legislate for at the outset, but the contract should afford the parties sufficient flexibility to ensure the ongoing success for both parties.&nbsp;</span></span></span></span></p> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">Some may feel an outcome-based contract implies a greater level of understanding and a more sophisticated level of contracting between customer and service provider. However, more simplistically, it involves strategic planning, a clear demand from the customer for increased innovation and cost savings, and a genuine alignment of the service provider&#39;s and customer&rsquo;s interests. </span></span></span></span></p> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">Outcome-based contracting is not suitable for all services. Still, for business processes, the model is a joint endeavor that rests on the strength of the relationship and an honest, open sharing of information including risk and reward.</span></span></span></span></p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/contracts" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Contracts</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/law" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Law</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/provider" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Provider</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/negotiation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Negotiation</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/governance" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Governance</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/outcome-based-contracts" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Outcome-Based Contracts</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/supplier-collaboration" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supplier Collaboration</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Understanding Outcome-Based Contracts - Future of Sourcing" addthis:url="http://futureofsourcing.com/understanding-outcome-based-contracts"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Thu, 06 Aug 2020 18:27:45 +0000 Megan Paul 1075 at http://futureofsourcing.com http://futureofsourcing.com/understanding-outcome-based-contracts#comments Innovations in Governance & Compliance: E*TRADE Financial Corporation http://futureofsourcing.com/innovations-in-governance-compliance-etrade-financial-corporation <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/FOS%20Header%20Image_Innovations%20in%20Governance%20and%20Compliance_3.png"><a href="http://futureofsourcing.com/sites/default/files/articles/FOS%20Header%20Image_Innovations%20in%20Governance%20and%20Compliance_3.png" title="Innovations in Governance &amp; Compliance: E*TRADE Financial Corporation" class="colorbox" rel="gallery-node-1614--tbUsbjw83o"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/FOS%20Header%20Image_Innovations%20in%20Governance%20and%20Compliance_3.png?itok=887sj0Zh" width="624" height="325" alt="Innovations in Governance &amp; Compliance: E*TRADE Financial Corporation" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <p>This October, the&nbsp;<a href="https://futureofsourcingawards.com/?__hstc=215510152.344406f4865c40604cf6029be7e958e0.1543422516683.1570835886974.1570842947555.661&amp;__hssc=215510152.2.1570842947555&amp;__hsfp=847670889" target="_blank">Future of Sourcing Awards</a>&nbsp;will celebrate organizations and individuals that have shown innovation, leadership and transformation in categories that are critical to the sourcing industry. Interviews with the finalists provide helpful insight about their projects, the problem they sought to solve and the impact to their organizations. Learn how E*TRADE Financial Corporation leveraged the workflow capabilities of SharePoint to capture approvals and move vendor on-boarding requests to the various groups across their organization.</p> </div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <div> <h3><em>Can you outline why your team embarked on this project and the problem that needed to be solved? </em></h3> </div> <div>Our Procurement team took over the process to identify vendor inherent risk from our Third Party Risk Management (TPRM) group. The process we acquired was driven by email and shared drive folders. We were receiving an average of 70 emails per week, and this manual, high volume process was ripe for human error. &nbsp;&nbsp;</div> <div>&nbsp;</div> <div>We decided to develop a digital intake solution, which would create single point of entry. The company had just rolled out SharePoint and we decided to leverage that platform to create the intake solution. We realized that we could also leverage the workflow capabilities of SharePoint to capture approvals and move vendor on-boarding requests to the various groups (e.g. Finance, Legal, AP) across our process. &nbsp;&nbsp;</div> <div>&nbsp;</div> <div>While the initial use case for the SharePoint solution was to manage the risk review process, other stakeholders quickly saw the value, and we designed and built out a robust digital workflow solution for their expanded use.&nbsp;</div> <div>&nbsp;</div> <div> <h3><em>How do you plan to ensure that the new model remains relevant and adapts to the future needs of the market?</em></h3> </div> <div>Initially, the Procurement, Contracting and TPRM processes were managed through email, and folders on enterprise shared drives. &nbsp;Individuals would develop their own ad-hoc Excel based trackers to keep track of the very manual process steps. &nbsp;We were also required to store multiple emails, documents and approvals as evidence for audit purposes. &nbsp;The manual nature of the process and heavy document retention requirements were inspiration to develop a solution that would automate many of the non-value add steps. &nbsp;</div> <div>&nbsp;</div> <div> <h3><em>What KPIs did you use to measure success for this project? (For example: performance, customer satisfaction, revenue, sales or relevant financial gains?)</em></h3> </div> <div>We measured success for the project using the following metrics:&nbsp;</div> <div>&nbsp;</div> <ul> <li>Improved efficiency: Time saving of ~5 hours of FTE time / week</li> <li>Reduction in email requests: Average reduction of 70 emails</li> <li>Strengthened controls through automation and digital tracking &ndash; the workflow solution enforced and tracked two approvals: <ul> <li>Business approval of the spend &nbsp;</li> <li>Finance approval of budgeted amount &nbsp; &nbsp;</li> </ul> </li> </ul> <div><strong>How you plan to ensure that the new model remains relevant and adapts to the future needs of the market?&nbsp;</strong></div> <div>We have a process to receive enhancement requests from our end users. &nbsp;Those requests are assessed by the benefit they will deliver and complexity to incorporate. &nbsp;We then prioritize accordingly. &nbsp;Once new functionality is built, we test the enhancements before rolling them out to the broader end user organization. &nbsp;This process has enabled us to deliver multiple enhancements since our initial roll-out. &nbsp;&nbsp;</div> <div>&nbsp;</div> <div> <h3><em>What advice do you have for those who may want to implement this innovative approach in their own organizations?</em></h3> </div> <div>While there are many off the shelf solutions available, for those with the appetite, we recommend considering the tools your organization may already have available, to develop a solution to meet your needs. &nbsp; By doing so, we were able to develop a custom, scalable solution in a short time frame. &nbsp;We did not have to rely on Technology resources for implementation, and we also have ownership to administer our own enhancements.&nbsp;</div> <div>&nbsp;</div> <div>We recommend taking a structured approach to development:&nbsp;<br />&nbsp;</div> <ol> <li>Conduct outreach to your stakeholder group to understand their pain points</li> <li>Clearly define the problem(s) you are trying to solve</li> <li>Document future state processes including any enhancements, automation, etc. your solution will deliver<br />Return to your stakeholder group to gain buy-in on the future state&nbsp;</li> <li>Build your solution</li> <li>Test your solution<br />Consider identifying a few end users to pilot the solution and provide you with feedback</li> <li>After refining accordingly, roll-out your solution with appropriate communication and support tools (FAQs, training material, job aids, etc.)</li> <li>Implement continuous improvement by continuing to invest in enhancements to the solution&nbsp;</li> </ol> <div>&nbsp;</div> <div> <h3><em>How did you get your company and/or stakeholders to get on board and support this project?