hr vendor mgt

Project X: Build & Deliver Phase

HR Vendor Management Governance Structure- DRAFT

June 2007

Document Purpose The purpose of this document is to:

– Define: Guiding principles for managing HR vendors A global governance model for managing HR vendors across all regions,

countries, business units, etc. including:– Roles and responsibilities within the governance model

Governance model enablers including:– Guidelines/rules for the application of the process – Standard global HR vendor management process – Standard global system (SRM) support for HR vendor management– Approved vendor list (AVL)– Partnership with the Global Procurement function

– Identify High-level timeline for implementation of new process and governance

structure Training and implementation considerations

Contents

HR Vendor Governance: The Problem Statement

Building HR Vendor Governance at <client x>– Guiding Principles

– Governance Structure

– Governance Enablers

Implementation: High-level timeline, Milestones and Considerations

Next Steps

The Problem Statement

Key Findings from Assessment and Design Phase: No Standard HR Vendor Governance Structure Exists

Observations Implications

Inconsistent vendor performance management (e.g., Service Level Agreement (SLA) metrics, tracking mechanisms)

Difficult to recognize high-performing vendors; does not encourage partnerships with vendors

Agreements cannot be located for a number of low-spend, active vendors

Maverick spend that should be channeled under approved vendors to increase purchasing power

No coordinated HR program to manage vendors and spend; lack of global oversight for HR vendor spend/management

Process inefficiencies; numerous vendor managers creating their own vendor management processes

The Result: Vendor Spend is HR’s Second Greatest Cost

Global HR Costs FY 05

$-

$5

$10

$15

$20

$25

$30

$35

Systems Vendors Labor

Mill

ion

s

$22.6M

The vendor analysis conducted during the Project X Assessment and Design Phases determined vendor spend to be HR’s second greatest cost. While some spend reduction was achieved during FY’06 and ’07, there is still a need to implement governance around managing HR Vendors and to continue to look for opportunities to reduce HR vendor spend.

The Recommendations

Standardize HR vendor management processes (Complete) Formalize engagement of Procurement in the process Define task-level responsibilities for vendor management with HR Build vendor performance monitoring and consolidation activities into the process

Enable global monitoring of sourced vendors and spend Leverage the new HR organizational model to enable global vendor spend oversight and

defining spend accountability Utilize technology (SRM) to enable visibility into the HR global vendor supply base and

leverage opportunities Develop corporate policies that will drive end-users toward using national contracts Implement regular internal reporting to identify non-compliant vendor spend

Increase use of strategic sourcing techniques Forecast needs, develop approved vendor list (AVL - vendors with whom to contract and

partner for the anticipated work) and create MSAs (including global MSAs) to cover all work to be sourced with vendors

Dual source upcoming contracts (competitive bids) Develop an approval process to effectively manage demand

During the Design Phase analysis, three major recommendations were made for addressing the HR vendor management problem. A standard HR vendor management process has been developed, and the focus of this document is creating an HR Vendor Management Governance Structure that will enforce global monitoring of sourced vendors and spend, enabled by the use of strategic sourcing techniques.

Building HR Vendor Governance at <client x> : Overview

Guiding Principles Governance Model Overview

Guiding Principles for HR Vendor Management

HR assesses its global vendor “portfolio” on an ongoing basis to:– Ensure best pricing and service opportunities are leveraged– Align vendor portfolio with HR and corporate strategic objectives– Ensure global suppliers are leveraged where possible, but meet local

requirements

Globally, HR adheres to the same “Vendor Priority Level” guidelines for assessing level of rigor in vendor monitoring/governance

All HR vendor requests adhere to a standard global process– The global process is streamlined, and not intended to create bureaucracy

HR develops and adheres to an Approved Vendor List (AVL), which incorporates regional/local vendor requirements

If the process and/or AVL is by-passed, then a purchase order is not generated

HR, Procurement, Finance and GIS operate as closely aligned strategic partners for managing HR vendors

Overview: HR Vendor Governance Model

GOVERNANCE STRUCTURE

ENABLERS

The HR Vendor Governance model has structured global oversight, which is enabled by standard global guidelines, a standard global process and system, use of an Approved Vendor List, and partnership with the global Procurement function

Standard Global System– SAP Supplier Relationship Management (SRM)


Standard Global Guidelines/Rules– HR Vendor Priority Levels

Standard Global Process– HR-260: Manage HR Vendors

HR Approved Vendor List (AVL)

Global Procurement Function– Contract negotiation and development expertise

Global HR Vendor

Management Council

Global HR Vendor

Management Council

COE(Strategic Vendor

Management)


Management)

Global Procurement Organization


Global Vendor Manager (GVM)Global Vendor Manager (GVM)

HRSC Tier 2 Specialists

(Operational Vendor Management)



Governance Structure: A Detailed View

Global HR Vendor

Management Council

Global HR Vendor

Management Council


Management)


Management)



Global Vendor Manager (GVM)






Global HR Vendor

Management Council

Global HR Vendor

Management Council


Management)


Management)









HR Vendor Management Council Role: The “HR Vendor Management Council” is the central governing

body for periodic oversight and semi-annual review of global HR vendor management strategy, policy and budget/spend. The Council also liaises with and provides regular status reports to the VP of HR and other executives.

