cips best in procurement and events... · investing in the future of procurement through sharing...
TRANSCRIPT
Owen Standen, Senior Vice President, EMEA ESC Procurement Category Lead for Non-Tech
Professional Services
22nd January 2015
Citi Enterprise Supply Chain (ESC)
CIPS Best in Procurement
CIPS Young Procurement & Supply Chain
Management Professional of the Year
Agenda
2
Award nomination and submission
Writing a successful entry
The winning entry
What winning the award has done for my career
Questions
2
Award nomination and submission
3
The decision to put forward submissions for Procurement industry
awards is part of a broader strategy to raise awareness of the brand of
Procurement at Citi and enhance Citi’s position as an employer of
choice
The decision to submit the entry for this award was made by an internal
Awards Committee within the global Citi Procurement organisation
The committee was looking for an individual who:
Has demonstrated strong business engagement
Is an advocate for the Procurement brand both within and outside the organisation
Has achieved success in driving the Procurement process in categories that are
recognised within the industry as traditionally challenging areas for Procurement to
penetrate
Writing a successful entry
4
Award worthy content focused on recurring themes
Delivered consistent sourcing excellence
Transformed highly complex and sophisticated categories
Driven Procurement engagement into new areas
Achieved numerous organisational Procurement ‘firsts’
Improved the perception of the Procurement profession
Well structured
Straightforward and easy to read
Provides short career background
Touched upon greater detail that was backed up by specific examples showcased in the
supporting submission
Includes visual examples of key analysis or results
References and endorsements
Includes short endorsements from managers, peers and stakeholders that work with me day in
day out
The winning entry
5
Written Entry (500 words) and 3 A4 supporting slides
Career progression to current point
Key achievements to date
Judges presentation (20 minutes)
Background / Context (About myself, Citi and Citi Procurement)
Case Study 1: EMEA Law Firm Review
Case Study 2: eAuctioning Legal Services
Case Study 3: Supporting a major EMEA Legal project
Case Study 4: Reengineering the Consulting category
Case Study 5: Procurement–VAT relationship
Appendices
Background / Context
About Owen
Jun 2007 | Aug 2007 | Aug 2008 | Dec 2009 | Dec 2010 | Jun 2012 | May 2013 | Jun 2014
Graduated with a First
Class BSc (Hons) Degree
from the University of
Manchester
Joined Barclays Global
Investors (BGI) on their
Graduate Scheme
Joined the BGI
Procurement
department as a Snr
Vendor Relationship &
Sourcing Associate
Promoted to Sourcing & Vendor
Relationship Manager post-
acquisition by BlackRock
Joined Citigroup as a
Vice President in
Strategic Sourcing
Spent 6 months on secondment
to Budapest setting up a
Professional Services team
(see appendix 5)
Promoted to EMEA
category lead for Non-Tech
Professional Services
Promoted to Senior
Vice President
About Citi
About EMEA Non-Technology Professional Services Procurement
• Comprises Legal, Consulting, Business Process Outsourcing (BPO) and Indirect Tax
• Historically, an immature collection of categories
• $70 billion in revenue • >$17 billion supplier spend • 1,000 cities / 160 countries
6
Passionate about Procurement and the value it brings
Endeavouring to set new industry standards for sourcing excellence
Continuously striving to transform, innovate and achieve organisational firsts
Investing in the future of Procurement through sharing best practice and up-skilling my team and peers
Ambassador for the profession, improving its perception inside and outside my organisation
• Senior Vice President and EMEA Head of Non-Technology Professional Services Procurement, leading
a multi-location team managing over $200 million of spend
Case Study 1: EMEA Law Firm Panel Review
Law Firms Involved
21
• Ran in a highly strategic manner with leading-edge benchmarking conducted on the panel,
including intelligent analysis encompassing highly innovative criteria
• Recommendation presented to the EMEA Legal Senior Leadership Team (SLT) with targeted
objectives pinpointed for the panel and broken down against each law firm
• Effective law firm negotiations choreographed with input from internal Legal
• Gained visibility to executive levels on the value Procurement can bring (e.g. EMEA General
Counsel, EMEA CFO and EMEA CAO)
7
• Renegotiation of the global commercial terms with Citi EMEA’s Tier I and II preferred law
firms
Cost Saving to Citi
$12.1 million
Countries / Cities Covered
62 / 142
Rates Agreed
>100,000
Achievements:
SOURCING EXCELLENCE ORGANISATIONAL ‘FIRSTS’ IMPROVED PERCEPTIONS OF THE PROFESSION
Lorraine Vines, Citi EMEA Legal CAO and Head of Legal:
Owen conducts himself with a level of maturity not found in individuals who have been in the industry for only a
few short years… He is a valued partner and I couldn’t think of anyone who deserves this award more.