</em></h3> </div> <div>We were able to garner support from our organization by articulating the value it would deliver to impacted stakeholders. &nbsp;For example, the solution minimized confusion for our business users by providing a single point of entry for vendor requests. &nbsp;For our Procurement organization, the solution provides visibility in a dashboard view of their workload. &nbsp;And for our Risk and Audit organizations, required approvals and documentation are trackable and accessible. &nbsp;&nbsp;</div> <div>&nbsp;</div> <div>We also invested the time upfront in developing training content that was published on our company&rsquo;s intranet site. &nbsp;This enabled our end users to self-serve and easily access information regarding the new tool. &nbsp;</div> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/third-party-risk-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Third Party Risk Management</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/governance" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Governance</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/compliance" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Compliance</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/future-of-sourcing-awards" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Future of Sourcing Awards</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Innovations in Governance &amp;amp; Compliance: E*TRADE Financial Corporation - Future of Sourcing" addthis:url="http://futureofsourcing.com/innovations-in-governance-compliance-etrade-financial-corporation"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Sat, 21 Sep 2019 01:47:12 +0000 Future of Sourcing Awards 1614 at http://futureofsourcing.com http://futureofsourcing.com/innovations-in-governance-compliance-etrade-financial-corporation#comments Innovations in Governance & Compliance: The Boeing Company Supplier Relationships http://futureofsourcing.com/innovations-in-governance-compliance-the-boeing-company-supplier-relationships <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/FOS%20Header%20Image_Innovations%20in%20Governance%20and%20Compliance_2.png"><a href="http://futureofsourcing.com/sites/default/files/articles/FOS%20Header%20Image_Innovations%20in%20Governance%20and%20Compliance_2.png" title="Innovations in Governance &amp; Compliance: The Boeing Company 2" class="colorbox" rel="gallery-node-1609--tbUsbjw83o"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/FOS%20Header%20Image_Innovations%20in%20Governance%20and%20Compliance_2.png?itok=Xmvz9lWM" width="624" height="325" alt="Innovations in Governance &amp; Compliance: The Boeing Company 2" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <p>This October, the&nbsp;<a href="https://futureofsourcingawards.com/?__hstc=215510152.344406f4865c40604cf6029be7e958e0.1543422516683.1570737880475.1570804662359.656&amp;__hssc=215510152.2.1570804662359&amp;__hsfp=847670889" target="_blank">Future of Sourcing Awards</a>&nbsp;will celebrate organizations and individuals that have shown innovation, leadership and transformation in categories that are critical to the sourcing industry. Interviews with the finalists provide helpful insight about their projects, the problem they sought to solve and the impact to their organizations. Read how Boeing addressed their need to digitally transform its design and manufacturing systems to standardize the tool suite, drive tighter integration across the enterprise, enhance business flexibility, and generate significant productivity improvements to produce products with speed and agility.</p> </div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <div> <h3><em>Can you outline why your team embarked on this project and the problem that needed to be solved?</em></h3> </div> <div>Boeing identified the need to digitally transform its design and manufacturing systems to standardize the tool suite, drive tighter integration across the enterprise, enhance business flexibility, and generate significant productivity improvements to produce products with speed and agility. A key component of this program is the Product Lifecycle Management (PLM) and Manufacturing Operations Management (MOM) software that Boeing uses to design and build all of its products. Through a competitive RFP that included rigorous analysis of technical and functional capabilities as well as costs/business benefits across the value chain, Boeing agreed to partner with an innovative software supplier to deepen its end-to-end digital collaboration in design and manufacturing, and implemented robust supplier governance to safeguard results. &nbsp;</div> <div>&nbsp;</div> <div> <h3><em>How were things done originally and what was the inspiration to innovate the process?</em></h3> </div> <div>An early leader in the foundation of computer-aided design capabilities, Boeing quickly proliferated engineering and manufacturing systems leveraging numerous technologies. Mergers and acquisitions further complicated the global footprint of systems combined with the large-scale implementation of advanced manufacturing solutions. The diverse breadth of technology impaired the ability to efficiently leverage the digital thread, design reuse and enable global orchestration of operations. With multiple suppliers in this space, the governance structure was inefficient and haphazard. Data was distributed across many systems, which impacted the ability to utilize the information. Extensive training was needed for engineering and manufacturing personnel when moving from system to system causing significant loss of productivity and performance. Multiple systems with non-standard customizations caused integration nightmares and escalated costs. Due to these obstacles, an effort to innovate the process was imperative.&nbsp;</div> <div>&nbsp;</div> <div> <h3><em>What KPIs did you use to measure success for this project? (For example: performance, customer satisfaction, revenue, sales or relevant financial gains?) </em></h3> </div> <div>A Governance Steering Committee, comprised of both Boeing and supplier, was formed to drive and create innovative solutions which address challenges and foster the partnership. A comprehensive governance structure was created to assure that Boeing received all of the innovation and value from the supplier that was anticipated on Day 1 throughout the life of the contract with no value leakage. The board created governance project charters, documented processes, communication strategies and metrics governing the health of this historic partnership. SLA&rsquo;s were created to capture metrics around capability gaps that were identified in the supplier&rsquo;s product which measured how quickly and effectively gaps were closed. On a monthly basis, Boeing stakeholders assess supplier performance via a supplier performance survey which measures elements of cost, management, quality, customer satisfaction, technical and schedule. The survey results yield an overall supplier score that triggers mitigation plans if scores decline. &nbsp;</div> <div>&nbsp;</div> <div> <h3><em>How do you plan to ensure that the new model remains relevant and adapts to the future needs of the market</em></h3> </div> <div>By implementing tools that assist with monitoring the health of our governance structure and supplier performance, we can make adjustments that ensure the long-term success of our strategic partnership. Monthly, quarterly and annual supplier performance reviews help expose any looming breakdowns in the partnership. By analyzing the root causes of any impacts reported in the supplier scorecard and measuring governance activity/productivity, the Governance Steering Committee can make the necessary adjustments in order to improve governance and drive more value out of the contract. Having a robust governance strategy with strict rules of engagement drives innovation as a prime activity (not just a side benefit). In this fashion, we are able to measure managed service deliverables, address emerging business needs and avoid value leakage. Continual improvements through process health checks keeps governance optimized and relevant to the business environment.&nbsp;</div> <div>&nbsp;</div> <div> <h3><em>What advice do you have for those who may want to implement this innovative approach in their own organizations?