Responsibilities: – Ensure the strategic objectives HR, procurement, and the organization as a

whole are aligned– Set and review policies related to managing HR vendors (globally, regionally

and locally)– Oversee (at highest level) global HR vendor spend (which is managed at the

detailed level by the Global Vendor Manager, and the COE/HRSC vendor managers)

– Meet semi-annually for strategy, policy and budget reviews– Provide report-out to VP of HR and other executives as necessary

Structure: – The Council is facilitated by the HR Solutions Center Lead– Members of the Council include:

Workforce Management, L&D and Total Rewards COE Leads (3 largest COEs) Representatives from each major region Representative (s) from global Procurement organization Finance representative (s) GIS representative (s)

– The Council meets semi-annually, as coordinated by the HRSC– In the interim (with pending go-live of HRSC and COEs), the currently named

“Vendor Task Force” can act a similar capacity to the Council

Global HR Vendor

Management Council

Global HR Vendor

Management Council


Management)


Management)









Global HR Vendor

Management Council

Global HR Vendor

Management Council


Management)


Management)









HR Global Vendor Manager (GVM) Role: The “HR Global Vendor Manager (GVM)” oversees HR’s

global portfolio of vendors and spend. The GVM also enforces the global HR vendor management process and guidelines. The GVM is a subject matter expert in vendor portfolio management, contract analysis and vendor consolidation (specifically within HR) and has global and cross-functional vendor management capabilities.

Responsibilities: – Manage HR’s global portfolio of vendors and vendor spend, partnering with

Procurement, Finance and GIS to identify and drive better pricing, service and efficiency globally (where possible), regionally, and/or cross-functionally

– Partner with the COE (strategic) and HRSC (operational) vendor managers to develop, maintain and enforce HR’s Approved Vendor List (AVL)

– Oversee and enforce adherence to “HR-260: Manage HR Vendors” process by partnering with and providing guidance to the COE (strategic vendor management) and HRSC (operational vendor management)

– Provide regular reports to HR Vendor Management Council as necessary

Structure: – The GVM is an HRSC Operational Team Lead role and reports directly to the

HRSC Lead– The GVM receives direction and guidance from the HR Vendor Management

Council (as relevant)– The GVM acts in a partnership and advisory capacity to the Strategic (COE)

and Operational (HRSC) vendor managers– <client x> may also consider utilizing an outsourced vendor to act in the role

of GVM (i.e., utilize a vendor to manage other vendors)

Global HR Vendor

Management Council

Global HR Vendor

Management Council


Management)


Management)









Global HR Vendor

Management Council

Global HR Vendor

Management Council


Management)


Management)









COE (Strategic Vendor Management) Role: The COEs are responsible for strategic vendor management

and are the functional subject matter experts for vendor sourcing, selection and monitoring.

Responsibilities: – Develop sourcing strategies– Manage strategic relationships with vendors (acting as single points of

contact for high-risk/high-dollar vendors)– Own the vendor selection process (in conjunction w/ Procurement)– Define vendor performance metrics/KPIs and vendor performance

review/monitoring frequency– Partner with the Global Vendor Manager to monitor regional and global

vendor spend within and across functions– Adhere to tasks as defined in the COE “swim lane” of HR-260: Manage HR

Vendors

Structure: – Strategic vendor management capabilities exist in all roles within the COE,

although COE Program Leads and Consultants will likely have the most strategic vendor management responsibilities

– Each COE will have varying levels of vendor management responsibilities, based on the frequency of vendor utilization and the number and types of vendors managed by each COE

– The COEs partner closely with HRSC Tier 2 (operational) vendor managers as well as Procurement (contract/negotiations experts)

– The COEs utilize the expertise of the GVM (Global Vendor Manager) as advisors and vendor management subject matter experts

Global HR Vendor

Management Council

Global HR Vendor

Management Council


Management)


Management)









Global HR Vendor

Management Council

Global HR Vendor

Management Council


Management)


Management)









HRSC Tier 2 (Operational Vendor Management) Role: The Tier 2 HRSC’s are responsible for operational vendor

management and are the day-to-day administrators of HR vendor-related activity including support for vendor sourcing, monitoring and issue resolution.

