To MSP or Not to MSP? Pursuing an Outsourced MSP or an Internally Managed Contingent Workforce Program. Chryseis Constantine February 26, 2015

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To MSP or Not to MSP?

Pursuing an Outsourced MSP or an Internally Managed Contingent Workforce Program

Chryseis Constantine

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Housekeeping Items

•  Everyone will be muted throughout the entire presentation

•  You are welcome to ask questions at any time using the chat and/ or Q&A feature

•  We will have a brief Q&A session at the end of the presentation to make sure that we answer your questions

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CWP Mission Statement

•  Mission: Our mission is to foster our individual member’s learning through the sharing of knowledge, best practices, experiences,

lessons learned and by engaging with industry experts and thought leaders.

•  Purpose: Our goals are to enhance the professional capabilities

and skills of our individual members and to bring value to the overall contingent workforce management discipline.

•  Who we are: CW Professionals is a Professional Association of

contingent workforce and strategic sourcing professionals working in multiple industries.

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CWP Governance

Steering Committee – Bay Area

•  Janice Urban, Oracle

•  Verdis Baldridge, Kaiser Permanente •  Greg Johnson, Blue Shield of CA

•  Mark Murphy, Keysight Technologies, Inc. •  Koenraad Lecot, Farmers Insurance

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•  In-person and Online Chapter Meetings

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•  Library of Presentations, Videos, and Recordings

•  View Discussions from you Peers Participate/Contribute

•  Become a Guest Speaker

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Our Speaker Today

Chryseis  Constan-ne  is  the  former  Vice  

President  and  Senior  Sourcing  Manager  

in  Global  Procurement,  managing  and  

direc-ng  a  global  con-ngent  workforce  

and  HR  program  across  five  con-nents  

for  BNY  Mellon.    She  managed  the  

implementa-on  and  transi-on  of  VMS/

MSP  providers  in  the  US,  UK,  Ireland  and  

Germany,  as  well  as  the  expansion  plan  

to  AsiaPac.    

Chryseis Constantine

Former Vice President & Sr. Sourcing Manager, Global

Procurement

BNY Mellon

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Overview

Benefits of employing MSP services

Distinguishing pros/cons of each support model

(i.e. an independent/ third-party MSP versus

self-staffed MSP)

Determining the best support structure based

on corporate culture

Factors to be considered (mergers, global

footprint/expansion, projected growth, resource

transition strategies)

Risk factors to neglecting a CW strategy

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What is a VMS?

A Vendor Management System or VMS is a web-based application used for sourcing and billing services

associated with the management of a Contingent and/or Temporary Worker program. Features such as supplier profiles, requisition creation and distribution, candidate data and submission details, time and expense tracking, on-and off-boarding

requirements, reporting and consolidated billing.

What is an MSP?

A company that assumes primary responsibility for managing an organization's contingent

workforce program. An MSP

may or may not be independent of a staffing supplier. MSP’s

provide: overall program management, reporting and tracking, supplier relationship management, supplier selection, project/requisition distribution lists, and consolidated invoicing/ billing.

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Forecasts predict that use of Temporary Labor in the

US will increase 6% in 2015. The chart below

demonstrates that the last quarter of 2014 into 2015

have already exceeded that assessment.

(personally, i feel it is more like 10%)

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Consider the impact of recent

Organizational Trends

COST SAVINGS

Stricter demands on lines of business that are not

profit-generating are required to capture savings one way or

another…

RISK

Cyber-security, Data Security, Compliance, Human capital,

etc.

RE-ORGANIZATION

Redefining job descriptions, transitioning to low-cost

“centres of excellence”, re-evaluating roles and reporting

structures

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SIA predicts that by 2020, VMS/MSP services

will be a part of every Fortune 2000

company’s workforce management

program.

So, how should you structure your MSP,

and what do these stats mean when

making the determination to your

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Key Questions :

Does the organization have an existing strategy for its contingent

workforce?

If yes, is that current strategy working for you and is it

suitable for the company’s growth, expansion and/or

re-organization? (i.e. where do you see your program in 3, 5, 7 years?)

How will “change” affect your organization?

Who will experience

the most impact from altering the existing plan or a change in the

support structure?

How do we (HR/Procurement/Finance) communicate with those

most affected?

Is it beneficial to include these groups in

stakeholder discussions and/or cross-functional teams?

What is the management structure and how does your organization

intend to support the new strategy -

either with technology,

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Who  is  the  sponsor  

or  internal  

administrator  for  

your  con-ngent  

labor  program  

now?  

Where  does  your  

current  program  

stand  in  re:  

•  Total  Annual  Spend  

•  Geography  

•  Poten-al  growth/expansion  

•  Users  and  their  service  expecta-ons/  

demands  

•Procurement  

•HR  

•Jointly  managed  -­‐  partnership  

between  HR  and  Procurement  

How  do  these  factor  into  

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Structuring  the  rela-onship  

 

Contract  Ownership  will  impact  the  level  of   influence  each  party  has  in  the  program,  its   management  and  levels  of  responsibility.    