</em></h3> </div> <div>Digitally transforming a global company is quite a feat, but necessary to strongly position for the future and remain viable through continuous changes in technology. This digital transformation enables design and operations the ability to move engineers from program to program without losing productivity. In addition, improved data management leverages greater value, reduces costly rework, and increases design and manufacturing automation to produce first time quality. The terms of an agreement with a strategic supplier needs to be dynamic to allow it to evolve with the scope of work and business environment throughout the life of the partnership. By encouraging a collaborative environment with our supplier, we are transforming into a proactive culture allowing us to operate under a shared purpose with personal accountability. Previously we operated with different interests in mind hindering our ability to be agile in our partnership. The new strategy allows us to align on mutually beneficial objectives and to work collaboratively instead of competitively. Our strategic partnership with our supplier has contributed to transformational changes across the enterprise and contributes to Boeing&rsquo;s goal to operate as One Boeing. Additionally, we partner with the supplier to identify opportunities that might benefit both companies, potentially including mergers &amp; acquisitions or investments in innovative start-ups that add value. A final objective of this initiative was to define the governance that allows our company and its supplier to oversee the implementation, performance, operational management and issue escalation of the partnership. This strategic partnership creates a vested interest in the future success of the contract and relationship of both parties involved.&nbsp;</div> <div>&nbsp;</div> <div> <h3><em>How did you get your company and/or stakeholders to get on board and support this project?</em></h3> </div> <div>The business case for this project was compelling yet simple: Boeing needed to be faster, enterprise-wide system integration, commonality and automation to drive the digital thread of data. Our current engineering and manufacturing systems required far too many resources to execute. We collaborated with outside industry consultants as well as internal sourcing, supply chain, finance, IT and enterprise business partners to identify opportunities to digitally transform our business. Potential suppliers were thoroughly evaluated, and a business case was brought forward to the Procurement Review Board for approval from executive stakeholders. This collaboration created a strategy in which the team proposed a transformational outsourcing partnership to provide early visibility into the cost impact of system integration decisions, create an opportunity to incorporate the supplier&rsquo;s innovation into the product development, and ultimately transformed the business. Stakeholders trust the Governance Steering Committee to make positive changes and have accepted the implementation of governance principles to achieve a successful partnership.</div> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/digital-transformation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Digital Transformation</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/product-lifecycle-management-plm" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Product Lifecycle Management (PLM)</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/manufacturing-operations-management-mom" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Manufacturing Operations Management (MOM)</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/future-of-sourcing-awards" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Future of Sourcing Awards</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/governance" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Governance</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/compliance" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Compliance</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Innovations in Governance &amp;amp; Compliance: The Boeing Company Supplier Relationships - Future of Sourcing" addthis:url="http://futureofsourcing.com/innovations-in-governance-compliance-the-boeing-company-supplier-relationships"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Thu, 19 Sep 2019 14:38:59 +0000 Future of Sourcing Awards 1609 at http://futureofsourcing.com http://futureofsourcing.com/innovations-in-governance-compliance-the-boeing-company-supplier-relationships#comments Innovations in Governance & Compliance: GEP http://futureofsourcing.com/innovations-in-governance-compliance-gep <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/FOS%20Header%20Image_Innovations%20in%20Governance%20and%20Compliance_0.png"><a href="http://futureofsourcing.com/sites/default/files/articles/FOS%20Header%20Image_Innovations%20in%20Governance%20and%20Compliance_0.png" title="Innovations in Governance &amp; Compliance: GEP" class="colorbox" rel="gallery-node-1597--tbUsbjw83o"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/FOS%20Header%20Image_Innovations%20in%20Governance%20and%20Compliance_0.png?itok=t9PaiJRX" width="624" height="325" alt="" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <p>This October, the&nbsp;<a href="https://futureofsourcingawards.com/?__hstc=215510152.344406f4865c40604cf6029be7e958e0.1543422516683.1570117954601.1570123446421.621&amp;__hssc=215510152.10.1570123446421&amp;__hsfp=2721840510" target="_blank">Future of Sourcing Awards</a>&nbsp;will celebrate organizations and individuals that have shown innovation, leadership and transformation in categories that are critical to the sourcing industry. Interviews with the finalists provide helpful insight about their projects, the problem they sought to solve and the impact to their organizations. Read how GEP partnered with a multinational Oil &amp; Gas company to implement a single, integrated procurement platform that could replace the legacy system already in place and also be fine-tuned to incorporate regional nuances.</p> </div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <div> <h3><em>Can you outline why your team embarked on this project and the problem that needed to be solved?</em></h3> </div> <div>The client, a multinational Oil &amp; Gas company with users across multiple locations had been using a legacy system along with other stand-alone systems to drive its procurement operations and associated activities such as savings tracking. The lack of integration between these different systems complicated the processes to be followed by the end user. Along with reducing process complexities and improving efficiencies, the client also wanted to improve compliance to global procurement processes across all sites while pushing locally required differences for each affiliate.&nbsp;</div> <div>&nbsp;</div> <div>GEP partnered with the client to implement a single, integrated procurement platform &ndash; SMART by GEP &ndash; that could replace the legacy system and also be fine-tuned to incorporate regional nuances. The aim was also to automate controls, thereby improving compliance. Integrating the process on a single application and redesigning it would help cut down the procurement cycle time. &nbsp;</div> <div>&nbsp;</div> <div> <h3><em>How were things done originally and what was the inspiration to innovate the process?</em></h3> </div> <div>The legacy software was an on-premise, outdated system being used by the procurement team along with other home-grown tools. This resulted in low visibility and transparency into procurement processes across different locations. In addition, procurement processes were also being managed offline, using tools such as MS-Word, PowerPoint, E-mail, etc. The then-adopted processes required the same information to be entered across multiple systems, causing errors due to manual data entry and reducing the procurement team&rsquo;s focus on strategic, value-adding activities. &nbsp;</div> <div>&nbsp;</div> <div> <h3><em>What KPIs did you use to measure success for this project? (For example: performance, customer satisfaction, revenue, sales or relevant financial gains?)</em></h3> </div> <div>The outcomes were measured using the following metrics:&nbsp;</div> <div>&nbsp;</div> <ul> <li>Time taken to replace the legacy systems with SMART by GEP for end-to-end procurement operations &nbsp;</li> <li>User adoption across different global locations</li> <li>Number of suppliers onboarded &nbsp;</li> <li>Number of sourcing events conducted using the platform</li> <li>Time taken to complete each procurement activity</li> <li>Number of savings projects initiated, and savings realized&nbsp;</li> </ul> <div> <h3><em>How do you plan to ensure that the new model remains relevant and adapts to the future needs of the market? </em></h3> </div> <div>SMART by GEP is an open platform that supports future innovation with emerging technologies such as AI, RPA, IoT and Blockchain. The platform can be further leveraged to automate spend analysis, project tracking, opportunity assessment and the entire source-to-pay process. With the ability to be able to process heavy volumes of procurement information and drive procurement processes &ndash; for instance: build a huge contract repository or a supplier database with thousands of supplier catalogs &ndash; SMART by GEP would help users of the platform perform compliant purchasing to fulfil their requirement with just a few clicks. &nbsp;</div> <div>&nbsp;</div> <div>Since SMART by GEP is a cloud-native procurement platform, any changes and enhancements would reflect enterprise-wide for the client. In addition, GEP invests heavily in innovation and the client will be able to enable any future improvement to the existing platform directly from the cloud. &nbsp;</div> <div>&nbsp;</div> <div>In addition, a feedback loop has been implemented within the client organization to get feedback. This feedback will be used to enhance the product roadmap and improve user experience. &nbsp;</div> <div>&nbsp;</div> <div> <h3><em>What advice do you have for those who may want to implement this innovative approach in their own organizations?