Responsibilities: – Manage day-to-day vendor relationships and submit HR data to vendors

via appropriate interfaces– Support the vendor selection and contract renewal processes– Support the COE in monitoring of vendor performance, managing vendor

Service Level Agreements (SLAs) and measuring vendors against metrics defined by the COE

– Perform industry/BKM benchmarking as required– Assist the COE and GVM in identifying vendor consolidation opportunities– Adhere to tasks as defined in the HRSC “swim lane” of HR-260: Manage

HR Vendors

Structure: – Operational vendor management responsibilities are part of the the Tier 2

Operational Specialist’s role – HRSC Tier 2 Operations Specialists partner directly with the COEs

(strategic vendor management) as well as Procurement (contract/negotiations experts)

– HRSC Tier 2 Operations Specialists utilize the expertise of the COE and the GVM (Global Vendor Manager) as advisors and subject matter experts

Global HR Vendor

Management Council

Global HR Vendor

Management Council


Management)


Management)









Global HR Vendor

Management Council

Global HR Vendor

Management Council


Management)


Management)









Governance Enablers: A Detailed View






Global Procurement Function– Contract negotiation and development

expertise







expertise

Global Standard Vendor Guidelines/Rules:HR Vendor Priority Levels

The HR Vendor Priority Level Guidelines define the rules for:– Flexibility in the application of the HR-260 process– Level and rigor of governance/monitoring that must be <client x> to each type of vendor

based on risk imposed by that vendor The vendor priority levels (1,2 & 3) and corresponding guidelines are defined based

on level of risk imposed by a particular vendor including:– Data security/privacy– Annual spend– Breadth of services– Systems access– Risk monitoring capability

A vendor does not have to meet all defined criteria to fit into a Level (i.e., a lower risk vendor may still be defined as a “Level 1 Strategic Partner” based on other factors)

– Vendor managers in HR should use these guidelines for direction, but realize there is an element of interpretation involved

The Global Vendor Manager (GVM) owns the enforcement of the Vendor Priority Level Guidelines







expertise







expertise

HR Vendor Priority LevelsEach vendor level has specific governance requirements; High risk, strategic vendors are more closely monitored than lower risk, less strategic vendors

Level Description Governance Requirements

Level 1:Strategic Partners

Generally global or multi-regional strategic partnerships that can be multi-process in scope

Scope of services tightly linked to organization’s general business strategy

Scope of services present the most significant operational business risk (see definitions of potential risks)

RFI/RFQ/RFPs are generally required Annual spend generally >$150,000*, but is possible for annual

spend to vary outside of this range

Highest degree of relationship governance required All steps in HR-260: Managing HR Vendors Process generally must

be followed SLA (Service Level Agreement) and performance metrics must be

in place Vendor references must be conducted and documented Formal escalation process must be in place Vendor site visits generally required Single point of contact in HR required Performance measured quarterly utilizing vendor scorecard

Level 2:Niche Players

Generally fulfill emerging/distinct need Can be global or regional Can be single or multi-process in scope Scope of services present a moderate to high level of

operational business risk (see definitions of risks) Annual spend generally $50,000-150,000*, but is possible for

annual spend to vary outside of this range

Moderate to high degree of relationship governance required HR-260: Managing HR Vendors Process should be followed, but

some steps may not be applicable and can be skipped SLA and performance metrics may be in place Vendor references conducted and documented as necessary Formal escalation process in place as needed Vendor site visits not required Single point of contact in HR generally required Performance measured semi-annually utilizing vendor scorecard

Level 3:One-Offs

Supports an immediate unique need (generally to fulfill unique local requirements)

Used opportunistically Generally regional and single process in scope Should generally move to higher level or potentially be

rationalized as a candidate for future elimination/consolidation Scope of services do not present a high level of

operational business risk (see definitions of risks) Annual spend generally < $50,000*, but is possible for annual

spend to vary outside of this range

Low to moderate degree of relationship governance required HR-260: Managing HR Vendors Process should be followed, but

several steps may not be applicable and can be skipped SLA and performance metrics may be in place (as needed) Vendor site visits not required Performance measured annually or on as-needed basis, generally

without use of vendor scorecard

*Represented in US Dollars

HR Vendor Priority Levels: Defining Operational Business Risk Factors imposed by an HR VendorTo properly apply the Priority Level guidelines, it is important that we further define operation business risk factors. This will help clarify which level (1,2,3) a vendor falls into. Each risk factor should be assessed both individually and holistically to determine level of governance that is required for a vendor.