*Tri-­‐party  rela-onship  

*Independently  managed  contracts   *MSP  exclusive   MSP   (OR  VMS)   ALL  CONTRACTS   DIRECT  PARTY   RELATIONSHIP   ALL  CONTRACTS   DIRECT  PARTY   RELATIONSHIP   CLIENT   CLIENT   MSP   VMS   VENDORS   CLIENT   MSP   VMS   VENDORS   FUTURE  STATE  

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THE PERSONALITY GAME

Selecting the right people for the MSP team who fit your culture, your program, and meet your expectations as a Client is the most

challenging tasks for the Program Sponsors (HR, Procurement, Finance)

Recommendations:

•  Demand the right to interview or have some level of influence over the hiring decision for the MSP team.

•  Try and Buy if self-sourcing the team

•  Remove problematic or “unfit” team members immediately. •  Embrace a team with diverse experience - Vendor experience,

recruitment, HR management, Operations, Project Administrators, Project Managers

•  Hold weekly meetings with MSP and Sponsors - voice concerns, need for guidance.

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T R U S T

Reliability

Responsibility

Integrity

As stakeholders, trust in your MSP to handle the daunting tasks of

program management is fundamental…but to what extent do

they manage?

Have you selected the right individuals and “team” to manage…

•  Supplier Management & Selection

•  Compliance & Governing policies and procedures (creation & enforcement)

•  Risk Mitigation

•  Cost-savings strategies •  Demand Management

(they must understand large scale projects, the demands from

managers, internal stakeholders’/sponsors’ priorities and business

initiatives)

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What is your desired service model?

Third Party Managed Service Provider (MSP) aka“Vendor Neutral or Master Supplier (similar concerns)

PROS

•  Trained staff on VMS

•  Use/License permissions included in

terms of agreement

•  Change Management - replacing

MSP support falls on supplier

•  Provide training to users as needed

•  In depth understanding of system

•  Reporting services and automation

•  Program Sponsors can focus on “big

picture” matters

•  Greater access to market data and

industry trends.

•  All payment distributions to agencies

are directed through MSP

•  Consolidated Invoicing

“CONS”IDERATIONS

•  Supplier “Buy-In” (concern over

relationships, pricing, MSP neutrality, etc.) With Master

Supplier - how can other suppliers compete?

•  Finding the right team –

experience, knowledge

•  Management concerns (sharing

proprietary info)

•  Global limitations on support

•  Need to consider how much

oversight you feel is necessary on data, team management, reports, invoicing…

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What is your desired service model?

SELF-MANAGED

“CONS”IDERATIONS

•  Program funding

•  Costs associated with each User license

•  Change Management - replacing MSP

support falls on your organization.

•  May have to provide training to users

•  Program Sponsor must be involved.

•  New or revisions to functionality $$$

•  Supplier management, audits, CV review,

market research, no external opinion to help gauge best practices

•  If global - can you find a team that can

communicate over time zones as a unified group sharing in same goals

•  When it goes bad, your holding the bag

with no support

•  Liability and risk factors are yours to

assume.

PROS

•  Its your team - they answer to you and

only you.

•  Management comfort re: sharing

project details / confidentiality.

•  Global limitations on support

•  Need to consider how much oversight

you feel is necessary on data, team management, reports, invoicing…

•  Ideal for small domestic programs

•  Liability and risk associated with a more

direct relationship with suppliers, resources, and the talent selection process.

•  Understanding corporate culture,

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Assessing the

levels of support

your internal

customers want,

and determining

what they need…

can a self-sourced

MSP team

support these

requirements?

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Regardless which service model you choose,

undoubtedly, there are benefits to employing MSP

services

PROGRAM GOVERNANCE

Designing and structuring “program governance” is the key to a

successful program and where the MSP can provide support

LONG/SHORT TERM STRATEGIES & OBJECTIVES

PROGRAM  BENEFITS  

Spend  Visibility,  Risk  mi-ga-on,  Process   improvement  and  efficiencies,  automated  

services,  cost-­‐savings.  

PROGRAM  BENEFITS  

Spend  Visibility,  Risk  mi-ga-on,  Process   improvement  and  efficiencies,  automated  

services,  cost-­‐savings.  

PROGRAM  COMPARISONS  /  BEST   PRACTICES  

Access  to  industry  peers,  solu-ons  they   employ  for  new  legisla-ve  challenges,  share  

concepts,  ideas,  successes  &  not-­‐so   successes  

PROGRAM  EXPANSION  

Having  a  dedicated  team  to  support  the   program  provides  opportunity  for  expansion,  

consumer  (user)  buy-­‐in,  and  enhanced   organiza-onal  efficiencies.  

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Additional Questions?

Chryseis Constantine

cconstantine@gmx.co.uk

+ 1 412.298.0082

Many Thanks to Joseph Nordlinger, CWP and

to all those who participated today!

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Webinar Recording:

You can find the recording of this webinar event, a copy of the presentation & a list of upcoming events here…

www.cwprofessionals.org/events

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