</em></h3> </div> <div>&nbsp;</div> <ul> <li>Identify clear goals and objectives for the program, ranging from tangible business case benefits to intangible goals such as improving end user experience</li> <li>Ensure alignment with senior stakeholders on goals, project timing, staffing and approach</li> <li>Agile deployment methodology with continuous user engagement and the willingness to iterate and improve design continuously</li> <li>Suppliers having a seat at the table as very important stakeholders in the S2P process</li> <li>Organizational focus on process optimization, master data harmonization and change management</li> <li>Not being restricted to the program as a technology-only project and having a razor focus on the end-user experience, adoption and the business benefit&nbsp;</li> </ul> <div> <h3><em>How did you get your company and/or stakeholders to get on board and support this project? </em></h3> </div> <div>Multiple factors contributed toward building a strong business case for this project:&nbsp;</div> <div>&nbsp;</div> <ul> <li>The client&#39;s legacy system was outdated and on-premise. Upgrading the system and implementing the change across all locations would be a time-consuming and expensive affair. &nbsp;</li> <li>Deploying cloud-native SMART by GEP unified procurement platform with functionalities supported by Artificial Intelligence, RPA and NLP, among others, was a better option compared to upgrading the aging infrastructure of the legacy system. The acquisition and operational cost of SMART by GEP was comparatively lower than the cost to upgrade the existing legacy application.</li> <li>GEP was open to co-develop, enhance and fine tune SMART by GEP based on the client&#39;s requirement to ensure coverage of the end-to-end procurement process</li> <li>Internally, with this client, GEP also increased its portfolio of clients in the Oil &amp; Gas industry significantly through the successful implementation of SMART by GEP. The client is currently pleased with the capabilities of the SMART by GEP platform and intends to increase its spectrum of usage within the organization.&nbsp;</li> </ul> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/artificial-intelligence-ai" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Artificial Intelligence (AI)</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/blockchain" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Blockchain</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/internet-of-things-iot" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Internet of Things (IoT)</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/governance" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Governance</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/future-of-sourcing-awards" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Future of Sourcing Awards</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Innovations in Governance &amp;amp; Compliance: GEP - Future of Sourcing" addthis:url="http://futureofsourcing.com/innovations-in-governance-compliance-gep"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Tue, 10 Sep 2019 19:37:44 +0000 Future of Sourcing Awards 1597 at http://futureofsourcing.com http://futureofsourcing.com/innovations-in-governance-compliance-gep#comments Innovations in Third Party Management: Fannie Mae http://futureofsourcing.com/innovations-in-third-party-management-fannie-mae <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/FOS%20Header%20Image_Innovations%20in%20Third%20Party%20Managemnent_0.png"><a href="http://futureofsourcing.com/sites/default/files/articles/FOS%20Header%20Image_Innovations%20in%20Third%20Party%20Managemnent_0.png" title="Innovations in Third Party Management: Fannie Mae" class="colorbox" rel="gallery-node-1585--tbUsbjw83o"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/FOS%20Header%20Image_Innovations%20in%20Third%20Party%20Managemnent_0.png?itok=nd_wy2FV" width="624" height="325" alt="" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <p>This October, the&nbsp;<a href="https://futureofsourcingawards.com/?__hstc=215510152.344406f4865c40604cf6029be7e958e0.1543422516683.1569258589682.1569263088211.595&amp;__hssc=215510152.3.1569263088211&amp;__hsfp=3079266627" target="_blank">Future of Sourcing Awards</a>&nbsp;will celebrate organizations and individuals that have shown innovation, leadership and transformation in categories that are critical to the sourcing industry. Interviews with the finalists provide helpful insight about their projects, the problem they sought to solve and the impact to their organizations. Below, read about Fannie Mae&#39;s transformational project to develop fit-for-purpose technology to deliver a billion dollars a year in professional services.</p> </div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <div> <h3><em>Can you outline why your team embarked on this project and the problem that needed to be solved?</em></h3> </div> <div>Fannie Mae has traditionally engaged a broad range of third-party suppliers across different channels for advice, expertise, production support, development, governance and other services. The demand for professional services has ranged from single freelance experts to hundreds of resources for development to firms with methodologies and benches to deliver significant changes to our accounting and governance systems. &nbsp; &nbsp;</div> <div>&nbsp;</div> <div>To be more successful in our mission, we responded to a clearly identified need to deliver the right resources in the right mix at the right price. We are well on the way in a transformational journey to be the very best at delivering great outcomes from the third-party professional services channels needed by Fannie Mae.&nbsp;</div> <div>&nbsp;</div> <div> <h3><em>How were things done originally and what was the inspiration to innovate the process?</em></h3> </div> <div>When we started our journey, there was no vision, strategy, methodology or fit-for-purpose technology to deliver a billion dollars a year in professional services. We had many hundreds of suppliers and sub-contractor firms providing professional services to Fannie Mae. &nbsp;</div> <div>&nbsp;</div> <div>We focused purely on onboarding resources. A cross-functional effort that included human resources, procurement, and contractors managed the onboarding of resources undifferentiated beyond rudimentary roles. The segmentation between sources or capabilities of the supply channels was nonexistent. &nbsp;&nbsp;</div> <div>&nbsp;</div> <div>A decade ago, the subprime mortgage meltdown escalated into a national crisis. Fannie Mae was at the brink of bankruptcy as the real estate bubble popped, and Americans began defaulting on their home loans. Leadership was forced to take a step back and look at the business with a fresh set of eyes. That crisis required change, and the change had to be fast. &nbsp;Failure to adapt quickly would mean that we would remain the problem and not become the solution. &nbsp;&nbsp;</div> <div>&nbsp;</div> <div>At Fannie Mae, we accepted that we were unable to provide the level of expertise at an acceptable cost within the required timeframe without help from third-party professional services. Using the wrong tool or using the right tool the wrong way was not going to deliver enough change soon enough. We had to change how we thought about third-party professional services. Understanding the problem while defining the exact support needed delivered significant impact with more efficient and effective use of third-party support. &nbsp;</div> <div>&nbsp;</div> <div> <h3><em>What KPIs did you use to measure success for this project? (For example: performance, customer satisfaction, revenue, sales or relevant financial gains?)