Risk Factor Definition

Data security/privacy

Level of access to private data such as: employee personal data, corporate proprietary data, and/or other types of protected data

Access is either directly by vendor or by any third-parties/sub-contractors representing vendor

Annual spend

Amount of administrative and/or delivery fees paid to a vendor annually (also consider price per employee or per unit)

Total amount of cash flow involved w/ the vendor Spend amounts will vary (especially by region) and should be assessed in

conjunction with all other risk factors Spend levels are represented in US Dollars

Breadth of services

Number of HR customers served by vendor Number of locations (regions, countries, business units, etc.) served by vendor Level to which vendor sub-contracts to other third parties

Systems access Level of access to any <client x> internal systems

Risk monitoring capability

Level and type of risk monitoring/controls in place by vendor Structure and type of risk monitoring in place to regulate sub-contractors of

vendor

Global Standard ProcessHR-260: Manage HR Vendors

HR-260:– Maps the entire lifecycle of managing an HR vendor, from sourcing to

contract renewal– Defines each task-level responsibility for HR vendor management within

the COE (strategic vendor management) and HRSC (operational vendor management)

The following five sub-processes define the global standard process for managing HR vendors

– HR-260-010: Define Sourcing Strategy and Select Vendor– HR-260-020: Process Purchase Requisition and Purchase Order– HR-260-030: Monitor Vendor Performance– HR-260-040: Perform Vendor Billing and Reconciliation– HR-260-050: Administer Vendor Contract Expiration

The Global Vendor Manager (GVM) owns the enforcement of HR-260 globally







expertise







expertise

HR-260-010: Define Sourcing Strategy and Select Vendor

HR-260-010 is linked to Business Transformation ARIS process P010 and P040

Th

ird P

art

yH

RB

PC

OE

Em

plo

yee

HR

SC

Man

ager

HR-260 Manage HR VendorsHuman Resources

HR-260-010 Define Sourcing Strategy and Select Vendor

Process:Sub-Process:Activity Map:

START

Define user requirements and sourcing strategy with stakeholders

(incl. Procurement)

Provide input on vendor list,

selection criteria and selection

panel

Procurement: communicate

requirements to vendors (RFI,

RFP, RFQ)

Review vendor responses against

defined criteria (supported by Procurement)

Procurement: finalize negotiations

Legal & Procurement: sign-off on contract

and T&Cs

END

Develop sourcing plan and analyze

sourcing opportunities (with

Procurement)

Use active vendor? (active

contract)

Process Purchase Requisition (HR-

260-020)Yes

Procurement: obtain NDA from

vendors if disclosing

protected data

Agree with vendor on contract (in

collaboration with Legal and

Procurement)

Identify / define business need

requiring use of vendor

END

Finance: confirm budget

Define business terms and performance

metrics (Procurement provides contract

expertise)

No

Select vendor

Identify potential

business need

Host Bidders’ Conference to

address vendor questions (if applicable)

HR-260-020: Process Purchase Requisition and Purchase Order

HR-260-020 is linked to Business Transformation ARIS process P070 and P080A

HR

SC

Yes

CO

ET

hird

Par

ty

HR

BP

Man

ager

Em

ploy

ee


HR-260-020 Process Purchase Requisition (PR) and Purchase Order (PO)


STARTComplete PR

and attach SOW

Agree on performance metrics with

vendor (if not defined in contract)

Procurement: process PR;

submit PO # to vendor and HRSC

Obtain notification of received funds

Monitor PO funds

END

No

Request additional

funds?

Agree on SOW, Quote or Other

Pricing with vendor (if adding

work under existing contract)

Appropriate approvals obtained?

YesNoEND

Accounts Payable / vendor: set-up vendor in

system (AP Online or other)

HR-260-030: Monitor Vendor Performance

HR-260-030 is linked to Business Transformation ARIS process P090

Thi

rd P

arty

HR

BP

CO

EH

RS

CM

anag

erE

mpl

oyee

No

No

Yes

Yes

Communicate results with

vendor (supported by Procurement)

Assess vendors against defined

quality measures

Perform monitoring of vendor (partner w/

HRSC)

Performance satisfactory?

Vendor: provide services / materials

and reports according to SOW

Interact regularly with vendor to enforce

SOW / SLA (operations

management)

Sourcing arrangement

meeting business needs?