Case Study 2: eAuctioning Legal Services
• Partnered with Citi Real Estate on a global Citi-
first, Procurement–Legal partnership to conduct
rapid, point-in-time tendering of legal instructions
• Through using RFQs and eAuctions, Citi was
able to benefit from capacity-driven law firm
pricing, securing greatly reduced (up to 50%),
point-in-time rates
• Partnership received global, firm-wide visibility
and was the subject of a global Citi internal
newsletter article
• Broke a major milestone for eProcurement tools
at Citi with the projection of live eAuctions to
EMEA Legal and the EMEA CAO creating
interest and showcasing the tool’s possibilities
8
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0 5 10 15 20 25 30 35 40 45 50 55
Proposed Fee
Level as a
proportion of
incumbent's initial quote
eAuction Duration (mins)
Legend: Law Firm A (incumbent) Law Firm B Law Firm C
24%
eAuction Activity Summary
Incumbent initial proposal (outside of eAuction environment)
Agreed law fee
Robert Leigh, Citi UK Real Estate Head:
Owen showed strategic leadership throughout the project... I have pleasure in recommending him for this award.
SOURCING EXCELLENCE
ORGANISATIONAL ‘FIRSTS’
IMPROVED PERCEPTIONS OF THE PROFESSION
PROCUREMENT ENGAGEMENT IN NEW AREAS Achievements:
Case Study 3: Supporting a major EMEA Legal project
• Actively engaged by EMEA Legal leadership
• Shaped and developed a detailed and objective
selection process, including a full Procurement-
managed RFP – a new Citi first
• Developed intelligent analysis to support an objective,
transparent and fully auditable decision-making
process
• Received critical acclaim within the global Citi Legal
community and executive level visibility
• The success of the project and its visibility is
continuing to drive Procurement engagement into new
areas
= Baseline fee level
16% = Proportion of fee over baseline
( )
Legend
(35%) = Proportion of fee less than baseline
65% = Agreed, capped fee as a proportion of baseline
9
100% = Total fee proportion
Jonathan Boustead, Global Head of Legal Services Procurement:
This relationship [EMEA Procurement and Legal] has evolved to a level of
maturity where the Legal community actively engage Owen in new
external legal counsel engagements.
ORGANISATIONAL ‘FIRSTS’
SOURCING EXCELLENCE
IMPROVED PERCEPTIONS OF THE PROFESSION
PROCUREMENT ENGAGEMENT IN NEW AREAS Achievements:
Case Study 4: Reengineering the Consulting category
• Historic strategy too focused on low-spend engagements adding little value and causing
delays and frustration to business partners
• Post-reengineering, team ROI went from less than break even to over 700%
• Improved Citi gatekeepers’ awareness of value Procurement brings
• Implemented relationship meetings with major consulting firms with clear positioning and
visibility on key deals
• Major milestones achieved include:
10
Presenting about Procurement at a major
consulting firm offsite: Presented to an
audience of Partners at a major consulting firm
strategy day offsite – a first for their organisation
Strategic Procurement-led tendering of
consulting deals: Strategic, high-value
tenders are now being run achieving savings of
up to 25% and gaining executive level visibility
Sean O’Connor, Managing Director and Citi Client Controlled Function Officer:
Owen has done an outstanding job supporting my organisation over a difficult and very time-sensitive period to
get three consultancy engagements over the line… It is this type of teamwork and collaboration that makes a
real difference!
TRANSFORMING CATEGORIES
IMPROVED PERCEPTIONS OF THE PROFESSION
ORGANISATIONAL ‘FIRSTS’ Achievements:
SOURCING EXCELLENCE
Case Study 5: Procurement–VAT relationship
• Built and developed a strong relationship with Citi’s EMEA Head of VAT fostering numerous
Citi firsts
• Major achievements include:
Launching VAT Procurement Handbook to draw attention to key dos
and don’ts
Inclusion of VAT on EMEA Deal Review Board – the peer review
forum for high-value deals
Targeted deep-dive reviews on areas of likely VAT overpayment
resulting in a multimillion dollar tax authority refund
Lizzie Mhagrh, Citi EMEA Head of Professional Services Procurement & Owen’s direct line manager:
He [Owen] is materially transforming the nature of the categories, breaking new ground and is building stronger
relationships with business stakeholders to drive more engagement in value-added Procurement activity.
11
PROCUREMENT ENGAGEMENT IN NEW AREAS
IMPROVED PERCEPTIONS OF THE PROFESSION
ORGANISATIONAL ‘FIRSTS’ Achievements:
TRANSFORMING CATEGORIES
What winning the CIPS award has done for my career
12
Major confidence boost
Gained me greater visibility and
access to the highest levels of Citi
Procurement
Significantly improved my visibility within the profession
Strengthened my candidacy for future roles
Questions
13