</em></h3> </div> <div>We measured success using cost reduction; supplier rationalization; sourcing, contracting, and onboarding cycle times; best-fit-for-purpose utilization; and customer and supplier satisfaction. Here are examples of how we measured success for the program:</div> <div>&nbsp;</div> <ul> <li>Contingent Staffing: moved from hundreds of firms to a dozen firms, went to a supplier neutral environment, eliminated rogue spend, reduced rates for services by 30% and improved cycle time by a third.</li> <li>IT Services Procurement: reduced the supply base from 150 to nine, captured 93% of IT delivery spend, provided effective Agile resource delivery and achieved over 14% in cost reduction in the first year.</li> <li>Advisory Services Procurement: shrunk the supply base from 178 to 35, captured 89% of advisory services spend and achieved a 12% cost reduction in the first year of channel rationalization.</li> <li>Gig Economy: adapted to tap talent within the creative and strategic advisory freelance resource pools and reduced our dependency on creative agencies, reducing creative talent costs by 50%.</li> <li>Common Digital Experience: Instituted an MSP/VMS model that drove down business approval cycle times and provided cost transparency, which enhanced substitution between suppliers and channels.</li> <li>Suppliers into Partners: planned collaboratively, driving increased contract duration, which enhanced resource quality, and yielded 5% in first year duration discounts.</li> <li>Customer Satisfaction: the team &ldquo;exceeded expectations&rdquo; in their categories for the last two performance cycles.&nbsp;</li> </ul> <p><img alt="" src="https://futureofsourcing.com/sites/default/files/Fannie_Mae_Professional%20Services%20Porfolio.png" style="width: 818px; height: 479px;" /></p> <div> <h3><em>How do you plan to ensure that the new model remains relevant and adapts to the future needs of the market?</em></h3> </div> <div>We have established a refresh cycle for each channel that allows us to test the marketplace for new capabilities and adapt to the changing needs of our customers. We will stay close to customers through category management and demand planning processes that align Procurement to customer goals and changes in their requirements. Finally, our leadership is constantly seeking to identify best practice in category management and sourcing processes that we will incorporate, whenever possible.&nbsp;</div> <div>&nbsp;</div> <div> <h3><em>What advice do you have for those who may want to implement this innovative approach in their own organizations?</em></h3> </div> <div>Our first bit of advice is to focus on delivering enterprise strategy enablers. From the beginning of our journey, the innovations we launched, and their resulting benefits were intended to enable delivery on Fannie Mae&rsquo;s vision and strategic goals. Staying close to enterprise goals and helping deliver a successful future will ensure third-party services remain an enterprise priority. &nbsp;&nbsp;</div> <div>&nbsp;</div> <div>Our second suggestion is to focus on leveraging each service delivery channel&rsquo;s area of comparative advantage (best and highest use). Meeting your demand with the best fit-for-purpose channel will you allow to deliver the most cost effective and efficient third-party professional services for your enterprise&rsquo;s needs. &nbsp;</div> <div>&nbsp;</div> <div> <h3><em>How did your team assess the risks/potential for your third-party management strategy? </em></h3> </div> <div>Not changing would have been our biggest risk. Our stakeholders, including our regulator were very clear about the compliance, costs, and capabilities that needed to be improved. The old ways were not an option. &nbsp;&nbsp;</div> <div>&nbsp;</div> <div>At their core, third-party professional services are enterprise categories with a broad customer base. Throughout the arc of our transformation, the core risks were service interruption of existing third-party professional services and failure to achieve customer adoption. Therefore, as we have organized each channel in the portfolio, we managed customer adoption beginning with the end in mind. We engaged our customers at both the working and leadership levels, incorporated their business goals into our sourcing goals, and kept them engaged throughout the sourcing, and celebrated our successes together when we operationalized.&nbsp;</div> <div>&nbsp;</div> <div>Regarding the potential, our overall sense was that we underestimated the project&rsquo;s potential.&nbsp;</div> <div>&nbsp;</div> <div>We did not expect the very high level of spend capture and the near elimination of rogue spend across all professional services channels that we achieved. Additionally, migration between suppliers and across channels delivered surprisingly powerful best-fit-for-purpose and substitution-driven cost reduction. We were surprised by these outcomes because we started at a point where all spend was rogue, and there was no enterprise view or transparency to professional services. &nbsp;It was hard to imagine coming so far, given where we started.</div> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/governance" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Governance</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/compliance" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Compliance</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/future-of-sourcing-awards" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Future of Sourcing Awards</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/third-party-suppliers" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Third Party Suppliers</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/strategy" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Strategy</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Innovations in Third Party Management: Fannie Mae - Future of Sourcing" addthis:url="http://futureofsourcing.com/innovations-in-third-party-management-fannie-mae"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Thu, 15 Aug 2019 20:33:51 +0000 Future of Sourcing Awards 1585 at http://futureofsourcing.com http://futureofsourcing.com/innovations-in-third-party-management-fannie-mae#comments Re-engineering a Corporate Real Estate Service Organization: Governance http://futureofsourcing.com/re-engineering-a-corporate-real-estate-service-organization-governance <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/Re-Engineering_Real_Estate_Governance.jpg"><a href="http://futureofsourcing.com/sites/default/files/articles/Re-Engineering_Real_Estate_Governance.jpg" title="Re-engineering a Corporate Real Estate Service Organization: Governance" class="colorbox" rel="gallery-node-1445--tbUsbjw83o"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Re-Engineering_Real_Estate_Governance.jpg?itok=TmUdw20C" width="624" height="325" alt="" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <p>In <a href="https://futureofsourcing.com/re-engineering-a-corporate-real-estate-service-organization-an-operational-review" target="_blank">Part I of this series</a>, we provided insight into the key steps and success factors associated with the process of re-engineering a corporate real estate services organization. In <a href="https://futureofsourcing.com/re-engineering-a-corporate-real-estate-service-organization-strategic-sourcing" target="_blank">Part II</a>, our focus was strategic sourcing of corporate real estate and facilities services including supplier pre-qualification, bid strategy, RFP development and administration, contract negotiation and transition management.</p> </div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <div>Although these processes can take months &ndash; sometimes longer, the work does not end when the contract is signed or even when the services are successfully transitioned to the outsourced partner. You don&rsquo;t simply hand over responsibility for the contracted services, schedule quarterly and annual updates and expect things to run smoothly.</div> <div>In the final segment of this series, we will examine the complex collection of topics related to governance, as well as some of the tools that support the implementation of a comprehensive supplier performance management strategy, including:</div> <div>&nbsp;</div> <ul> <li>Relationship Management Training</li> <li>Communications Strategy</li> <li>Escalation Processes and Procedures</li> <li>Performance Management</li> <li>Governance Support Platforms</li> <li>Periodic Relationship Health Checks and Contract Reviews</li> </ul> <div><strong>Relationship Management Training</strong></div> <div>&nbsp;</div> <div>Careful preparation is critical as you transition from the strategic sourcing phase into the operational phase, and training for both client and supplier stakeholders must be part of the transition. There should be initial training, of course, but don&rsquo;t overlook the need for ongoing training as well as training for new hires.