START


HR-260-030 Monitor Vendor Performance


Consolidate vendor performance materials

(e.g., service level reports, contract

compliance, summary of activity, scorecardds)

Agree on corrective action plan with vendor

(supported by Procurement)

END

Define sourcing strategy and select

vendor (HR-260-010)

HR-260-040: Vendor Billing and Reconciliation

HR-260-040 is linked to Business Transformation ARIS process P120

Thi

rd P

arty

Finance: record billing and payment

CO

EH

RS

CH

RB

PM

ana

ger

Em

ploy

ee

Yes


HR-260-040 Vendor Billing and Reconciliation


Finance: process

request; submit payment to

vendor

ENDSTART

Vendor: post invoice through

system (AP Online or other)

Reconcile invoiced rates

against POAccurate? Approved?

NoNo (escalated)

Reconcile work completed

against invoice

Resolve with vendor; provide

support to HRSC

Yes

No (first resolution point)Resolve with

vendor

HR-260-050: Contract Expiration

HR-260-050 is linked to Business Transformation ARIS process P050A

CO

EH

RS

CT

hird

Par

tyH

RB

PM

anag

erE

mpl

oyee


HR-260-050 Contract Expiration


START

Gather vendor documentation (performance, compliance,

benchmarks, etc.)

GIMO: update contract data;

process PR

Yes

END

Maintain same vendor?

Define Sourcing Strategy and

Select Vendor (HR-260-010)

As-is renewal?

No

Redefine requirements (w/

COE); partner with Procurement and Legal to finalize

contract

No

Yes

Re-assess user requirements and sourcing strategy (incl. Procurement)

Determine timeframe needed to strategize for

upcoming contract expiration

Process Purchase

Requisition (HR-260-020)

Develop sourcing plan and analyze

sourcing opportunities (with

Procurement)

HR-260: Task-Level Definition HR-260 was documented at the task-level to define:

– All tasks-level responsibilities for HR Vendor Management within the COE and HRSC

– Local and functional extensions to the global process

– All data sources, supporting documents, data destinations, approval requirements required in each sub-process activity

– Sub-process KPIs (where applicable)

The task-level processes are documented in a standard Excel template and can be viewed.

Global Supporting System:SAP Supplier Relationship Management (SRM)

<client x>’s Business Transformation is focused on implementing SAP as the single platform to streamline business processes

Supplier Relationship Management (SRM) will be the SAP platform for managing the procurement of indirect materials

SRM will:– Eliminate manual processes for processing requests for indirect materials,

including HR outsourced service providers– Standardize and centralize sourcing and contracting processes within Global

Indirect Materials Organization (GIMO)– Greatly simplify and streamline procurement of indirect goods and services

SRM recently began its phased global rollout– Will be rolled out to HR in Location X during July ’07– Estimated roll-out to all of HR globally by March ’08 (approximate timeline

provided by BT SRM team)

The BT SRM Team, and ultimately the global Procurement function own this application







expertise







expertise

SAP SRM Proposed Timeline*

Release 2-Build/Test

Oct ‘06 Nov ‘06 Dec ‘06 Jan ‘07 Feb ‘07 Mar ‘07 Apr ‘07 May ‘07 Jun ‘07 July ‘07 Aug ‘07 Sept ‘07 Oct ‘07

Design Release 1-Build/Test

Release 1 EBP/CCM/BW Functionality

Release 2LACWPS/BE/Contracts Functionality

Rollout Group 3

Rollout Group 2

Rollout Group 1

Pilot Global Assessment & Roll-out

Mar’08

ECC6.0 Upgrade for FinanceScope and Plan Design Build Test Deliver

SRM-MEA Functionality

SRM-MEA User Rollout

SRM-MEA Catalog Rollout

Phase IIIPhase IIPhase I Phase IVPilot

*Timeline Provided by BT SRM Team- June 2007

Location XHR Rollout ONLY

Global HR Rollout

Business Transformation is rolling out SRM in phases. HR is scheduled for July ’07 go-live of SRM. Global HR is scheduled for a March ’08 go-live of SRM. The BT team owns the SRM training efforts and will align end-user training with the go-live schedule.

SAP SRM Rollout Schedule*

Location XHR Rollout ONLY

Global HR Rollout

*Schedule Provided by BT SRM Team- June 2007

Establishing an Approved Vendor List (AVL) allows <client x> to leverage its HR vendor spend. It also provides incentives for vendors, which should defined by HR (in conjunction with Procurement) and be articulated to potential preferred vendors.

• An Approved Vendor List consists of vendors that the <client x> HR organization has selected as its primary providers of external HR service

Approved Vendors are selected because of their “fit” with the organization, breadth/depth of services, functional capabilities, resource availability/quality (as relevant) and ability to offer competitive pricing to <client x>

The Approved List should be revisited and updated annually (or more frequently, as necessary) by the Global Vendor Manager

The Global Vendor Manager (GVM) owns the Approved Vendor List

Sample Preferred Vendor Incentives

100% of HR Spend goes to vendors on the AVL

Minimizes need for the vendors to negotiate terms/conditions of MSA on a project by project basis

Minimizes time/investment requirements for a full-blown RFP response by a vendor

Benefits to <client x>

Leverages HR spend within the organization (globally, regionally, cross functionally, etc.) and allows <client x> to receive the “best” market rates by directing volume to approved vendor (s)

Ensures high quality by using vendors with strong historical performance/buyer satisfaction

Eliminates need to renegotiate terms/conditions of the MSA on a project by project basis

Description Key Considerations

HR Approved Vendor List (AVL) Standard Global System– SAP Supplier Relationship Management (SRM)






expertise







expertise

As part of the Business Transformation, the Procurement function at <client x> will become a globally centralized organization; To enable the proposed governance structure, HR and Procurement must have a tightly aligned partnership going forward, allowing HR to leverage the global capabilities and expertise of the Procurement function

The HRSC is responsible for ensuring that the vendor provides contracted services and coordinates vendor activity to meet operational and project needs on a daily basis.

The COE sets strategic objectives for the relationship between the operational vendor managers (HRSC) and the vendor.

Procurement is ultimately responsible for all final vendor negotiations, defining terms & conditions contract completion and defining terms & conditions. Global Procurement responsibilities include:

- Providing sourcing and contract expertise (process, templates, best known methods, etc.)- Collaborate with the COE to define the sourcing strategy and partner with the COE/HRSC in the selection and

contracting of all HR vendors (bringing process, policy, and standardized contract terms and conditions)- Own the Purchase Requisition (PR) to Purchase Order (PO) process

CO

E

GlobalProcurement

HRSC

Vendor Managemen

t Governance Structure

Leveraging the Global Procurement Function







expertise







expertise

Implementing the Governance Model

High-Level Implementation Timeline

Change, Training and Communication Considerations

High-Level Implementation Timeline Feb 1 – Apr 30

Q2 ‘08Nov 1 – Jan 31

Q1 ‘08Aug 1 – Oct 31

Q4 ‘07May 1 – Jul 31

Q3 ‘07May 1 – Jul 31

Q3 ‘08

Timeline

Finalize vendor governance structure and process and obtain proper approvals

Develop detailed implementation plan for governance structure and process

SRM Go-Live for Location XHR (July)

Begin development of preliminary AVL (Approved Vendor List)

Begin preliminary roll-out of Vendor Priority Level Guidelines

Collect standard templates (from Procurement) for RFPs/RFIs/RFQs/ SOWs/SLAs/NDAs/Evaluation Matrices

GVM position posted and hired

Cross-process lead knowledge sharing of Vendor Management process and future-state governance structure

Key

Mile

sto

nes

VM process live for Separation, Relocation, People Movement and Compensation and related HRSC Tier 2’s hired

GVM fully responsible for HR vendor portfolio and management of ongoing vendor portfolio optimization

Vendor Governance Council Members confirmed/changed as necessary; kick-off meeting held (first semi-annual meeting)

Governance structure operational for launched processes

VM process live for EE Data Mgmt, Performance Mgmt, EE & Labor Relations, Diversity & Compliance and related HRSC Tier 2’s hired

SRM go-live for HR in all regions (estimated)


VM Process live for Benefits, Recruitment and Succession Planning and related HRSC Tier 2’s hired

Vendor Governance Council Members confirmed/changed as necessary; second semi-annual meeting held

Governance structure fully operational globally

VM process live for L&D, Immigration, Expat & Stock and related HRSC Tier 2’s hired

Training/”How-to-guides”/Procedural guides developed

Vendor Priority-Level Guidelines rolled-out globally

AVL finalized and rolled-out globally

Vendor Governance Council Members named (transitional)

Project X VM lead shares responsibilities with GVM until GVM is fully up to speed

Update any relevant global policies as necessary


Training & Communication: Key Considerations

Training for HR:– New HR-260 process “How-to” guides and procedural manuals

– New Vendor Priority Level guideline and AVL training

– Purchasing/negotiation competency training

– How to create RFPs/RFIs/RFQs and hosting bidders conferences

– Operational and strategic vendor management competencies as necessary

– How to evaluate “total cost of ownership” for vendors

– How to “think globally” when sourcing vendors

Training for Procurement, Finance and Managers:– How to evaluate “total cost of ownership” (to understand benefits of a

vendor outside of price/unit)