</div> <div>Training should, at minimum, cover the following topics:</div> <div>&nbsp;</div> <ul> <li>All aspects of the deal itself</li> <li>Deal intent</li> <li>Performance management components</li> <li>Communication expectations and escalation procedures</li> <li>Review of governance support platforms in use</li> <li>Relationship management</li> <li>Ongoing strategy of refresher training programs for existing employees and onboarding of new employees</li> </ul> <div><strong>Communication Strategy</strong></div> <div>&nbsp;</div> <div>An effective communication strategy is essential to maintain alignment between the parties over time and establish a strong foundation for trust. A successful communications strategy will establish time-frames and cadence for formal communication for all stakeholders; foster open and honest communication; and establish expectations for bi-directional communication based on facts.&nbsp;</div> <div>&nbsp;</div> <div style="margin-left: 40px;"><strong>Guidelines for Formal Communication</strong></div> <div style="margin-left: 40px;">&nbsp;</div> <div style="margin-left: 40px;">Establish clear minimum guidelines for the type and frequency of communication. Special consideration should be given to the need for cross-functional communication, inter-departmental communication and communication between the contract parties.</div> <div style="margin-left: 40px;">&nbsp;</div> <div style="margin-left: 40px;"><strong>Open and Honest Communication</strong></div> <div style="margin-left: 40px;">&nbsp;</div> <div style="margin-left: 40px;">Frequency of communication is important, but the quality of communication is even more critical. While management gurus have written entire books on the topic, there are a couple of basic things to keep in mind.</div> <div style="margin-left: 40px;">&nbsp;</div> <div style="margin-left: 40px;">First, even though the client and supplier are two separate organizations, it should be made clear that all the stakeholders and participants in the relationship are part of the same team, and the relationship is not a zero-sum game.</div> <div style="margin-left: 40px;">&nbsp;</div> <div style="margin-left: 40px;">Second, open and honest communication should be respected and valued, regardless of whether the communication is related to successes, challenges or even a crisis.&nbsp;</div> <div style="margin-left: 40px;">&nbsp;</div> <div style="margin-left: 40px;"><strong>Communicate with Facts</strong></div> <div style="margin-left: 40px;">&nbsp;</div> <div style="margin-left: 40px;">Communication should be fact-based. Beware of conversations based on opinions, hunches, or hearsay. Set the expectation among all stakeholders that verifiable facts or metrics support any claims, whether related to successes or shortcomings.</div> <div>&nbsp;</div> <div><strong>Escalation Processes and Procedures</strong></div> <div>&nbsp;</div> <div>In instances where normal lines of communication fail to resolve performance issues, conflicts or misunderstandings, clear processes and procedures must be in place for escalation and resolution of the issues. At a minimum, these policies and procedures should:</div> <div>&nbsp;</div> <ul> <li>Identify the process for each stage of escalation and each category of issue</li> <li>Identify the appropriate individual to contact</li> <li>Identify the information that should be provided</li> <li>Identify the appropriate time-frame for response</li> <li>Identify the process for communicating the outcome back to the stakeholders</li> </ul> <div><strong>Performance Management</strong></div> <div>&nbsp;</div> <div>Throughout a strategic sourcing initiative, great care is taken to develop a sound and mutually beneficial contract that specifies all the tools necessary to support a strong performance management program. The most effective contracts include the following elements.</div> <div>&nbsp;</div> <div style="margin-left: 40px;"><strong>Outcome-Based Service Level Agreements (SLAs)</strong></div> <div style="margin-left: 40px;">A well-constructed SLA sets the stage for clear client and supplier expectations, and includes:</div> <div style="margin-left: 40px;">&nbsp;</div> <ul> <li style="margin-left: 40px;">A clear definition of the function to be performed</li> <li style="margin-left: 40px;">A specific list of responsibilities related to the function</li> <li style="margin-left: 40px;">Expectations regarding workload volumes</li> <li style="margin-left: 40px;">Time-frames in which work is expected to occur</li> <li style="margin-left: 40px;">Clearly stated expectations of service levels and performance levels</li> </ul> <div style="margin-left: 40px;"><strong>Performance Based Specifications</strong></div> <div style="margin-left: 40px;">&nbsp;</div> <div style="margin-left: 40px;">The SLAs focus on the needs of the company and service levels required, but should not address the specific process used to perform the service or attain the specified service level. This is important for several reasons:</div> <div style="margin-left: 40px;">&nbsp;</div> <ol> <li style="margin-left: 40px;">The client is outsourcing to take advantage of the expertise of the supplier.</li> <li style="margin-left: 40px;">If the client specifies how work will be done, it is in effect taking on the role of employer and may be held responsible for employee benefits and liabilities related to the work of the supplier&rsquo;s employees.</li> <li style="margin-left: 40px;">Locking in a specific process may preclude the supplier from applying new innovations that could bring significant benefit to the client.</li> </ol> <div>&nbsp;</div> <div style="margin-left: 40px;"><strong>At-Risk Fee Structure</strong></div> <div style="margin-left: 40px;">&nbsp;</div> <div style="margin-left: 40px;">In a typical at-risk compensation strategy, the supplier places a portion of their management fee at risk. This percentage is held back from each payment until the end of the quarter, year or other appropriate review period. Based on the metrics and scorecard specified in the contract, the client will pay the percentage of at-risk compensation due based on the supplier&rsquo;s performance for the period.</div> <div style="margin-left: 40px;">&nbsp;</div> <div style="margin-left: 40px;"><strong>Shared Saving Incentive Program</strong></div> <div style="margin-left: 40px;">Shared saving incentive programs encourage suppliers to find additional ways to reduce costs associated with the services provided. Savings are shared between the supplier and client according to a predetermined percentage on a quarterly or annual basis.</div> <div style="margin-left: 40px;">&nbsp;</div> <div style="margin-left: 40px;"> <div><strong>Performance Measures</strong></div> <div>&nbsp;</div> <div>Well-defined performance measures help suppliers understand exactly what is expected of them and how their performance will be judged. Key Performance Indicators (KPIs) are quantifiable performance measures that will be used to indicate the level of success of the supplier in meeting the goals and objectives of their contractual relationship.</div> <div>&nbsp;</div> <div><strong>Communication and Feedback</strong></div> <div>&nbsp;</div> <div>SLAs should contain reporting requirements and performance-based expectations regarding frequency and method of communication. At-risk compensation models should require both the supplier and client to provide timely feedback. This is particularly important when performance issues are identified. After all, your goal is that the performance of both parties results in:</div> <div>&nbsp;</div> <ul> <li>Services delivered at the expected level of quality and consistency</li> <li>100% of the anticipated compensation for the supplier</li> <li>Ongoing realignment of the objectives of the client with the goals of the supplier</li> </ul> </div> <div> <div><strong><span data-contrast="auto" xml:lang="EN-US">Governance Support Platforms</span>&nbsp;</strong></div> <div>&nbsp;</div> <div><span data-contrast="auto" xml:lang="EN-US">A robust and reliable governance support platform is essential to ensure that scorecards are generated on a timely basis, that&nbsp;</span><span data-contrast="auto" xml:lang="EN-US">reporting</span><span data-contrast="auto" xml:lang="EN-US">&nbsp;and benchmarking are timely and insightful and that you don&rsquo;t get bogged down in the minutiae of aggregating metrics, statistics</span><span data-contrast="auto" xml:lang="EN-US">&nbsp;and other data from multiple sources and departments across the enterprise.