– Calculating global rebates at the local level

– General knowledge sharing on benefits of HR vendor management

Next Steps

Develop and execute detailed implementation plan– Validate high-level timeline provided in this document as starting point

– Align with go-live of processes as necessary

– Address implementation considerations

Develop and deliver training for vendor management

Create job descriptions, staff vendor management roles and form HR Vendor Management Council

Appendix

Build & Deliver Phase HR-260 Design Team

HR Vendor Management Team Members

<name>, Vendor Management Team Lead, US-Benefits

<name>, GIMO (Global Indirect Materials Organization/Procurement)

<name>,

<name>,

<name>,

<name>, Finance

<name>, Project Lead

<name>, GIMO/Procurement

<name>,

<name>,

<name>,

A cross-functional global team was engaged to design the global standard process: HR-260 Managing HR Vendors; The team also provided input into HR vendor governance requirements

HRBP Model Component Charter

Role Description:

Cu

sto

mers

(Execu

tives a

nd

Man

ag

ers

)HR Business Partners

Focus Areas: Coaching for executives, organizational effectiveness, organizational development;

support to leadership teams Coaching management around business implications of people management, movement

and rewards, as well as their own development Strategic recruitment, workforce planning and succession planning interventions Partner with the COE and HRSC to perform business analysis and deliver performance

improvement solutions as the primary accountable entity to the line client Integrate learning solutions and evaluation Escalated employee relations cases Employee communications advisory

Provide strategic consulting and advice to executives and line managers on organization management aspects of the business

Utilize change management capabilities to promote positive business behaviors and to foster a culture that aligns with core values

Work with customers to identify, develop, and refine solutions Drive solutions and leverage products and services in collaboration with the COE’s to

deliver effective HR solutions (challenging as necessary) Work in partnership with the COE, HRSC, and the Business Unit to ensure HR services are

delivered efficiently and effectively

Purpose: Partner with business unit executive and manager customers to translate business

strategies into HR priorities Ensure HR operational excellence in the execution of business priorities and HR strategy Balance business objectives relative to core values, balancing and representing

stakeholder perspectives

HR Strategy & Programs•Provide input into company-wide HR strategy,

programs, policies, communications and branding•Develop and drive HR strategy and programs

specific to business unit (in conjunction with knowledge of business)

Change Leadership•Provide change management support to business

units, including:• Culture• Management style• Risk taking and incentives• Communication• Valued change initiatives

HR Financial Measurement/HR Analytics•Analyze HR data and communicate appropriately to

executives and line managers• Identify action items based on analysis and define

metrics that are aligned with action items•Work with business units to identify profit-impacting

HR initiatives

Organization and People Effectiveness•Work with managers to identify changing business

requirements for HR programs such as workforce planning, employee productivity improvement, talent management, incentive-rewards design, and other HR programs

•Act as the liaison between employees/business units and COE to represent their requirements for company-wide program design

•Assist with the implementation and integration of programs, processes, and initiatives that maximize people effectiveness

•Tailor company-wide programs and processes to meet the unique needs of various business units

•Organizational development and evaluation of success

ADVISORY-Related Activities

HR Business Partner Work Activities

Performance Management

Career Development Strategy

COE Model Component Charter Overview

Communications branding and design

Templates and forms branding and design

Corporate Communications alignment

Employee survey management

Employee feedback mechanisms & integration approach

Regulatory compliance & reporting

Program governance (401K, IPOC & Appeals committees etc.)

HR & Compensation Committee (recommendations, requests, analysis)

Compensation Market

intelligence & supporting tools

Job Evaluations

Stock Programs

Benefits Savings, health

& welfare, retirement & wellness programs

Total Rewards

Recruitment Sourcing Strategies External Recruitment Recruitment

Effectiveness Reviews Employer Brand

Management

Workforce Planning

People Movement Talent Mobility

Program M&A and Divestitures

Employee Separations

Immigration, Relocation, & Expatriate Services

Diversity

Compliance

Workforce Management

Labor and Employee Relations

High-risk investigation management, as escalated

Employee Relations

COEs

Learning Strategy & Solutions Development

Learning Technology

Executive Development

Management Development

Employee Development

Organization Development

Change Management

Succession Planning

Learning and DevelopmentCommunication Performance

Management

Program Strategy, Planning & GovernancePlan, Policy and Process DesignCompliance & ReportingProgram-specific communications& training content

The role of each COE includes: M&A Integration Activities (including divestitures)Process-specific data requirements and MetricsStrategic Vendor ManagementProgram-related tool selection and management

HR Financial Measurement/Analytics• Define HR metrics that are tied to financial performance• Analyze HR budget and create business cases for HR

programs• Project future human capital resource requirements• Assist with other calculations and financial activities relating

to HR programs, processes, and initiatives

Organization and People Effectiveness• Market HR programs so they meet cost targets and are

utilized by employees

COE Work Activities

HR Strategy & Programs• Develop HR strategy, programs, policies and supporting tools• Develop communications and training content• Define HR budgets, related to programs• Manage and own compliance• Establish, monitor, and analyze program data/metrics (liaise

with HRSC to gather data and metrics)• Provide change management support, related to the

successful adoption of programs

Change Leadership• Assist with the design of an agile organizational infrastructure• Ensure communications strategy effectively conveys agility,

culture, learning, innovation, and other defined components

Vendor Management• Develop sourcing strategy• Own strategic relationships with vendors• Oversee/own the vendor selection process (in conjunction w/

GIMO)• Define performance metrics / Key Performance Indicators and

monitoring frequency to review vendor performance • Monitor regional and global vendor spend

PROGRAM-Related Activities

Employees

Managers

Executives

Admins

Contingent Workers

Former Employees

Vendors

GHR

Outsourced

Vendors

The HRSC Is Proposed To Have A Tiered Structure With Two Primary Sub-Organizations: 1. HR Operations & Technology Center and 2. HR Resource Center

HR BusinessPartners

Centers ofExpertise

Other Internal Partners:e.g. Legal, Finance

The interactions within the tiered HR structure are enabled by common global data bases and systems (e.g., SAP, Remedy, Altrua)

HR SOLUTIONS CENTER

HR Operations and Technology Center

HR Technology (GIS)

Technology Strategy

Data Integrity

Report Solutions

Technical Solutions

Metrics solutions

Analytics Support

HR Resource Center

• Transactions & Data Intake via Phone, Web, Mail, Fax,

• HR and Manager ESS/MSS• Outsource vendor Web sites• Policies, procedures, personal data,

HR website)

• Operations & Logistics• Training administration• KM Updates• Actively redirect to Tier 0

HR Portal

Tier 1

Tier 2

Tier 0

Tier 3

HR Operations

Total RewardsEmployeeRelations

CommunicationPerformance Management

VendorManagement

Learning &Development

HR DataMaintenance

WorkforceManagement

The HR Solutions Center will comprise:– HR Operations & Technology Center (Tier 2):

– HR Operations Center: Managing HR administration for all process areas and includes a vendor management and communications team

– HR Technology Center: Responsible for planning, designing and implementing self-service capabilities, automated functional requirements and metrics reporting capabilities. This organization is in the GIS organization, with dotted line responsibility to the HRSC Leader.

– HR Resource Center (Tiers 0 and 1):

– Tier 1: Intake and manage employee and manager HR inquiries, conduct HR administration activities related to knowledge management update, logistic support, etc.

– HR Portal (Tier 0): Web interface with 24/7 ESS and MSS capabilities, links with external vendor websites

HR Solutions Center process scope includes:– Total Rewards

– Data & Records Management

– Performance Management

– Workforce Management

– Employee Relations

– Learning & Development

– Communications

– Vendor Management

Overview of the HR Solutions Center

TIER 0-Self-service Capability

Predefined answers Basic to complex inquiries

ESCALATION of an open issue occurs when Tier 1 passes ownership of the issue onto Tier 2 for resolution due to the need for more specialized support.

Predefined answers Basic to complex inquiries Full range of People

Care Support

Transaction processing Information Management

TIER 2- HR Operations & Technology Specialist Support

Interpretation andproblem solving

Program delivery HR function dailies

TIER 3- HRBP/COE/Other Consultant Advisory

Forecasting Policy/program

design

Special studies Critical incident

support Higher-risk ER cases

Advice and counsel Specialist support for

technology Specialist support for

HR functions

Transaction processing Information Management

CO

E/

HR

BP

/Oth

erC

OE

/H

RB

P/O

ther

HR

SC

HR

SC

Overview of the Model Component Resolution Process

TIER 1- HR Resource Center Generalist Assistance

TRANSFER of an open issue occurs when a functional or technical specialist in Tier 2 passes ownership of the issue to another specialist within the Tier 2 structure based on the type of specialist knowledge required to resolve the issue.

REFERRAL of an open issue occurs when a functional or technical specialist in Tier 2 passes ownership of the issue to Tier 3 for resolution due to the need for a higher decision making level of resolution.

hr vendor mgt

Documents