</span></div> <div>&nbsp;</div> <div><span data-contrast="auto" xml:lang="EN-US">A good platform supports&nbsp;</span><span data-contrast="auto" xml:lang="EN-US">sound&nbsp;</span><span data-contrast="auto" xml:lang="EN-US">governance through:</span></div> <div>&nbsp;</div> <ul> <li>Ensuring consistency in data collection and alignment with established performance measures</li> <li>Delivering standardized reporting in consistent formats</li> <li>Creating and storing a complete record and history of all interactions</li> <li>Providing a common platform for communication and issue escalation</li> <li>Securing data and sensitive information with multiple security levels and access<br />In addition, these platforms allow access using a variety of devices, from the traditional desktop or laptop to tablets and smart phones.</li> </ul> <div class="SCXW21762810 BCX4" style="-webkit-user-select: text; -webkit-user-drag: none; caret-color: rgba(0, 0, 0, 0.847059); color: rgba(0, 0, 0, 0.847059); font-family: &quot;Century Gothic&quot;, &quot;Century Gothic_MSFontService&quot;, sans-serif; font-size: 14.666666984558105px;">&nbsp;</div> <p><strong>Periodic Relationship Health Checks and Contract Reviews</strong></p> <p><span data-contrast="auto" xml:lang="EN-US">Beyond the structured aspects of relationship management and governance, periodic review and health checks can provide deeper strategic insight into critical success factors, underlying structural misalignments or fundamental changes in the contextual environment that may be eroding value. Some of the different tools that can help uncover challenges and opportunities&nbsp;</span><span data-contrast="auto" xml:lang="EN-US">are described below.</span></p> <div style="margin-left: 40px;"><strong>Compatibility and Trust Assessment (CaTTM)&nbsp;</strong></div> <div style="margin-left: 40px;">&nbsp;</div> <div style="margin-left: 40px;">The Compatibility and Trust Assessment was developed by Gerald Ledlow Ph.D. and Karl B. Manrodt Ph.D. to measure the strength of an existing business relationship between two parties. A key outcome of the CaT is to document organizational maturity across five key dimensions: trust, innovation, communication, team orientation and focus. It provides an overall &ldquo;raw score&rdquo; and highlights &ldquo;perception gaps&rdquo; between the parties. &nbsp;This tool can be a powerful support in improving the relationship between supplier and client.&nbsp;</div> <div style="margin-left: 40px;">&nbsp;</div> <div style="margin-left: 40px;"><strong>Relationship Health Check&nbsp;</strong></div> <div style="margin-left: 40px;">&nbsp;</div> <div style="margin-left: 40px;">A relationship health check looks at several different aspects of the relationship between client and supplier, including communications, decision-making, governance, innovation, metrics, mindset and trust, performance and problem-solving. The resulting report helps both parties understand the relative health of the strategic relationship, and flags potential problems and problem areas. The summary findings identify opportunities for action plans or contract modifications that address gaps and concerns.&nbsp;</div> <div style="margin-left: 40px;">&nbsp;</div> <div style="margin-left: 40px;"><strong>A Standing Neutral &ndash; Relationship Facilitation&nbsp;</strong></div> <div style="margin-left: 40px;">&nbsp;</div> <div style="margin-left: 40px;">Where the CaT and relationship health check offer point-in-time assessments of a strategic business relationship, a &ldquo;standing neutral&rdquo; contributes to the strength of a relationship over time. The concept begins with the understanding that no contracts are perfect, and that unanticipated situations, interpretations or disputes are bound to happen. At the beginning of the relationship, both parties approve a neutral third party to stand ready to intervene when called upon at any time throughout the life of the relationship.&nbsp;</div> <div style="margin-left: 40px;">The standing neutral works as a moderator or arbitrator, but with a critical difference. Having been appointed at the beginning of the contract, before an issue or dispute arises, the standing neutral is involved as part of the governance mechanism. Parties to the contract utilize the standing neutral earlier as issues arise, and before they erupt into disputes or lawsuits. &nbsp; &nbsp;</div> <div style="margin-left: 40px;">&nbsp;</div> <div style="margin-left: 40px;"> <div><strong>Contract/Deal Review&nbsp;</strong></div> <div>&nbsp;</div> <div>The contract/ceal review is a detailed review of the contracts, exhibits, processes and governance activities of the relationship to assess:&nbsp;</div> <div>&nbsp;</div> <ul> <li>The relevant artifacts relative to the original intent of the deal if known&nbsp;</li> <li>The current desired objectives and vision for the relationship&nbsp;</li> <li>Market benchmarks and other benchmarks to specific deal strategies&nbsp;</li> </ul> <div>The review helps stakeholders to see the structural flaws in their relationship from a contractual perspective and identifies what needs to be done in order to close those gaps and strengthen the relationship going forward.&nbsp;</div> <div>&nbsp;</div> <div><img alt="" src="https://futureofsourcing.com/sites/default/files/Re-Engineering_Coroporate_Real%20Estate_Services_Organization.png" /></div> <div>&nbsp;</div> </div> <div style="margin-left: 40px;">&nbsp;</div> </div> <div>This completes our series, Re-Engineering a Corporate Real Estate Services Organization, which touched briefly on the long list of complex topics involved in a process that, when done correctly, can yield outstanding results, process improvements, innovation and savings. But the sheer scale and complexity of the process when undertaken on an enterprise scale, means that there are a multitude of opportunities for things to go awry. Hundreds of millions of dollars and the operational integrity of the business hang in the balance.&nbsp;</div> <div>&nbsp;</div> <div>The key to success is ensuring that the right resources with the necessary experience are put in place and given the level of support they require. Understand the strengths and weaknesses of your organization, the motivations of the stakeholders, and the likely pitfalls, then plan accordingly. Reinforce your team with outside resources and experienced or neutral third parties wherever it is likely to improve your chances of success. Your investment in excellence will pay off in the long run.&nbsp;</div> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/real-estate-services" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Real Estate Services</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/strategy" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Strategy</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/governance" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Governance</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/strategic-sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Strategic Sourcing</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/savings" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Savings</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/cost" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Cost</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Re-engineering a Corporate Real Estate Service Organization: Governance - Future of Sourcing" addthis:url="http://futureofsourcing.com/re-engineering-a-corporate-real-estate-service-organization-governance"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Sun, 16 Jun 2019 21:27:55 +0000 Ingrid Fenn 1445 at http://futureofsourcing.com http://futureofsourcing.com/re-engineering-a-corporate-real-estate-service-organization-governance#comments Cognitive Procurement is Trending and Cognitive Outsourcing is Up Next http://futureofsourcing.com/cognitive-procurement-is-trending-and-cognitive-outsourcing-is-up-next <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/Cognitive_Procurement.jpg"><a href="http://futureofsourcing.com/sites/default/files/articles/Cognitive_Procurement.jpg" title="Cognitive Procurement is Trending and Cognitive Outsourcing is Up Next" class="colorbox" rel="gallery-node-1453--tbUsbjw83o"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Cognitive_Procurement.jpg?itok=6nhRis6c" width="624" height="325" alt="" title="" /></a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p><em>There has been a lot of buzz about &ldquo;cognitive procurement,&rdquo; the application of artificial intelligence (AI) to support buying goods and services to free up humans to handle valuable procurement functions that AI cannot manage.</em></p> <p><em>The same advanced technologies that are making procurement smarter, more efficient and more data-driven, can be used to make outsourcing relationships leaner, more profitable and more advantageous.&nbsp;</em></p> <p><em>This technology-enabled advancement in outsourcing can&rsquo;t happen soon enough.&nbsp;</em><em>As the percentage of <a href="https://futureofsourcing.com/the-rules-of-outsourcing-have-changed" target="_blank">contingent workers</a> rises around the globe, strategic supplier relationships become increasingly important for companies to achieve their business objectives. As well, they are becoming a more significant budget line item. To that end, governance strategies must be in place to drive value and optimize these operations.This is both an opportunity and a challenge, as researchshows companies experience value leakage from 17% to 40% of the annual contract value over the lifecycle of outsourcing contracts.&nbsp;</em></p> <p><em>The adoption of new technologies to support improved efficiency and drive greater value in outsourcing operations has been upon us for some time. But today a successful outsourcing strategy must find the balance between efficiency and experience, man and machine &ndash; ensuring the best possible outcomes in terms of cost, cycle time and quality of work.</em></p> <p><em>By interweaving AI and analytics into outsourcing operations, companies can gain the insights necessary to orchestrate the most innovative strategies to make outsourcing the crown jewel in the organization, driving sustainable growth and shareholder value.</em></p> <p>Here are the major tenets of a cognitive outsourcing approach:&nbsp;<br />&nbsp;</p> <p style="margin-left: 40px;"><em><strong>1.&nbsp;&nbsp;&nbsp;&nbsp;</strong></em><em><strong>Ensures a Full Understanding of How Work is Happening within Outsourced Operations</strong></em></p> <p style="margin-left: 40px;"><em>The first premise of a <a href="https://futureofsourcing.com/node/684" target="_blank">cognitive outsourcing</a> approach is that it entails active performance management. While in the past, performance has been gauged through tools such as time and motion studies, today in the knowledge economy, work is predominantly digital in nature.&nbsp;</em></p> <p style="margin-left: 40px;"><em>Advanced people analytics can be helpful performance measurement tools in that they measure and analyze digital output generated by individual and work group activity. Software automates the collection of the digital signals that an employee emits when using technology systems and combines them with analytics that equip executives with reporting and analysis to make better decisions around work, systems and the workforce.</em></p> <p style="margin-left: 40px;"><em>People analytics take into account work patterns on a day-by-day, or even minute-by-minute basis.&nbsp;</em>The results can reveal many areas of productivity leakage (e.g., revenue) and the insights gleaned can also support process improvement initiatives, shed light on work &ldquo;waste,&rdquo; and provide employee engagement trends and opportunities.<em><a>&nbsp;</a></em><em>It can also help predict future work/talent trends so businesses can proactively plan for what&rsquo;s ahead in addition to learning from past performance.&nbsp;</em></p> <p style="margin-left: 40px;"><em><strong>2.&nbsp;&nbsp;&nbsp;</strong></em><em><strong>Provides Insights on Where to Inject Automation</strong></em></p> <p style="margin-left: 40px;"><em>Outsourcing strategy and technology roadmaps must be aligned, both for the contracting organization and for the outsourcer, in order to: guide technology and automation investments; achieve business objectives; and drive value.&nbsp;</em></p> <p style="margin-left: 40px;"><em>As advances in AI, software robotics, machine learning and innovative technology platforms enable businesses to redefine processes, organizations have significant&nbsp;</em>opportunity for performance and efficiency<em>&nbsp;improvements. Yet today few companies have succeeded in meeting workplace automation goals.</em></p> <p style="margin-left: 40px;"><em>Successful workplace automation initiatives &ndash; or transformations &ndash; require equal focus on man and machine and, specifically, the space between them. Data-driven insights from people analytics can play a vital role in &ldquo;minding&rdquo; that&nbsp;</em>intersection.</p> <p style="margin-left: 40px;"><em><strong>3.&nbsp;&nbsp;&nbsp;&nbsp;</strong></em><em><strong>Guides Strategic Supplier Management</strong></em></p> <p style="margin-left: 40px;"><em>As strategic supplier relationships become increasingly important to achieve future company objectives, there is a need to define the relationship model. This can best be accomplished through a data foundation that supports quantitative analysis of performance with clear metrics. Co-management creates a relationship where both parties have a vested interest in the direction and success of the program with transparency at both strategic and operational levels.&nbsp;</em></p> <p style="margin-left: 40px;"><em>To support co-management, enlist a sophisticated, proven technical tool that automates the outsourcing governance function. For best results, choose a solution that meets the following six requirements:</em></p> <p style="margin-left:67.5pt;"><em>&middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</em><em>Ensures accurate and automated data is captured to gain visibility into outsourced team operations</em></p> <p style="margin-left:67.5pt;"><em>&middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</em><em>Captures data that is highly accurate and can be used to create benchmarks, SLAs and metrics to run governance&nbsp;</em></p> <p style="margin-left:67.5pt;"><em>&middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</em><em>Creates a data-driven engagement and governance model</em></p> <p style="margin-left:67.5pt;"><em>&middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</em><em>Ensures real-time visibility into activities to predict the outcome/deliverables</em></p> <p style="margin-left:67.5pt;"><em>&middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</em><em>Links data captured back to current metrics and SLA in contracts</em></p> <p style="margin-left:67.5pt;"><em>&middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</em><em>Frees up governance team resources to focus on increasing value from its outsourcing engagements</em></p> <p style="margin-left: 40px;"><em><strong>4.&nbsp;&nbsp;&nbsp;&nbsp;</strong></em><em><strong>Safeguards Business Operations from Risk</strong></em></p> <p style="margin-left: 40px;"><em>Cognitive outsourcing also involves putting in place the foundation for risk identification and mitigation to safeguard business activities from potential harm.&nbsp;</em></p> <p style="margin-left: 40px;"><em>Experts advise&nbsp;</em>an approach that aligns business objectives and internal and external resources, implements sound governance and controls and addresses all relevant regulatory and compliance matters.</p> <p style="margin-left: 40px;"><em>Risk identification and mitigation must begin early in the outsourcing program lifecycle. A data-driven foundation can help organizations and their outsourcing partners work together to identify, evaluate and prioritize risks, and then implement mitigation strategies accordingly. Dashboarding can keep all parties apprised of issues so no one is caught off-guard.</em></p> <p><em><strong>Cognitive Outsourcing &ndash; Making Every Supplier Relationship a Strategic Supplier Relationship</strong></em></p> <p><em>Technology-enabled advancements in outsourcing are providing tools to bring business operations around the world into lock-step alignment, making o</em><em>utsourcing relationships leaner, more profitable, more advantageous and more strategic.</em></p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/supplier-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supplier Management</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/governance" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Governance</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/cognitive-outsourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Cognitive Outsourcing</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/data-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Data Management</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/risk-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Risk Management</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Cognitive Procurement is Trending and Cognitive Outsourcing is Up Next - Future of Sourcing" addthis:url="http://futureofsourcing.com/cognitive-procurement-is-trending-and-cognitive-outsourcing-is-up-next"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Fri, 24 May 2019 18:29:45 +0000 Khiv Singh 1453 at http://futureofsourcing.com http://futureofsourcing.com/cognitive-procurement-is-trending-and-cognitive-outsourcing-is-up-next#comments